AXIA

Good morning, ladies and gentlemen, welcome to AXIA Energia's conference for the discussion of the results for the first quarter of 2026. Present here today are Mr. Ivan de Souza Monteiro, President of AXIA Energia; Mr. Eduardo Haiama, Executive Vice President of Finance and Investor Relations; Mr. Antonio Varejão de Godoy, Executive Vice President of Operations and Security; Ms. Camila Gualda Sampaio Araujo, Executive Vice President of Governance and Sustainability; Mr. Elio Wolff, Executive Vice President of Strategy and Business Development; Mr. Italo Tadeu de Carvalho Freitas Filho, Executive Vice President of Commercialization and Energy Solutions; Mr. Juliano de Carvalho Dantas, Executive Vice President of Technology and Innovation; Mr. Marcelo de Siqueira Freitas, Executive Vice President of Legal Affairs; Mr. Renato Costa Santos Carreira, Vice President of Learning, People and Services; Mr. Robson Pinheiro Rodrigues de Campos, Executive Vice President of Engineering and Projects; Mr. Rodrigo Limp Nascimento, Executive Vice President of Regulation, Institutional and Market.

We would like to inform that this event is being recorded and will be made available on the company's investor relations website, along with the presentation being shared today, both in Portuguese and English. To view the presentation in your preferred language, select the corresponding tab located in the upper left corner of the screen, Portuguese screen or English screen. For those who require simultaneous translation, the tool is available via the globe icon, labeled Interpretation, located at the bottom center of your screen. Upon selecting it, please choose your preferred language. For those listening to the video conference in English, there is an option to mute original audio in Portuguese by clicking on Mute Original Audio. For the Q&A session, if you would like to ask a question, please use the Q&A icon at the bottom of your screen, providing your name, company, and question.

As per our standard procedure, your name will be announced so that you can ask your question live. At that time, a request to unmute your microphone will appear on your screen. If you prefer not to open your microphone, please inform this in the Q&A field alongside your question so that our operator can read it out loud. Before we proceed, we would like to clarify that any statements made during this conference call regarding the company's business outlook, projections, operational and financial goals, constitutes the beliefs and assumptions of AXIA Energia's executive management, as well as information currently available to the company. Forward-looking statements are not guarantees of performance as they involve risks and uncertainties, and therefore depend on circumstances that may or may not occur. Investors should understand that general economic conditions and other operational factors may affect the results expressed in such forward-looking statements.

Now, we invite Mr. Ivan Monteiro, President of AXIA Energia, to begin the presentation. Please, Ivan, you may proceed.

Good morning, and thank you all for attending AXIA's earnings conference call for the 1st quarter of 2026. We maintain the trajectory of consistent improvement of our results, reflecting the changes implemented by the directors after the company's privatization in 2022. We would like to highlight the simplification of administrative and operational sides focused on governance improvement, agility and adaptation to the new strategy. Continuous reduction of expenses and costs and increase in productivity. Active portfolio management focused on end customers. A reduction of relevant contingencies in different natures, highlighting the compulsory loan. Expressive management and focused on the transmission assets and reinforcement and improvements of our assets. Discipline in capital allocation and strong growth in the shareholder payment.

I also highlight the beginning of the succession process in the company's governance with the active participation and leadership of the board of directors as set forth in our bylaws. I now turn the floor to our CFO to detail the earnings. Thank you.

Thank you, Ivan. Good morning, everyone. Moving on to the quarter highlights on slide 7. The first is EBITDA, reaching BRL 8.6 billion, up 60% year-on-year. Mainly due to the generation segment, and the prices this year are higher than last year. On the right side, along with the higher EBITDA, our investments continue to grow. We increased transmission investments in close to 50%, and global investments by 30%. Income is basically a reflection of the operational result. We maintain an avenue of growth, winning the reserve capacity auction with 190 megawatts of power.

That was the auction, but the turbine itself that will be added is larger. It's almost 250 MW of power at the plant. In terms of operational efficiency, our PMSO continues to go down by 3%, we are constantly improving our operations. As for governance, the board has approved, along with the shareholders, the migration to B3's Novo Mercado, the highest level of governance at B3. At the same time, the board also approved the delisting of the level 2 ADR at the New York Stock Exchange. Finally, at the board meeting that assessed the results of the first quarter, as already expected in our capital allocation methodology, there was an approval of an allocation of capital of BRL 4 billion, reinforcing our commitment to financial discipline for shareholder value creation and investment capacity.

It is important to note that every quarter we will be running this methodology, and this number may change over time as we deliver more results. The following slide, number 8, brings a summary of our earnings, with regulatory revenue growing by 7% in generation. At the lower cost that we delivered, our EBITDA grew 60% compared to the previous year. That reflected on our IFRS net income, reaching BRL 3,000,000,700. Slide number 9, getting a little bit into the investments. As we mentioned, investments grew in transmission close to 50% this quarter compared to the previous year, and overall investments at around 36%. The chart on the left shows the investment, BRL 691 million in the quarter, including investment in transmission, reinforcements and improvements, not only small, but also large scale.

On the right, we highlight the investments already approved for large scale improvement and reinforcement. When we combine all the investments in previous auctions and new lines and all the large scale investments already approved, we've reached the contracted investment of BRL 15 billion that will be, once implemented, translated into an RAP of close to BRL 2 billion. Slide number 10. Going back to our participation in the auction, we will be adding to our system almost 250 MW of installed capacity. At the auction that we participated, we offered 190, with an annual revenue of BRL 1,400,000 per MW. Slide 11. In terms of portfolio optimization, we continue to optimize it, uncrossing our stake in IE Madeira and IE Garanhuns with ISA Energia, receiving close to BRL 1.2 billion in this transaction.

On the other disposal, the divestment we made of four lines that are relatively small, receiving BRL 451 million with the sale of that stake. That maintaining our focus of optimizing our minority stakes, our capital discipline, and streamlining the corporate structure. Now on energy trading, slide number 13, and this is a slide that we always show in our earnings conference calls. Now, the position that we had in the 1st quarter with our own resources of approximately 16 GW on the left, upper left corner, with purchases of 1.2 GW and sales in the regulated market with quotas of 1.2 and ACR sales to distributors of 3.7. This usually will show the breakdown of submarkets where this power, this energy is allocated.

What's important to note here with this breakdown by submarket is that when we look at the next two slides, we see the effect, both due to hydrology that impacted price and how that influenced the trading margin this quarter. Moving on to slide 14. We have here the spot price, PLD, that went from BRL 160 in the first quarter of last year to BRL 300. Since about 60% of our energy are available, energy for trading is in the north and northeast regions, this increase significantly impacted the results, unlike last year when the price was more defined. On the right side, we show two charts showcasing the seasonality expected both for GSF purposes and how it would impact if we had that same curve in our portfolio.

As you can see, in the first quarter, at the bottom, we would have 12.5 average gigawatts available to allocate in the free market. This energy, as time goes by and GSF goes down, will reach 8 gigawatts in the third quarter, reaching as much as 10 gigawatts, starting again at the fourth quarter. All that to say that this first quarter had a combination, the perfect combination of the price increase and the PLD price with the larger amount of energy available, that's a seasonal aspect. On slide number 15, we explained a little bit about this different behavior compared to the previous year. First, on the left, is the starting point of the reservoirs. We ended December of the previous year at actually 45% at the reservoirs. From 2024 to 2025, we had 53.

What happened was that the rainy season that in the previous year had been very good in December, January, and February, which influenced not only the trajectory of the level of the reservoirs, but also the price that you see on the chart in the right side. This year, the opposite occurred. This year, we started not only from a lower level in the reservoir level, but the rainy season started with fewer rains, and it only gained speed more recently. Last year, it stopped raining at around mid-February. This year, it started raining heavily by mid-February, in such a way that the level of the reservoirs that on the bottom left side ended at the same level in March than the previous year. The trajectory of how we reached that same level was quite different.

That's why the price trajectory that we see on the right side, showing the bars with the prices in the southeast and north, northeast sub-markets were very different. What's the price expectation? That's the table on the bottom right side for the second quarter and the second half of the year. Noting that we're at the same reservoir level as the previous year, and the rainy season's already finished. When we look at the end of March 31, the market expectation for prices in the second quarter this year, 233 BRL. In the second half, 299 BRL.

When we look at the actual price of the previous year, 216, 259, we see that the markets are behaving appropriately due to the risk perceived in the first quarter that changed compared to what it was or what it had been projected. Once we got to the rainy season at the same level, the numbers are very similar to what we actually had in 2025. Getting into sustainability and governance. Slide 17, we show our hard, intense work to improve the security level, the safety level at Colíder HPP. We're very pleased with the results, especially considering the time where this work was done.

We'd also like to highlight the social projects that we do a lot, but we don't talk about so much, such as the Lagos de São Francisco project, when we have social returns close to 20 million BRL, working in different municipalities around the São Francisco River, strengthening and supporting family farming, livestock breeding, and environmental protection and preservation. On slide 18, we detail a little bit of what Ivan already mentioned about the beginning of the succession process. We will be creating, starting on June 1, a vice presidency, as you can see in the flowchart on the right, that will be led by Elio Wolff. This vice presidency will be in place until April 30 of next year, when it will be extinguished. All of this structure starts to report again directly to the CEO.

On June 1st, with the creation of this new vice presidency, we will extinguish or dissolve the Strategy and Business Development Vice Presidency. With that, we reaffirm our commitment to the long-term strategy of always acting in a detailed, focused, planned way, always thinking about the long term. On slide 19, we have the streamlining of the corporate structure. As we had mentioned, the shareholders approved the migration to Novo Mercado, the highest governance level of B3. We expect to conclude within the next months, maybe, or within the next few weeks, concluding this migration. At the same time, the board also approved the listing of the level 2 ADRs at the New York Stock Exchange, consolidating the liquidity in the Brazilian market, the shares in the Brazilian market.

Finally, on slide number 20, we'd like to talk a little bit more about the redemptions that may occur in the PNB shares. As we said, in this quarter, as we do every quarter, we reassessed our capital allocation methodology, where the board approved the capital allocation of BRL 4 billion. One of the ways of allocating that capital is the return to shareholders, and one of the instruments we have available is precisely the potential redemption of PNB shares. How will this process unfold? Noting what was approved in December was that the board of directors responsible for defining the amount and the timeline of the execution. If today the board decided to redeem today PNB shares, the price we would use would be the price of the previous day, which is the second bullet.

At this time, it triggers an entire timeline to allow shareholders who do not want to redeem to ask for conversion to ordinary shares in whole or in part so that we can continue. Either with the conversion or with the redemption for those who want to do so. Noting that the conversion timeline, there is one part that's automatic. 4 percentage points annually from 2026 to 2030 will be converted, and any remaining balance in 2031 will be converted into ON shares, the PNBs will disappear. This conversion timeline may be accelerated by the board, or the board has the discretion of instead of letting it be converted automatically or accelerating the conversion of PNB shares into ON shares, they may approve redemptions at any time in that mechanism that I was talking about. I think with that, we conclude the presentation, and we can move on to the Q&A session. Thank you.

We will now begin the Q&A session. If you would like to ask a question, please provide your name and company via the Q&A icon at the bottom of your screen. We kindly ask you to ask all of your questions at the same time, waiting for the companies to answer. To ask your questions in writing, just submit it through the Q&A icon, including your name and company. Please hold while we gather the questions. First question, Maria Carolina, Banco Safra. Please, Maria Carolina, you may go ahead. Maria Carolina, your microphone is enabled. You may ask your question, please.

Hello. Do you hear me now? Yes, please go ahead. Good morning. Thank you for this call. Two questions. First, about the trading strategy, energy trading strategy.

Looking at the quarter's balance compared to the fourth quarter for 2026 and 2027, the range that you included of the available balance for energy sale had a slight increase, which makes us feel like you became a little bit longer. It's I know it's a range, but it's more trying to understand the trend. If there's a reason for the strategy to maybe include more energy purchases, just to try and understand that a little bit better. Clearly, if you can, also give us some visibility of the price trend for the short term with the possible changes of the CVAR methodology that was in public consultation recently. If there was any change in terms of the trading perspective in the market due to that. Those would be my two questions.

Finally, I know you already talked about strategy a little bit, both Ivan and Haiama, but it would be interesting Ask. I mean, the company has delivered excellent results so far. You made a revolution, and that has obviously been proving great in cash generation strategy. It's a whole different company, clearly, but the succession seems to be natural, not a focus on strategy change. But if you can talk a little bit more about the company's strategy. Obviously, Eletrobras today is completely different from Eletrobras 2 years ago, so it would be interesting to put it into context, Ivan, if you could. That here, maybe if you're thinking about Eletrobras being slightly different looking forward or not, if it's more a matter of running as the company has been doing so far. Thank you.

Thank you, Carol. Thank for your question. First, I'm to turn to Rodrigo Limp. I'll answer the second one.

Good morning, Carol. Thank you for your question. Actually, yes, as you said, we provide a range, a range with limits of energy available. One of the points we have to consider, even with a bigger position available in 26, 27 when compared to previous years, is the de-quotization as well that we had. In 2025, we had 40% in quota energy, and 26, 20%, and in 2027 onwards, we don't have quoted energy of those plants which have been privatized with the change in the de-quotization. That has an influence. Since we don't provide the energy available by sub-market, we always have to consider what was shown on the slide.

The diversification of our portfolio per sub-market in terms of the de-quotization energy, a lot of it in the Northeast, and we had energy in the North as well, that are markets that have lower liquidity, naturally. The Southeast market, we have higher liquidity. That's where we concentrate a lot of our sales, although we made strong efforts to increase sales and trading in the North, Northeast sub-markets, the team led by Italo. With that said, we are advancing with a number of clients in those regions, which are more complex regions in terms of trading. About the future price projections and CVAR discussion. The CVAR discussion is something that we monitor very closely. It's a very relevant discussion in the context of the price formation process.

Going back, what's been enhanced in many items, even getting to 2021 with the introduction of the BNT/hour, in 2024, the approval of the hybrid model and the change in parameters of risk aversion starting in 2025. Annually, there have been discussions, and the CNSA has been deciding, including ONS and ANEEL, to set the parameters for the next year, for the following year. They opened the public hearing. We contributed. We have a view that the price formation process has evolved a lot. Today, we have a price formation based on the models that certainly still need to be enhanced. Today, in our view, it's a lot closer to the actual cost of the operation, which in practice is not the model, doesn't have to define higher or lower prices.

It must reflect the cost of the operation, and we have been verifying that. It's been discussed. For example, the lower amount of thermal power generation that brings a reduction of rates. We have defended the maintenance of those parameters of 1540. In our perception, that's what brings greater balance in terms of cost and energy security. We naturally work with other scenarios when we assess price projections. We consider maintenance. That's the scenario that we stand for, that we understand to be the most suitable in terms of energy security and cost to the system. We work with price ranges, and we've been seeing in recent weeks a reduction of prices for this year that is a result of the increase in the rain forecast for the South region. We have that outlook for the coming weeks.

That forecast actually combines with the entry of El Niño, that although there's expected more rains in the South, there's always a forecast of higher temperatures, which actually go to the other way in bringing prices up. What's uncertain is until when El Niño will act and how intense it's going to be. El Niño usually has higher rains, heavier rains in the South and lower rains in the North. If it goes on to the end of the year, beginning of next year, there may be relevant effects in prices for the next year.

Thank you, Lisa. First, Carol, I would like to thank your kind observation about the work that has been done here at Axia.

This is a joint work, a joint effort of the board and the executive directors and everyone who work here. We have the pleasure of having at Axia shareholders with long-term views and board representatives reflecting that philosophy. It could not be different. The company that we have built for 40, 50 years. The assets continue to produce, generate, and transmit and trade energy. We are very happy. There will be no change to the strategy, the strategy defined by the board of directors and the executive directors. We always have the perspective, Carol, of having a company that looks at decades. We are very satisfied that the board positioned in favor of a peaceful, mature process with a timeline that allows us to make this transaction, this transition rather, very smoothly. That's the objective.

All of the decisions are a result of all the support we receive from the board of directors. I'd like to thank you for your remarks that have been shared by the board and the directors and all of AXIA Energia employees.

Excellent. Thank you.

Thank you, Carol.

Noting that to ask a question, please inform your name and company through the Q&A icon. If you want to ask a question in writing, submit it on the same icon with your name and company. Next question, Fillipe Andrade, Itaú BBA. Please, Fillipe, you may go ahead.

Good morning. Thank you for taking my questions. I'd like to hear about AXIA Energia's perception of two things.

First, how does the company see the move of some associations defending regulatory changes in the market dynamics or energy trading, the replacement of liquidity, and how AXIA understands that if there's any legal support that could be explored by those associations that could force a change in the market dynamic. The second point is precisely addressing the integration of thermal plants in the reserve capacity auction and the reviews that we see in the second quarter, how AXIA sees the modulation scenario in this horizon and the integration of those thermal plants. Thank you.

Thank you, Fillipe. I'll turn the floor to Rodrigo.

Thank you, Fillipe. We've been monitoring the discussion about the liquidity in the market, but we have a very clear view or position. Going back to the previous answer about the enhancement of models and the price reflecting the cost of the operation, we see some questions about the volatility of prices. There was a point in March where we had the minimum price during the day and the maximum price at the end of the day. There's some criticism to that point. When we look at our power generation throughout the day, a result of the change in matrix, our perception is that the model is responding well. We have a lot of supply throughout the day, basically sun power or solar power. We have more than 50 GW of installed capacity. There's the focus of generation during the day due to a surplus of solar and wind generation. At the end of the day, it's the opposite.

We need to trigger thermal plants and hydro plants being called to supply and sometimes exceeding 40 gigawatts. That's natural to see the volatility of prices. That's not an exclusive factor of Brazil. More mature markets have even higher volatility. This perception is a reflection of the matrix. That, bringing the aspect of liquidity that's also in the discussion of price formation and the increase in volatility, in practice, there's the risk of counterparts that the agents today are more risk-averse, considering what's been happening with a lot of traders not being able to live up to their commitments, a lot getting into judicial reorganization processes. That brings higher risk aversion to the agents. Here, we've been increasing our criterion to evaluate the economic financial capacity of people or companies we trade with, especially looking at longer horizons.

We understand very clearly that we don't see a structural liquidity crisis, maybe conjunctural because of the risk of counterparts, but nothing structural in the sector. The indicators that CCEE itself releases in energy volatility, we don't see any elements that confirm that perception of a lower liquidity in terms of structure in the market. Going back to the argument, we don't see any technical support or even legal basis to promote any regulatory change in that sense. Even the price formation process is completely detached from the agent's commercial position. If the agent's long or short, it does not influence the price formation process since our price is formed by models, and that's a variable that is not considered. The fact that the sector being more or less liquid does not influence at all the price formation process.

We don't see technical basis or legal basis for these claims to proceed. About the LRCAP, the reserve capacity auction, we are waiting for the approval. Once it is registered, the thermal plants will actually enter the DAC, and that brings some effect. The model starts to see those thermal plants, even the recent ones that were not contracted, in a new horizon up to 2030 and 2031. It doesn't get into the deck this year. That brings more safety to the model when it sees a higher availability or a higher generation capacity, which naturally reduces the deficit risk in the future horizon, reducing the future cost function. The modulation will have an effect considering the thermal plants. A lot of them have been raised. When they're called to dispatch, there may be a trend to effective modulation.

Thank you.

Thank you. Once again, in order to ask a question, please click on the Raise Hand icon. The questions and answers session is concluded. I will turn the floor to Mr. Ivan Monteiro for the company's closing remarks.

I thank you all for attending. Any additional questions may be submitted to the investor relations department. Thank you very much.

AXIA Energia's conference call is concluded. We thank you all for attending. Have a great day.

Good morning, ladies and gentlemen. Welcome to AXIA Energia's conference for the discussion of the results of the fourth quarter of 2025. Present here today are Mr. Ivan de Souza Monteiro, President of AXIA Energia; Mr. Eduardo Haiama, Executive Vice President of Finance and Investor Relations; Mr. Antonio Varejão de Godoy, Executive Vice President of Operations and Security; Ms. Camila Araujo, Executive Vice President of Governance and Sustainability; Mr. Elio Wolff, Executive Vice President of Strategy and Business Development; Mr. Italo Freitas, Executive Vice President of Commercialization and Energy Solutions; Mr. Juliano Dantas, Executive VP of Technology and Innovation; Mr. Marcelo de Siqueira Freitas, Executive VP of Legal Affairs; Mr. Renato Carreira, Executive VP of Learning People and Services; Mr. Robson Pinheiro De Campos, Executive VP of Expansion Engineering; and Mr. Rodrigo Limp, Executive VP of Regulation, Institutional and Markets. We would like to inform you that this event is being recorded and will be made available on the company's Investor Relations website along with the presentation being shared today, both in Portuguese and English. To view the presentation of the slides in your preferred language, select the corresponding tab located in the upper left corner of the screen, Portuguese screen for Portuguese or English screen for the English version. For those who require simultaneous translation, a tool is available via the globe icon labeled interpretation located at the bottom center of your screen. Upon selecting it, please choose your preferred language. For those listening to the video conference in English, there is an option to mute the original audio in Portuguese by clicking mute original audio. [Operator Instructions] Before we proceed, we would like to clarify that any statements made during this conference call regarding the company's business outlook, projections, operational and financial targets, constitute the beliefs and assumptions of AXIA Energia's executive management as well as on information currently available to the company. Forward-looking statements are not guarantee of performance as they involve risks and uncertainties and therefore, depend on circumstances that may or may not occur. Investors should understand that general economic conditions and other operational factors may affect the results expressed in such forward-looking statements. We now invite Mr. Ivan Monteiro, President of AXIA Energia to begin the presentation. Please, you may proceed.

Good morning, everyone, and thank you for attending AXIA's conference call for the fourth quarter of 2025 and the year 2025. This was a year marked by a series of accomplishments and the construction of what we call a base for the company's sustained growth. In the executive Board, the feeling is that the turnaround, the traditional turnaround is concluded. The budget for 2026 already reflects the conclusion of this turnaround. So let's talk a little bit about the deliveries during 2025. There was a consistent reduction of liabilities and the trajectory of the reduction of the compulsory loans and the liabilities related to that as well as PMSO. And here, I'd like to make the first comment about PMSO. The contribution we have today in the use of artificial intelligence in the reduction of PMSO is still small, but there's a huge potential to be tapped into in the coming years. We also began to change the level of investments, the company that invested around BRL 2.3 -- BRL 2.5 million to BRL 3 million per year 5 years ago has a growth trajectory, consolidating at a level above BRL 10 million, BRL 9.6 million in 2025 and now more than BRL 10 million in the projection for the coming years that we released earlier this morning. Another landmark in this consistent deliveries was the agreement with the government and the sale of our stake at Eletronuclear. Those were the 2 important moves in what we call the reduction of risk perceived by our investors when they decide to acquire assets, both by buying shares or fixed income assets by AXIA. Another important evolution relates to energy allocation and portfolio management and our relationship with the customers. Those are the highlights. In capital allocation and growth, I'd like to point to the volume of dividends paid out this year related to the result of 2025, BRL 8.3 billion. Just to give you an idea, BRL 8.3 billion was the nominal value or the nominal market value of the previous known Eletrobras in 2016. Another important challenge in this acceleration of investment is the formation of a pipeline that is robust in which we express low -- very low inorganic growth, but that also becomes part of our vision for the future and a growth in the assets that we know very well, our own assets that we already have environmental licenses for. We know the behavior of those assets, bringing modernization through the reinforcement and improvement investments that we're making as a consequence of the win in the transmission auction. We continue to seek the incorporation of new technologies available to improve the management, not only of the assets, but all of the set and the future production in our relationship with customers and the management of our energy portfolio, where I highlight the small contribution in the PMSO reduction through the use of AI. Going to the stage that takes a little bit longer, that's the cultural transformation phase. I'd like to point that this change that we promoted in the name now the company, AXIA, it's not a change of name only. It's not only transforming and having a new logo. It's a change in posture. It's a ownership culture, management that is fully focused on generating value, creating value. Finally, maximizing and reaffirming our commitment to governance, we have a proposal to migrate to Novo Mercado with the meetings expected to take place where the shareholders will discuss the directors' proposal. I thank all of the company's employees and the market trust and the performance of the company's shares in 2025 and the beginning of 2026. And I now turn the floor to our Financial Director, our CFO, Eduardo Haiama. Thank you.

Thank you, Ivan. Good morning, everyone. Before we begin the presentation on Slide 7, I would like to point, as Ivan just mentioned, that for us, it's the conclusion of the turnaround and a step moving forward reflects in the publication of the annual results. I think it must have been the first time that the company was able to publish with quality, the results in the month of February. So when our results have always been published at the end of March or by mid-March, of course, this is not only an accounting -- a work of the accounting department, but it's a huge work done by the entire company, generating controls, processes, getting things to flow more smoothly, and that results in this publication and this release in the month of February. Now getting into Slide 7 and the key highlights. Part was already mentioned, the allocation of the energy portfolio and the execution of the capital allocation methodology. with record dividends of BRL 8.3 billion, but also the consistent increase in investments, winning again a series of lots in the transmission auction in 2025 and reaching the highest investment level since 2015 in the company. In terms of portfolio management, we completed the sale of the thermal power plant and executed the sale of our stake at Eletronuclear in efficiency, in addition to PMSO that Ivan already discussed, we are developing supplier chains that are international. And we are certain that we'll be a lot more resilient when this investment level grows further as we foresee. And in people and culture, something we're very proud of, and I'll talk more about later, was the launch of the first stock purchase program with a very high participation of our employees, showing their confidence in the path that the company is following. And finally, today, 100% of our managers already have goals aligned with our strategy, thinking always in the medium and long term. On Slide 8, getting into the financial highlights, investments in the quarter reached almost BRL 4 billion, a growth of almost 30% year-on-year. In generation margin, there was growth again, reaching BRL 101 per megawatt hour, in line with our strategy that we talked about in the first quarter of 2025 that was by protecting a potential drop in prices because of rains that we were approaching at that time. Starting in March, the scenario changed. And at that time, we said that we would then be able to reach -- reap the optimum results in the second and the fourth quarter that consolidated what we talked about in the first quarter. This quarter, we recognized BRL 12 Billion in -- BRL 12 million in the activation of tax assets. Everything with the conclusion of the turnaround phase and a more constructive view that we have in the Generation segment shows our view in terms of future profitability and the use of these assets of this tax credit over the year according -- as the company's profitability increases. The transmission auction that I mentioned, we won some lots with the investment and the investments. And now the numbers are BRL 1.6 billion. And once that's concluded, that the RAP of BRL 140 million per year. And finally, our adjusted income reached BRL 1.2 billion, up 141% compared to the fourth quarter of '24. On Slide 9, talking a little bit about our revenue. It grew in transmission. Part of it is a reflection of the adjustment portions that were lower, but also an increase in the reinforcement and improvement revenues. In generation, there was a decrease, but it's more due to the sale of the thermal plants that were still in operation in 2024. In 2025, in the month of October, there was one single thermal plant still operating. In terms of our EBITDA, we present here an increase, and this is a result of the increase in contribution margin in generation, excluding thermal plants of almost BRL 400 million as well as the reduction of our PMSO costs. On Slide 10, we show the same EBITDA of BRL 5.70 million (sic) [ BRL 5.70 billion ] showing basically 4 items that we did not adjust in the results, but generated a lot of questions previously. So basically, the lower revenue with the reimbursement of wind farms in the fourth quarter, that's basically when the wind plants that have contracts with distributors, they produce less. So we end up having to pay back the larger -- higher revenue that you made. So that's BRL 250 million in the fourth quarter of 2025. There is a variation of BRL 225 million in transmission revenue from the third to the fourth quarter of '25. But these are revenues that are temporary. They come in and out. So we receive more. But then when we get to the following adjustments, it goes back. So it's kind of transient. As for cost, to align it even further, -- with the company's workforce and work to seek exceptional performance, we expanded the potential range of the profit sharing payment and the long-term incentive program for the company. And considering the targets that was a very good year for the company, that resulted in an increase of BRL 108 million in this line compared to, for example, 2024 with the old previous metrics. And finally, with our change in brand, our rebranding in the quarter, when we implemented this rebranding, we spent BRL 60 million. So if we excluded these events, we would have achieved a regulatory EBITDA of almost BRL 6.4 billion. On Slide 11, talking about income. I think the main highlight here is the recognition of the deferred tax asset that I mentioned of BRL 2 billion. And considering this effect, our income growth would have been 140%. Slide 12. we show, as Ivan discussed, the evolution of investments over the years and look at how interesting this is. In 2022, we invested BRL 5.4 billion in reinforcement and improvement, improvement of the grid or the network, the transmission grid. And the investments we're making now at the plants exceed that amount already. So we invested BRL 9.6 billion, and we are expecting for 2026 and '27 to reach an annual level between BRL 12 billion and BRL 14 billion as a result of the beginning of the works of the auctions we have won in recent years and the growth that should continue in the line of reinforcement and improvements in transmission. Now moving to trading on Slide 14. We demonstrated we have our resources in each of the submarkets, and this is interesting to understand how the seasonality behaved in all of these over the quarters already, including purchases and subtracting those long-term contracted sales, the ACR sales, and that reflects when we look at Slide 15 in the evolution of our generation margin. Generation margin, when we look at the fourth quarter of '24, excluding this aspect of the reimbursement of wind plants that in the comparison is not -- it's apples and oranges, of BRL 250 million, we would have had an increase of 25% in our generation margin and that we have to exclude thermal power plants in the fourth quarter of '24 in January on the fourth quarter of '25, showing here that it's a very well thought out and executed strategy to trade or sell our generation portfolio. On Slide 16, I won't get into details of the chart on the left. I think it's a reflection of what we discussed in the previous slide. But to show you a little bit for 2026, considering our plans and the physical guarantees that we have with them using GSF, the expected GSF according to [ CCEE ] expectations and the physical guarantees in seasonality based on MRE. So as you can see in the first quarter, we have basically almost 14 gigawatts of energy of going to a valley in the third quarter of '26 to 8. This is mainly due to the expected GSF for the second half and starting to grow again in the fourth quarter to 11 gigawatts. Now moving on to Slide 18 with the culture and ESG agenda. As I had talked about, we launched the first share purchase program where we had 1,644 employees becoming new shareholders of the company, and that represents 22% of our total employees. And what's interesting when we look into it, these people, 54% of them more or less of the people who bought shares only have AXIA shares. They only own AXIA shares. And this 1,600, it's the first time almost 40% -- so it's the first time almost 40% of them bought shares. So that shows a strong element of our employees' confidence in the company's long-term strategy. And these shares remain restricted during a period of 3 years, okay? So it's not a short-term version. It's a long-term view. As for the compensation program, as was already discussed, we've updated this program to reinforce the alignment between performance, value generation, prioritizing the company's strategy in both this and the previous -- our opinion reinforces that what we're seeking is the sense of ownership from each person. On Slide 19, talk a little bit about the ESG agenda. We've proposed the migration to Novo Mercado, and we'll talk a little bit about this in the next slide. And with that, I think we'll improve greatly our governance, which was already good. It's going to get even better. We launched a calculator available for anyone to measure their GHG emissions, also providing solutions to help reduce or neutralize them. I'm very proud to say that we are now on the A list of the CDP, which is a global benchmark for corporate environmental assessment, very much in line with our net zero 2030 trajectory. And again, we also made it in the Global Sustainability Yearbook 2026 of S&P. On Slide 20, finally, just to detail that we are going to have our meeting in the 1st of April this year to discuss the entry -- the migration to Novo Mercado, the highest governance level at the Brazilian stock market B3. With that, the shareholders will have a right to vote all the same political rights and the same economic rights and dividends with no distinction. And in our opinion, by doing that, we improve our optimization to reach the capital allocation, improve attraction for potential new investors with better ESG and ratings as well. And by combining the different share classes, we improved liquidity and the overall risk perception. And I believe with this, we can move on to the questions-and-answer session. Thank you.

[Operator Instructions] Our first question, Daniel Travitzky Safra.

I have 2 questions on my side. The first about the very high income that you reported this quarter. I'd like to ask how this result may reflect in future dividend payout and capital allocation for the company? That would be my first question. And the second question, looking at the auction pipeline that we have this year, both in generation [ LR caps ] in March and in the future for batteries and the transmission auctions that will be very relevant this year, I'd like to understand how the company sees these opportunities. If you can give us some color on how you see that.

Thank you, Daniel. So to begin, in terms of capital allocation and dividends, we worked a lot in the company's structural results and its predictability. And that makes us very comfortable with what we may come to capture and what we did capture in terms of energy price. So those conditions that were under the management's -- the directors' management were worked on and the prediction for the future don't give a lot of highlights for the net income of the fourth quarter. But I would like to mention the company's consistent results since it was privatized -- with a cap an intense work to reduce liabilities, reduce PMSO, adjust the strategy and also a change in culture that was a lot -- detailed a lot by Haiama. But I'll turn the floor to him, and then Elio to talk a little bit about our strategy in the future auctions, both on battery and capacity auctions and transmission. Haiama, please.

Thank you, Daniel. As for dividends, considering what happened with the activation and what was acquired, it doesn't change with our capital allocation methodology. We have that capital allocation in dividends and buyback or new investments, we always look at a 5-year horizon based on a prediction of cash flow leverage, always using conservative prices for the uncontracted energy part. And with that, we check whether or not we have room for that to allocate more capital, paying more dividends or buybacks or more investments. So the income itself that was due to this IR activation is just a constructive view on the very long term for the company, not on the short term. On the short term, this methodology is what goes. I mean, as Ivan talked about, we have a lot of things that help in our risk perception, but profit or income alone is not the driver to pay out more or less. That's our view. It's always from the 5-year view.

Thank you, Daniel. Good morning, everyone. We mentioned in the past that the transmission auction activity is a continuous activity that we do. Since 2023, we've been actively participating in the auctions. If you have an order of magnitude, we offered about 39 lots transmission since 2023. The group, the AXIA Group participates and always being competitive with a lot of responsibility and a strong focus on value generation. We participated in 34 of these 39. We study all of them, if not all, we may not participate in some, but we always do that based on technical objective factors. In the 34 that we participate, we succeeded in 9. So that's the recent history. Of course, that this background, the future is not based on that. But that shows how competitive we are. And we've been growing our capacity to be competitive, especially in terms of engineering and supply. That's essential. The company's DNA with its engineering capacity. And that is something we bring to 2026, of course. And in '26, we generate in a more organized way, at least 3 auctions, maybe even 4, 5. In March, there are 2 already we counted right. The first one is the capacity auction where we are able to participate on the hydropower plant. We see that we're very good -- in a very good line. And Ivan mentioned that about the pipeline. In the hydropower capacity alone, we look at the potential income in the medium, long term, maybe even exceeding 6 gigawatts. And a portion of that, of course, will participate and try to enable these projects in the auction of March 18. Transmission, it's the same line, as we mentioned. We always study all of the lots. There's an auction now March 27 and another prescheduled for October. And there may be a sub auction or something with a different player that may occur in April or May, and we may look at it as well. But this is a continued activity. We're always looking into it and studying. And once we get close to the auction, we decide how we're going to participate or which lots we're going to actively bid on. We always say that very comfortable, always focused on value generation. And finally, without a date yet, but already expected, there will be the battery auction that we're also looking -- we have been studying it since the pipeline, we already exceeded with 4 gigawatts of pipeline in batteries. We want to see the rules and understand how much of these 4 gigawatts we are actually able to offer. But the group has been increasing its pipeline progressively to be able to enable this with disciplined value generation and the auctions are a wonderful opportunity to materialize those investments. I think that's it.

Next question, Bruno Amorim from GS.

Congratulations on the results I have 2 questions. The first one about the energy price dynamics. I understand that there is a view that structurally, the energy price is going up and it may continue to increase. But on the other hand, we are having a drier year in the cyclic point of view that puts prices at a higher level. So my question is, how have you been operating in this environment? Are you making the most of the cyclic dynamics when it's more favorable? Or is the strategy still to wait for a materialization of higher prices looking forward? So how do you think about the cycle in the short term and the long term? And the second question is to understand as you can open this, but how do you see the opportunities coming from data centers, if you see -- if you want to have discussions going on or if you understand this as an opportunity for the country and the industry, the demand of electricity over the next 3 to 5 years? Or is it too soon to tell?

Thank you for your question. I'll turn the floor to Pedro to talk about this view. And then LPSMG, I'd like to hear from Italo as well, and he can complement to our strategy for data centers, but thank you for your question.

Thank you, Bruno. Actually, we have been facing in recent years a change in the dynamics of price in the energy market. In some period in '22, '23 until mid-'24 price -- a vision of prices very close to the lowest levels, including longer-term view. And starting in the second half of 2024, we saw a big change and something that didn't exist so much in our industry as the volatility in the same day in terms of reliability, flexibility, the prices ended up not reflecting that. There was no our metering. But even in the first few years, we didn't have this perception. I also think that the move to reduce subsidies going in the right decision to have a better signaling of prices have also contributed to this change of perception in the market. We came from a very different level that the industry saw in '23 and '24 for coming years compared to what we have today. And we see that not only in this current year, but 1, 2, 3 -- and naturally, for this year, as you said, we are a little bit more pressured in terms of price because of the hydrology. Until January, we had a weak rain season. In February, we had an increase that I think brought some break for the industry, more reliability for the year, but nothing so far that brings any structural transformation in terms of prices throughout the year. And on our side, in portfolio management, we do consider all of these scenarios. It's a fact that now we have a lot more volatility than we had in the past. And that means that prices in the next 1, 2 months may shift up and down strongly. And a point that we consider with a lot of attention in our portfolio management is the submarket that you know in our portfolio, we have it very well distributed in the submarkets with part of our energy in the North and Northeast. So we do pay a lot of attention in January, February, having higher prices. It was very much similar to the submarkets, but March is a month where we will probably see more of a distance of higher than BRL 100, and we adopt a position that protects us from this volatility, from this submarket risk. In the long term, we do see a bigger price perception. So we're always open to discuss with customers and long-term proposals and long-term prices. And as we integrate and the negotiations make sense, we move forward. Thank you. Pedro, please.

Thank you, Bruno. Just to add to what Limp said, in terms of prices, I think Brazil now is entering a new phase in the electricity sector with this volatility, a lot due to a lack of capacity to meet or make up for the flexibility of the system with the intermittent, for example, especially in distributed generation. And this tends to grow naturally is a technology that has been permeating this new electrical system in Brazil. So it's a structural aspect that we see a price increase until there is the exception of technology that may stabilize the system. So you will naturally see a price trajectory, especially considering Brazil with hydrology-dependent matrix as Limp clarified. And in a year like that, where January was tight, already puts some price pressure. In this sense as well, of course, we see this curtailment problem, especially in the Northeast. And in this condition, the need for the power is huge in that region. And that makes it an interesting environment for those data centers that you mentioned, Bruno. We are talking to some data center players, large major players the question is today, all of the infrastructure challenge that Brazil needs to adapt in order to be able to receive this big load data center, a large data center, hyperscale, more than 500 mega or 1 gigawatt or 1.5 giga brings operational challenges to the system, especially in the application, if it's a training application or inference or if it's training, it may simply stop overnight and the frequency of the system may go down and [ ONS ] is not prepared for that. So that -- there is a structural challenge that must be adjusted to receive these big loads. But naturally, Brazil, especially the Northeast, it's a region that will help a lot to have a large load. So we are talking to some players and looking at all of these points, the operational points that need to be adjusted.

[Operator Instructions] Next question, Fillipe Andrade, Itau BBA.

I'm here with the AXIA team. I'd like to address 2 topics, if I may. First, talking about trading. The company presented a contribution market on the ACL, the short-term market, close to BRL 300 per megawatt hour in our view that is closer to BRL 30 per megawatt hour. So considering the price level that we're seeing in the first quarter of '26, what is the level that the company sees in terms of modulation, the same level or any change? And how do you see the impact of El Nino in the prices in the second half of the year? And finally, also, if you can talk about the best expectation of the management for a potential conclusion of the Novo Mercado migration process.

Fillipe, as relating to trading, I will ask Limp's, I'm sorry, Haiama's participation for Novo Mercado migration. Haiama, Camila, please feel free.

Fillipe, first, you were asking about modulation. In the fourth quarter, we even have in our presentation in the attachment that the fourth quarter generated close to BRL 15 per megawatt hour for the hydropower plant. And when you sell that to energy that we have allocated, it will run at around BRL 300 million, maybe a little bit less in the quarter. And the trend going forward, obviously, as the system is have more insertion as Itau said, with more intermittent sources and demands that may have peaks due to heat waves and it may grow over time. But going forward, I'd like to ask the expert to talk about this a little bit more. Yes, even as I mentioned earlier, today, we have an increasing presence of this daily modulation, the price volatility at different hours of the day. For example, in February 4, that was a very atypical time. At this time, it got to BRL 1,600 and modulation exceeded BRL 40. And today, we're looking on average BRL 15 to BRL 20, a slight increase in this first quarter compared to the fourth quarter. And the trend is for it to grow in the next few years. Of course, that new technologies, capacity auctions, storage systems in the future end up maybe attenuating or mitigating this in a relevant way. But today, the price indication and the daily PLD results bring this effect in modulation. That's always positive for hydropower plants because of the role they play and the characteristics of that source that is the only one and in fact that provides this flexibility that the system requires so much and this must be valued. Now talking about Novo Mercado, Fillipe. Our expectation in April 1 is to have the general meeting with the Class A B preferred shares and common shares. I think the market showed a little bit of what the meeting should be. I think it was very well received. The share prices went up. And I think even you and the analysts present here, I think everybody understood this movement, but it's part of the normal natural move in the company's current stage. So we are relatively confident with this process, expecting to be able to unify these, but only with the future agenda going forward. Camila, if you'd like to add.

I think Haiama mentioned it well. We believe in the model that we are using for the approval. The meeting in April 1. It's not -- it's April fool, but it's a real deal. We're going to hold the 3 meetings with a positive expectation considering the results we're seeing and the comments we're receiving about this move. Thank you.

Our next question, Raul Cavendish from XP.

Can you hear me well?

Yes, we do.

I have a question here. Thinking about the energy allocations that you disclosed in your materials and considering GSF and so on. I've been noticing difficulty to reconciliate the volume of energy sold in the quarter versus the allocations that you published ahead of time. Is there any element that is not captured in the disclosure of allocation that impacts the energy sale volume, and we're not able to model, for example, trading activities or something like that to help us be more accurate in our modeling over the quarters, even if the annual view doesn't really change that much.

Thank you, Raul. I'll turn to Haiama.

Thank you, Raul. There's an information here that's very confidential that's our assured energy. When we disclose the information, we disclose what's in the MRE. That's what we've included in the slide even. So from physical assurances allocated with the projected GSF. So that's a difference that occurs. As of '27, this difference won't be there anymore. So that's going to be easier. But in addition, and we have to look at how you're modeling it. Remember that our contracts that are on the ACR, the long-term contracts with the distributors all of them have the GSF, some 92%, others 100%. And that, of course, has an impact when we do this calculation. So that may be generating some desreption when you make your projections compared to what's realized. But without that, everything that we release in liquidation and sales is what's, in fact happening, but there may be these differences here from the projection to what we see. I don't know if it's clear, Raul.

Yes, it is Excellent. And then I think, finally, an additional question. So in addition to the LR cap of the hydro products, we have the storage, maybe I'd like to take Elio's and his team's perspective. And the group's mindset about the storage auction, if it makes sense and if this recent discussions about the battery, if it's on this range of [ 1.2 ] to [ 1.7 ]. If you think it's adherent or do you see any discrepancy considering the CapEx of batteries anyway, to hear a little bit of your view.

Thank you, Raul. Please, Elio.

Okay. So Raul, so this is a topic about this auction, this capacity auction. But what we see is that the system needs more and more power. So that's the first auction to be objective. It's not the end of it. There will be others -- other opportunities to sell our capacity and our potential -- our pipeline here. Batteries, it's still too soon to fine-tune what we may or may not consider. It's different. There's a lot of suppliers. We've been working alongside a lot of them for a year or two trying to develop this, and we will evolve the way we participate and, of course, as long as it makes sense for the group. But it's still too soon to discuss this on the battery.

The questions-and-answer session is concluded. We would like to turn the floor to Mr. Ivan Monteiro to deliver the company's closing remarks.

I would like to thank you all for your participation. Any additional doubts, please contact AXIA'S IR department. Thank you.

AXIA Energia conference is now closed. We thank everyone for their participation, and wish you all a good day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good morning, ladies and gentlemen. Welcome to AXIA Energia's Third Quarter 2025 Earnings Call. Joining us today are the following members of our executive team: Mr. Ivan de Souza Monteiro, CEO of AXIA Energia; Mr. Eduardo Haiama, Executive VP of Finance and Investor Relations; Mr. Antonio Varejao de Godoy, Executive VP of Operations at Security; Ms. Camila Araujo, VP of Governance, Risk, Compliance and Sustainability; Mr. Elio Wolff, VP of Strategy and Business Development; Mr. Italo Freitas, Vice President of Commercialization and Energy Solutions; Mr. Juliano Dantas, VP of Innovation, P&D -- R&D, Digital and IT; Mr. Marcelo de Siqueira Freitas, Executive VP of Legal Affairs; Mr. Renato Carreira, VP of People and Services; Mr. Robson Pinheiro De Campos, VP of Expansion Engineering; and Mr. Rodrigo Limp, Executive VP of Regulation, Institutional and Markets. We would like to inform you that this call is being recorded, and it will be made available on the company's IR website, along with the presentation being shared today, both in Portuguese and English. [Operator Instructions] Before we proceed, we would like to clarify that any statements that may be made during this conference call as to the company's business outlook, projections, operational and financial goals are based on beliefs and assumptions of AXIA Energia's executive management's as well as information currently available. Forward-looking statements are not guarantees of performance as they involve risks and uncertainties and therefore, depend on circumstances that may or may not occur. Investors should understand that general economic conditions and other operational factors may affect the results expressed in such forward-looking statements. I'll now turn the call over to Mr. Ivan Monteiro, CEO of AXIA Energia. Please go ahead, Mr. Monteiro.

Good morning, everyone. Welcome to our earnings call for the third quarter. Ever since the beginning, we aimed at building an efficient company, transparent company with predictable results aimed at serving its customers. The highlights for the quarter are an indication of this goal, record compensation for shareholders, additional BRL 4.3 billion adding up to those BRL 5 billion we had announced previously. This was only made possible through the derisking process ever since the capitalization process. We have greater generation margin along the lines of building a company focused on customers, teams in place with robust processes in place that will allow us both financially and commercially capture the benefits of this higher margin, continuous management of our portfolio. And we are divesting in EMAE and Eletronuclear after the Candiota thermal power plant and again, in the gas thermal plants, adding up to the sale of our stake in Santa Cruz. Eletronuclear is an indication of divesting our presence in nuclear power plants that started out with an agreement with the government, and we were not obligated to keep on investing in Angra 3. The acquisition of Tijoa adds up to several asset disentanglement operations we've been putting in place in the past 2 years. We are proud of this growth on investments, record highs between BRL 2.5 billion and BRL 3 billion. We are reaching a record reaching BRL 10 billion this year, focused on operational efficiency and an active participation of auctions. Just like we've seen in the last or the latest auction, we were awarded 4 lots. I would like to thank you very much for attending, and I'll turn it over to our CFO.

Good morning. On to Slide 7, please. Let me point out the financial highlights. First, with the revenue, there was a decrease both regulatory as was the capital, but 3 highlights. #1, in transmission, there was an increase in revenue. After the tariff review of '24, '25, there was a major impact. We no longer have that as of this quarter. But in generation, just like Ivan mentioned, this has also impacted revenue in generation as well as that one-off effect by extending the Tucurui contract last year. As to the EBITDA impact, these impacts are smaller. On the regulatory side, there was a small or a slight decrease of our EBITDA. That was the divestment of the thermal power plants. They were offset by our PMSO reduction and also because of the increase of the revenue from transmission. On to Slide 8, net income. Now let's address that from the company point of view. The reported net income was a lot smaller than Q3 of last year, driven by the provision we had for the nuclear contract. And in the previous year, given the tariff review that posted a positive impact in transmission revenue. But when we look the numbers adjusted by these effects, we would have had a 68% decrease due to the effect of the sale of other assets that would impact the total number. On to Slide 10, energy trading. This is our portfolio as is today. We are operating in every region. This is the available energy and energy that has been traded in each of these markets, either through quotas or through the captive market through ACL. This will impact the energy we have available for the free market. On to Slide 11. That's the energy balance. We have boosted the hiring for '26 and '27. But let me point out that we are increasing, just like Ivan put it at the beginning, the increase in the number of customers. We are transforming the company to put even more focus on the end users. On to Slide 12, that's the contribution of our results. For the second quarter in a row, we've been having good results in commercialization. Just like we said in Q1. So we had low results here. Weak results would impact the results for the following year. And in Q4, you can see on the chart on your right, this is the amount of available energy to be traded in the free contracted or contracting environment. And we expect to have yet another strong quarter. On to Slide 14, capital allocation. The highlight is the signing of selling Eletronuclear, we will be receiving BRL 535 million for our stake. But there's more. We'll be releasing the guarantees that we had to take over and transfer that to Eletronuclear and the guarantees will be granted by J&F. And our debentures that we were committed to investor to invest in Angra 1 that would amount to BRL 2.4 billion. On to Slide 15 now. On top of Eletronuclear, we also signed our stake. We signed the sale of our stake in EMEA. The completion of the last thermal power plant we had, which was in Santa Cruz. And we also acquired 50.1% stake in Tres Irmaos, Tijoa Energia for BRL 247 million. On to Slide 16. This is the role the auction plays out. We were awarded the week before. So you can see the highlight on the table. That's the amount of the investment of BRL 1.6 billion and another BRL 140 million of RAP. Ever since we were privatized, when we add up all the investments already realized and yet to be realized, we have BRL 17.4 billion worth of investments with an increase of BRL 2.4 billion in the transmission revenue stream yet again indicating our competitiveness in this industry. On to Slide 17 now. When we combine everything that has happened ever since the last earnings call in which we announced BRL 4 billion dividend payment, signing of Eletronuclear sales, selling EMAE and the acquisition of Tijoa and our participation in the transmission auction and this announcement of a dividend payout of BRL 4.3 billion, everything is part of our capital allocation strategy. And this is how it plays out. On Slide 18, consistent deliveries, everything we've done to simplify the structure and bring risks down and it's an indication of the price resilience we are projecting for 2026, advances in energy trading. And of course, we are improving our long-term pricing model that is more comforting in a sense when you look at the financial status of the company in the mid and long runs. By doing so, we've approved additional dividend payout of BRL 4.3 billion to be paid out in December this year, adding up to BRL 8.3 billion in the fiscal year of 2025. By doing so, dividends, including what have been already paid out will be reaching BRL 4.01 for both PNA and PNB shares and BRL 3.65 for the ordinary or common stock and golden share. Finally, on Slide 19, let me address the ESG agenda. I would like to point out our partnership with Google Cloud to develop our weather forecasting system by using AI. We'll be expanding our capacity to predict extreme events and strengthen operational and energy resilience. We are taking good care of the water resources. We have just started works to protect the source of the Sao Francisco River, BRL 51 million investment in the Canastra Mountain chain reinforcing water conservation and environmental safety in one of the most iconic areas of our country. And I would be remiss if I failed to mention that we sold our last thermal power plant back in October. The company is now 100% generating clean and renewable energy. We stand out and we are leading the energy transition to accelerating the Net Zero 2030 goal. That concludes my part of the presentation. Thank you.

We'll now have the Q&A session for investors and analysts. [Operator Instructions] Mr. Andre Sampaio from Santander asks the first question.

I have 2 questions actually. The first one is related to the price resilience for 2026. Can you elaborate the reasons behind that comfort that you feel? What could be the roadblocks for prices next year? And the second question is more from a more strategic point of view. You've been reducing risks, thermal power plants. I believe you have addressed most of those problems you had in the turnaround process since the privatization. Can you elaborate on what the next steps should be? There's the trading portion we're all familiar with. Is there anything else? Are you considering going back to the new market as a second step in that derisk process or derisking process?

Thank you, Andre. As to the resilience, I'll turn it over to Rodrigo Limp.

Well, thank you for your question. Despite greater volatility in shorter months, we've been monitoring that throughout the year. However, for 2026, prices are usually around 240, a little over that. As to rainfall, we have a wet season that has started already, but somewhat delayed. And now in November, we've received some rain in important basins. But based on the price model we have today closer to the operator -- operators that are risk averse, well, changing or the change of our matrix, a more flexible matrix and especially during peak times, that will bring average prices more resilient. Maybe 1 or 2 weeks on the short-term prices may come down. Those variations tend not to be as relevant for 2026.

Thank you, Limp. Well, as to your second question, Andre, that process started from the capitalization. But day 1, after that capitalization, we had to deal with legacy contracts from the period in which it was a government-owned company. We had to wait for them to expire and then bring in new contracts. The best example, you mentioned it was the compulsory loans. The legal partner did fantastic work. We adopted a more active approach. We discussed that with the Board, and we're looking for solutions. We did not want to postpone anything or resort to the legal system. We wanted to address the problem. And we were very fortunate. This number is under BRL 12 billion, and we are heading in the same direction. This is something that we can manage. It's well known, and we are in a downward trend. Well, what we can expect down the road, the company will be completely focused on growing its business. We'll be paying close attention to the next auctions, just like we did in the transmission auction. You can expect active participation of AXIA Energia in the coming auctions. I hope I have answered your question. As to governance, of course, that will be discussed with the Board of Directors.

Mr. Bruno Amorim from Goldman Sachs asks the next question.

Congratulations on the results. I have 2 questions actually as to capital allocation. My question is, is the company focus will be on looking for dividends to compensate shareholders through reinforcements and improvements? Or is there anything else that the company is considering for capital allocation for the near future? The second question is actually a request. I would like to know what the methodology was adopted for the dividend's payout. The way I understand it, your methodology tries to use net debt and EBITDA. As you gain confidence, you're getting close to that goal, you pay out dividends. My question is, to what extent that leverage includes as a factor to reduce net debt? Why am I asking this question? One of the reasons you gave us to pay out this dividend was the sale of some assets. So I want to understand the rationale behind it. When you announce the dividend, are you considering the assets that are available for sale will be sold? Or as they are sold, you can trigger more dividends to pay out?

Thank you for your question. Well, not necessarily. We do not take into account assets that haven't been traded yet. That isn't the rationale -- that's not the rationale of the methodology. As to capital allocation, you're right. As the company starts -- well, we always had the impression we're lagging behind. Now we're more familiar with the risks that are inherent to the company and preparing the company to live with that risk more proactively with more alternatives, financially, operational solutions. Bottom line is that once we know that what the cash flow will be in the future, you have more room to allocate capital. I would like to give the floor to Elio. I want to hear his thoughts as to those M&A operations and our auction participation. And then Haiama can talk about the methodology a little bit more.

Thank you for your question. Yes, in the recent past in terms of investment allocation and capital allocation rather for investment, we've been focusing on transmission. That's true. Our #1 focus is reinforcements and improvements. And the second point is transmission auctions. They've been very profitable. We've been involved more and more often. And the next one will be on -- in March next year. But the agenda will be including other topics. We have the capacity auction, again, in March 2026, we consider being there with some hydroelectric power plants, and the second half of the year, the auction for batteries. So our focus is to provide options for investments as we see an opportunity to allocate capital for this option, either through an auction or elsewhere, we've been increasing that direction. We want to simplify, but the agenda remains robust in '25, '26. There are some assets that can be used elsewhere, and we'll be pursuing those goals to generate even more value.

Well, Bruno, let me explain how we make those simulations to understand how much capital we do have to allocate throughout time. M&A operations, for example, that haven't been finalized or they're only in paper. We're still considering it. These things are not included. We have to be conservative, be it when we spend or when you believe you're going to have that receivable. It works in both ends. Just like the energy price. Looking ahead on a midterm horizon, you include contracts that are actually signed. But everything that hasn't been signed, we will adopt conservative prices because that's how the methodology was put together so that the company can be robust all the time to face the volatility we see in the marketplace. So this is written in stone to us. We include several factors, just like we mentioned in the presentation, ever since the signing of the sale of Eletronuclear, Brazilian prices for 2026 as well as the acquisition of our stake in Tijoa, we can have better control of the cash flow of a company in which we have a stake in. Well, everything is put together so that we can feel comfortable to run a company like ours in that kind of environment.

Maria Carolina Carneiro from Banco Safra asks the next question.

Let me go back to the question about capital allocation. You mentioned your participation in the auction on Friday. Can you give us more color as to the strategy of the auctions. It's not that common in Brazil. When we compare to other assets you've been developing, is there any synergy? Is there a possibility of anticipating some of these lots? We would like to better understand how attractive this lot is. What's your take on this opportunity? You've just mentioned that you may be part of the capacity reserve auction. Can you elaborate on that ordinance that will regulate this? Can you help us understand what assets can be regarded as competitive, if you can, please.

Thank you, Carol. One of the great advantages of predictability of our cash flow in the future is, of course, to be able to participate in those auctions to capture all the synergies of existing assets and the assets will be built. We are awarded that and a better relationship with our top customers or suppliers. We can provide greater predictability as to what we will need and when suppliers, of course, can schedule their production accordingly. Let's now address the strategy of the previous auction and the position of the company for future auctions and our opinion about the ordinance or the RFP. Thank you for your question, Carol. The approach for transmission auctions is similar. We assess all opportunities, and we are very careful to make sure we're generating value to the group. This is key, and it was not all that different in this time around, in this auction. Not only in those lots that we were not awarded, we were still competitive. we were awarded 6, 6A, 7A and 7B. They are somewhat different, as you said. They have more equipment, less construction will be needed, and they are very competitive as a product. Let me try to give you more color. We look at the auction with a very positive outlook. The positive result brings us more than 2-digit return. We like to strive for mid to low teens, around 15% in a nutshell. Now in March 2026, we have similar products. We'll be learning from the previous auctions to come up with the best possible strategy. For the capacity auction on the other hand, we do not give any detail of the ones we are going to be taking part in. We have a very comprehensive portfolio, almost 6 gigawatt capacity. It's not what will qualify the auction, but 6 gigawatts can be implemented. That's our goal. Part of it will be implemented in March. That's our goal for that auction. This is how far I can mention. And now on to products. The '31 product is a very good alternative and additional option to sell excess capacity for our hydroelectric power plant. Yes, piggyback on Eduardo's comments, that public consultation would include just one product. Now we have the 2031 product, yet another opportunity to get a kick start on our projects. The granting power has realized that HPPs have become very important to provide flexibility to the system overall.

Mr. Antonio Junqueira from BTG is up next.

Questions about regulation and about the company. We've had the ordinance for the capacity auction and a new provisional measure. Considering the draft as is, what are the possible impacts you foresee in the next 3 to 5 years, marginal expansion costs, are the right incentives in place, if you were to come up with public policies, what changes would you make, especially in the 1034 ordinance?

Well, thank you for your question. I'll hand it over to Elio.

Well, that answer could last hours, but I'll try to be as brief as possible. In sum, that provision measure, our take on it is very positive. It will address the needs and it's heading in the right direction. The industry has many substantial distortions that impacted expansion, and it ended up generating several problems we're faced with now, energy reductions, among others. So that draft bill approved in Congress tries to address some problems with a positive approach, something that is very important, trying to reduce subsidies, limiting high production models. High production has a way different concept. Consumers wanted to resort to that self-production model to try to have more predictability. Today, the model is used not to pay taxes. There are some positive limitations, and this is something that the industry has to do to organize expansion, and that is price policies. So in that sense, that provision measure provides important guidelines. They're not only self-applicable. There has to be a methodology that has to be regulation, but it's heading towards that price policy that is more aligned with the actual needs of the system, such as the expansion of a need will be regulating, flexibility, availability concepts. Conceptually speaking, they are positive. But of course, they'll demand some fine-tuning. There was something else that we have been discussing for quite some time in the industry. It was mature enough, which was the complete opening of the market. I believe that this addresses these topics, especially sustainability of distributors and paying attention to consumers, both that won't migrate. It will be opening up by providing more flexibility, competitiveness, not only to come up with an account for the captive consumers and the time line. We believe it's appropriate to meet the needs of the system. There are a few items that will be more controversial that were included in that provisional measure. And I mean distributed generation. There was a proposal to charge the distributed production and during a plenary session in Congress that was removed from the draft bill. That distributed is not used with the price tagged to it, unlike decentralized projects. Today, after the approvals of those discounts that have been approved, you have that price indication so that we can have the green light for some projects. We believe there should be some modeling in place that can provide more rationality behind the expansion. And one of the most discussed topics in the industry is to the reimbursement of curtailment that will impact many generators today, for both wind and solar generators. A solution was tried, was attempted at least. The government will have the prerogative to increase 2/3 of the provisional measure, 1/3 for the commission and one -- well, they're not conflicting in nature, those 2 texts, those 2 drafts, but there are some contradictions. But again, this is a very important topic. The executive branch will come up with a solution to strike the proper balance, trying to what should be considered risks for the generator and what's not that could be carried over or transferred over to consumers. So the Congress tried to wear those lenses so that we don't want to allocate costs to consumers that could be better managed by the generators themselves. As to GD, do you believe that the break will happen only when we run into a serious problem, when you have that, can we do that without the regulation? Well, the text of the provisional measure chose not to charge for projects that are for distributed generation. You have to take into account the investments and you also have the CDE discussion that will, one way or another, impose limits for distributed generation. They want to strike a balance in the expansion. That was the goal.

Mr. Gustavo Faria from Bank of America asks the next question.

I have 2. One is more operational, and the other one is more straightforward. My operational question is about the modulation gain from hydroelectric power plants. What is the trading market for that modulation hedging for other sources? Some traders say they have little liquidity for future markets as to the modulation. And the benefit is only for the past prices. My question is about what's your take on the liquidity? Do you believe there will be a spread for hydric? Can you give us some color as to what the price would be for future contracts, not only on the spot market? And my second question is about the recurrence of dividends payments. You've announced in Q2, Q3. My question is about the frequency of the coming quarters. Can we expect quarterly dividends payout? I think it would be better for the market to -- if we could have that understanding.

I'll hand it over to Italo. He will talk about the modulation.

Thank you, Ivan. Limp, I think, can field the questions as to the current status of the modulating system. And then I can address the trading issue and the product we have in the market today.

Well, modulation, just a while ago, maybe a year or 2 ago, it was not something noticeable. We've included a slide today to explain that so that we can actually quantify each one of these sources. Hydroelectric, for example, it's the source that can supply those times in which prices are higher. It will have that modulation benefit. In the last quarter, it was about BRL 14 to BRL 15. We expect it will grow not substantially. It will grow as the price reflects the need of the system or up until the expansion will prevent again the need for those very clear-cut ramps in place. Again, it's a benefit that is captured by sources, those that are regulated and those that are not end up being exposed. As to the liquidity of the modulation product and trading, I'll get back.

Well, thank you, Limp, for that explanation. This is an energy-only market as they call it. It only impacts energy. And within that energy, we have a modular characteristic in our system in the case of hydroelectric power plants. Well, we don't see any discussion of an actual modulation product in the market, especially if you were to modulate wind or solar, for example. Again, it's not a product with liquidity, a product that you can put on a shelf and actually sell it. Well, in the future, there may be that option or the possibility of having such a product. But some rules, some issues will have to be addressed in the regulation so that we can actually have a modulation as a product in a market like that of Brazil. Haiamawill talk about the frequency of dividends payments.

Thank you, Gustavo. Well, recurrence, every quarter, we'll be updating the methodology. That's the recurrence we can guarantee. Based on the events, these events can be what we've seen this past quarter, selling Eletronuclear, selling EMEA, the acquisition of Tijoa, the transmission auctions and so on and so forth and the price outlook for 2026. If by chance, significant sales occur, we'll be signing midterm, long-term contracts that will be included in that calculation. That's the only thing I can say to you now. Paying dividends every quarter, that will depend on the model itself. The discipline is what we're going to keep on abiding by so that we can have a company with a financial health that will allow us to execute only what we believe will generate value at the right time. So we have to make that very clear before we make any decision.

Isabella Pacheco from Bank of America.

There are 2 questions. What's the leverage ratio you can reach by the end of 2026? The second, what's the minimum cash position that are -- that is comfortable to you? Are there any policies associated to that?

Let me make sure I understand your question. You're looking at 2026 as if it were a hindrance to announce new dividends, new capital allocation. Our methodology does not take into account the short term. We look at the 5-year horizon, and we are confident in doing so because our company generates a lot of cash. If you're not allocating, our leverage will plummet. Having said that, when we look at 2026, our leverage won't be that different to the one we're having in 2025. And why? On top of the investments we're making this year, some will disappear just like T&E [indiscernible]. For next year, we'll be investing in that auction we were awarded back in 2024. Investment peak in '26, we'll be ending that cycle in 2027. The global investment won't change all that much. If the level we have until July remains the same, we expect very similar dynamics as of 2027. As capital allocation that we have today comes down, we'll be beginning to substantially deleveraging the company. That's why we do not take the short term into account. As far as liquidity goes, we have made movements to reduce risks on one hand. And of course, the liquidity we had to have earlier this year and in the previous year, this need is no longer all that important given these events that has happened in recent times. Of course, we cannot bring the cash to 0. It's a very large corporation even considering the fixed income market growing exponentially. We have -- we do not have a number as the minimum cash we have. We are BRL 20-odd billion. I would never go below BRL 10 billion, maybe BRL 20 billion, BRL 30 billion would be necessary, taking into account everything we've done so far.

Raul Cavendish from XP asks the following question.

I have 3 questions. #1 is about the Tijoa acquisition you are considering being part of the capacity reserve. This could be one of the value levers that you might resort to. But I would like to know if there are others, a deleverage asset, there may be some value generation, maybe some recap, but there are other levers in Tijoa. That's my first question. The second question is about dividends, given the BRL 1.087 billion and the BRL 4.3 billion announcement for this quarter, is it the level you expect till year's end? But if you approve, if there is approval of the BRL 1.087 billion, is there any possibility of an additional dividend payout before the year's end? And my third question is about storage. You talked about it already. But I believe that provisional measure provides a more comprehensive discussion, and it's under the radar of ANEEL as to how that technology is to be implemented through regulatory routes. My question is, what's the company's take because there are many different types of applications in the system, right? I would like to understand what's the company's strategic position. Is it through auctions only? Are there any alternatives, focusing more on transmission. I would like to better understand what the company is thinking about. It's an opportunity and a risk structurally speaking, if we expand on the limitation of the modulation gains.

Thank you, Raul. The first and the third question will be addressed by Elio and dividends will be addressed by Haiama.

Thank you for your question. I think you've explained it -- you put it very well. Tijoa, the acquisition has been a very appropriate and advantageous decision, 50% of the plant, it's a quota-based plant. When you look back in 2024, BRL 136 million is they have, they are debt free in itself is a beneficial acquisition for AXIA. And there's more. You would have to resort to arbitration. We put an end to that arbitration. So you end that discussion. And the main driver in that sense is the possibility to expand. You have 3 additional machines. There's room there. Construction has been concluded. Again, it's an advantageous decision. For the auction in March, we will not be able to take part in that given the auction regulations. It's a 100% quota-based plant. We believe that expansion makes sense to the country, to the company. We expect to put that in practice in the future. As to the batteries, your third question, we have a very substantial battery pipeline. We've been considering several alternatives in that sense. But the way the Brazilian system has been conceived, you cannot capture the value of that intraday. We believe it should be very interesting, very attractive. As a solution, batteries are important to the system. They will come. We see that happen in many other markets in a more mature stage. It's only at a very early stage in Brazil. And the short-term opportunity, of course, is the battery auction, but the regulations or the rules haven't been published yet. And at the same time, we would like to see opportunities to maximize value through the intraday operation. It hasn't been created yet. That would be great for the market, not only through actions, but rather effective market solution for batteries.

Thank you, Elio. Well, the last payment did not take into account the taxation. But I would like to turn it over to Haiama.

Thank you, Raul. As to dividends, of course, we have been monitoring whether there will be taxation on dividends or not. What I can say to you is that any decision the company makes will take into account a look at our methodology. If there's room, if it makes sense, if we believe that economically to our shareholders, it makes sense to pay additional dividends before using, but the methodology for capital allocation will determine whether there is that payment or not.

Rafael Dias from Banco do Brasil ask the next question.

What's the expected EBITDA margin and maintenance CapEx for the lots that you have just been awarded in the latest auction? Is the same for traditional assets, transmissions, substations? Do you expect any efficiency on the annual CapEx for these assets?

Turn it over to Elio.

That was a very objective question. As far as margins are concerned, they are higher, higher ROI. Well, it's clear that the competitiveness we brought to this product, just like we've said in the past, it's a trustworthy relationship, the commitment of our suppliers, they will provide us with that capacity to invest. We implemented that CapEx optimization when compared to the original CapEx from ANEEL. The numbers I've seen around as to the appreciation, what that discount would be, they are somewhat conservative as to what we got. We see that possibility to optimize. We'll keep on looking for partnerships with suppliers so that we can have even more competitiveness in the auctions.

Debora Borges from Banco Safra.

I have 2 questions. The first one is about Eletronuclear. It needs urgent investments. Are you going to make any investments there? And the second question about price dynamics. We still see prices below average. Can you talk on that price dynamic? How can the company address that issue?

Thank you, Debora. We are still partners of Eletronuclear, and we keep tracking that management, and we are aware of the company needs. I cannot tell you right now as to we are going to be making additional investments in that. As to price dynamics, you have to be careful when you compare ourselves to our -- to the competition. Well, we are 100% hydroelectric and part of it is contracted out. Our competitors have midterm, long-term contracts, contracts that have been signed way before, and they may have included some higher prices in there. But when you look at the hydroelectric product, I believe our prices are higher. There are many products out there with wind, solar, when everyone was still developing those sources. But at the end of the day, they'll have to purchase energy, and we do not have to incur in those purchases. So our trading margin generation will be probably higher and on a growing trend because the price dynamics, the way we see it, it's trending upwards.

Gustavo Pimenta from BTG Pactual.

The TPI stake in Tijoa connected to other creditors. What are the conclusion -- what are the necessary requirements for the conclusion of the transaction?

Elio will field that question.

Well, of course, Gustavo, any divestment will depend on approval. It's only natural. That's the way it is. It's a condition to finalize that sale. It has to go through the regulatory agencies to ANEEL. We are pending those approvals. We don't expect any roadblocks along the way. As far as the timing, everything is going on according to plan. Maybe in 2 to 3 months, we'll be able to finalize that deal. It's a natural time frame.

This concludes the Q&A session. I'd like to turn the conference over to Mr. Ivan Monteiro for his closing remarks.

Thank you all for attending. If you have additional questions, our IR team is available to answer any questions. Thank you. Have a great day.

This concludes AXIA Energia's earnings call. Thank you. Have a great day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good morning, ladies and gentlemen, and welcome to Eletrobrás' Earnings Call for the second quarter of 2025. We have with us Mr. Ivan de Souza Monteiro, CEO of Eletrobrás; Mr. Eduardo Haiama, VP of Finance and Investor Relations; Mr. Antonio Varejão de Godoy, VP of Operations and Security; Ms. Camila Araujo, VP of Governance, Risk, Compliance and Sustainability; Mr. Élio Wolff, VP of Strategy and Business Development; Mr. Italo Freitas, VP of Trade and Energy Solutions; Mr. Juliano Dantas, VP of Innovation R&D, Digital and IT; Mr. Marcelo de Siqueira Freitas, VP of Legal; Mr. Renato Carreira, VP of People and Services, Mr. Robson Pinheiro De Campos, VP of Expansion Engineering; and Mr. Rodrigo Limp, VP of Regulation, Institutional and markets. We would like to inform you that this event is being recorded and will be available on the company's Investor Relations website, along with the presentation shown here, both in Portuguese and English. If you require simultaneous translation, the interpretation icon is available at the bottom center of your screen. You can select your preferred language. And if you're listening in English, you can mute the original Portuguese language audio by clicking on mute original audio. [Operator Instructions] Before proceeding, we would like to clarify that any statements made during this conference call concerning the company's business outlook, projections and operational or financial goals are simply the management's beliefs and assumptions based on information that is currently available to the company. Forward-looking statements are not guarantees of performance as they involve risks and uncertainties and depend on circumstances that may or may not occur. Investors should be aware that general economic conditions and other operating factors may affect the actual results and may be different from those expressed. I will now turn the floor over to Mr. Ivan Monteiro, CEO, who will begin the presentation. Go ahead, sir.

Good morning, everyone. Thank you for being here. This is a quarter that consolidates several initiatives that the company adopted since it was privatized. I would like to list four main things. The first is the simplification of the company's shareholder structure and cost reduction was a major example that came from this initiative. Liability management was also an example as we have been able to reduce the company's compulsory debt from BRL 2 billion -- excuse me, from BRL 20 billion to now under BRL 12 billion. Another highlight is the conclusion of connected works. We have the [ Coxilha ] Negra Wind Farm concluded in the first quarter and 1,390 Manaus-Boa Vista, which is a connection we will deliver later on this year. We're also continuing investments and making record disbursements of nearly BRL 2 billion and the consistent improvement in the commercialization area is also a highlight for the quarter. All of these initiatives aim at increasing the predictability of our results, which allowed us to announce the BRL 4 billion dividend payout yesterday. We will continue with this initiative to give more predictability, increase investments, reduce costs and manage our liabilities. And with that, the company aims to improve its process and its trading to become a company directed to serving clients. We are demonstrating with the support of the Board that we are concluding the turnaround stage and building a budget for 2026, which will help us to overcome this stage completely. I will now hand it over to our CFO, and thank you for being here.

Thank you, Ivan. Good morning, everyone. Looking at today's schedule on Slide 3, I will be talking about the main highlights for the quarter, and then we will discuss the financial performance of the company this quarter, we'll discuss our energy trading strategy and finally, our capital allocation strategy. On Slide 5, you see the main highlights for this quarter. Starting with shareholder remuneration, BRL 4 billion in dividends. This was due to the reduction in risk, as Ivan said, that we were able to execute this quarter. And this is also connected to our long-term vision for energy. Our second highlight was the contribution from generation to our margins, which went up 21% versus Q1 and 16% versus Q2 2024, and this mitigated a drop in transmission revenue. The third point was this BRL 1.2 billion reduction in compulsory loans, which is now below BRL 12 billion investments, which grew 116% versus the first quarter of 2025, and we're focusing on investments and reinforcements and improvements. And we concluded the first post-privatization transmission auction, which is the Caladinho project. We also concluded financial and economic rebalancing for Transnorte Energia, as Ivan mentioned, we concluded the last transmission line this year. Finally, in terms of capital allocation, we concluded asset and crossing with Copel and we acquired Eletronorte participation. Continuing with our financial performance on Slide 7. We had a reduction in RAP and this was partially offset by our revenue from generation, as I had mentioned before, discussing our margin from generation. On the EBITDA line, which impacts our generation margin. This helps to offset this reduction. But looking at our regulatory EBITDA, we remind you that we have to consider participations SPEs of other companies and the variation was nearly BRL 800 million in equity income, which led to this reduction in EBITDA year-on-year. Slide 8 discusses our income. So we had a reported loss of BRL 1.3 billion. And this is basically due to the regulatory remeasurement of our transmission contracts, the RBSE financial component. Adjusting for this effect and other adjustments to our adjusted IFRS including Eletronorte, our net income would have reached BRL 1.4 billion, which is around 40% higher than last year. Slide 9, as you've said, shows our cost reduction journey that is continuing with our PMSO of BRL 1.4 billion, a reduction from Q1 and Q2 '24. And there was also a reduction in the number of employees, but we contracted a significant number during this time. So it's a cost reduction with improvements in efficiency for the entire group. Slide 11 discusses our energy trading strategy. First, we have to remind you where our generation resources are present. We are present across Brazil. In the Southeast, for example, during the second quarter, we had 7 gigawatts of physical guarantees in the Southeast, and adding 6 mega in purchases. We would be at around 800 in quotas. And here, we're highlighting our ACR sales. We are doing this because purchases include us are not managed by us. The quotas will reduce to zero by 2027. And so we are receiving a fixed revenue from this. In order to understand our trading strategy and how it's changing, we have to look at all of these assured capacities plus purchases and subtract quotas from that. And that shows how much we are really generating per megawatt hour that we have available for trading. Slide 12 shows this effect. So last year, with the energy we have available for trading, we had made BRL 1.1 billion in contribution margins. And in the second quarter, this went up to BRL 1.6 billion. But it had been BRL 1 billion in the first quarter. In addition to that, on the right-hand side graph, we are showing how the resources we have are evolving throughout the year. It's important to remind you that nearly 99% of our generating area is made up of hydroelectric power plants. And this energy production has a seasonal pattern. So in the first quarter, we were at 12 gigawatts to be traded, generating BRL 1 billion in contribution margin. But for the second quarter, it was at 9. And we still generated 1.1 -- excuse me, BRL 1.6 billion. For the third quarter because of the seasonal pattern that we have, this is the dry season in Brazil. So it will go down and then go up again in the fourth quarter. On slide 13, we see some of our strategy that we had mentioned in the first quarter, our vision is that after November and December 2024, there was a high expectation that the rainy season from April -- excuse me, from December to April, we'll be close to historical average, and that would make prices collapse. At the time, we were concerned about conserving the first quarter, as I showed in the previous slide where we have the most resources available. But if the expected rainfall did not come from the second quarter onwards, we would have a much more positive scenario or pricing. And this is what happened. You can see here are price from January 2 and we drew a line on March 13, which was when we published our results for the fourth quarter of '24. You can see that prices continued to move. So for 2026 and -- the forecasted prices for 2026 and 2027 are a little bit more volatile, but we believe that this will be more constructive. Slide 14 shows our energy balance as it currently stands. There's a slight evolution in our resources for 2025, we're no longer treating this band. And this gives us a constructive vision for our prices, as I mentioned before. Now looking at capital allocation on Slide 16. So here we have our methodology guidelines to declare our first dividends in December and then complement it on March 13 with the fourth quarter results. We got many questions about how this is being analyzed. So we decided to include these guidelines in more details in this presentation. So this is our methodology. First, we're always looking at the long-term horizon. We're looking at a 5-year horizon. And for these 5 years, we are assessing how our capital structure will be at the end of the fifth year. We're also analyzing our leverage with this capital structure. So first, we have to consider financial net debt. So bank debts, market debts and so on. And over that, we add the inventory in compulsory loans. We are reducing these liabilities with payments and this is all being considered in our cash flow. And finally, we also include our regulatory obligations from the privatization, CDE and basins. On the EBITDA side, this is just a note, besides EBITDA -- regular EBITDA, we're including our proportional equity income into this calculation for leverage, how we try to define the optimal leverage range for a company like Eletrobrás. In generation, we consider it to be between 3 and 3.5x. That would be comfortable, of course, depending on price and in transmission between 3.75 and 4.25x. So we have a weighted average according to the size of our businesses as predicted for the fifth year and that will give us the optimal target leverage. After we do that, we compare our net debt and our optimal leverage projected for the fifth year and see if there's enough space to pay for that. And that's exactly what we did. Slide 17 shows this calculation. And of course, it takes into account everything I'm going to mention in Slide 17. And I'm referring here to risk. Since 2022 when we have privatization taking place and there was a strong acceleration, especially in the last 6 months. Our risk improved significantly. Compulsory loans started in 2023 at BRL 24 billion, and now we are below BRL 12 billion. The investment in Transnorte Energia was complex, over BRL 3 billion, and it's being concluded this year. We are repositioning the transmission revenue, and we are extending the concession terms. Cost restructuring is ongoing. We had a simplification when we compared to -- with the Furnas merger. So the corporate structure was streamlined. We also had an uncertainty for our shareholders about what disbursements we would have. There was a partial completion of the sale of thermal power plants. A completion of the RBSE financial review and also a release of some credits that were withheld at CCEE due to the GSF auction. That was a release of nearly BRL 400 million. So this all brings us to reduce risks gains that we had over time with these transactions, better short-term outlooks for an energy company, we are reviewing our methodology, so despite having posted BRL 4 billion in dividends for 2024 recently, being able to pay out an additional BRL 4 billion in dividends is very significant. Slide 19 highlights the significant growth we had in investments this quarter, a growth of 116% versus the first quarter, especially in reinforcements and improvements. And finally, on our ESG agenda, out of the main investments that we have in the company currently we're nearly at the end of the Transnorte Energia, line. So we're interconnecting the last isolated state in Brazil, which is Roraima. This had been stopped for 10 years. It had a CapEx of BRL 3.3 billion, and it will be with interim and within the forecasted costs. And we repositioned our revenue, our RAP was increased from BRL 395 million to BRL 561 million, and we expanded our term from 17 to 27 years. This creates 3,500 direct and indirect jobs, and we're interconnecting Roraima. So that will reduce thermal generation and that its nearly BRL 2 billion in costs in CCE (sic) [ CCEE ] and CDE. We're also reducing carbon emissions by doing this. It's a potential reduction of 612,000 tons of CO2. So that concludes my presentation, we can continue with the Q&A.

[Operator Instructions] The first question will be asked by Fillipe Andrade from Itau BBA.

I'd like to ask you to give us some more details on your trading strategy for the second quarter. In your release, you mentioned this, but I'd like to understand how each subsidiary participating in building the ACL margins for the short-term market. If you can tell us a little bit more about that. And I'd also like to know what is the recurring CapEx that you're expecting in improvements for the next quarter.

Thank you, Fillipe . I'm going to let Italo answer your first question, and then Elio will answer your other question.

Thank you. So about our trading strategy. Obviously, we're working in trading energy for each submarket. So we have distributed teams in each of the regions. And their focus is finding -- is on finding clients that will add value to the company. The sales strategy for final customers and for traders is based on a portfolio analysis that's made by our portfolio department, where they see the highest added value for the company's revenue. So we can split this into two parts. My area looks at the market and sees what demands are being created, and we also have the supply area, which is [ EPZ ] area. And he's going to tell us about how he forecast supply of energy through with Eletrobrás. Thank you for that question. One of the points we mentioned in the first quarter's call, is that in our strategy, looking at the entire year, we had a higher volume of sales in the first quarter. We had strong rainfall patterns in December, in November and January. And our strategy was to leave less energy contracted for the following quarters. And of course, resources are a little bit less available because of the seasonal patterns. So if this had been lower, we would have been pleased with lower sales level. In March, we saw a huge rise in the Southeast with the North and Northeast being left behind by about BRL 260. So for March specifically, the biggest volume in sales led to a result that was not as satisfactory for March. But since we consider this strategy for the entire year, our vision for the entire scenario, whether it was for low or high prices, had more uncontracted -- having more uncontracted energy would have been favorable for the rest of the year because that would have reduced that gap. We mentioned during the last call that we were already seeing a reduction from June onwards. And this is exactly what happened. In the Northeast, we still see a relevant gap of about BRL 30 to BRL 35 in some days of the third quarter, but the north is already close to it. So actual sales for the second half of the year is offset by the energy available in the North and Northeast. So we are already seeing some results for the second quarter, and the strategy was the same for the rest of the year. With regards to margins, this is seen on a global basis by grouping all of the different companies.

Hi, Fillipe , thank you for your question. So first, I would just like to highlight the importance of the investments that we're making. We've been mentioning this in the last few years. We are investing in our own assets. So it's extremely pertinent and appropriate for the group, and it is providing the right level of returns for our shareholders. And more than that, it's creating resilience for our transmission assets. This is an essential investment. As for volume, we have been growing constantly since 2022, when the company was close to BRL 1 billion. We're now at -- in 2023, we were nearly BRL 3 billion, in 2024, it was at BRL 3.3 billion investments in reinforcements and improvements. And clearly, for 2025, we're seeing some additional growth. We're above BRL 4 billion. I think it's at 4.5 or thereabouts to be executed throughout 2025. Our ambition is to truly continue growing. Well, we have to see what the goals will be for 2026 and 2027. Of course, there's a process that we have to go through with our regulators, but we see a lot of potential at investments. We see that this is important and relevant. So our goal is to continue growing. So it's 4.5 this year. And for the future, we continue -- we believe it will continue to be higher. In the first quarter, it was a bit below in execution, but it was -- we already recovered significantly in the second quarter, and we'll do even more in the next quarter.

The next question will be asked by Andre Sampaio from Santander.

Good morning. First, I'd like to ask a follow-up question on reinforcements and improvements. You mentioned that you still needed an internal effort to accelerate investments. And I'd like to understand if this internal process has already been concluded and I'd also like to confirm something. We've seen a difference in IFRS and regulatory. I'd just like to confirm if there's anything else that we should pay attention to for our models.

So there are 2 points here. Maybe Robson can talk a little bit about this.

The engineering team, of course, is implementing this expansion. But in summary, regarding the approval process and how we identify and pre-execute this. This is very aligned in the company. We have a robust process first to identify what assets we think are important for our regulators to consider for our investments and then in assessing these investments and planning for them, you can't only identify them, right? We have to include it in our budget. So the previous stages are very well laid out in the company. Of course, it's a continuous operation. We always try to improve things. And when it comes to executing these improvements, I think the numbers speak for themselves. Our second quarter was much stronger than the first. And I have to reiterate that question of Caladinho. We are delivering on time and within budget. It's small, but it's the first transmission line that we are delivering. And it was within budget and within the terms. So Andre, this adjustment is basically based on elimination looking at revenue and cost between companies. Nothing noteworthy.

The next question will be asked by Bruno Amorim from Goldman Sachs.

Good morning, everyone. I have two. First, I'd like to ask a follow-up question on reinforcements and improvements. If you can tell us to whatever extent you can about what returns you expect for the investments made in this area with [ MTMB ] and Selic rates at the current levels, what returns do you expect and what are the odds of having an outperformance with the regulatory? I'd also like to ask you to talk about liquidity in the energy market to the extent that you can. You've shown prices for 2026 were at very attractive levels. And my question is if the decision of not selling more has been made by the company or if there are restrictions on liquidity at these price levels.

Thank you. Haiama will answer one of the questions and Limp will answer your question on trading.

Thank you, Bruno. On reinforcements and improvements, as with any regulated investment, it will change over time. Our vision is that over time, there can always be divergences between the real interest rates, but looking at a 20-year history where regulations have been robust this has always been constructive. So if there are any differences over time, regulators are concerned with that, and this is adjusted quickly. So we have a robust methodology. We are constantly analyzing these parameters. And with time, we see that they tend to converge. I don't like to compare prefixed and post fixed rates to see if this is being good way. If it's a 30-year investment, it's important to look at the regulations that we have so that we can deliver what is expected.

Thank you for your question, Bruno. When it comes to liquidity, there is some liquidity because we're analyzing if the market will be open, and this liquidity will happen organically, right? When it comes to the market, we do see that liquidity will be slightly better. And of course, the company's strategy of allocating energy will depend on what we did in all the studies that in this area has been doing. So in summary, there will be some organic liquidity and the wholesale market, of course, we see an improvement there for many reasons. I'll let [indiscernible] answer this issue about the portfolio -- your question about the portfolio.

Thank you for your question, Bruno. So we talked about liquidity and how the market is doing for 2026, we see some significant liquidity. It's actually slightly lower than last year. Looking at a one, maybe our prices can affect our liquidity, but we have significant liquidity, especially in the Southeast and this is related to the strategy that was discussed before. So we are trading for 2026 and 2027, but, we're always keeping a technical analysis to see if there's a risk of a gap here. Of course, liquidity is more concentrated in the Southeast. So we're trying to strengthen our sales in the North and Northeast. We've had some operations in the Northeast and these are sales that contribute to reducing risk and to helping us make use of the increase in energy prices.

[Operator Instructions] The next question will be asked by Daniel Travitzky from Safra.

I'd like to ask about your vision for the future of the company. You explained many of the risks that were mitigated. You mentioned several of these elements. And looking towards the future, what will be the company's focus? Are we looking at the reduction of -- and other risks? Or are we focusing in risk reduction and capital allocation? That's my first question. And I'd also like to ask about your recent announcement of dividends, shall we see this as a change in the dividend payout practice that you'll now do more frequent dividend payouts or -- are we continuing with the same previous strategy?

So our vision for the future is to consolidate all of these initiatives. And our dividend strategy follows in the same line. We are now through the classic turnaround phase, and we're looking at the company in the medium and long terms. M&As will basically be about finding new opportunities for growth. The auctions for this year and for next year are also opportunities for growth. We will grow for some time, and then we'll reach a more stable investment pace for the company and this capital allocation is allowing us to give more predictable dividends for our shareholders. So we expect to consolidate these initiatives, make our results more predictable. And we hope to through that, make frequent payments. Of course, there's a number of initiatives behind that, involving AI and other things. In the beginning, we had a holding with 4 subsidiaries including Furnas, and we're now having one single back office for that. But one specific part of it is relationship with suppliers. We're managing the company as one company, and that gives us a better partnership with our suppliers. But I'd like to ask Juliano to talk about his vision for the future, specifically on using new technologies.

Thank you Ivan. The company has been modernizing and improving very quickly. So we're now among the top 10 most innovative companies in Brazil, and this will be published in the next few days. This is due to how we are modernizing the company's infrastructure. And this includes AI, our monitoring centers and how we've integrated these technologies in the company from commercialization, engineering, and corporate businesses. We aim at expanding this process doing the basics very well. And we also hope to apply these technologies to generate more value for our business.

Next question will be asked by João Pimentel from Citi.

I have 2 questions on my side. First, I'd like to understand something in Q1, you mentioned that you had a longer position for the second half of the year so that you could benefit from the higher energy prices, which is what we have been seeing in price curves. Considering that we are facing a challenging scenario in GSF, and the hedge and the energy balance seems to be insufficient to mitigate this impact. I'd just like to understand how much of the gains that you would potentially have been affected given that GSF is challenging. That's my first question. The second question is about this decision to sell your portfolio, given the restrictions you have on liquidity and so on, is the company's option based on sales for the short-term market or do you think you will have space to monetize things with contracts? I'm asking this not only for liquidity, but due to the market risks, we're going to continue seeing them for the next few months. And I think this affected you significantly in the first quarter. So, do you expect to hold back on trading and have liquidations of PLD in your own market?

Thank you for that question. Haiama will answer your questions.

Thank you. So, what we mentioned in that slide that showed the seasonal pattern for GSF throughout the year. Of course, when you have more energy, and this is usually in the first quarter, our position is that if we truly had a good rainfall and prices went down that this could be used to mitigate the rest of the year. So that's why we concentrated sales in the first quarter. From the second quarter onwards, we did the opposite. So it seemed that the risk was asymmetrical to the price being used, and that was the next graph we showed, which was the price curve for the second half of the year, which was around BRL 100 and some to BRL 300 or BRL 360. And now is that BRL 300. With that being said, when we said that we were sold in the first quarter and bought from the second quarter onwards. Of course, we were running many simulations to see how GSF would behave so that this energy would be available for the poor scenarios, not for any scenario. That energy balance we showed was for the year. It was not the negative exposures that we could have later. It was for the year. So that also involves the period in which we had been more contracted and this was done purposefully. So -- but that being said, given that GSF is lower in the third quarter, you have to expect that although prices are high, financially, it will be spectacular, it would be very good, but not to the same magnitude as if we have the volumes in the first quarter. But the strategy we were using had already been foreseeing all of these scenarios on GSF and price. And to answer your question on the trading strategy, our focus is expanding our client base, whether they are large clients where we have direct connections or smaller clients that can be reached through partnerships. And of course, this is our focus. If we cannot do something at the price that would be better, then we'll move on to liquidation. But I'll ask Italo to complement that.

Thank you. João, as Ivan said, we had a very detailed study of our clients based on size, market and so on. And we mapped the best tools we could use to access these clients. Like Ivan said, partnerships, speaking to major clients, open market channels. So our strategy for this is well defined. As we see better options of allocating energy, we are using these tools that we've prepared and are currently available to allocate energy to whatever provides the most value for the company.

This concludes the question-and-answer session. We will now hand it over to Mr. Ivan Monteiro for his closing remarks.

This concludes Eletrobrás' conference call. Thank you, and have a good day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good morning, ladies and gentlemen, and welcome to Eletrobrás' Conference to discuss the Results for the First Quarter 2025. Here with us today are Mr. Ivan de Souza Monteiro, the President of Eletrobrás; Mr. Eduardo Haiama, Executive Vice President for Finance and Investor Relations; Mr. Antônio Varejão de Godoy, Vice President for Operations and Safety; Ms. Camila Araújo, Vice President for Governance, Risk Compliance and Sustainability; Mr. Elio Wolff, Vice President for Strategy and Business Development; Mr. Italo Freitas, Vice President for Trading; Mr. Juliano Dantas, Vice President for Innovation R&D, Digital and IT; Mr. Marcelo de Siqueira Freitas, VP for Legal Affairs; Mr. Renato Carreira, Vice President for Procurement and Services and Interim Vice President for People Management and Culture; Mr. Robson Pinheiro Rodrigues de Campos, Vice President for Expansion Engineering; Mr. Rodrigo Limp, Vice President for Regulation and Institutional Relations. We would like to inform you that this event is being recorded and will be made available on the company's IR website, along with the presentation being shared today, both in Portuguese and English. For those who require simultaneous translation, the tool is available via the globe icon labeled interpretation at the bottom center of your screen. Please choose your preferred language. For those listening to the video conference in English, there is an option to mute the original audio. For the Q&A session, if you wish to pose a question, please provide your name and company through the Q&A icon at the bottom of your screen. As per our standard procedure, your name will be announced so that you can ask your question live. At that time, a request to unmute your microphone will appear on your screen. Should you prefer not to use the microphone please write your name and company followed by your question in the QA field, so that the operator can read it aloud. Before we proceed, we would like to clarify that any statements made during this conference regarding the company's business outlook, projections, operational and financial goals constitute the beliefs and assumptions of Eletrobrás' executive management and information currently available to the company. Forward-looking statements are not guarantees of performance as they involve risks and uncertainties and therefore, depend on circumstances that may or may not occur. Investors should understand that general economic conditions and other operational factors may affect the results expressed in such forward-looking statements. We will now turn the floor over to Mr. Ivan Monteiro, President of Eletrobrás, will begin the presentation.

Good morning, everybody. Welcome to the earnings release of Eletrobrás for the first quarter 2025. We have two important highlights. The conciliation between the federal government and the search for a constant dialogue that we initiated with them after a year and a half of negotiations, we had approval and support of the general shareholders assembly. Another mark is the new collective bargaining agreement, a relevant tool, so that we can continue enhancing our cost and processes. We had very high availability of our generation and transmission equipment this quarter looking for operational excellence and extreme reliability of operation. Now, yesterday, there was a partial sale of our gas supply plants. Now generation is getting to 100% based on water, sun and wind generation. In transmission, I draw your attention to the conclusion of the Coxilha plant and the advances in Manaus-Boa Vista. We confirm the expectation of conclusion of this work for second semester of 2025. As part of the conciliation agreement, we have made investments for the conclusion of the Angra nuclear plant. We will not have to generate anything for the conclusion of this project or make new investments in Angra dos Reis Park. We will continue to pursue the sale of our stake in the nuclear plant, a process we began at the end of 2023. I would like to confirm that we're pursuing a recurrent PMSO figure for the year 2025. We have also made significant strides in training with an advance in volume, stability of processes, a good relationship, offering solutions and energy to an ever greater number of customers. I would like to thank you and turn the floor over to Mr. Haiama.

We're going to go on to Slide number 3 where we will feel about our financial performance for the first quarter and I will speak about the management of energy trading as well. So we go to the highlights on Slide number 5. The main highlight has already been remarked by Mr. Monteiro, we concluded the discussions with the government and have proved the agreement at the shareholders assembly. Secondly, we have a partial conclusion of the sale of Amazon thermal plants receiving R$2 billion in our cash. Now on Slide number 6. Regarding our results, we have adjusted results, loss of R$81 million, where the main impact comes from the regulatory remeasurement of Chesf for transmission, another highlight. Since the negotiation with the thermal plant, we have stopped the problem of default and Amazonas Energia in such a way that the default was R$56 million in the first quarter compared to R$432 million in the first quarter 2024. A reduction in operational costs with a drop of 28% vis-a-via the fourth quarter 2024, and 8% year-on-year with savings of R$143 million in personnel. In energy trading, an increase in the free market year-on-year of 35%. On Slide number 7 regarding PMSO optimization, we had a drop of 28% vis-à-vis the fourth quarter, 8% year-on-year, and you see a consistent reduction in PMSO with a highlight for the drop of 15% in our personnel costs. Therefore, the annualized cost for the first quarter is somewhat below R$6 million in 2025. As we had remarked in the fourth quarter, this seasonality that occurred in the fourth quarter. For this year, we have implemented some changes precisely to mitigate this effect. So part of this cost in the first quarter already reflects that the seasonality and this cost should remain throughout the year. On Slide number 8, compulsory loan with a reduction in the first quarter R$400 million, last year a drop of almost R$300 million. Now above and beyond the R$400 million, we had a reduction of R$336 million in the possible and remote settlements. On Slide number 9, we look at our financial figures. Revenue growing 16%, relatively flat in the regulatory, and it's important to recall that after the tariff revision that took place last year, the transmission revenue had a drop offsetting the generation revenues in EBITDA, a drop and we go straight to the regulatory adjusted figures, a drop of 4% partially due to the transmission revenues and partly due to a drop not only in the average sales price of ACL quarter-on-quarter, but also a greater sales exposure in the Southeast, not fully offset by volumes in the North and Northeast. On Slide number 10, we show you our profit dynamic. We had losses of R$81 million compared to R$354 million, and this is due to the regulatory remeasurement at Chesf impacting, of course, the result. On Slide number 11, our operating provisions. We continue to improve our provisions in general. The highlight once again is the issue of Amazonas. Since the sale agreement with thermal plants, we have reduced the default, the recurring default of the company for PCLD. And in terms of litigations, once again, a change in constitution and withdrawals we carried out through time. Thanks to all of the agreements we have reached. On Slide number 12, a highlight for the sale of thermal power plants. We're receiving R$2.9 billion in cash for the partial sale. We're still missing Santa Cruz that is pending approval. Now with that, based on our thermal capacity, we have a reduction of 0.6 megawatts of installed capacity, and we're on that trajectory for net zero as our commitment for 2030 in the ESG agenda. On Slide 13, we launched our sustainability report for 2024. We continue with the partnership with Estapar for electrical cars and some parking lots, the agreement with Antaq to promote decarbonization in ports and waterway terminals and in terms of social, environmental and cultural commitment the reconstruction of the national museum that had caught fire a few years ago and we had the surprise of the birth of the first Amazonian manatee calf in five years at Eletrobrás preservation center. On Slide Number 15 we'll see speak about our energy trading. On Slide 15 we show you that in 2025 our balance is between 0 and 2.5 gigawatts. We continue to enhance the sales in 2026-2027. As a result of the price dynamic that we observe, it has changed levels when we compare it with ‘23 and the beginning of 2024 when we began to observe volatility impacting the futures market. Therefore, we're accelerating our sales in places where we believe we have a more fair price. We reached 722 customers, a growth of 35% year-on-year. On Slide 16 simply to help you to understand where our resources lie, our generation capacity, where all of our long-term procurement lies, momentary procurement that we need because of trading or structural issues, and where we are allocating that energy presently for the long-term and for the short-term as well. As an example, we have 17 GW in the slide to the left of total capacity. We're acquiring 800 MG. So we will have 18 gigawatts to trade through time. Of those 18 gigawatts we have 2.4 gigawatts in the quotas that will be nullified until 2027. In ACR sales, we have 3.4 being allocated to ACL. And in the map, Therefore, you can see where the opening or breakdown of the energy is by region, Southeast, Northeast and Southern system. This shows you the dynamic of the first quarter. As I had mentioned on Slide 16, the company continuously monitors not only hydrological conditions, but also demand or mismatches among markets when there is over demand and transmission to fully understand the risks in this first quarter, the Eletrobrás strategy was to hedge the risks that seem to be looming that came until mid-February. That was a very good period. And when we see these positive periods and the supply in the system, the outlook was that the prices would drop considerably. So our decision was to hedge the risk. Now beginning in the second quarter onwards, our vision is different. The prices that were being practiced do not make much sense for trading. Therefore, we are going to allow the energy to stand without contracts, although many were made. This impacted our first quarter. Why? When we put together what we saw in the map in the previous slide and what happened with the trading strategy as we have larger volumes for trading in the Southeast. There was a mismatch between what was sold in the Southeast than what was uncontracted in the Northeast. This is called the submarket risk. This is the impact we had in the first quarter. As you will see on Slide 18, we’ll show you what happened, the pricing that was wrong for the second quarter, it's what you will see in the dark blue curve reaching R$360 presently. But for the year, when you look at the dotted curve that began below R$150, R$130, R$120, is presently at R$290. So, we hedged the first quarter impacted by that mismatch of the submarket generating the potential results for the rest of the year. With this, I would like to conclude my part, and we can go on to the question-and-answer session.

We will now go on to the answer and question session for investors and analysts. [Operator Instructions] Our first question comes from Bruno Amorim from Goldman Sachs.

Well, good morning, and thank you for taking my question. I have a follow-up about the last point mentioned by Mr. Haiama to guarantee I understood you are working with hedging that should relevantly decrease that impact you had in the first quarter. The mismatch of prices among some regions. Now what to expect going forward from this isolated effect? That's the first question. Which has been your liquidity to close contracts at these more attractive prices did appear on the screen for this year and 2026?

Thank you, Bruno. Yes, in the first quarter, we were more concerned with the price of the PLD that we would remain at a low price for the entire semester. These were the risks we had seen and with a higher volume traded in the Southeast, we sold more in the Southeast. And in the expectation with the energy we have in the North and Northeast, this strategy would help us mitigate that minimum price. What happened was we had a huge mismatch in the North and Northeast vis-à-vis the Southeast and well, this didn't nullify the exposure. Now going forward, we're not doing that quite the contrary in the price graph, we saw that our price was wrong beginning with the second quarter, and we decided it would be more prudent to do the opposite to later negotiate the energy. When the prices would truly reflect the reality. What we did at that time was not correct.

Good morning, Bruno, simply to complement what was said. We spoke about the risk of the sub-markets. Now we have a portfolio to show you in the presentation and it's well balanced when it comes to market division, 50% of the resources in South and Southeast, one fourth of the Northeast and North. Therefore, our vision is that the risk of these sub-markets, well, it reached an extreme but it will always be present, and it will remain in the North and Northeast. In the North compared to the Southeast, the trend is to get to what Bruno mentioned until the end of May. But we're still considering that risk scenario, and we can mitigate that risk in certain ways, we can perhaps work with sales in the North and Northeast, which is quite simple. We carried out swap operation once again in view of the mitigation and the effect was quite positive for that first quarter. What is important and when we look at the portfolio, or if we're looking for the entire year, we have to include more years. Well, this change began in March, and it will work with a completely different price level beginning in March and in ensuing years. In the second half of the year when this change began in February, the price of the second semester went up to R$50. And presently, we are selling at R$350. So this strategy more than offsets the present date scenario. Now regarding your second question, in terms of the short term, yes, we do have sufficient liquidity in 2026, we have good sales in 2027 as well and in our vision, we begin to go towards the structural vision of prices, something that is closer to what is happening. I hope to have answered all of your questions, Bruno.

Yes, that was very good. Thank you. Have a good day.

[Operator Instructions] Our next question come from Andre Sampaio from Santander.

Well, good morning, everybody. Well, I think the first part was made very clear. I have two other topics. First of all, regarding your CapEx, you have a CapEx that has not accelerated year-on-year. I would like to understand why and which has been the work in-house to ramp up and go up to higher CapEx level for reinforcement. The second question regarding the – our duration of the tariffs in transmission, as mentioned in the release. Why have you reviewed these numbers downwards basically? Thank you.

Andre, thank you. Elio Wolff speak about CapEx, and then we will speak about this review.

Good morning, Andre, and thank you for the question. It’s something natural for the first quarter to begin with a slightly slower pace when it comes to CapEx in 2023, we made a little more than to be in 2024, R$2.3 billion in 2025, we should be going beyond R$4 billion, nothing besides what is usual. The first quarter is always slower and then it picks up pace.

Thank you, Elio, and about the remeasurement, the regulatory remeasurement of the tariffs Chesf this was approved last year before a period of 2023 to 2028. It is a process where we have resources for this. Now we had a remuneration base approved last year that was mistaken for Chesf, the document that we had you years ago was correct, and this document has been legally redressed up to present and this mistake once again was resolved in an ordinary assembly as part of our normal deliberation. So for Chesf, we will have R$2.9 billion. And in terms of net remuneration, almost R$1 billion. R$950 million for the regulatory remeasurement.

Well, thank you very much. That was very clear.

Our next question comes from Arthur Pereira from J.P. Morgan.

Well, good morning, everybody. Going back to generation you gave us a breakdown of capacity and your regulated contracts, could you also speak about the free contracting market? Just to see if it is similar, if your load will be divided among subsystems in that way and the energy allocation decided last year for the year 2025. Is there a difference in the capacity of the subsystems? It seems that you’re thinking about this for the second semester of the year, but I would like to know if you have any differences in energy allocation?

Thank you, Arthur. Regarding the allocation where we’re going to be selling more or less, of course, this is part of our strategy. We cannot disclose this, but you can be certain that we’re constantly monitoring the risk and generating information and reports. In the first quarter, we were looking at things globally. We had a concern with the drop in prices of the settlement of price differences. This change in mid-February but once again, with a view of the entire portfolio. Having said that, and this is the ongoing discussion in the sector at present. If you look at other companies or consumers, if everybody is concerned with these mismatches in the market, we have to look at prices. Now we believe that the price impact is offsetting the risks that we are may be going to incur in the future. Now this is how we manage this issue. The other question, I do not remember, I’m sorry.

About your energy allocation, if there is a difference in the assets of the region in the second half of the year, you have a long-term, but is there a difference in the capacity of North and Northeast vis-à-vis what is generated in the Southeast?

I will need the help of experts here.

Well, yes, there is a difference. And what is more important is to understand that source of the mismatch that occurred in March. We had a deterioration of our logic for the Southeast in March. And in the North, there was rainfall. And once again, there was a mismatch between the Northern region and the Southeast. We’re almost getting to the first half of the year as we have plants that are reservoirs, it’s natural that we will have a bringing together the North and Southeast. In November, we expect very similar prices between the regions. And of course, this will bring about benefits as we have a great deal of resources in the North. Last year, we had value somewhat above the price in the Southeastern region. Now we think that this mismatch that began in March will continue to perhaps not at the same level, but we have a great year of intermittence in the Northeast. And this happens during moments of large production of solar energy. So we have to look at the system condition for each of the regions. There are systems that are very different, especially in the Northeast. There’s rainfall in December, March and April. And we have the reservoirs filled in May. Now in March, the mismatch was above R$200 then was decreased to R$100 because of the settlement of price differences. But we will have a closing of the prices and of course, this reduces the submarket risk. This doesn’t mean that we’re not always looking for ways to mitigate this ways that will make sense for us and to increase the sales in the North and Northeast.

Thank you. Thank you very much.

Our next question comes from Maria Carolina Carneiro from Safra.

Good morning, everybody. Thank you for the call. We have two questions. The first if you could share with us your priority agenda for 2025. Once you have concluded the agreement with the government, you have change your bylaws and the Board will remain for some years. We know your attendees focused on divestment and cost cutting. And you have expanded your dismissal plan in the last quarter, if you could update us a bit on your long-term agenda. Secondly, regulatory issue for this sector. Do you have a vision that what would happen with the capacity auctions if we will still have a public hearing soon, we know that Eletrobras as well as other electrical plans with the possibility for expansion could be very competitive simply to know if there is an update on that agenda and when we will hear about novelties in that field. Thank you.

Well, thank you. Thank you very much. These are two extremely important questions. Now what was important was the conciliation and the collective bargaining agreement. And we now have a greater focus on management, which is more relevant. We thought about investments on our own assets that have environmental licenses. We know about their returns and they’re proving to have enormous resilience and availability. Now the investment program has gained a new dynamic of this year, a significant dynamic. Well, this is something that was done when the company was a state company, you can expect this change. What we’re doing is refining our part to the patients. Last year, we had a significant participation. We’re always looking at market expansion. We’re going to continue with the sale stake in the electro nuclear plant as well as any other new investments in the plant. So that cost reduction agendas that continue as one. If we compare our performance with the goals of the state company, we’re going to focus more on our comparison with peers, with partners, with competitors. And there is no reason why Eletrobras should become the most efficient company in the sector. We’re already building a relationship and implementing significant enhancement in our discussions with suppliers in that discussion with tariffs were concerned with the geographies where the equipment is being manufactured, of cost being competitive in transmission, we had a great victory last year. So this is very important not only here but in our entire agenda, reinforcement and enhancement to have the very best equipment presently the management focus is on the investment program participation, but of course, are quick for efficiency. I will give the floor to Rodrigo Lima. If you need further clarification, please mention it.

Good morning, Carol. Thank you for the question. We have some topics here. The auction per se, the capacity auction, of course, is of supreme importance for the sector in Brazil. We do believe it will materialize in 2025. We believe that there will be more production as there is an evolution in what happens in the auction. And as we mentioned in previous calls, Eletrobrás has capacity. It has a very broad portfolio, it goes beyond 6 gigawatt and there's possibility to add more production to the sector. So this year, we would be apt to participate. And in coming years, we could add additional capacity to the Eletrobrás portfolio.

[Operator Instructions] Our next question comes from Vitor Sousa from Genial Investments.

Good morning, everybody. Most of my questions have been answered. I have a last question. I would like to know if the company will continue to buy back shares or if the priority is the payout of dividends. And can we presume that as dividends you will pay out the funds from the sale of our thermal plant, which would be the destination of those resources? Thank you very much.

Well, good morning. This goes to Elio.

Thank you for the question, Vitor. Now what do you prepare the buyback or dividend, I think at the moment. The preference would be the buyback. I always prefer that, but I would like to hear your opinion. So we are aligned. Now given the size of the company and we're always going to work with both, of course, regarding the sale of the thermal plants and dividend per se, in general, we commented on the fourth quarter, we discussed some methodology for the allocation of capital. Something that is much broader going beyond drugs dividend, and it implies looking at the midterm the midterm of five years or more. And always looking at which will be the cash generation during the period, investments contracted so that at the end of the five years, we can see how we're doing in terms of leverage. Is it a healthy leverage is it optimal? So if we want to allocate more capital in the period, can we or can we not do that? And in this context, the sale of the thermal plant was part of our plan to have cash coming in. So our vision has not changed. And we gave dividends in the fourth quarter with an addition of R$1.8 billion. As an example, simply, we had stated R$2.2 billion last year, referring to the profit of 2024. We have now paid out an additional of R$1.8 billion. Now at that time, what did we say? We said that we would be able to pay that additional R$1.8 billion because of everything we discussed at this conference call, our vision on prices, matching this with reality for the year 2025, 2026 to 2027 and having sufficient liquidity to execute that mandate and because of this, we're quite calm and we will be able to pay that additional of R$1.8 billion. We remind you that any cash flow already considered it any production of cash flow for the next five years including the sale of the thermal plant, if anything changes in the future, if prices begin to react and they should will execute the sale and for sure of that cash generation so that the company will be in a healthy position to make decisions to allocate more or less. That is what we will do. All of this to tell you that you can become. We're constantly looking, not at the simple picture, but the entire film. And in the film, we already had a thermal plant. Picture the construction of that position of liquidity. You'll see now did not begin now. It began in January of 2025. We raised more than R$30 billion throughout 2024. We have a sound cash position. We access funding that we had never accessed before. For example, the SACE from Italy and this is what you can expect. We have created alternatives, and this is what is relevant and there will always be a discussion with the Board of Management. We tell the management. We have unique opportunities of investments. We have auctions foreseen for the year, and we can pay back our shareholders in the most competitive way. But we built throughout the year 2024. We build this investment strategy, and we monitor it very closely. We monitor training, energy prices and capital allocation, not only dividends.

Our next question comes from Antonio Junqueira from BTG.

Well, good morning. When we look at your balance, you can see that 2026, 2027, that discussion of the submarkets will practically disappear because you will have an abundance of energy in the long-term, what truly matters is the price behavior and the market is learning how to deal with this that risk of the settlement of price differences, it was some time that we had not been the mismatches. And it's clear that in the third quarter, you had a commercial strategy. Well, every time you make a commercial decision for trading, you're running a risk and the problem was aggravated by that strategy. And in the second semester, you were in the long position. I have a few questions in the second quarter that impact should be lower than it was in the first quarter. And the difference of the submarket will be similar to the first quarter. This is the first question, if you could answer it?

Antonio, thank you for the questions. It will go to Rodrigo Lima.

Well, your reasoning is quite in accordance with our reality. We had a greater exposure in terms of portfolio and the Southeast in the first quarter more than in the second quarter that missed match in the second quarter is materializing, but will be lower than it was in the first – so on both fronts, this is a benefit for Eletrobrás compared to the first quarter. In terms of sales contribution and a lower mismatch in this market, not only a lower mismatch. But in April, for example, we had increase in North and Northeast an increase of price well. Now a hypothetical scenario in the north with the indebtedness of Bellonorte, this is not a problem. Now what is the North is mismatch with the rest of the country as it was in other quarter? Can I understand that the impact will be lower, thinking only of the Northeast because of the volumes where you are in a longer position exactly their less exposure in the Southeast – in the second quarter, vis-à-vis what happened now in the third quarter and the mismatch North and Southeast will be lower. And the Northeast, of course, will have a mismatch in all of our analysis, but a lower one. And for every 100 units of money you lost in the first quarter with the sub-market with the strategy, can I presume that in the second quarter, you will lose 50 units of money Well, I wouldn't presume that we will lose money that way. We have a better outlook because of what happened in March with a structural increase in price. In June, the price will be close to R$300 and the Southeast drives the Northeast as well, I can't give you a specific number now but there's always a normal volatility in the scenario, especially in the short term, as we saw in the first quarter.

Thank you. Thank you very much.

Thank you.

The section for questions and answers end here, we would like to return the floor to Mr. Ivan Monteiro for the company's closing remarks.

I would like to thank all of you for your attendance. Should you have additional questions, please send them to our IR team. The Eletrobrás conference call ends here, we would like to thank all of you for your attendance. Have a very good day.

Good morning, ladies and gentlemen, and welcome to Eletrobras' Conference to discuss Results for the Fourth Quarter '24. Present here today are Mr. Ivan de Souza Monteiro, CEO of Eletrobras; Mr. Eduardo Haiama, VP of Finance and Investor Relations, Mr. Antonio Varejao de Godoy, VP of Operations and Safety; Ms. Camila Araujo, VP of Governance, Risks, Compliance and Sustainability; Mr. Elio Wolff, VP of Strategy and Business Development; Mr. Italo Freitas, VP of Commercialization; Mr. Juliano Dantas, VP of Innovation, R&D, Digital and IT; Mr. Marcelo de Siqueira Freitas, VP of Legal Affairs; Mr. Renato Carreira, VP of Procurement and Services and Interim VP of People, Management and Culture; Mr. Robson Pinheiro de Campos, VP, President of Expansion Engineering; and Mr. Rodrigo Limp. We would like to inform you that this event is being recorded and will be made available on the company's Investor Relations website, both in Portuguese and English. For those who require simultaneous translation, we have the tool available via the close labeled interpretation. Choose your preferred language. For those listening to the video conference in English, there is an option to mute the original audio in Portuguese by clicking on mute original audio. [Operator Instructions] Before we proceed, we would like to clarify that any statements made during this conference regarding the company's business outlook, projections and financial goals constitute the beliefs and assumptions of the company. Forward-looking statements are not guarantees of performance as they involve risks and uncertainties, and therefore depend on circumstances that may or may not occur. Investors should understand that general economic conditions and other operational factors may affect the results expressed in these statements. We will now turn the floor over to Mr. Ivan Monteiro.

A good day to all of you, and we would like to thank you your participation in our earnings call for 2024. The privatization of Eletrobras was approved in the chamber and the house of senators after one year of discussion. This is a framework that will lead to the new transformation phase of Eletrobras. Now to manage a company with excellent performance means that the management has to be adequate, have discipline and have a focus on discipline. We can find the client as the person that gives trust to our work. We have to be better than competitors and service the expectations of our stakeholders. We work in generation and transmission, and Eletrobras cannot fail the security of people, our own people, third parties. The environment has a priority means that we have implemented a trajectory of strong growth for generation and transmission, actively participating in all of the auctions. Now, we have thousands of equipment distributed throughout Brazil, and we use artificial intelligence and others. Now we have ever-growing availability of our assets for generation and transmission, and we have begun to focus on their operations, following up on possible climatic events to face the new reality of the Brazilian electrical sector and to add thousands of new consumers in the free market, we have created energy solutions for the set of new customers. This is a process that has been implemented and is undergoing enhancements. In 2025, we will be delivering our wind farm -- and out of Boa Vista in the second half of the year with more than one decade of delay. Now we have an evolution of our liabilities, and we have implemented a new policy, which has allowed us a continuous reduction of this liability. Now, we have put all of the companies under the umbrella of good governance, and we're working with adequate and component professional that work in the executive Board. And the Board, whenever necessary, the purchase and sale actions are under the work of the holding exclusively. And of course, they have to be adequate with the return on our capital. Now the work that we carried out in the Furnas clearly points out to this. We did no longer want to work in Rio de Janeiro. In the conciliation process, we will be able to better forecast our cash flow, and the signature of the collective bargaining agreement includes all of our employees and it's linked Eletrobras financial performance, with salaries that are matching what we see in the market. And the distribution of dividends was only possible, thanks to the enhancement we implemented throughout the company. We have BRL32 billion, with a reduction of financial cost associated because of the new geopolitical reality. We have made adjustments in our liquidity. All of the present and future investment programs will now be carried out with greater freedom. We hired 2,100 new professionals that brings in new diversity to our company. This shows you the reality of Eletrobras. As a new employer, we have a great deal to do, and we truly believe that we will reach a new level of service demanded by regulators and our customers. Now this record payout of dividend is the response we give to our shareholders. We go through small shareholders as well as more than 300,000 individual persons that have invested in Eletrobras. I would now give the floor to our CFO, who will speak in detail about our results.

Now let's follow our agenda. We're going to, first of all, go through the highlights and speak about our operating performance. And finally, the financial performance on Slide number 5, which are the great highlights. First of all, a client focus, and we will speak about the transformation we have undergone in the last 2.5 years. We're going to speak about our prudent financial management, where we are allocating capital, a bit about our ESG agenda. And finally, speak about the transformation that has taken place in the energy market. On Slide number 2, we have reached 700 free energy customers. This, thanks, to a structure that we have implemented in our trading area centralizing the process, expanding capillarity to represent the customers efficiently is enhancing robust processes for credit and market risk management and also establishing trading guidelines and commercialization pays for the amount of energy that we still have for commercialization, all of this with complete portfolio of energy solutions and the focus on the energy trading in the free market. On Slide number 7, as part of the transformation agenda, we show you our operational cost that is reducing once again. We have gotten to BRL6.784 billion in 2024. And in terms of employees, 7,700. And once again, there is a trend for a further reduction. This has been a consistent reduction of our PMSO costs. But alongside with this, we also hired 2,100 new employees in this restructuring process. An important point that is part of this cultural transformation is to unify all of the collective bargaining agreements in the company across all bases. It is important going forward. And finally, employee compensation linked to the company performance and aligned with market standards. On Slide number 8, in the transformation of liability management, what do we have? Once again, a reduction of the provision for compulsory loan inventory. Since the privatization, there has been a reduction of 50%. We began with BRL26 billion and ended the year with BRL13.6 billion. Along with the court settlement, we're also working with possible and remote causes of BRL8.2 billion. On the following slide, we have spoken little about this, but we do remark on this. We have BRL32 billion invested in several assets, in [indiscernible] and several other companies. And throughout time, we have enhanced this management. We have centralized the shareholding management in a single area. We're actively working on risk management and a return on investment for each investment. We are optimizing this equity portfolio through time, which is what you see to the right, with these divestments representing BRL15 billion, acquisitions of BRL5.7 billion and using technical criteria for selecting governance body members. On the following slide, Ivan has already mentioned this. We raised BRL32 billion from a Brazilian company last year, which gives us enormous financial solidity and we were able to declare those BRL4 billion in dividend referring to the payout for 2024. Now this is gross debt of BRL75.6 billion represents four years of funding. Now we are working with funders. We're lengthening debt maturity that was almost one year, and cash to pay out this debt, that was one year in the year of privatization, along with this upgrade of the standard and Board's credit rating. When it comes our investment capacity. Here, you see the investment that have grown since the privatization. In the bars, I would like to highlight the green and the blue bars, which represents investment in the streamlining of our plants, the guarantee, energy, safety, and reinforcement and enhancement with the same purpose, of course, before we invested a little more than BRL1 billion. In transmission and in generation, we are now investing in the sum of both BRL6 billion approximately, and this trend is going forward. In this transformation process to the right, you see some of our key investments that we continue to make. We are concluding the Coxilha Negra project, a wind farm in the South. The connection with the last state, an isolated state in the country, which is Roraima Transnorte Energia with investment of BRL3.3 billion, and the enhancement of transportation of energy from Itaipu, revitalizing the HVDC of the line. On Slide number 12, we speak a bit about the growth agenda through auctions. For many years, the company was forbidden from participating in auctions for not delivering the projects in 2000. In the gray bars, this was a period where we didn't want to participate or could not. In 2020, we did participate, but we're not successful with the privatization. We were bid one line with a small investment of BRL100 million in 2023. We were somewhat more bold. We had BRL37 million in CapEx. And in 2024, the great winners of the auction, reaching a CapEx of BRL5.6 billion, which means that the investments made today planned for auction or for investment in reinforcement and enhancement in generation and transmission reached BRL14 billion, with an REP allowed -- annual revenue of BRL6.4 billion. On Slide 13, this was already mentioned by Ivan, an agenda of innovation and technology that we are implementing to become better and to reduce risks in the operation. These are strong investments with a focus on resiliency and operational efficiency. To the right at the top, we have the utmost system that helped us understand, meet your logical models and to prepare for readiness and enhance our readiness in the case of extreme events. And below, nowadays, we already have almost 90,000 assets that are monitored with artificial intelligence, IoT, significantly improving the predictability of the operation of this equipment. On Slide 14, to speak a bit more about our ESG agenda, we have validated our goals for net zero 2030. Now, the standard guidelines are based on FBTI. This is very important. For the first time, we approved the company's first human rights policy, a very important achievement. To the right, we show you two examples of how the company has contributed to the decarbonization agenda. First, we have our pilot plants with green hydrogen, where we have spent BRL125 million for a production of 5.7 tons of green hydrogen. And below, other projects we are working on. For example, gaining a better understanding of how the battery hybrid system operates to enhance the service offered throughout our network as a whole. On Slide 15, I would like to refer to what is happening in the energy market. Of course, this is of the utmost importance. If we look at our two main segments, half lies in generation of the hydro plants. And of course, this impacts both segments considerably. What is important here when we look at this graph, in the graph above, we see the fluctuation of the energy spot price corrected by inflation since 2010, until more recent date. What is interesting to observe is that this price was never stable for a simple reason. We have a system that is imminently hydroelectrical, hydrothermal, but we can't say this anymore because of the intermittent points that we have had in recent years. Now when the period was eminently hydrothermal, we still had a great deal of fluctuation. Now if we consider the more recent periods where we have more renewable energy, the average price in this period reached BRL330 per megawatt hour and the standard deviation is BRL330, and the mean, [BRL331] (ph). So below, you see the period of January ‘22 to July ‘24, which in our opinion, was an atypical period. What is normal is the price fluctuation. Why was it below during this period? In the graph below, you can see what happened. The intermittent renewables were little representative in 2023. And this matrix evolved in such a way that in 2024, we had 36%. It is presently at 37%. So along with the excellent rainfall we had during the period, this generated a false impression. There was a drop during the period. But in our vision, it's more interesting to look at the medium on average at the top of the graph that we showed you and the standard deviation than this period as a reference going forward. Besides this, this vision is backed up by what we call AR, the maximum amount of reservoirs that we have in energy equivalents in megawatt. In 2010, it represented 5.2 in demand. And in 2024, we are at 3.7. And for more than a decade, we haven't had a hydroelectric plant with a reservoir, so the trend is that these levels will be ever lower, and that volatility would increase. Now how did this impact the market? On Slide 16, between [2/16] (ph) until 2024, as I mentioned, for 2.5 years, we had a floor price, BRL60, BRL66. And the market agents, in quotation marks, stated that the price was low. And if we look at this graph above, what do we have. At the beginning of 2024, we had a reservoir, relatively well behaved, 65%, 71% and in the rainfall period, which is 69 -- 59, well below the historical average. If you look at the prices factored for energy, for the year 2025, 2026, we did not foresee any crisis or expectation that there would be an increase. Things that could make prices rise is quite the contrary. In 2025, we stand at BRL65. What happened 1 year later, the reservoir improved, reaching 71% at the end of February, and the rainy period in Brazil was excellent, historical average of 90%, 98%. And that same price that one year before was BRL155 for 2026, this price presently is being negotiated at BRL200 or above. Therefore, that base that we observed at the end of June of 2024 when prices began to rise because this is a volatile product is now being translated into price as well. All of this to tell you that in Slide 17, this has to be part of our strategy, our vision, our capital allocation and referring of this for investments in growth and integrity and security of our assets. We're living in an environment that will tend to become ever more volatile. Why? Because the reservoirs are shrinking. We have intermittent sources being used more steadily. In a scenario like this one, we truly have to act in a more conservative fashion when analyzing the [indiscernible] going forward. And when we look at our two segments, what do we have? In transmission, nothing will change. It will be as it always was. It is the more predictable one. In the Brazilian market, we could work with a higher leverage. But in generation, for all of that energy, we have contracted, we need to pace ourselves on conservative assumptions. And in the presentation, we show you mismatches that did not exist in the past. We call this a supermarket price. Prices we see in the southeast and the north because of formerly, there was a single price, BRL10, BRL20, BRL30, now reaching -- now it's BRL300 of difference in the month of March. So we have to be more conservative and work with the lower leverage. Considering the uncertainty we are dealing with, once we decline our revenues and we're quite calm that the cost trajectory that we had in 2023 will continue on the right path, where we would allocate capital. First, where it is mandatory, we're going to invest in the streamlining of the plants and maintenance and on the part of transmission and reinforcement and improvements to improve the security of our assets and the energy security of the country. On the other hand, whenever we see how to allocate capital, we're thinking of the medium term because we know that in 2028, IPCA will end and everything will be more risky in terms of generation. So we have to focus on the midterm. Now, we have an agenda to optimize our portfolio. We could have capital surplus or we could invest for an improvement. Now after all of this, we're going to have a balance between shareholder remuneration, through dividends or otherwise or investments in greenfield or M&A. So our discussion for dividends is set on Slide 18. Here, we analyze not only the result of an exceptional year for the company, but because we are preparing for this scenario with a very prudent financial management, we were able to conclude all of the negotiations to have comfort in the trajectory of costs throughout time. And an improvement in the pricing, especially in the short term for energy in 2025, 2026 when there is greater liquidity when negotiating energy. Same under these conditions, we can pay more than the minimum, BRL2.5 million, to get to BRL4 million in dividends. Now this is the dividend proposal for the company. On Slide 20, very quickly, we will speak about our energy balance. We have always said that while the prices are at levels that we understand to be good. And when we negotiate energy, of course, we want to negotiate our capacity. And the floor of the bands do show that, yes, we are very active in this scenario with customers reaching 751 of free contracting environment. Going on to Slide 22, regarding a sound financial performance, our recurring EBITDA, BRL5,100 million. And here, we have two important factors. The first, relating to cost, we have always said that PMSO had stronger seasonality in the fourth quarter. This time was not different. But in the next slide, we will speak about the cost of the year as a trajectory. And secondly, it is very difficult to make a quarterly projection of results in this highly volatile environment of the energy market. We know that on our side, we're always being very prudent to avoid exposure -- the supermarket exposure or other types of exposures. And of course, there are some things that are very difficult to understand especially when you focus on the quarter of generation when it comes to net income. For some quarters, we will have fluctuations given the restructuring and the assets that we still have in our accountability and that we want to optimize through time. Of course, they will have an impact. What is important here is to continue our improvement and clean out our balance. Here, we speak about the PMSO adaptation. As I mentioned, there is some seasonality and this continuous improvement of cost reduction and we said that the trend was towards a greater reduction, focusing on global cost for the year. And on Slide 24, our operating provisions. This is our last slide here. As I said, there's still a great deal of things changing in the company. We have a very complex balance. We're very gradually cleaning up. We had reversions that were carried out. And after creating a new way of analyzing our assets is to, well, we treat all of the plants as if they were a single plant because that's how we operate the plant, we don't operate asset by asset. We operate as a whole. And this is a different way, of course, of looking at things from a financial viewpoint to onerous contracts, and this is a way of looking at this contract. And finally, in the case of the measurement at fair value of assets, in 2023, we had in courts a negotiation for the sale of our thermal plant. We had already negotiated broadly for the sale of the asset at Santa Cruz, but it did not materialize. Well, very well. Now with this, we can now go on to the question-and-answer session. Thank you.

[Operator Instructions] The first question comes from Daniel Travitzky from Safra. Your microphone has been unmuted.

Well, good morning, everybody. Thank you for taking the questions. We have two questions. The first, referring to the agreement or a pre-agreement with the federal government. And I would like to gain an understanding of the coming steps if we should reach a final agreement. And if you could refer to the term you have pre-agreed upon. The second question refers to the trading of energy. When we look at your energy balance, we see trading presented in bands, and we can see that the bands have increased. Now, which is the liquidity of the energy sold during the quarter, if you could refer to the energy prices you're looking at. And if that difference in some markets is the reason of concern. These are our two questions. Thank you very much.

Thank you, Daniel. I will give this to Mr. Siqueira. Marcelo, you have the floor.

Good morning, Daniel, thank you for the questions. Now regarding the agreement related to [indiscernible], as disclosed, we are presently debating the wording of this term of conciliation. The intention is to conclude this in the coming fortnight to convene an extraordinary assembly where their shareholders will comment on the terms of this agreement. We want to hold this assembly on the same date as an ordinary assembly. It, of course, depends on concluding the drafting. Once we hold the extraordinary assembly, once the term are approved by their shareholders, this will be submitted for approval at the Supreme Court, and there is no period expected for this. Now regarding the topic of trading, Daniel, in the last quarter, the market liquidity was good, of course, it's the end of the year. There's always a renewal of contracts. Consumers will begin to analyze the portfolio and to close contracts for subsequent years. And we also had the auction of the regulated market, we sold 350 megawatts. That is auction held in December. Regarding the portfolio and the price, [indiscernible] is the portfolio and pricing manager in the company, has the fundamentals and can perhaps answer your question.

Thank you, Italo. Good morning, Daniel. Now Mr. Haiama talked about the greater volatility that we see ever present in the sector for several reasons, variations in demand, a flow of heatwave and the growing use of intermission sources in our matrix, which means a lower level of storage for the sector when compared to the total demand. Now this set of factor brings about volatility. From this year to last year, we had an enhancement, a computation model working with risk aversion and we have the cost on operations of the system. Now this model nowadays better rejects the cost of operation of the system because it brought about price variations that we had as the vision the previous year. We're working with a more evolved system, something that is closer to the real cost of operating the system. And as we have resources in all of the supermarkets, 50% of our sources in south and in the southeast -- of one-fourth in the Northeast and one-fourth in the northern market, when we carry out portfolio management, of course, we work with estimates that mismatch from the market for each period of the year. In March and April and May, there is a considerable mismatch for the North and Northeastern markets vis-a-vis the Southeast. This will tend to be reduced and the north will be closer to the Southeastern market. In the Northeast, there is still mismatch because of the large amount of sun and wind energy in that region. And using the portfolio, we look at the different scenarios we have for the company seeking the best possible result.

Thank you.

Thank you, Daniel. Our next question comes from Bruno Amorim from Goldman Sachs. You may proceed. Your microphone has been unmuted.

Thank you and a good day to all of you. I have two questions. First, referring to investments and reinforcement and improvement, you delivered BRL3 million of investments this year. What can we expect for coming years from the outlook of how prepared the company is to make investments in people and processes? And also in terms of how this will be received by the regulator? Will they approve more investment for coming years? The second question refers to PMSO. You reported levels above that of the last quarter. I understand the seasonality in this figure. Could you indicate what we can expect going forward. I know that you don't give guidance, but which would be a recurrent level going forward? Thank you very much.

Thank you for the question, Bruno. I will give this to VP Haiama then continue the answer.

Good morning, Bruno. Thank you for the question. Of course, in the recent past, we came out of an investment of 1 billion, and it has reached 2024 in BRL3.4 billion. It's very difficult to estimate how this will evolve during the years. We have an enormous backlog of investments to be made in reinforcement and improvement. Now through time, of course, we will improve. We're speaking of 2027, 20 -- and going forward. Now more important than involving the figures is to do this correctly. We don't want to increase investments excessively, as this could cause risks to execution. It will always be growing because of this investment backlog in transmission. Now the addition of technology that we have underscored makes the quality of the investment more sophisticated. So this is a process that is underway. As Mario said, there is a trend for growth, but we have to look at the reality using the best technology available. And this is what we're incorporating gradually in the company. Regarding PMSO, yes, there was seasonality, but it is on the drop. For 2025, we have a recurrent PMSO for this year below BRL6 million. And the company will obtain this figure after the signing of the collective bargaining agreement for all of our employees. We're convinced that the trajectory will be on the fall because of the absorption, the use of new processes and because of the degree of freedom that we now have to manage the company, looking at the outlook of return that is demanded or requested by our shareholders.

Thank you.

Have a good day, Bruno. Our next question comes from Fillipe Andrade from Itau BBA. You may proceed, Mr. Andrade.

Good morning, everybody. Thank you for taking my question. I would like to hear from you as how the company is thinking about the price of 2025 with those supermarkets that you mentioned? If you have been approached by generators located in the Northeast and have contracts in the Southeast for hedging? If you have appetite for this type of project? And how is the company attempting to protect itself from other trading agents, once again, because of the volatility that you mentioned.

Well, thank you Fillipe. I begin here with President [indiscernible] and then Vice President Limp.

Well, we're always approached that the fact, the topic is the action that we end up adopting. Well, the goal is to protect company portfolio. And I will answer both of the parts of your question regarding traders. We have zero exposure to all of the defaults that there have been in the market from those traders that are public and what the default situation has been disclosed. And we're monitoring the market very closely regarding generators and trader as well. We make sure that we don't have any exposure as was mentioned before. [indiscernible] has implemented a risk methodology, a methodology against other parties. So we have a robust risk analysis for all of the operations we carry out here. Regarding the other topic, I will give this to Rodrigo Limp to speak about the supermarket. He manages that.

Well, thank you, Fillipe, for the question. To reinforce what I said in the previous question, as we have resources in all of the supermarket, it is possible to carry out a more efficient portfolio management. And the risk of niche match between supermarket which we have observed very strongly at the end of the third quarter. We also can see this in the second quarter. And of course, we look at the company's global portfolio to have protection to maximize our results even in this scenario of greater volatility. There will be great volatility for '25 and also for 2026, with the prices going up in the second half of the year, especially in the Southeast and North supermarket. And we look at our entire portfolio and accept all possible scenarios of price mix matches.

Thank you, Fillipe. Our next question comes from Andre Sampaio from Santander. Your may proceed. Your microphone has been unmuted.

Good morning, everybody. We have two quick questions. One, regarding the seasonality of the cost which you have remarked on, which is your long-term strategy. Of course, the goal is to reduce costs. Will you be able to reduce the seasonality going forward? The second question, which is your expectation for the closing of the thermal plant operations simply for purposes of a projection?

Thank you, Andre. Well, seasonality happens. It's undesirable. And well, you can expect a reduction for this year, but it does happen. And this is one of the remains of the privatization of being a state company for many years, but it will be mitigated. It is not something welcome, and we will work during the year to minimize this. Regarding the second question, I will give the floor to another VP.

Now, the transaction of the thermal plant is ongoing. Several of the conditions have been surpassed, especially when we speak about the [indiscernible] antitrust agency. This is a very complex negotiation, but we believe that the closing of the operation is very close. Beginning the second quarter, perhaps we will be able to close, but follow this natural court. In terms of the M&A, well, the time tends to be lengthier.

Well, thank you, Andre. Our next question comes from Antonio Junqueira from BTG. Your microphone has been unmuted.

Good morning, everybody. Well, we got the message of the dividends. It's not only the magnitude of the payout, but I don't remember which was the last year is there was one when they received dividends -- at the level of the bylaw. And of course, this is a very important message that you gave out. Now my question, the methodology, it's very clear how you think, which is important. What I'm missing in this methodology is a number reference. Of course, the company is going to look at cash generation. The company will focus on the midterm. For example, the RBSA that will be lower beginning in 2028. But are you thinking of giving us a numerical reference to be able to follow up or project dividends in the coming years?

Well, good morning. Now the idea is for remuneration to be quarterly. We had components that were in accordance with predictability in the company, capacity, behavior, contentions -- containment, all of this has been properly stressed. And of course, this enhances the way how we look at this discussion.

Well, thank you. You have to be careful with some things when it comes to methodology because this could eventually impact the trade strategy of the company. So we're being extremely cautious when we try to accommodate the vision. And of course, those who are on the outside, I understand the anxiety, the need to know the details, but we don't want to impact our operation. This is very important. Having said that, through time, things change. Nothing is carved in stone. Nothing remains forever. If we look at both segments, because in portfolio management, we also have minority participations with entrance and exit of cash, and we're going to simplify the strategy. Now when we look at both segments, what do we have. The transmission sector is hyper predictable and we have a good financial performance. We operate it easily. This is not an offense for the more predictable segment in Brazil. In generation, there is a variable that I cannot mention because of our conservative vision because of the basic price. Now, once we have that conservative scenario, once we feel calm when it comes to price, to say that in the generation segment, we're going to operate less leverage [indiscernible] with a conservative view on prices, I think this is a reasonable parameter. What we cannot do is work with leverage scenario for generation without having anything to give and working with prices that we deem would be the fair price. Now pure price is good if you have an infinite possibility in the market where there's only user to buy and sell. I don't know if this is helpful at all, but again, there are some things that we truly cannot share with you. It would go against the company, whether this will be quarterly or every semester. Well, the semester will be the main cash entry for some time until we recover all of our assets, and the cash generation will be very important. Based on the IPCA, this is not immediate, it will take some time, and generation will be very important here. What we are proposing to do and we have been debating this for some time, is that every quarter, we're going to reassess how we work commercially and if we feel confident in saying, given this situation, we can already create new situation, maintaining the parity, a proportion of 1 to 10. Well, we will do that. So we're not interested in retaining cash. This is not interesting. There was a graph in our presentation. It was a scale. I don't know if you saw it. It's a scale where there is balance between shareholder remuneration and future investment. And future investments, of course, have to be interesting. Otherwise, this scale will be imbalanced. We do have to have good shareholder remuneration. Have this helped?

Yes, it has. I have a follow-up question. When you look at the company leverage, as the company has CDE, the compulsory loans, what are your thinking about this? How do you use these indicators, G4, G3? I believe that you're looking at this for longer than 12 months. Now what are you including on the side of liabilities?

Well, on the part of liabilities, we look at all of the assets and liabilities that can have an impact on our results, not working capital, of course, but whatever we know will become a cash disbursement or entry into the cash is included in our accounts. Now besides the gross debt that we have, the financial debt, we look at our obligations as privatization, CDA, the basins, the hydrographic basins that have to be paid off. Now compulsory loans that we're negotiating, were we not negotiating them? After fifth year, we probably would not be here. We're negotiating them. And the intention of the company is to continue to do so. It's an exit. On the part of assets, what do we have those escrow deposits to digital deposits and so on and so forth, why? Because in Brazil, with the present day interest rate, the project -- the cost of the project will be 15%. If you consider a minimum spread on that debt, if you're very leveraged structurally, you could go into that snowball scenario. And if you enter that snowball scenario, that proneness propension to be conservative, will increase. And this, of course, will impact our commercial activity. We're not going to allow that scenario to materialize. So the entire time, we look at the global situation. And we can eliminate specific years where perhaps we could surpass that prudent attitude. But we have to be extremely cautious with the leverage -- the global leverage of the company.

Of course. And as you say, the leverage allows you not to have sold energy two years ago when the price was truly very poor. Thank you very much.

Thank you. The next question comes from Joao Pimentel from Citi. Your microphone has been unmuted.

Good morning, everybody. Thank you for the call. We have two questions. The first, based on what was just remarked, the recovery of the transmission revenue, and part of this is coming through reinforcement and improvement. And we see the quantum asset, the transmission asset, [indiscernible] assets. Are you looking at this asset? Does it make sense? Or is the focus of the company is to grow in transmissions exclusively through improvement? The second question, based on a higher cash availability, as part of the agreement, you're not anticipating the CDE and you have positioned yourself to eventually speed up the pace of that payment. Now how can this become a strategy to negotiate the compulsory loans because the main causes of the compulsory loan, the most relevant one, the largest agent, all of these have been resolved. And presently, this is a fragmented business. Is there a higher trust to use this cash availability to create broader a agreement with a smaller counterpart immediately and in a simpler way? These are my two questions.

Well, thank you, Joao, the second question, the answer is no. Flexibility and liquidity give us what has already been remarked on. And because of our vehicle BP, well, we do work with all of these counterparts. But global solutions are not possible. There are different situations. We cannot work with fragmented offers. This would destroy the company. Now the M&A, well, this is a goal for the company, but mainly focused on simplifying the assets. We spent two years with 25 M&A transactions. Now we focus on simplification. Now looking backwards, we look at opportunities. We look at all the transactions that arise in the market. When it comes to capital allocation, we still think about improvement. We participate in auctions. And of course, M&A is in transmission that are more attractive. For this moment, this would not make sense. So our strategy at present is to continue with M&As for simplification, to focus on greenfield. There are several auctions this year. I believe there are three this year and the coming year. So we will begin to invest in greenfields that will spearhead our growth.

Thank you very much.

Now, a quick comment regarding to what Elio said. When we look at our transmission segment, and we should divide this into two parts, where based on contracts we had in 2013, BRL60 billion in assets for transmission, very similar to what we have in the regulation. Now we have to revitalize those assets that presently have been in existence for more than 30 years. There's a high potential for investment in that segment. Now when it comes to the auction, if you add what we gained in the past and what we gained recently from auction and our stakes -- minority stakes, a 10% stake proportion of stake. If we could be one of the largest players simply in the part of auction with our main asset, this shows you, of course, that Eletrobras transmission is a power and this is what has helped us at all times to undergo turbulence in a very interesting way. So the focus, well, we're going to focus on what we know how to do and have done ever better focus on the auctions, execute our work, and the transmission segment does have enormous attractiveness. It began enormous within the company, whether it was with the auction last year or with the renovations that we had in 2023.

Well, thank you, Haiama.

Well, thank you. The question-and-answer session ends here. We would like to return the floor to Mr. Ivan Monteiro for the company's closing remarks. You have the floor, Mr. Monteiro.

Thank you very much for your attendance. And should you have any questions, please send them to our IR department. Thank you very much.

The Eletrobras conference ends here. We thank all of you for your attendance. Have an excellent day.

Good morning, ladies and gentlemen. Welcome to Eletrobras' Q3 2024 Earnings Conference. Joining us today are CEO, Mr. Ivan Monteiro; Finance and Investor Relations VP, Mr. Eduardo Haiama; Operations and Security VP, Mr. Antônio Varejão de Godoy; Governance, Risks, Compliance and Sustainability VP, Ms. Camila Araújo; Strategy and Business Development VP, Mr. Élio Wolff; Sales VP, Mr. Italo Freitas; Innovation, R&D, Digital and IT VP, Mr. Juliano Dantas; Legal VP, Marcelo de Siqueira Freitas; Supplies and Services VP and Interim People, Management, and Culture VP, Mr. Renato Carreira; Expansion Engineering VP, Mr. Robson Pinheiro de Campos; and Regulation, Institution, and Market VP, Mr. Rodrigo Limp. This event is being recorded and will be available for replay at the Company's Investor Relations website, where the slide deck for this presentation in both Portuguese and English can also be downloaded. If you need simultaneous translation, the feature is available under the globe-shaped icon labelled interpretation located at the bottom side of your Zoom window. For the question-and-answer session, if you have a question, please state your name and the name of your company using the Q&A button at the bottom side of your Zoom window. As standard practice, your name will be announced, so you can ask your question live and a request to activate your microphone will pop up on your screen. Alternatively, you may also submit your question in writing, also using the Q&A feature, and your question will be read out loud by the operator. Before moving on, we'd like to state that any statement made during this conference in connection with business prospects, projections, operational and financial targets are based on Eletrobras' management's beliefs and assumptions as well as information currently available to the Company. Forward-looking statements are no guarantee of performance, seeing as they involve risks and uncertainties and, therefore, rely on circumstances that may or may not materialize. Investors must understand that general economic conditions and other operating factors may affect the results expressed in said statements. Now, let me turn over to Mr. Ivan Monteiro, the CEO of Eletrobras, who will begin the presentation. Mr. Ivan, please proceed.

Thank you. Good morning. I'd like to thank everyone for joining us for the Q3 2024 conference. And I'd like to begin by talking about our budget for 2025. For the Executive Board, this will be the end of the more significant adjustment in Eletrobras' budget. And we will continue to see the incessant search for better operational efficiency. For the first time in Eletrobras' 60-year history, we'll have the freedom to manage its costs in full after the discussions that occurred in the agreement. This was imposed by regulators and is an effort to improve Eletrobras' participation in the auctions that we are already participating in, as well as improving its competitiveness versus our competition in the search for new clients. We also like to reinforce our commitments to reach a PMSO in 2024 below BRL7 million, below the BRL7 million in 2025 and close to BRL5.5 million in 2025, from a company that had no focus on the customer to one that supplies real solutions to them. We are already operating under this focus. The funds raised over the years of 2023 and 2024 diversifying our funds -- fund sources, some of them unprecedented, consolidates a strong cash position, allowing us to build alternatives for future capital allocation, in particular, to support the substantial growth of our CapEx. The management of our compulsory loan in the last few quarters, focusing on the definitive resolution of a set of legacy items seeking to definitively mitigate non-recurring events in future quarters. We now operate as a fully integrated company under a central management with four subsidiaries, with diversified strategies, with no diversification of strategies earlier, and a structure that was deeply bureaucratic and with a full hierarchy. We are now using the best technology available, artificial intelligence, machine learning, and everything else that's available to us, for fully efficient management of all our equipment. Partnership to acquire knowledge, to acquire new technology, institutes and companies will shape Eletrobras into the future. I will now turn over to our CFO, Haiama, who will detail our results in the Q3 of 2024.

Thank you, Ivan. Good morning, everyone. So, moving on to Slide 4. As Ivan said several times, I just wanted to reinforce that the Collective Bargaining Agreement that we signed has allowed us to enter a new program and will allow to -- us to stream -- continue to streamline our structure. Last quarter, we had already incorporated Furnas, and this is the first one where results are being positively impacted by the merger. Also, during this quarter, we have signed tentatively, however, but we have already signed the exchange of the counterpart in the thermal power plants which are now serve contracts. They're no longer reserve contracts. We concluded in a secondary operation -- the operations with [CTEEP] and financial operations as we said earlier. We've virtually continued all our funding with nothing left for the next few years, and we'll continue to carry the legacy that we have for the future in our compulsory loans as well. In Slide 6, moving over to the streamlining of our structure, our recurring operation -- operational expense is still in the level of 1.7% or BRL1.7 million, up 7% over the second quarter and 1% versus last year. We also have BRL7 million that was for the insurance over our contract that was renegotiated of BRL74 million. This was an ACR contract. And next quarter, this is a cost that will no longer impact our results. Another important thing, when we compare Q3 with Q2 in terms of costs, because of the Furnas merger, several costs were deferred, especially from Q2 to Q3. So, perhaps the best thing, the best way to look at our costs this quarter is to look at an average of these two quarters, if you think about the normalization. Lower on the chart, we see our expense with our associates at the Company with a -- an uptick versus Q2, but with BDC, this -- with our PDC, this downward trend comes back. On Slide 7, the financial solidity, as I said, we made huge funding efforts to make the most of this time at the market, raising over BRL22 billion this year alone. And with that, considering the fundraising that we had in Q2 with our debentures and what Ivan mentioned as well with [SACE], which is an Italian export agency, we should end with about EUR37 million in cash, which would be about five years to amortize the debt. This is a very comfortable place which allows us to navigate any volatility that may come our way and also accelerate our organic CapEx program. On Slide 8, diving a little bit deeper into our compulsory loans. As we said, this quarter alone, we've reduced our liability by over BRL1 million. But with this close to BRL1 billion reduction in probable wins, we also decreased those, which we call off-balance debts with another BRL750 million, give or take in off-balance disposals. Now, a little bit of our ESG agenda on Slide 9. When it comes to the e-pillar, it's important to state that we received permission to operate the Coxilha Negra wind farm that's in the state of Rio Grande do Sul. When it comes to transparency, we are now publishing more reports in what we do on several different fronts, whether with our Holding, our CGT, and Biodiversity terms, and also when it comes to Innovation and Technology. And on the governance, we report that we've created our Social and Environmental Commission, which is linked to several different vice presidencies within the Company. On Slide 11, we talk a little bit about our Energy Balance. It's important to state that this quarter, we continue to move forward in our long-term strategy, which is to bring end customers to our customer base and, therefore, sell more energy over time. We believe we've been managing our power portfolio really well. So much so that this quarter, there were a lot of people concerned about whether there would be availability in the short-term market, but we were very comfortable and ended in a very positive position going into Q4 and also to 2025 and beyond. On Slide 13, we talk a little bit about what happened this year and especially in Q2. The chart on the top left-hand side, we look at the Affluent Natural Energy in the last few years. So, you can clearly see that the levels were very positive in 2022 and '23, which led to a lower price as you can see on the bottom chart, but the situation has changed significantly starting in June in terms of prices. And that was much because of the expected rainfall levels in the second half of the year. And we believe this price volatility is now a constant. And the constant monitoring of these changes has significantly benefited us, allowing us to position ourselves whenever we see an opportunity. On Slide 14, we talk about something that was seldomly discussed until last year. We talked about it in the second half of the year, but it was a small impact, but now in Q2 and Q3 was very significant, which is what we call modulation. Now, considering how the transmission of energy behaves over the course of the day, there's also an impact on the spot price over the course of the day. Now, because our portfolio is 93% made up of hydropower, we are absolutely exposed to this shift in prices. Now, how does that translate into revenue? In a scenario where this volatility of hydropower generation over the course of the day, if we generated an average throughout the day and also generated this -- the average revenue throughout the day, we would have the average price, ultimately, which on the graph -- on the chart on the right, we would have close to BRL421 million. But because of these fluctuations in both generation and prices, and you have to calculate prices every hour, our revenue would ultimately approach BRL4.3 million -- BRL9.4 million. So, we understand this should also go from zero to positive, but there are also other sources that involve different risks that might lead to a negative result. Now, what would be the premium to hydro plants? In the first half, where the fluctuation was still small, we would see the difference of close to BRL3 per hour for the electric power. Now, the gain was close to 6 times that of the entire quarter in this second half of the year, just to show you the impact that this volatility will have on our results moving forward. On Slide 16, we have just a few of the financial highlights. This year, we had the renegotiation of the Tucurui GSF, which brought close to BRL1.3 billion. Also, because of our purchase agreement with the thermal plants, with part of the energy being sold to Amazonas, and because the contract is underway, we have been able to reverse close to BRL400 million in provisions that we had allowed for in the second quarter because of those sales. We also recognize the revenue of close to BRL6 billion from transmission and profit terms that would be close to BRL5.4 billion, the impact in our profits --on our profits. We've talked about the reduction in compulsory -- because of compulsory loans and the liability management. On Slide 17, the highlights, as mentioned before, was the revenue from the renegotiation of the Tucurui GSF with a decrease in the transmission RAP because of the periodic tariff review. Part of that disappears starting in July of next year. On the EBITDA, in addition to the impact of that revenue and the cost that came in keeping with what we had last year, we saw some gains because of those provisions for our receivables with Amazonas was reversed. And lastly, the report -- with the reported income, I'd like to say that of the BRL7.5 million in net income, BRL5.4 million comes from that remeasurement and the revision that we conducted. On Slide 18, where we talk about our PMSO, for the sake -- for comparison's sake, because in the previous quarter, we had not calculated the estimated PLR expense over the following quarters. In the same quarter of last year, we calculated what that expense would have been, so that we could calculate the average for this year. So, what we call IFRS adjustment, we include that effect. Our personnel costs have been coming down also because of adjustments we've made in recruitment since the privatization. And the service line, as I said, comparing not with Q3 of last year, but with Q2 of this year, some initiatives have been delayed because of the merger, the Furnas merger. And in the other services line, we've concluded the revision of all our deposits, our core deposits with a net impact of BRL600 million. But part of that came -- entered in others. And part of that was recognized in provisions and contingencies, which were still in the line, but has -- had already been paid in the previous period, and also monetary corrections for those financial write-offs. Lastly, within these, these [75], there are elements that will not appear in the following periods. Now in provisions, I think I've mentioned nearly all of those that you see on the screen. I should also remind you of the BRL300 million write-off that we have because of the compulsory loans and also the contingencies in connection with the deposits. These are the main highlights. All the rest is much more in connection to last year than this year. That being said, I think we can move on to the question-and-answer session.

Thank you. We will now begin the question-and-answer session for investors and analysts. [Operator Instructions]. Our first question comes from Carolina Carneiro with Safra. Please, you may proceed.

I have two questions. The first one is about your costs. We can see the development in year-over-year terms, but there's still some volatility, if we compare, for example, the PSO this quarter with that of last quarter, and because you've talked about the layoff program. Can you give us some color? We saw the changes between Q2 and Q3, and maybe what we could expect in terms of the trend for that in the next few quarters? And my second question is about the energy market. Looking at your Energy Balance, we know there's a strategy for maybe not be 100% exposed in terms of what you've sold in energy, but a few companies in the industry have reported several Energy Balance reports with significant sales between 2026 and 2028. So, could we see prices as high as BRL170 to BRL178 the kilowatt hour? And you also mentioned that in this quarter in your balance sheet. So, could you please talk a little bit about whether there were moves in terms of sales for longer periods beyond 2025 and whether this level of prices that we saw for other companies is consistent with what you're seeing in your future contracts?

Well, I think we made it clear with regard to PMSO, the downward trend that we believe to be consistent. We have numerous examples of the strategy that we're adopting here at the Company, and you should continue to believe in that strategy. But the figure that we just reported below BRL7 million for this year and below BRL6 million next year and about BRL5.5 million in 2026, that should be the level that will be in the budget pieces that we will be submitting via our board. These are unrelenting commitments for the Company. We believe these to be absolutely achievable. Now, as to our operation in energy sales, I'd like to turn over to our Vice President.

Well, in the near term, we were really able to leverage that fluctuation in prices that we saw in the last Q4 -- in the last -- last quarter. We have expanding our client portfolio to over 700 clients, and in the long term, obviously, volatility should be smaller, but it's important to state that Brazil is undergoing deep changes in the energy industry, and there are substantial challenges relative to the intermittent variables as people know them. These variables are more challenging to incorporate in the medium to long term, and this pushes prices up. So, you do not have the same number of projects that we've had in the last 10 years being planned for the next five years or six years. Now, why is that? That's because this type of generation, which is intermittent, as the name itself says, has been considered because of that modulation, but it involves other challenges. And even because of the very poor impact on those variables, as well as the costs with implementation, CapEx, and OpEx, which have hurt this type of energy contract. So, this pushes prices by and large, which means they have an upper bias.

Our next question comes from Bruno Amorim with Goldman Sachs.

I'd just like you to talk a little bit about your prospects for investments in reinforcements and improvements. If you could please confirm the figure expected for 2024 year-round and if that's consistent with what you expect for the following years, and also if you could talk a little bit about the regulatory process to approve these investments, how's that been developing and what do you expect for the future? And in connection with that, what's your take on the trend with equipment prices? I understand that you have a very important advantage because you are the largest player in the country. So, you're, obviously, competitive and I understand that you also benefit from that when purchasing equipment. I just wanted to understand what you're seeing in terms of equipment costs because of the depreciation of the exchange rate. We are seeing other players reporting strong margins. So, I just wanted to understand what your prospects are when it comes to your profitability in that sense.

Bruno, I'll have to activate three different VPs starting with Elio and then Limp, who will talk about regulations and we'll end with Renato, who will talk about the prices.

First of all, with regard to volume, in the last few years, we've seen a trend moving closer to BRL2 billion to BRL2.5 billion. This year, we should go over BRL3 billion, which is obviously a sign of our evolution. And for the next few years, we see the potential to execute even more. And it's not just about getting the volume, but having it be well done. And we want it to be commensurate with our ability to execute it. Now to your second point in the issue of the approval of our improvements, we have a very interesting backlog with possibilities that we're working with alongside engineering, working primarily on the issue of safety. We have to preserve our assets and that, obviously, involves appropriate compensation. So, what we believe is that the regulator has been seeking to encourage us to invest more and to catalog more investment, so that we can do more, grow the system, and improve our operations. So, we see a lot of room to grow still in the next few years.

I just wanted to add to what Elio just said. In transmission, there's very consolidated legislation in terms of reinforcement improvements, both large-scale and small-scale. A lot of them coming from the agents once the needs are identified, obviously, following all the feasibility analyses, which include tariff revisions. This quarter, we've just concluded the tariff revision for the 2018, 2023 cycle. We've recognized the investments and we're already working for the 2028 revision cycle, kick-starting the regulatory base management, so that we can improve our process to recognize our investments, considering the regulatory rates determined by the regulatory agency. Thank you.

Renato, please?

So demand remains high in the market. Yes, there is an upward trend in costs, both because of raw material, which is still going up, but also the increased demand for material and the lack of productive capacity from our producers or manufacturers. Even though there's a lot of investment, investment is not taking place at such a fast pace. So, they cannot build more plants and implement or increase the supply. We also have the economy of scale because of the demands for the entire group. And we are adopting long-term contracts to buy these pieces of equipment in combination with engineering and supplies and identifying what types of equipment for generation and transmission we can already purchase for the long term. Sometimes conducting spot purchases so that we can better manage these assets that put pressure on our CapEx and be able to ensure our profitability from other projects as well.

[Operator Instructions]. Our next question comes from Marcelo with Itau.

I have a question about your Collective Bargaining Agreement. 65% of your associates in --adopted. And I remember there was something at Furnas and [Chester], I don't know if approvals have already come or if -- whether it came only from Furnas. And I also wanted to understand what the non-acceptance of that agreement implies, because associates outside of that agreement will also miss out on a few of the benefits that Petrobras offers. So, it might be detrimental to them to not be part of the agreement, and also whether the company could maybe fire those at any point. I just wanted to have that very clear.

Marcelo, let me turn over to Renato who will take your question.

Well, about your first question, about two thirds of our associates who agreed, including Chester which was a group that signed later, we have the CT rules for 74% of those jobs. You're right. There's part of Furnas and the Holding that's still outside of that agreement. But they understood that the previous Collective Agreement has already expired. So, that basis outside the agreement, they are under the CLT agreement. So, they are entitled to the benefits under the CLT agreement. We are offered a very advantageous agreement to those, those employees. But that group decided not to participate in the agreement. But right now, it's still business as usual. We are replacing employees and using the assets along those lines. Part of that being under the CT agreement and part of that under the CLT.

I just wanted to understand that the collective agreement represented an increase of about 4% in real terms. Is that what you offered and why did the group from Furnas didn't agree? Could you talk a little bit about what the pushback was and why they didn't enter the agreement?

Well, the adjustment and the benefits we offered with the CT agreement includes the adjustment for inflation only for the operational based. What was agreed for anything that's above BRL6,000 of compensation, you do not need to adjust for inflation, either your salary or the other benefits. And that goes to what I almost said. Now, according to the situation, a lot of people felt close to the agreement in their -- in its current state. But the door is still open to talk to those people and make the necessary adjustments. But for the time being, they do not seem to be willing to adopt or to enter our agreement. And we also do not -- have no plans of changing the agreement that we have on the table.

Our next question comes from Gilmar Lima with Santander.

I have two questions. First of all, I just wanted to go back to Carol's point about -- Carol's point about PMSO. You mentioned BRL5.5 million by 2026. Now, looking at the figure you were reporting back in 2023, correcting for inflation, inflation, it seems similar with the previous period. So, I just wanted to understand whether you've looked at that prior figure and then consider that that would be the achievable, or could you maybe look at an even prior one and give us maybe a figure that's different from those BRL5.5 million in 2026. My other question is about your sales strategy, in fact, about the marketing market at all. We have been hearing about growing risk of delinquency, and I just wanted to hear whether you see that risk spreading across the market. And could that affect your negotiations, especially with regard to the energy prices that we've seen in the last few days? Could you please talk a little bit about that?

About our PMSO trend, we always encourage you to look at changes quarter-by-quarter. Nonrecurring events might take place in many cases, which is why it's important to look at the trend. So, provide that -- the information about that trend is what's important. I just wanted to remind you that the figure that we provided in 2023 is a nominal figure and it has to be adjusted for inflation and other effects, which is nowadays not only a privilege to part of the world. Many parts of the world have experienced peaks in inflation. So I also like to tell you that our commitment to going back is not based on merits or history, but based on new initiatives that we're introducing every day to have simpler and more efficient processes. So, this is a trend that will be discussed along the next few years. And my impression is the figure that we can deliver seems better, but we did not want to commit to that right now. But our feeling is that it could be better. Now, about sales and marketing, I'll turn over to our Vice President, in charge of that.

Over the last few weeks or a couple of months, we have seen some volatility in the market and a few companies go through more critical situations when it comes to their, their prices, when that's the case. We have seen and are seeing that. And that's characteristic of a market with this type of volatility. It also offers the opportunity for this market to grow even more. Now, we do not expect any impact going into the future from this issue in particular, looking at our prices, but rather a combination of several different factors. We are not exposed to these companies which are struggling at this point. And the very few that we are working with, we have renegotiated our rates with an actual interesting haircut. Petrobras works with a very healthy counterpart range, which is very consolidated in the market. And what we're seeing is that this might be the beginning of the market growing more mature, the energy market growing more mature here in Brazil.

I just wanted to quickly add and talk about the importance of safety here in the market, which is an issue that's spearheaded by NL and [CCP]. Of course, there's a lot of work to do, but we have had significant -- we've made significant headway, especially with the work that CC has done monitoring the market. In times of greater volatility, obviously, make players more trepidatious. But this also has to do with the regulation that has evolved in the market, which is very important, especially when you look at the new horizon for the free market with new measures, such as the 50 -- Regulation Number 50 that was issued this year.

This concludes our question-and-answer session. We'd like to turn over to Mr. Ivan Monteiro for the Company's final remarks.

Well, once again, we'd like to thank everyone for joining us, and also say that our finance and IR teams are available for any further questions.

This concludes Eletrobras' Q3 2024 earnings conference. Thank you, everyone, for joining, and have a great day.

Ladies and gentlemen, thank you for waiting. Welcome to Electrobras third quarter earnings video conference. With us today, we have Mr. Ivan de Souza Monteiro, the President of Electrobras. The fourth quarter, pardon me. We have Eduardo Haiama, the VP of Finance and Investor Relations; Mr. Rodrigo Limp, VP of Regulation and Institutional Relations; Mr. Elio Wolff, VP of Strategy and Business Development; Mr. Italo Freitas, VP of Commercialization; Mr. Antonio Varejao De Godoy, VP of Operations and Security; and VP -- and pardon me, and Marcelo Siqueira Freitas, VP for Legal. This video conference is being recorded and will be made available on the company's IR website both in Portuguese and English. Should you need simultaneous translation, you can click the Globe icon at the bottom of the screen. It reads Interpretation. When you click on it, you can choose Portuguese or English. If you're listening to the video conference in English, you may click on Mute Original Audio to listen-only to the translation. [Operator Instructions] We would like to say that any statements made about the company in this video conference regarding future-looking statements are of only our beliefs and depend on the information that is currently available to the company. Forward-looking statements are no guarantee of performance as they involve risks and uncertainties and depend on circumstances that may or may not come to pass. Investors should understand that macroeconomic conditions as well as other operating factors can have an impact on the company's performance. I'd now like to turn the floor over to Mr. Ivan de Souza Monteiro, the CEO and President of Electrobras, for him to start the presentation.

Good morning, everyone. Welcome to our earnings call, the first one in 2023 -- the first one in 2024 about the year of 2023. We're now going to look at some highlights. I'd like to start off speaking about the simplification of the administrative structure. We are spread all over the country and our objective in the administration was to be able to manage the business in all of the possibilities. That applies to hiring new staff, how we deal with the market whenever hiring new assets and services, also whatever businesses each company from the holding carries. But we should follow single-centered guidelines. We can see that on Slide number 6 already. We can see a decrease of PMSO, the personnel material services and other. The expectation is that it will be BRL 7.3 billion, or it amounted to BRL 7.3 billion in the fourth quarter. So PMSO was BRL 7 billion. We have a voluntary dismissal plan. We have it in 2024 as well. We have the number of people who chose to be part of a program and the number of people who have already left the company. Security and safety are the most important aspects of this company and we don't want any asset to pose a risk to anyone. The company should not have any other voluntary dismissal plan. In the course of 2024, we have the collective agreement with the labor union. The administration is focusing on PMSO as a whole. We're following a guidance that we had already given, which is to have BRL 7 billion for 2024 as well. This is the best expectation we have at this moment. And why is it that we're making this effort? We want to increase the company's investment capacity. As you can see on Slide #7, this is happening. We have the Coxilha Negra project among other very important projects like the connection between Manaus and Boa Vista. These are good examples. We can see how resilient the devices are not only for generation and transmission. But we have approved a very important amount for reinforcement and improvement this year. Baguari, Teles Pires and Retiro Baixo are also highlighted I like to mention. In 2024, we should have a similar performance. The company looks at the assets and manages them as a portfolio, focusing on generating return for the company. There is a CapEx growth. It's quite substantial for this year, and it should be at a higher level than when the company was a state-owned company. There was also an approval regarding Furnas. There was no sense in having 2 structures here in Rio de Janeiro. So now we have the corporate and the organizational structures brought together. We have acquired the Candiota thermal plant. It's coal based. And we also have been looking at the gas plants, which the market is really interested on. We are constantly looking at improvements on the performance of our portfolio. We want to be a client-centered company as well. We have had a growth in the client base, but it's still small in comparison to what we expect to have. We want to have thousands of clients, and that's why we have restructured the commercialization department or the trading department of the company. We want to deliver solutions to our clients. And again, we expect to have thousands of clients in the next years. The culture is another challenge. Now, we are on Slide #10. We had a leaders' summit with 520 leaders taking part in this meeting. It was very important to hear what these leaders had to say. They joined the company for the first -- or they joined the meeting for the first time and they spoke about their executive departments as well as the Board of Directors. It's important to understand what we expect of the leaders. And now as a private company, we need to be more efficient and we need to be very responsible for our actions. We need to be liable for them. ESG. I mentioned the coal thermal plant in Candiota and also the gas plants. And Electrobras is still in every reference for ratings. We want to remove from the company's balance sheet non-recurring events. The administration is more and more comfortable around how to make Electrobras a company with much more predictable results than in the past. Thank you all for joining the call. And now, I'd like to give the floor to Eduardo Haiama, our CFO.

Now Slide 13. In the third quarter, we talked about the energy market prices. We said that the portfolio was not really -- or the numbers were not reflecting the portfolio generation numbers. And we had some peaks of heat and meteorology was better or worse. But we're coming to the end of the rainy season with less rain than average, and the prices have behaved as expected. We have more and more renewable energy. In 2024, before the heat waves, price were at BRL 65. This year there are going to be about BRL 110. And when we look at '25 or '28, it's going to be BRL 150 or BRL 160, maybe BRL 170. And when we look at the bottom chart, we can see what happens within a day. So in the wee hours of morning or the early hours of morning between midnight and 7 a.m., we have basically wind energy and the hydropower plants running as well. They're in blue. In the early morning, then you have less wind energy and more hydropower. And then in the middle of the afternoon, closest to the evening, you have some peaks in demand. And you need not only more power from the hydropower plants, but you also need additional power to give security to the system. The thermal energy is growing. You can see them in dark grey. And the orange line is the price. It goes from BRL 69 to BRL 300. Also with hydropower plants generating more. Hydropower plants are perfect where you have more and more distributed power with less control over the flow. And the hydropower plant will have this balance, delivering more when more is necessary. We understand that this is a structural organization or a structural point that should continue like that. Now, we're on to Slide 14. We have our power balance, our energy balance. Our focus in trading is to have a position that is more and more client oriented. And we have had more -- 220 clients. So we have the release. People asked us about the negotiations. And the fourth quarter was a bit slack because of the previous scenario with the pricing not matching what the market should have. But this year we started expediting it. On this table, you can also see that starting this quarter we are going to use the prices from 2024, but we are going to have a lag of one quarter. So here you can see the average price from our portfolio in the third quarter. This does not reflect the average price considering the new hires that started in this quarter. Now, moving on to Slide 16 let's take a look at our financial performance. We had an increase year-on-year in our revenue, and that was related to the consolidation of some assets. And we also had a reduction in the amount of power that we bought to resell. And that translates into an increase in our EBITDA. So that was a positive impact from the cost reductions that we had this period. Also, it was the effect of the consolidation of some assets that were recognized since 4Q 2022.Lastly, when it comes to our net profit, it is important to highlight that we have the adjusted and the reported net profit. We also recognized the credits into the company, and therefore, we included BRL 2.5 billion in taxes this quarter. This was a noncash impact which will be used in the coming years. On Slide 17, you can see some details about our costs. If you take a look at our recurring and the IFRS numbers, you can see that there is a difference that I would like to highlight. Our recurring cost had been BRL 650 million, but I told you in the past quarters that we didn't have some costs included in there, for example, the provision for profit sharing. And we had an impact of BRL 69 million in additional expenses. On Slide 18, you can see some more details about our provisions, our operating provisions. I would like to highlight 4 of them. In 4Q, you usually reassess all of your assets. And by doing so, we had some impairments, especially in one of those assets, Coxilha Negra, which is a wind farm that we are building in the southern region of Brazil, and we are going to finish that construction this year. And the other case was a smaller plant called Joao Borges. Also, we had to do a mark-to-market operation in some energy projects, especially in the case of Jirau. And we recognized expenses in the amount of BRL 860 million. Additionally, some assets were sold or held for sale, and we need to assess that from time-to-time in terms of adjusting the market price. And lastly, we had an expense of BRL 392 million in terms of provision for bad debts in relation to Amazonas Energia. Now moving on to the next slide. We have the compulsory loan. As we said earlier, we are cleaning up our liabilities. And there was a decrease in our total contingency inventory. Last quarter, we finished with BRL 19 billion in provisions. This quarter that number went down to BRL 17 billion. And in 3Q, we also had BRL 1.88 billion in payments to be made. And this quarter, that number went down to BRL 900 million. So there was a significant drop in our compulsory loan inventory. And lastly on Slide 20, I would like to highlight our focus on financial discipline. We still have a relatively low leverage of 2.2x, and we should remember that, that number includes the debts of Teles Pires as of 30th of September in 2023. So that number was recognized in only one quarter. So as we annualize that leverage, that number would go down naturally. In terms of liquidity, we are in a very comfortable position. We have cash that can last for up to 2 years of debts maturing. And the negotiations for payments and new loans allowed our cost, our average cost to go down. I think that's it on our side in the presentation. So we can start the Q&A session.

[Operator Instructions] The first question comes from Carolina Carneiro.

I have 2 questions. Do we have any news about the CDE receivables? Also, some players are mentioning new contracts in 1Q '24. If you could give us more color on the market environment, liquidity and trends, that would be great?

Well, about the discussions with the reconciliation chamber, we cannot disclose any details about those discussions since they are confidential. Now, about your second question, I would like to turn it over to our VP. He's going to address your question.

Well, the trading environment, as Haiama said in his presentation, obviously, the environment is tougher because of rainfall, and that is also related to the heat waves. So some players that were exposed to lower prices tended to close their positions. And because of that, in 1Q '24 the demand was higher for that type of energy. Consequently, that drove prices up. And we can see that, that happens every year. And we are going to see that demand going up for energy, for power especially as the players start to open their positions once again.

The next question comes from Mr. Gilmar Lima.

I have 2 questions. First, I would like to understand what the leverage level would be for you to feel comfortable and at which you wouldn't need any follow-on movement after a potential negotiation with the government. And my second question is related to your maintenance CapEx. There has been an increase in your maintenance CapEx for generation and transmission. So I would like to know what should the recurring maintenance CapEx level be?

Well, I'll turn it over to Haiama. He is going to address your question about leverage.

Well, there's no right or wrong here. I can't tell you exactly what the comfortable level would be especially because it depends on how the contract portfolio will evolve. It also depends on what the debt environment is going to be. Right now, it has very high liquidity, but things might change. And it also depends on the need for liquidity and how much and for how long. It depends on the term of those loans. And as Ivan said, we increased the amount of investments in 2023. And in '24, our investment level will still be relatively high. And it will decrease gradually as we modernize our plans and as the constructions finish. So if everything were perfect and running perfectly, I would say that 3.5 to 4 would be a comfortable level. But there are many variables that require caution.We can't tell you that we are going to do this or that, but at the same time we ignore risks. We need to be conservative when it comes to assessing those situations. And about CapEx, I'll turn it over to Elio to address your question.

Well, the first point that is important for us is generation CapEx, and that includes Coxilha. So it's not just maintenance CapEx. A critical point that we should consider in this first phase is our concern with health and safety. So we are investing in modernizing our assets in a proactive way, obviously in a way that adds value. But that is a process. We are still assessing exactly how we are going to invest. So I can't tell you exactly what the long-term CapEx level would be. But the fact is that for 2023 the numbers included Coxilha. And we are actively trying to modernize the assets without compromising health and safety, of course. Just as a complement. As a result of the investments and management of our assets, which has performed in a very disciplined way, in 2023, we have an availability of 99.96% in our lines, and the same goes for the transformers. And our generation is 11.1. So that's what is allowing us to provide shareholders with the return that they desire.

The next question comes from Mr. Antonio Junqueira from Citi.

We can see that there was a drop in transmission of BRL 200 million quarter-on-quarter. If you could give us more color about that, that would be great. And also, I would like to know what is included in the other costs line item?

Antonio, we calculated the difference and I think it was a mistake that we made in the third quarter. In the third quarter, we did not say that in the 3Q '23 revenue there was an amount that should be charged for termination of contracts in the amount of BRL 160 million, which is basically the gap between 3Q and 4Q. And that's for transmission. Is that clear?

Yes, absolutely crystal clear. So the right number is the one that you posted in 4Q '23, right?

That's correct. Although 4Q has a high rainfall. So there's also a difference there. There's about BRL 50 million more in 4Q numbers than in 3Q. I'll send you the information later.

No worries if you can't find it now. I was talking about the other costs.

Next question is from Daniel Travitzky from Safra.

My other questions have already been answered, but I have a question about auctions. We have 2 auctions to come, 1 for transmission at the end of the month, and 1 for capacity at the end of August. How do you see these opportunities? Can you just give us some more color?

Elio, please?

We've been studying for the March auction. We have participated actively in June and we won it. We participated in 2 of the 3 auctions that were in December. And we already started working for the September auction. Eletrobras has a lot of synergy with all of the transmission lots. So we are waiting on the more important and the better opportunities. As for the capacity auction, we've been working on that matter since last year. At the start of March, the bid was open or the information was made public and hydroelectric plants were included. So we're studying, we're analyzing it. We're preparing these projects so that they are competitive in the capacity auction. We study continuously, actively, so that we can bid competitively and with discipline. We'll continue to have the discipline that we have had in the previous transmission auctions. We'll have that also in the capacity auction.

How much hydro capacity could be in this auction?

We don't have a clear idea of what the government is going to bid for. We have opportunities in the pipeline, but we can't yet say how many megawatts are going to be in this project.

Marcelo Sa from Itau BBA.

My first question is an update on the [Setasi] sale. Do you have the waivers for you to continue with this process should it take place in the second quarter? And on Amazonas, there's an increase in the provision. There is some discussion there around what's going on in each city. Maybe there should be changes in the law. And that the concession would be possible for an active transference in the short or long-term. Are you involved in these legal and regulatory discussions? The minister said he was going to send 3 documents a couple of weeks ago, and I don't know if they included the Amazonas and additional assets?

We can't make any comments around [Setasi]. And as for the Amazonas, Rodrigo is going to be answering your question.

Well, the Amazonas, this is a subject that we keep a close watch on. There is a large debt. Much of it has been provisioned for. And Amazonas had been paying adequately. And as for the information made public ANEEL in October, the national agency for energy and electricity and power, we see that we can act to mitigate the risk. There's some important decisions. We need most of this current debt to be paid by the CCC. We still are exposed when it comes to the average CR. Now these resources should be paid directly to Eletrobras, which would make the concession better when it comes to the sustainability or how long it can be sustained. So we've been working hard so that the distributor doesn't have further problems. We've also been working with the national agency and with the ministry. And a few weeks ago, a report from the workforce was published with alternatives. They all base off of a change of the concessionaire and 3 key agents, the operator and the creditors. Eletrobras is one of the main creditors and we'll have to be involved in that regulatory measures. That should make the concession more flexible. For these flexibility measures, we need legal changes. We don't know yet when they're going to take place, but we know that this is a priority for the ministry and for the national agency. And we expect changes to be seen by April or May, so we believe in the short-term. Also court ordered payments of our debts when it comes to the debts that Amazonas has. Around flexibilization, if that ends in April, the debt to be paid is going to be smaller, or the amount to be paid is smaller.

What are you doing to deal with the situation? Or wouldn't the financial impact be very different?

From what perspective?

From Eletrobras' perspective. Is the effect similar to what you see today in terms of losses?

We have our actions to have court ordered payments. And we also have requests we've made to the national agency so that these payments go direct to Eletrobras. But there is a reduction in flexibilization for cuts in MSOs. And I think this is what makes the short-term solution with Amazonas more relevant. We see that the ministry and the national agency understand it as a priority. We have 4 instruments for the asset. One instrument is, I admit to the debt and I'm going to pay for it. We have started the execution of the debt charging it judicially. But we're generating information in subsidies for the ministry and for the national agency so that we can have a solution ASAP. We've always been very proactive for us to find a solution with the Amazonas' case.

Giuliano Ajeje from UBS.

My question was about Amazonas. It was just answered.

Ilan Arbetman from Ativa Investments.

All right. So I'm going to read his question. Congratulations on your results. Is the company going to join the auction for transmission in March and September?

We're studying the projects. And yes, we intend to join both auctions in March and in September as we did in 2023, we took part in both auctions. So we intend to participate, yes.

Vladimir Pinto from XP.

You talked about the capacity auction already. And the ACP, it says that some limitations are present. Are you working to change the situation?

The restrictions that we see there, the limitations don't apply to Eletrobras. Our projects are no longer ruled by 12783, but by 14182. So the restrictions we see for that bid, they should not apply to our plants.

This is the end of the Q&A session. We now give the floor to Mr. Ivan de Souza Monteiro for his closing remarks. Please, Mr. Ivan.

Thank you very much for joining our call. And if you have any other questions, please feel free to contact our Investor Relations Department.

Thank you very much. This concludes Eletrobras conference call for today. Thank you very much for participating. Have a good day.

Ladies and gentlemen, thank you for waiting. Welcome to Eletrobras Third Quarter Earnings Video Conference. I'd like to introduce the Eletrobras team. We have got Ivan de Souza Monteiro, our CEO; Eduardo Haiama, the VP for Financial and Investor Relations; Mr. Rodrigo Nascimento, Chief Regulatory and Institutional Relations Officer; Mr. Elio Wolff, the VP of Strategy and Business Development; Mr. Italo Freitas, VP of Trade and acting VP of Expansions; and Mr. Antonio VP of Operations and Safety. We'd like to inform you that this video conference is being recorded and will be made available on the company's IR website. You can also find the slide deck in Portuguese and English on the website. [Operator Instructions]. We'd like to clarify that any forward-looking statements made during this video conference regarding the perspectives, forecasts as well as financial and operating goals of the company are based on the management's beliefs and assumptions as well as on information currently available to the company. Forward-looking statements are no guarantee of performance. They involve risks and uncertainties and therefore, depend on circumstances that may or may not come to pass. Investors should understand the macroeconomic conditions and other operating factors may impact the results presented in these forward-looking statements. I'd now like to turn the call over to Mr. Ivan de Souza Monteiro, CEO, so that we can start the presentation. You may be begin, sir.

Hello, everyone. Good afternoon. Thank you for joining our video conference call to discuss the third quarter earnings in 2023. The Board of Directors and the Executive Board are both very confident when it comes to the future of Eletrobras, and I'll clarify why. From the beginning of our journey, we have focused on value and performance. We always seek to have efficiency, manage our portfolio, manage our investments and find opportunities in the future. We have solutions offered to our clients that are based on green energy as well. I'll talk about all of these items. We focus on operating efficiency at first, reducing RTMSO. We have had 2 voluntary resignation programs, one is already well ahead in its progress and the second has just begun, but we are certainly not putting the company at risk with these resignations. This is going to yield benefits to our consumers, and this is what Petrobras aims to achieve. That is also the regulator's intention with clear standards that need to be met by the company in comparison to the competition. And the objective is always to have lower tariffs for the consumers. These cost reductions have a number of initiatives, and our VP is going to be flashing them out in the presentation. Our CapEx and investment agenda is also accelerating. Our focus is mainly to modernize retrofits. The reliability of our assets for transmission and generation is absolutely instrumental for we -- for us to operate properly. We have earned 1 lot in the latest auction. We're preparing for the next auction in December. But you shouldn't expect to see major acquisitions outside of Brazil. It's not a priority at this point. Our priority is to focus on the high-quality existing assets and connect them to the efficiency agenda that we have. I'd like to talk about our portfolio now. Eletrobras always speaks about the reduction in the SPEs, but we're not only reducing the SPEs. We are managing our portfolio. There are initiatives such as buying vagary, the reorganization of some of the entities, the consolidation of others and other initiatives that we have whose aim is to have the generation and transmission line operating as they should. And also, we have to have clarity on where we're going to invest and how we're going to be more efficient with all of our very important assets. Eletrobras is not concerned or afraid when it comes to the discussion of power prices. This is a company that used to have 30 and now has 150 clients. And of course, our objective is to have many more. And this client acquisition banks on the reorganization of the commercialization department in Sao Paulo. Also the energy trading desk that we'll be focusing on our power, of course, and we continue to look for electrification solutions for our clients. We have initiatives that are ongoing we have some discussions that are going in steel works and pulp and paper and mining. We announced the certification of plan for green energy into Viata that's going to be focusing on clients and solutions for these clients, for example, green hydrogen. No one in Brazil will be able to have such a good green energy portfolio as Eletrobras and that makes us very confident about the future. We like our clients and possibilities, and we are structuring ourselves to be able to meet all the demand. I will now give the floor to our CFO, who is going to be doing the presentation for you.

Thank you, Ivan. This is Haiama. I'd like to start on Slide 5. We're going to be talking about our results. This is a way that I'd like to look at the sector. Looking at a regulatory EBITDA. Our recurring regulatory EBITDA was BRL 6.2 billion. When we look at the IFRS EBITDA, the result would be BRL 4.6 billion. Our net income -- and we have the regulatory net income at BRL 2.7 billion, and the adjusted net income as per IFRS is BRL 1.1 billion. As for CapEx, as Ivan mentioned, be it to improve operations or to do the upkeep of them or expand them, we invested BRL 1.9 billion in the quarter. That is an 88% increase year-on-year, virtually 90%, of course. Our financial health is quite robust. We have a twofold leverage in the last 12 months, and we have BRL 23 billion net for the prepayment of the commercial papers. Now Slide 7, value generation. That's something that Ivan mentioned already. We have 4 main pillars. We are simplifying our structure. We have sold Candiota. That's very important for our next zero target. We have also sold our minority stake in COPEL. We have acquired Baguari Energia from Cemig and Neoenergia, and we consolidated HPP [indiscernible] We continue to study to be able to incorporate Furnas and Eletropar. And now when it comes to costs, we have made some adjustments already. We already had 2 PDVs, the voluntary resignation programs, the first of which is basically completed and should have a saving of BRL 1.2 billion. And the second program has already started, and we aim to have a BRL 670 million reduction. Now when we think about capital allocation and structure, we have a net debt that is twofold at this point, which is very healthy, very much lower than all of our covenants. We have extended our debt profile. We have captured BRL 11 billion in debentures. And with that, we paid BRL 6.3 billion in commercial papers or commercial notes. With that, we have a cash net cash rather of BRL 23 million in October 2023. And lastly, when it comes to our liability management, there's a lot of liability to be managed at this point. Would just like to highlight that we have reduced the compulsory loan. It was virtually BRL 26 billion in the past, and now it's BRL 19 billion, and that's why the victory. Now on to Slide 8. Let's give some color when it comes to the history. Our PMSO, the recurrent PMSO was 1.9 a year ago and now slightly below 1.7 with a 14% reduction. And that's not only because of the cost, but also because of the management, we have eliminated 52 positions in the governance bodies. And more than reducing the number itself, we need to improve the structure, but reducing numbers is also important. Ever since we started streamlining the process we have reduced as fees in over 100 in the period. We have incorporated almost 2 gigawatts for our portfolio and an increase in BRL 141 million in EBITDA with the cancellation of results. And lastly, when we look back to the PMSO reduction that comes through the 2 PDVs, the voluntary resignation programs, and we have had a reduction here of 22%. But not only in the total amount, but also in the number of managers. There is an improvement in the efficiency of the company in managing their processes. Now let's move on to Slide 10 to talk about our operating performance. On the left-hand side of the slide, you can see a chart showing the breakdown of our regulatory revenue. We're going to underscore the regulatory view against the IFRS view because the regulatory view is much more transparent in terms of cash generation. You can see here that the percentage of transmission revenue increased, and for generation, it decreased a little bit because of the ending of the quota regime. And in the short term, the scenario is more challenging. But in the long run, it is going to be more favorable. And on the right-hand side of the slide, you can see where we are headed in terms of transmission revenue. Currently, we have 140 major developments happening in our transmission lines, and the CapEx should reach BRL 6.3 billion by 2027 with an increase of almost BRL 1 billion in revenue after these investments are concluded. On the next slide, Slide 11, we're going to talk about generation. The short-term market, well, there was an expectation in the market that the prices would be low in the minimum spot price level for the entire year 2023, 2024 and maybe 2025. On the left-hand side, if we look specifically at the chart at the bottom, and that is the chart that shows the hourly price and the red line shows the spot price. For a good part of the morning and early afternoon, it was at the minimum level, and then it reached the cap of BRL 600. So this shows that although there was a supply that exceeded the demand, because of the characteristics of the system, it is much more volatile now. On the right-hand side, the chart shows that effect precisely and also what happened after the market realized that the prices wouldn't be kept at a minimum level necessarily with any -- without any fluctuation. So on the 28th, when there was an increase -- a sharp increase in the price, and you can see that in the orange, gray, yellow and blue lines, those are the average prices. Those are the benchmark prices for each year until that event happened when there was an intraday sharp increase in the price. So if you look at 2024, prices go from BRL 65 and then it jumps to BRL 70. And as time goes by, and as we have more and more days with price increases, you can see that the line goes up and the price for 2024 used to be BRL 65, and then it goes up to almost BRL 80. And at the end of the entire period, the price increased by 20% more or less in each year. Only 2027 increased a little bit less than that. And that shows that volatility in the prices, which was not captured until that point by the market. Now on the next slide, we are going to take a look at a snapshot of the end of the third quarter. We are gradually contracting the energy that is out of the quota regime, but we are doing that gradually with no rush. And for this year, we have almost none. For next year, we have 16% that we are still negotiating. And we should mention here that in this percentage, we are excluding what we call hedge which is the energy that we are going to have contracts for in the short term, when there is an issue with rainfall, for example, and that leads us to take more risk. We are going to leave 1 percentage of that amount as a hedge for us. But as we make our trading department more robust. The number that you see of 200 customers will increase. And as time goes by, the dark column will be shorter. Now let's talk about the financial figures on Slide 14. Again, we're going to look at the gross revenue, EBITDA and net income in the regulatory figures. You can see our -- that our revenue increased almost BRL 1 billion year-on-year. And the highlight here, as I mentioned on the previous slide showing the revenue breakdown, you can see the most of that came from transmission and our EBITDA grew by almost 50% in the period. And you can see the adjusted figure here. Well, the main drivers were the RAP, the allowed annual revenue, which grew by over BRL 1 billion. And secondly, although we have uncontracted energy, we are negotiating that energy, and it is going to bring us benefits in the short term. And in order for our EBITDA to grow, we had some reductions in the cost, but also in the energy that we purchase over time. And that allows us to increase our margins. And lastly, when it comes to net income, the main highlights are the effect caused by a higher EBITDA. And on the other side, we had an increase in our financial expenditures. And in this quarter, specifically, when we look at the reported EBITDA in comparison with the adjusted EBITDA, we had some decreases in the core deposits. We have been doing that and working on that since the beginning of the year. And we just finished that effort now. Now on Slide 15, let's talk about PMSO. As we said earlier, this indicator has been improving quarter-over-quarter. I'm going to focus more on the recurring figures, the chart on the right-hand side, we went from BRL 1.951 billion to BRL 1.680 billion. And we had 107 in the -- actually, BRL 950 million in the personnel line, and we had some adjustments in the amount of BRL 47 million. And in this quarter, we had some impact in the increase of some services, including consulting, auditing and IT in the amount of BRL 80 million. But in the others line, there is a highlight that I should mention, and that you can find in our release. Those are the reconciliation of our core deposits that caused an impact of BRL 846 million, and in the recurring figures that is eliminated. Now on Slide 16, let's talk about our provisions. The highlights here are the reversal I'm going to start with the largest figure. There was a reversal at[indiscernible] in the amount of BRL 636 million. We had already made a provision for that in the previous quarter. And since we won this lawsuit, we were able to revert that allowance, that provision. And when Eletrobras was the manager of the RGR Fund and RGR helped make electric power universal in Brazil, and Electrobas used to be the manager of that fund. And in our discussions with the regulator, it was understood that there should be a refund to Eletrobras in the amount of BRL 489 million. And this did not impact the result as a whole, but it impacted this specific client. And we also had an actuarial adjustment in the amount of BRL 107 million. We normalized that line so that it matched the other ones. It used to be in the others line, but now it is in the provisions line, which is in line with the practices of the other Eletrobras companies. Now let's move on to Slide 17 about the compulsory loan. The highlight is the curve. One year ago, we started with almost BRL 26 million. And as time went by, we negotiated and the contingencies are still in the amount of BRL 19 billion. Up until the previous quarter, when we had deals that were unchangeable, and we just removed those amounts out of the provisions line if we were authorized by the courts. But now since we cannot change it, we want to remove it from the provisions line because it is going to be a liability for sure. So we took out the BRL 1.8 billion from the outstanding liabilities, and we are including it as compulsory loan. And here, we have some other contingencies as you can see, and we eliminated from our balance sheet, the remote and possible lawsuits, and the issue related to the impact of the core deposits. As I said earlier, we had that impact on contingencies of almost BRL 1.2 billion, but -- now we are going to free up some guarantees and collaterals, and now we have BRL 1.3 billion. And that is part of the effort of cleaning up our balance sheet and everything that happened in the past. Now let's move on to Slide 18. We finished the quarter with a very healthy net debt-over-EBITDA ratio of 2x. And in the BRL 39 billion that you see on the chart, since we acquired 100% of the stock of Teles Pires, we also incorporated Teles Pires net debt. It is important to notice that our -- that the company's EBITDA was not incorporated yet because we finished the deal on the last day of the quarter. So we had to incorporate the net debt, but not the EBITDA. And the EBITDA of Teles Pires was about BRL 350 million. On the right-hand side, you can see the snapshot of our debt profile. We finished the quarter with BRL 31 billion. And that was the effect of the prepayment of the commercial papers in the amount of BRL 6.3 billion. And that liability will disappear automatically in 2024. We also extended our average tenor for our debt, which is about 59.6 months, and the average cost is 12.46% per year. And to wrap up the presentation, I'd like to talk about a very dear agenda to us, which is ESG on Slide 20. I would like to highlight 4 items here. The first one is that we are now part of the IDIVERSA or the Diversity Index of B3. We are one of the 75 listed companies in this index, and we take a lot of pride in that. The second point is that we are 1 of the very few companies around the world in our sector that has as a goal to become net zero by 2030, following the guidelines of the science-based targets initiative. Those are the initiatives followed by the UN, by the way, so that there is witness to how dear this topic is to us. And the last one is the disposal of Candiota, and that accounts for almost half of our emissions. It was a small transaction, but for the group, it was a very significant move. And lastly, still on the topic of sustainability and zero carbon, I would like to remind you that we received a certification by the CCEE, which was created last year, and we were the second company in Brazil to obtain this certification for green hydrogen, which is considered renewable energy. So this is very much in line with everything that we have been saying in our calls. This is going to be the focus of Eletrobras, not necessarily hydrogen, but we are going to have sustainability at the core of our operations from now on. So now I would like to turn it over to the operator to start the Q&A session.

[Operator Instructions]. Our first question comes from Daniel from Safra.

I've got two. The first has to do with the power balance. We see that there are agreements being entered to from 2023 to 2027, 150 mega in agreements, can you just give us more color on these agreements as or the terms of the contracts, the prices for the agreements, that would be great. And my second question has to do with costs. We saw that was a significant reduction in PM. So -- and I'd like to understand what your expectations are for the future. What do you expect for the coming quarters and would you expect in terms of recurring costs? If you could just add some more color on these points.

All right. So I'll answer the first question and then our VP of Trade is going to support me in the second question. And then Ivan is going to be answering the second question, too. Some questions were posed once we published the release in the results. One of the comments was, hey, in the second quarter, you had an average price that was such and now this average price has dropped, but the volume is very similar. What's happened, right? Nothing major happened. So let me answer this question already. I know this is not exactly what you asked, but it's important for everyone and also for the -- for your question, too. In 2015, some of the generation concessions were renewed and amongst other clients were kept with a set price. And these clients had a relatively high tariff, but not because Eletrobras was paid a high tariff. But because part of this price difference was used for some funds, some sector funds such as the Southeast or the Northeast funds. And what's left as net cash for Eletrobras, that is a low tariff. So 200 is the gross number. And what we have is will have met for Eletrobras is below BRL 100. And some clients ask to stop using this model now and considering the volume that we're going to have for 2024 onwards is going to be available, we started finding new contracts, and that's what we did, but we did at market prices. But it's not too far from what we were being paid when you look at the net value, the net value paid to Eletrobras. But when you look at the average price, which is what you saw in that balance. I mean you had the gross number in the power balance. And then you have the impression that is dipped, but it hasn't. So it hasn't been a major change. And now I'd like to turn it over to Italo because -- I mean, you mentioned 150 million mega, And with the efforts that we needed to make to contract to site energy and show that our commercial team is up and running. Italo, please?

Yes, that's right. It has to do with Law 13182, and then it's not 150 mega, right? With the changes we had with these major clients, I mean we are restructuring our operations with the commercial team, and we're bringing people from the market -- we're hiring people who know their stuff when it comes to selling energy, selling power, and we're really preparing a environmental to deal with the future. And we sold 368, which is what we expected to have for this quarter. So we have -- I mean, that's what we sold and the cover that we had lost in the uncontracted items. And then there's new megas here too. And Daniel, as for the improving efficiency, you can expect this to continue. We're still far from the efficiency levels we aim to have. When we look at the competition, we see that even when we look at what the regulators expect from us. So all of the initiatives are going to continue to develop. Next week, we're going to have a meeting to talk about the budget for 2024. And this is a line item that we're going to be pursuing continuously seeking to improve our efficiency with everything that you already know that we have been doing. But as we gain more knowledge, we gather more information and as we have new solutions, especially in technology using the cutting-edge tools that are available to manage our assets and to also reduce the higher levels between holding company and subsidiary companies also reorganizing the SPEs and also with the knowledge crossing from 1 SP to another right lessons learned and -- but we'll be focusing on continuous substantial reductions.

Next question from Gustavo [indiscernible] from UBS.

Piggy-backing we look at the PPA contracts, do you see flexibility in the free market contracts? And how flexible are they?

You for your question, Gustavo. Italo, can you please answer that question?

This is Italo. We have a very diverse group of clients now, each of whom has their own characteristics. Some call for more flexibility. They are not many. But flexibility is about 5% to 6% in some contracts. But it's not that many clients who are asking for this flexibility. And when they ask for flexibility, of course, we charge for that flexibility somehow because being flexible is a service.

Gilmar de Lima from Santander.

As for the reduction in the balance. We see that the compulsory loan had an impact. And we saw a good discount in the compulsory loan. There was a BRL 2.4 billion and there was a BRL 3.5 billion payment. So these proportions, are they to be expected in the coming quarters as well. Can we expect the provisions to have the -- have similar reductions. And for the liabilities in the contingency, we saw an increase in that, in the contingent ability in comparison to the past. Is there any new process that's playing a role there? We had BRL 44.8 billion in the second quarter. And this quarter, it was around 48 -- BRL 47.3 billion. Is that just an adjustment? Is there any new process that is having an impact?

As for the compulsory loan negotiations, we're getting better discounts than we had planned for in our budget, which is a result of our good negotiations. Paula Padra used to work for Investor Relations. And now she's 100% focused on the compulsory loan negotiations. And that has yielded good results, Paula's extremely knowledgeable about this. And when you become a privately held company, you can recognize the specific needs different customers have. So this freedom we had from the management of the company. And these results yield the results that we have -- you have seen, and we're going to continue to pursue further reductions in this line item in 2024. This is a priority for us. And Ivan is going to answer your second question.

When I look at the remote and possible lawsuits, you're talking about the civil ones, right, and tax ones. I won't be able to say that off the top of my head exactly with the different lines. Not a problem. I just wanted to see if there was any specific item. No, no, there was nothing major. I mean, nothing specific. Maybe it's just an adjustment of the final balance, and that was posted now in the third quarter around the liability, but no new lines, I would say. All right?

Next question from JPMorgan by Henrique Peretti.

Sorry, I had an issue here with my mic. My first question has to do with the compulsory loan. It dropped to BRL 3 billion in the third quarter. So what is expected when it comes to a reduction in the fourth quarter. There's a 14% reduction that we have already had in the third quarter. So what is the expectation for the fourth? And the second question has to do with the power balance. So when you showed the chart around what has been uncontracted. When I look at 2027, there is an average of 3 gigawatts for hedge, right? And that's about 18% of the power available. So the GSF that you are forecasting for the long term, is it being planned for already?

Thank you, Henrique. Around the first question, I mentioned that during the presentation and until the second quarter, whenever we had an agreement, even if they were uncancelable agreements, right? We would only take away from provisions when the adjustment was registered by the contract was in -- so the liability was clear. In this quarter, we noticed that we needed to change this practice. We needed to look at the agreements that we had signed as unchangeable and just waiting for the registration. We need to pose to pose them to liabilities to. So when we look at this BRL 3 billion reduction from the second to the third quarter, BRL 1.8 billion of those BRL 3 billion were written as part of the compulsory loan and agreements. So in the fourth quarter, if there's no negotiation or any agreement, this is what's going to be posted because I say, hey, there's this many billion in provisions and then there was a settlement. The an agreement has been reached, something had been settled already. So but now it's best to set it as liability and no longer have it as a contingent liability. I'm not sure if it was clear -- and I don't think it was.

So you changed the classification, but it's still sitting in liability, but in a different line item, right? So it's as if it was 9 but 1.8 is still compulsary, is that it?

Yes, that's right. Okay. So it's no longer a contingency because you already have the settlement, but it has to be recorded in the balance sheet anyway, so as a liability. Yes, that is correct. And I'll ask Italo to help me address your second question. By definition, we try to be conservative in the way we sell our energy, but we need to be flexible as well. 18%, 15% or 10% in the future. Well, we are going to reduce that hedge or the spread so that we are not completely exposed to the spot prices. But I'll turn it over to our expert here to address your question.

Well, that is correct. We use a proxy of 5 years, an average of 5 years. And in our proxy, of course, the figures change year after year, but we keep a close eye on that, together with the markets and the portfolio teams to see what the reaction of the market is so that we can take appropriate action and sell that power when there is a good opportunity for us to reduce GSF and when there's a good market opportunity. As we explained earlier, in the presentation with the charts that showed an increase in prices because there was a higher CMO due to fluctuations in the system and other issues, for example, issues with generation, that cause, we should bear in mind a higher capacity and production in the hydro power plants, and that causes GSF to go down. So this is our projection, it is an estimation for the next 5 years on average. But our teams are paying close attention on what's going on so that we can seize the best opportunities out there in relation to the use of the capacity of the hydro power plant.

The next question comes from Mr. João Pimentel with BTG.

I have two questions, actually. The first one is about a point made by Italo and Haiama and the contracts under Law 13182. You said that some of those customers have already terminated the contracts are negotiated with Eletrobras. And in the presentation, in the first quarter, you said that the total volume related to Sobradinho and Intobiara was 1.241 gigawatts. How much of that is still left to be terminated and renegotiated? My question is, the cleanup of the 1.24 gigawatts has already happened in the quarter, or is there some of that left for the coming quarters? And the second question is about Furnas. I would like to know how the studies about the integration of Furnas are going and if that process can be completed this year.

Well, first of all, we need to clarify a point here. The contract for Chesf and Furnas related to the renovation in 2015, what is coming to Eletrobras as free cash is less than BRL 100 per megawatt hour. We are going to charge more than that, of course, because part of that amount goes to our fund, and it is in our restricted cash. So that is very important. So in terms of cash generation, at the end of the day, even if the benchmark prices without considering our spread, it would be better for us to negotiate in the free markets than keeping that price. That point is very important. When it comes to volumes, Italo, would you like to address that question? Or should we not disclose that information?

No, I think I can answer the question. What matters here that I want to highlight is that part of that uncontracted energy or capacity, that energy is still with us. We negotiated with them, those are major clients that use a high volume of energy, but part of that energy was negotiated with them. They're going to terminate the contract, but I can sell that energy to them. And obviously, the clients have their own power strategy. Some are using their own generation and they are using corporate PPAs. But what you should bear in mind is that part of that energy is still with us. And the law allows them to terminate the contract throughout the term of the contract. Of course, they need to observe certain deadlines but the idea here is for our teams, whenever there's a request to terminate a contract, we try to negotiate with clients to keep them in our portfolio.

All right. I understand that for sure. I believe that -- this is a neutral effect for you. But I would like to know when we are going to start seeing a clean balance sheet for you or with the energy balance because you price energy in the gross price. And although you have a net revenue, but the price between the terminated contracts and the new contracts the price seems to be very similar. But since we are not going to working with Law 13182 anymore, I would like to know when we are going to see a balance that is more similar to the reality? Well, I think you're going to see that in the coming quarters. But the major cleanup has already been done, right?

Yes. That's right.

João, this is Ivan. We cannot say right now that we are going to be able to fix this year, but this is a priority on for us. This is one of our biggest priorities here.

The next question comes from Mr. Marcelo Sá with Itaú BBA.

First, I would like to know more about the payment of Furnas and the payment of interest on shareholders' equity. I'd like to know why you didn't do that before and you are doing it now? Is there any specific reason -- and the second question is about the suspension of [indiscernible] offer. I would like to know what happened exactly. And if that can cause an impact on the sale of other assets, too.

Thank you, Marcelo. Well, the interest on shareholders' equity is a consequence of everything that's happening in our company. The company is focusing sharply on the generation of value. There are companies that pay a lot of dividends and some companies could improve their capital structure, and that's why we are restructuring the whole thing. And that's why when Ivan said that the point here is not about reducing the number of SPEs. The main point here is about optimizing the structure and improving the capital structure as a whole and also how money flows. I cannot talk about the past and why that didn't happen in the past, but I can tell you what's going on from now onwards. And we are going to take good care of each penny in the company and where it's going and why it's going there.

And the second point, before that, Marcelo, this is Ivan. Well, we can only talk about what we disclose to the market. Of course, as we advance in our settlements in the compulsory loans, we are going to free up more room and more guarantees. But that does not really interfere with what we announced in terms of selling our assets. We have a project to sell thermal power plants, and that project is going on really well, and there is no interference between the 2 things. We are increasing the number of assets that were provided in the lawsuits as collateral. And now we are freeing up those assets. We can sell them and keep in our portfolio only the assets that generate value.

Well, if you allow me, I have a third question. There's a clause in some of the debentures that you issued about the disposal of assets and that you could have a waiver or you would need a waiver from the creditors. Could that have any impact on this?

Well, in the past, and by the way, that's not going to happen anymore. Many subsidiaries would issue debentures. And it's true that clause was in many of those debentures and covenants that were not compatible with the company's reality, but that does not interfere with our decisions of selling the assets or not. We believe that the process of settling the lawsuits about the compulsary loans, that will allow us to free up the guarantees and collaterals, and that will allow us to have more freedom to have the deals in the size and in the format that is more compatible to our operations right now. But yes, that is true. There was a covenant in some debentures that restricted the sale of some assets.

Now I would like to turn it back to Mr. Ivan de Souza Monteiro for his closing remarks. Mr. Ivan, please go ahead.

Thank you very much for participating in our conference call. If you have any questions at all, please feel free to contact us. Please contact Karla, our Investor Relations Head, and we are going to be able to help you. Thank you very much.

This concludes Eletrobras conference call today. Thank you very much for participating. Have a good day.

Ladies and gentlemen, thank you for waiting. Welcome to Eletrobras Q2 Earnings Call. Let me introduce the Eletrobras' team. Mr. Wilson Ferreira Junior, Eletrobras CEO; Ms. Elvira Presta, VP of Finance and Investor Relations; Mr. Elio Wolff, VP of Strategy and Business Development; Mr. Rodrigo Limp, VP of Regulation and Institutional Relations; Mr. Renato Costa Santos Carrera, VP of Procurement and Services; and Mr. Marcelo de Siqueira Freitas from the Executive Legal Vice Presidency, are here with us today. This earnings call is being recorded, and it will be made available at the company's IR website, where you can also find the presentation in both languages. [Operator Instructions]. Before proceeding, we would like to clarify that any statements that may be made during the teleconference regarding the company's businesses, outlook, projections, operational and financial goals are based on beliefs and assumptions of the Eletrobras Management as well as information currently available to the company. These future considerations are not a guarantee of performance because they involve risks and uncertainties, and they depend on circumstances that may or may not occur. Investors should understand that general economic conditions and other operational factors can influence the results expressed in these remarks. I'd like to turn the floor over to Mr. Wilson Ferreira, Eletrobras CEO. You may proceed now, sir.

Thank you. I would like to welcome all of you. Can you please show the slides. I would like to welcome analysts, investors, thank you for attending our earnings call for the second quarter. Let me start. Please move on to the next slide, please. We'll have a summary of six segments. That's how we broke down the company's highlights, an overview of the number one managerial indicator, which is PMSO, operational performance, generation, transmission, financial performance. Elvira will take over at this point in time. And then I'll come back for the investments and next steps segments. Let me start with the highlights for the quarter. Next slide, please. Next one, please. Another one. Yes. These are the highlights for Q2. First, collections and operations in the financial front have been concluded, given the exposure we had to the U.S. dollars. The hedging for the bonuses in yet another operation, that accounts for almost 96% have been covered, and we'll be completing that in the next quarter. There won't be any FX exposure from now on. Onto liability management operations. Let me start with the one that have already been approved and implemented at Electronorte, BRL1.9 billion. The goal is the same, to lower costs and extend the profile. Costs are 2.2% above CDI, and we have been able to extend that debt profile. We'll be detailing that shortly. Elvira will be doing that. We paid BRL1.2 billion in dividends, and the average cost is CDI plus 2.5%. Amongst those operations, I would like to highlight, though, that one on the right, BRL680 million, the first credit note for exports. One of the important covenants is the debt contract with the commitment to sustainability. Our number one goal here is the clean energy percentage. We are at 97%. Our commitment is to bring that down. We are at 97%, and the original commitment was 96%. So that's a very important highlight because we are now introducing our second voluntary separation program. We had 1,473 that have applied. BRL513 million will be saved. We'll be breaking that down for both the first VSP early last year. And the second VSP, we have already concluded the application phase now in the second quarter. We believe it's important to share a couple of events for the second half of the year because they are really important to the company. First, liability management operations that are currently underway, and we were able to announce them through a market note. We had the fourth debentures issuing of BRL7 billion and BRL3.5 billion in Furnas and the fourth issuing of debentures BRL250 million at CGT Eletrosul. All these operations aimed at addressing the liability management strategy, always aiming at lowering costs and extending the debt profile. The second important action was the annual readjustment of RAP for '23, '24. There is an ANEEL resolution that increased our RAP by 30%. It was BRL17.5 billion for the '22, '23 cycle. We've also received the authorization to be the trade agent of electric energy at CCEE. This will be allowing us to use some of the tax credits we have for the trading activities. And we've also received the announcement of our restructuring for the unprecedented net-zero for any energy company by 2030. That's going to be a pioneering effort. That's why we have a sales structuring of our process of all our assets related to thermal, both using gas and non-gas. We use coal. We have gas, thermal plants and a combination of both. So these are the main highlights for the quarter -- the second quarter of 2023. On to the next slide, please. We have an overview of our PMSO, people, materials, services and third parties and other. Next slide, please. The first PDV1, the first voluntary termination or separation program, BRL1.2 billion is the expected savings on an annual basis with an 11-month payback. The first thing we can see on the top chart is that we expect expenses reaching 2,494 people. People are leaving the company at a slower pace than expected for a couple of reasons. Number one, we were very careful earlier this year. Let me remind you, we had those uncomfortable events as to the crumbling of a couple of towers, and we decided to be extra careful so that we could better manage that situation at that point in time. But we expect to have new people coming in. They are, again, at a slower pace than expected. And for that reason, our curve is the green, is the best estimate we can get, not the blue one. That will entail less savings for the year. Our estimate was BRL790 million. Originally, it would be BRL890 million of savings. As of next year, as a result of this activity alone, we'll be bringing costs down by BRL1.2 billion a year. The payback would be about 11 months. There was that delay, but we are focused on taking good care of the company, especially its operations. We believe that this BRL100 million can, of course, be offset by far, by the credibility of our operations because now we can be sure that we'll be reaping that result next year as about to BRL1.2 billion, as I said. The same assessment of the VSP #2, that we introduced last year. Given the collective bargaining we had, our estimate was of about 1,475. We had 1,000 -- or the expectation was 1,574. We had 1,475, a little less than expected. As most of it have been terminated by July, on August 31, over 500 employees will have left the company. So this program is somewhat quick because some employees could not join our VSP #1. So that's why the process is now faster. Again, according to our Board, we have been very conservative to maintain the company's operations and of course, its credibility to maintain that credibility intact despite these adjustments. This VSP has a cost of BRL513 million, savings of BRL688 million on an annualized basis, a better payback than that of first about 9 months. That, of course, is consistent with what we said before during the Eletrobras Day. We're reducing our personnel costs that was BRL4.6 billion in 2022, and we expect to reach BRL2.6 billion, a reduction of almost 42% by 2026. And just to give you more color. These 2 voluntary separation programs with firing another 800 people. Our staff started out with 10,500. In Q2, we are at 8432. We'll be reaching 7,727 by year's end. We knew professionals coming in the company throughout the country, and we expect to reach in the second half of '24 7,250. So as to this main activity to bring costs down, these two voluntary separation programs have already been implemented, and we are bringing costs down gradually. On to the next slide, other activities related to MSO. Our expectation, we had about BRL4.1 billion with costs in MSO in 2022. We expected BRL200 million savings for the year. We're actually moving ahead. We're even moving that faster. We had additional savings of BRL100 million, given the realization of the plan by June. We expected BRL1.9 billion. So we exceeded our projections in BRL100 million. This is a whole set of activities. Number 1 is OBZ. But let me point out that the number one activity and the number one driver that brings cost down is to centralize our hiring process for all the companies, and then we can better estimate costs to have better services and materials synergies. We can better manage inventories through that centralized purchasing, which would give us more bargaining power and centralization of contracts for both insurance and facilities. We brought cost down over by -- over 40%. That's the first time we did that. So we're expecting additional results for 2024. And let me remind you that now the second half, we're now starting the centralization of the 4 centralized or shared services in Recife. So throughout the second half, we'll be concluding that centralization effort. We'll be able to then expand cost reductions throughout the year 2024. As a result of this centralization effort I mentioned. Our estimates are on the left. We are, of course, working to bring that number by 42%, starting at BRL41 billion, BRL4.1 billion rather, bringing the number down to BRL2.5 billion in 2026. So these are the 2 main actions, 2 managerial actions that will mobilize the entire management team, and we have been able to show very positive results up to now. Now moving on. So these are the financial highlights of Q2. So these are very promising results. Net profit was up by 4%, reaching BRL9,246 million for the second quarter. Our EBITDA was reaching BRL6.595 billion. Results shows net profit BRL1.619 billion, a 16% increase when compared to last year. At the bottom, you have the adjusted numbers. Let me point out the following. In the reported number, we have a very relevant effect, which is the consolidation of Santo Antonio Energia. This operation occurred after the privatization in the third quarter. So we have effects bringing BRL949 million, the additional BRL449 million of revenue through that consolidation. On top of that, we had a reduction of contractual results in for transmission systems. Let me remind you that this revenue is booked based on economic indicators. IPCA is the most important one. In the second half of last year with higher inflation rates, we had 3.18%. It's almost half now for the second quarter. So that brings a reduction of . We had another BRL674 million, or BRL764 million for transmission revenue due to regulatory changes in the period. We had a reduction in recurring PMSO, excluding PMSO of SAESA. Despite that negative impact, we had more salary increases of 2.13%. And with , we did that last year, another 4.18%, another million. We still have as a relevant for the quarter. SAESA PMSO reduction of 6 -- rather an increase of BRL76 million for PMSO in SAESA and BRL332 million for costs and operational expenses. These 2 figures have been included to those numbers, and Elvira will be explaining that in further detail. The quarter was very positive as compulsory loans. We reduced our remainder of over BRL2 billion and about BRL1.477 billion because of settlements. So it was a very important quarter. On the other hand, privatization took place in June last year. Since then, we incurred privatization costs. They amount to BRL1.5 billion by quarter, and they are referring to amortization of CDEs and other funds, BRL397 million of amortization. And an extra -- and an additional BRL1.2 billion for those obligations I just mentioned. Of course, you have more revenue. It's almost the cost of that transaction. It goes up as we move away from that stake when we compare quarter-on-quarter. Nonrecurring highlights. We provisioned the second voluntary separation program, the second one introduced in July. So it includes BRL513 million for coverage of cost of 1,475 applications that will take place throughout time. Over 1/3 has already been completed in August alone. On the other hand, we had an increase of consulting services in the transformation office, so that all these transformation receive the necessary support, not only on the technology front, but also in the quality of consulting services so that they could be implemented smoothly. These are a one-off of BRL54 million for the quarter. Now we can talk about our operating performance. This entails generation and transmission. We ended this quarter with these numbers. So we went beyond 43,000 megawatts, representing 22% of generation in Brazil. This is 20% of our installed capacity in Brazil, but actually 25% of the generation in this quarter. So 38,827 gigawatts hour is what we generated, which is important if we think about our economy. What is also very relevant is that we were able to generate that with 97% of clean energy sources. To your right, we see our PLD in each one of the submarkets. We see increases compared to last year, and this happens because of our costs with the voluntary dismissal plan. It also includes Itaipu. Below, we see the GSF curve. We see numbers for 2021, 2022 and 2023. Our GSF is important because we need to hedge for it in our operations. Next, we see information regarding costs and volumes for the trading of energy. This analysis is important. We basically have 4 products for sale in the free market. So first, we have our quotas. We had a reduction in the volume or in the stakes of our company, and this happens because we are reducing our stake. This is something we are doing as we work on fundraising, but this 29% production represents only 7% of reduction in revenue from these products. Of course, this is also connected to inflation. This is something that we see for this quarter. So we go from 67.3 megawatt hour to 78 megawatt hour. The second important product is the regulated market. So we see not only effects of its growth, but also the consolidation of SAESA. So our energy volume in the regulated market grew 78% because of this consolidation. And we saw 46% of growth in the average tariffs for this market. Usually for SAESA, we had lower tariffs compared to other plants in our Eletrobras Group. And we are still talking about a very relevant volume around, 3,800 gigawatts hour, BRL23.78. Now for the third project, or product, which is very promising for the future of our company is the volume that we're trading in the free market. So this includes not only the reduction of stake, which we mentioned before, but the volume that we have for SAESA. We had a 14% reduction in volume and a 14% reduction in revenue from this market. So in this quarter, we had BRL198 for this. As I was saying, it's around 14% of increase compared to the previous year. The volumes that are not treated here are settled at the CCEE. This is the lowest volume, as you can see in the chart. So the total energy that we sold this year, and this represents an increase of 8% year-over-year. When we see the total revenue for this company, we see a growth that is actually 23%, not 8%. You go from BRL5.2 billion to BRL6.4 billion. So if we look at the product electricity sold by Eletrobras, that leads us to BRL211 per megawatt hour. This is relevant. This is good performance in this quarter. It takes into account the capitalization process, which allows for increase in volume, but also better pricing for the products that Eletrobras is offering both in the free and regulated markets. Now we have something that we'd like to clarify for analysts. It's an important disclaimer. This is how our company works. We have our resources for the second quarter. And as you may recall, we have a few clients under the 13.182 Act. So it would be possible for some of these clients to be decommissioned. In the third row, we see the volumes of decommissioning. We have a minimum term for the decommissioning period. So we go from 160 to 270. This is added to our resources. And now this is going to be made available to the market, and they will be sold according to the prices that the company can achieve. You can see the numbers here. We start with 9,571 and we get to 4,424 in 2027. So compared to the first quarter, we see growing numbers. This means that we're selling more quarter-by-quarter. We sold 8,875 gigawatts hour for 2023. And in this quarter, we sold another 9,571. So the variation or the fluctuation in sales is shown in green. Now in blue, at the bottom, we see information based not only on volume, which we see at the top, but also on hedging. This is why it is important for us to report on our GSF in our forecasts. We can't just be caught offguard with a higher GSF. This is why we have a very structured process. But in the first quarter, for 2023, we had 18% or actually 11% of decommissioning. And for this quarter, we have only 6%. So from 11% to 6%. For every quarter, we have these products for sale up until 2027. And the volumes that are not sold in the second quarter are not as high as the ones that we had in the first quarter, which shows that we are getting to effective sales for every year, for which products are available. We also have average contract prices of BRL206. We even get to BRL207 by 2027. So this is something we're monitoring weekly with my team so that we see the evolution of sales. We want to get positive results, of course. We're also taking into account delinquency fees or delinquency rates. There's something else that we could have added here. The company ends up having a good perspective on the clients that we have. We already have 162 customers. These are different industries, different companies. So we are working hard on acquiring new clients. We're working on sales contracts for our subsidiaries. We're making products available. We have submarkets for each of the subsidiaries. And we're working with the sales team so that we can better that. In the past, people would come to us, clients would come to us, but now we're going to customers, and we're making an energy offering based on our product portfolio. We even want to diversify our product portfolio. So I'm really happy with everything we're doing regarding energy trading. Now we can talk about transmission. One of the highlights is the 30% growth in transmission. Of course, we can think about inflation. We can think about IPCA at BRL479 million. We added more assets, BRL173 million. We had reinforcements and improvements, BRL123 million. We had minus BRL76 million for other adjustments, and we had BRL3,320 million with the new profile for RBSE. So for the '23, '24 cycle, we're going to see growth revenue of around 30% compared to 2023. Please remember that Eletrobras has 73,000 kilometers, that leads to a 38% stake in the Brazilian market. In the Eletrobras Day, we talked about a CapEx that has been approved of 174 big-scale endeavors, BRL5.9 billion until 2027. So as of '27, this leads to BRL846 million, but BRL132 million will be realized in 2023. Now next, we have the financial performance. Elvira we'll be talking about this. She'll go into details regarding revenue and how we manage expenditures, EBITDA and our net income.

Thank you, Wilson. Good afternoon. So now we're going to talk about our balance. We always talk about this every quarter. So to your left, you see the IFRS information. As you were saying, we had a 59% increase in our EBITDA, 16% increase in our net income. And to you're right, still in the same table, we see a recurring basis. So we see that the EBITDA was basically the same, but the net results were below our results year-over-year. Now let me tell you why this is happening. In previous quarters, we would always, always show the recurring results, but we would exclude our provisions, especially for compulsory loans. Because in prior periods, before we started this work, this would increase provisions, therefore, reducing results. If we use the same criteria, the reversals of these provisions, which are positive, are nonrecurring. This is why our EBITDA is capped at the same level, but we have a reduction in our net income. We have a few highlights to your right. Wilson mentioned some of them. We had around 4% growth in revenue. This has to do with Santo Antonio Energia in its consolidation. This is the last quarter where we still have to explain the effects of Santo Antonio. As of the next quarter, Santo Antonio will have been at the same base as the previous year. So we will no longer need to explain these effects because in the second quarter of last year, San Antonio had not been consolidated yet. This is why we've been explaining this effect. It represented BRL1.1 billion. In the next slide, we're going to talk about IFRS compared to our regulatory perspective. For the PMSO, we had a very positive quarter with a reduction of BRL144 million. We're also excluding Santo Antonio, which adds BRL62 million. This is the fruit of our initiatives, not only with the voluntary dismissal program, but also other items in PMSO. This also has to do with collective bargaining agreements. For costs and operating expenses Santo Antonio Energia adds revenue, but it also adds costs. So we see this impact of BRL332 million. For construction, we are building transmission lines, so we have expenditures for that. For depreciation and repayments, once again, we see the consolidation of Santo Antonio with BRL204 million, and we have the impact of concessions or grants, which were renewed when we went private, so BRL193 million. For financial results, which we'll go into details later. If we have a comparison quarter-over-quarter, we have a BRL1.8 million reduction. This is mainly due to 2 things. First, Santo Antonio. As we consolidated, we have a financial expense related to interest, so BRL741 million. The biggest impact here is related to our obligations regarding the privatization of Eletrobras. We have to pay fees over our CTE. We also have our projects related to basins and to renewable sources for the decarbonization of the Amazon, the Amazon. And as we mentioned, before, we were working with foreign exchange, we swapped to CDI because we don't have revenue in dollar, and we invested our cash in CDI. So this brought us a noncash effect at BRL458 million. Now when it comes to changes in foreign exchange, we had positive results. In the previous period from last year, we didn't have protections. The dollar went up and we had negative results last year. So since this didn't happen now when we compare it year-over-year, we get to these positive results related to foreign exchange rates. Now we can talk about our gross revenue. We had a 4% growth, as previously said. I've already mentioned Santo Antonio, which is the green column related to generation. But with transmission to your right, it is important to say that with the IFRS, revenue gets updated. The balance of our assets gets updated according to the IPCA rate, meaning inflation. Since it changed and it used to be over 3 last year, but it's over 1 this year, we had a reduction here, BRL1,134 million. This was mitigated by our changes in OEM -- O&M, adding BRL408 million, and also our construction assets adding BRL338 million. This is why we have minus BRL388 million here, not BRL1.1 million or BRL1.1 billion, actually. Also, this year, we're no longer responsible for Procel, so we don't have the revenue that we had in the previous quarter, around BRL40 million, but we had both costs and revenues related to this, and we're no longer responsible for Procel. We'll now see the breakdown of PMSO. On the left, top left, that's IFRS. And at the bottom, the recurring view with the adjustments. Two major adjustments basically. Number one, the second VSP provision, BRL500 million that we have already mentioned. And the Santo Antonio consolidation effect in the IFRS view is 1% increase. But when we we did not have Santo Antonio Energia last year and the VSP 2 provision is a one-off event. In comparable basis, we had a 7% reduction, as you can see on the bottom chart at BRL144 million reduction. And on the right, these are the highlights. In staff, BRL134 million, an 11% reduction, which is significant, especially when we consider that we do not have ASP increases of 12% last year and 4% for the year and new people that have been hired. As to services in blue, nonrecurring has to do with the transformation office, effort. And in others, we had legal cases as a result of the work conducted by the legal department. And there's another important activity Wilson has mentioned that in the strategy, which is centralizing the insurance hiring. So we have managed to reduce costs by BRL23 million. These are the highlights for PMSO. Now on to provisions. On the right you see a summarized table, some provisions for the same period last year when compared to this year. In '22, we had BRL2.2 billion in provisions, a reversal of BRL1.7 billion last year. Let me remind you that as far as compulsory loans was BRL242 million this year, almost to BRL1.5 billion. For cases that are not compulsory last year, we were at BRL475 million, an increase. And this year, a reversal of BRL184 million. This is one of the initiatives we mentioned during Eletrobras Day, just like we have been negotiating compulsory contracts. Our VP, Marcelo, is already heading that process for other cases to review risks, and we have been able to review that risk mitigation. That's why we had that positive impact on to investments. The second half of -- second quarter of last year, we had to account the losses for San Antonio Energia. Already, we have reversed that with the consolidation. And PCLD, Amazonas Energia last year. So these were the highlights. So in the quarter, we had BRL1.7 billion, as positive effect, improving results by reversing our provisions. Let me break that down. As far as the compulsory loans are concerned, ever since we started that plan in Q3 of last year, on the right, you can see the table of provision inventory for compulsory was almost BRL26 billion, BRL25.8 billion to be exact. And we're now at BRL22.1 billion. That reduction amount for BRL3.7 billion for these quarters. In the current quarter, we had an inclusion of BRL1.4 billion, just like I explained in the previous slide. When we take into account other agreements or other settlements that have been negotiated, we're just waiting for the final ratification of those settlements. They haven't been booked in the quarter. We had an additional BRL1.7 billion. So we expect a reduction of -- from BRL22 billion to about BRL20 billion. So for the year, it will amount to a BRL5.4 billion reduction, almost 20% reduction. In red, let me point that out, the monetary adjustment given our interest rates. As our inventory provision comes down, we also reduced the monetary impact for the quarter. And the last 2 highlights on your right. Since our negotiation strategy involves all compulsory processes or cases they have against us, we reduced off-balance contingencies that is BRL1.9 billion off balance and a release of BRL1.3 billion of connected cases, those that were used as guarantees. So these are judicial deposits that amount to BRL1.3 billion. On to the EBITDA variation. In IFRS, we had a 59% increase, but we feel these reversals as nonrecurring in adjusted basis. Our EBITDA was along the lines of the number we had last year. On to the next slide. This is a net profit assessment. Since we removed compulsory events as nonrecurring, that's why our net profit is reduced, therefore. But let me point out a couple of things. The financial results, the column in red, BRL1.8 billion. This is impacted. It's on the right. So we have some important events. Number one, the privatization obligations, regional funds, CDE amounting to BRL1.1 billion. And then we had the hedge issue. I tried to break that down. Let me remind you of what we did. We had 2 bonds, one is $500 million, maturing in 2025, and another USD 759 million for 2030. When we signed that operation late in May, FX was 5 54, and swap that to CDI. So the series is for 2025. It's now 97.4% of CDI. And for the 2030, it was CDI plus 1.7. So these are the relevant information we would like to convey to you. So these are cheap debts when we compare to prices today. We wouldn't be able to leverage that loan at this cost. We're moving away from that foreign exchange risk because we're protected by CDI, and that effect of BRL467 million, which is a noncash effect, is the result of the differences of these flows because once we concluded the operation, FX came down and our CDI was high. And for depreciation and amortization, another column in red, BRL400 million. And the number one reason behind it is due to the new concession contracts. We have been depreciating ever since the privatization and again, the consolidation of Santo Antonio Energia. Moving on to the end of my presentation, on to the next slide. This is the net debt adjusted EBITDA ratio. According to our financial discipline, we have been able to maintain our 2x indebtedness level, as you can see on the left. And on the right, you can see detailed information of our debt profile, BRL57 billion. Consolidated cash was BRL18.6 billion. Net debt is about BRL38 billion. Let me point out what I wrote at the bottom, on your right. According to our explain -- explanation notes, in late June, we converted BRL4.1 billion through AFAC and intercompany debentures. As of July, we'll be able to see the results of the fiscal savings of that operation. We expect BRL180 million savings for the year. Since this year, we only have half of the year, we'll be achieving half of that amount. I have my final slide of investments, and then I'll turn over the presentation to Wilson. So as we show every quarter, we show you the investment curve. In blue, investments by June, amounting to BRL2.5 billion. And in green, the same period of last year, not including San Antonio allocations for the CapEx was BRL1 billion. So we have this major increase. And on the right, two highlights. We have that impact of construction in Coxilha Negra, investments amounted to BRL279 million. And also here, the SPEs, we resumed Transnorte Energia, a very important project, to connect Roraima, the state of Roraima. We had another or an extra BRL29 million of allocations there. So these are the highlights for the quarter. I'll turn it over back to Wilson.

Thank you, Elvira. Let's move on to the next slide, please. Let me point out a couple of investments we made. And we announced that right after Eletrobras Day, BRL17 billion in contracted investments for the period '23, '27, BRL6.7 billion in transmission assets. We were talking about that these are assets for improvements that have been approved by ANEEL, which have guaranteed revenue. We also have for improvements set of mills or plants operating in the quota system, with an additional BRL4.6 billion there. BRL2.9 billion for infrastructure and environment. The first BRL1 billion is related to environmental investments. A little over BRL500 million for the social environment programs that have already been commissioned for Santo Antonio and BRL1.9 billion for infrastructure. These are optimization efforts of our costs that can be ranked as operational investments, but they are actually necessary investments through automation, robotization of a couple of processes with intelligent networks, AI, BRL2.4 billion for generation assets with new sources of revenue that have been commissioned Elvira mentioned. That's the wind process in Coxilha Negra and BRL0.7 billion in contracted M&As: Teles Pires Baguari, Retiro Baixo, SAESA and Baguari Energia. These are assets will incur in cash outflow of BRL0.9 million. That's not all. We have the outlook for growth. We have additional firepower. These are alternative sources of growth. Number one is the transmission auctions, several auctions that are scheduled for this year and next year, BRL35 billion in total. The company was very competitive. The only company that was present for every lot. This is an important growth avenue that is interesting for the company. We do have M&A operations, not only for that the reversal of cross-ownership. We had that goal, and that has to go through that reversal, just like ANEEL Energia, but also M&A operations. We are considering renewable sources, transmission assets, with the analysis of [indiscernible] team and another BRL10 billion addition of investments to improve transmission system. We had BRL6 billion that have been approved in the previous slide, and we have that potential, given the age of assets, an additional BRL10 billion, that would bring in an additional BRL1.2 billion of revenue. And Ito will be leading the effort analyzing the quality of the asset. In partnership with [indiscernible], we are, of course, focusing our efforts to submit that for ANEEL's approval. Every single investment will have to be subjected to that risk return assessment submitted by our committees and our Board and everyone, of course, using the services of a rating company so that we can generate value from that asset because the rate of return has to be above that cost of capital. On to the next steps. This is our final message to you. We're going through a transformation phase. This is the third quarter I'm reporting. My Team has been working for almost a quarter together, but we're making a difference already. First one is the reversal of cross-ownership strategy. Our goal is to reach 31 SPEs. We had 74 earlier this year. We are at 68 now. And we're working towards that goal as early as the beginning of next year. A second effort, we are advancing compulsory loans, negotiations. We have BRL400 million under negotiation. BRL1.7 billion have been commissioned. We had BRL22 billion of provisions. Early last year, we were at BRL26 billion. By this effort alone, we'll be able to bring those numbers down by BRL20 billion. We'll be reducing or completing the -- or eliminating the FX exposure. We do -- we are speeding up our tax strategy. We do have credits above BRL13 billion. So there are several activities that have been shared since Eletrobras Day, almost about BRL1 billion in 4 years. It can be even more. We had a trading strategy once we have that trading company. We better structuring our sales teams. We also have a trading desk. We do have all the elements in place so that we can become a very good company in trading effort too. We are boosting the number of customers and people are coming to look for our products. And we're also developing new products so that we can become even more competitive in this new market. Of course, our focus is on PMSO savings. That's the number one asset that can be managed, that can deliver results on a short-term basis, a BRL990 million savings for this year alone. 39% has been realized already. Second half, this is even more heated, if I can put it that way. And Renato Carreira is leading this next activity. We have a whole set of real estate assets. They cost money, operational and maintenance tax-related costs. So we have a team looking at this issue so that we can bring an additional BRL450 million by next year. So these are some of the activities that have already beginning to -- that are already beginning to show some results: compulsory loans, among others. And I remain optimistic about these initiatives, and we'll be able to deliver very good results in the next quarters. I just would like to conclude by thank -- for all the awards we have, and I speak on behalf of the Board. The best CEO, the best CFO team, the best IR professionals, Paula, thank you very much for your effort. So this is yet another incentive to help us keep working harder and harder under Elvira's and myself leadership. Let's get started with the Q&A session.

[Operator Instructions]. Our first question is from Andre Sampaio from Santander.

I have two questions. Let's start with Angra. We saw a number of articles this week regarding whether or not the government is moving ahead with this project. Could you please comment on your expectations regarding including this in the growth acceleration program? Now let's say this project is not built, what would be the impact for Eletrobras?

Thank you for your questions, Andre. Let me start answering regarding Angra. Of course, this is a part of our fundraising process. So we're always working on the assumption that since this project is important for Brazil, they will move ahead with it. This is what we expect to see. We've seen speculation. But just a while ago, I was seeing the opposite. I was seeing that, yes, this project will most likely be included in the growth acceleration program. So we have to wait and see, of course. But we need to remember that moving ahead with this project does not really depend on the growth acceleration program. Of course, we were waiting for the BNDES, the Brazilian Development Bank, to finish its studies, its research. And after they're done with their research, then they'll think about the continuity of this project. We are working on the assumption that they are going to move ahead with this project. This is our hypothesis because this is the subject matter of this act. And we don't necessarily think that it needs to be a part of the growth acceleration program for them to move ahead with it. Now regarding the option you mentioned, let me hand it over to Limp and to Helio because they may have comments. Let's talk about your option, which is not ours.

Thank you, Wilson. Well said. Indeed, the articles that we saw in the last couple of weeks were not even regarding whether or not Angra shares will continue or not. They were talking about the growth acceleration program, and these things are not linked. So this is a part of this act. It is a part of the PPI, the CNPE, the privatization program, the separation program for electricity and nuclear. So right now, we are doing everything and we are seeing everything be done as intended. For example, they are finishing their research and they are working on the CNPE. Now should they stop working on Angra, Eletrobras as a shareholder, in the case of financing, we are the guarantors of this debt, around BRL6 billion. But we are not the main debtor. This responsibility goes to Electronuclear, and it goes up to shareholders depending on the circumstances. In the case of their debt, we are providing the collateral for that. So it's possible that we'd have to reimburse it. We do not believe that they're not going to move ahead with Angra 3. But should that happen, we definitely make an assessment of all potential impacts for Eletrobras. But we do believe they are going to move ahead with it. All right. By the way, let me stress something. We've been working according to the privatization rules. According to these rules, not only do they talk about moving ahead with Angra 3, but they also talk about governance rules for Electronuclear. Their CFO, two Board members, members from the Auditing Committee, members from co-Angra, which is the committee responsible for overseeing Angra 3 works, all of them are aware of it. So we're close to them. And this has to do with the management of Electronuclear. Of course, they are taking into account everything that is in their best interest, both for the company and the shareholders. Yes. And here we have Mr. Elio Wolff and Ms. Camila Araujo, who are representing us. And Eletrobras really values this topic. We have two VPs working on it.

Our next question is from Mr. Daniel Almeida from [indiscernible].

Regarding your next issuances, what would the rate be? Do you expect to reduce your capital cost?

This is our goal. Not only do we want to make it longer, but also to reduce costs. What happened with Eletronorte is something that teaches us even though we need to think about the debt scenario that we have right now. Somebody else may have a comment like Elvira. And I think it is important to talk about what we're doing.

Yes, unfortunately, Daniel, we can't convey any information about this because we cannot legally speaking. We issued a material fact, but this is regulated by the Brazilian Securities Committee. And this is only the beginning of their proceedings, so we're unable to share any preliminary information. We need to wait for the Securities Commission to do their work, to do their job and then we'll be able to talk about it, but this is regarding Eletronorte as reported in June.

Our next question is from Mr. Daniel Travitzky from Safra.

I actually have two questions. First, I have a question regarding energy trading. We saw implicit prices for trading in 2023, and they were very high, BRL179, which is very -- which is above the spot price. And it's even above the price curves that you showed us. How did you get to these results? Could you please talk about the rationale behind your strategy? My second question is related to capital allocation. Wilson, you mentioned transmission auctions to be held soon. Now if we think about direct current, and we have an auction for that in December, what kind of opportunity do we see there? What do you think about the competition? What would be your technology challenges to put this project together?

Thank you, Daniel. So let's talk about trading first. When it comes to these implicit numbers, these are the result of a strategy that we actually deployed last year. Trading is something that requires planning. It requires a specific view. We have a strategic committee to work on that. They think about the evolution of demand and the potential scenarios that we may see in the system. Additionally, they also think about deliverables from assets with more or less flexibility vis-a-vis the electricity system. All these three factors have an impact on pricing. So if you look at these prices 1 year ago, you have a more favorable scenario, but the economy is not as dynamic. So you sell forward. This is what happened with Eletrobras. So the first answer is to get to these prices, we actually designed this strategy last year, and we sold forward. But as I was saying, we were successful. It's important to highlight that this is not the only strategy to get to higher prices, in the case of Eletrobras, Eletrobras is one of the few companies with energy volumes that could be traded not only in the short term, but also in the long term. We retain our rights over these volumes over 30 years. So we are one of the few companies who are able to do that, to offer different offerings to customers in the long term with different propositions regarding curves or flexibility. So with our volumes, we definitely have more flexibility to customize our supply to specific customers, which we believe is important. Number three, we changed our strategy compared to last year. We were basically operating based on generators and traders, but the open market right now is 10,000 to 12,000 customers. They are what we call the A group, the high-voltage group, 32% of volumes. But this market will be expanded as of January of 2024, with over 100,000 customers becoming a part of it. So we are customizing this B2B market with all of its specificities. We have advisory services behind us. We are working with very smart people who are trying to prepare us so that we have the right tools in our trading table in order to create more value and offer offerings that stand out and add value to customers. So for the numbers we have for this year, they are definitely the result of a strategy that we started deploying last year, which was really successful. As I was saying, we made a few improvements this year as well, especially when it comes to our sales team. They've been looking for customers instead of waiting to be approached. Regarding capital allocation, Elio Wolff is going to add something to this, but I'd like to say something about transmissions. We clearly see advantages because we are scattered all over the country. We have a structure in every state in the country, and that's a perk. We were a very large company in the past. There was too much. But now oftentimes, we're able to purchase equipment at a bigger scale. We also see how important it is to look at our operations structure from up close. So if we have an asset in the Northeast, of course, people from Chesf is going to be on top of it because this is going to be a better utilization of this asset. It will be easier for us to hire third parties at a better scale for this kind of operation through this kind of approach. So if you look at results from the previous auction, we were very competitive. And at the time, the team had been on it for under 3 months. I'm really hopeful that we'll keep on making progress here. I believe we'll be even more competitive in the next auction. Now regarding direct currents. We could talk about a technology upgrade, and we'll need it in Brazil, and we're ready for it. We have partnerships with the state grid for Belo Monte with [indiscernible] for the Madeira River. We are the operators of the direct current coming from Itaipu. So we need to increase the reliability of our system and to reduce losses, and this is the technology that will be used. Elio may have something to add to it. So our team is looking for this kind of partnership so that we're very competitive.

I agree. Let me add something. I think the last auction was just the beginning. We're working on it, and we're studying. We're doing our research for December. In December, they're going to focus on a batch of around 18 billion to 19 billion. And there was a change recently. You may have seen it. Looking for better competitiveness, the regulator decided to have bids split into four sub batches. We have the converter with the main batch and four sub batches. Well, this bid is going to happen in December. As Wilson said, we've been talking to partnerships and suppliers. We have an ongoing conversation with them. We also have preliminary research trying to identify routes and the best paths. We're also trying to figure out the best structure as far as cabling goes. So we're getting ready for this auction, not only for the big batch split into four, but the other batches as well, batches 2 and 3. So for December, we are proactively preparing ourselves to send our bids.

Our next question is from Mr. Henrique Peretti from JPMorgan. Mr. Junqueira asks the next question.

Let me talk about Angra 3. Part of the reason why this discussion comes up and it's a recurring topic, the market is very fearful of this topic. If it is decommissioned, the company would be losing BRL10 billion, BRL12 billion, BRL14 billion. You hear the kind of comment left and right. I may be completely wrong, but I have the impression that is due to communication problem. So once again, I would like to take this opportunity to ask your opinion, if there is a decommissioning happening, what is your take on those debt? Electronuclear would default two debts, BRL6 billion. That seems to be a very radical or extreme result. But could you explain how these costs would be broken down, how they were calculated if it happens? Along the same lines, can the company provide any kind of guarantee? Or would Eletrobras would have to collect or increase its capital? Would the company have to do that, too?

We know it is mandatory in the case of the construction portion of the project. So I think it would be interesting so that we could all share the same opinion because that volatility is not helpful to anyone. I'm positive. You are right. I would like to take this opportunity to clarify this issue. Despite the importance of this asset, so the basic scenario is that of continuity. And I'll remind you of two things: the controller of the company is the Brazilian stent, [indiscernible]. They have an almost 70% of common stock. Eletrobras has more -- a bigger stake of the capital. It has less than 40% of the common stock. Well, this company, when we operated it, it was a company that ran at a loss. It's no longer the case with Angra 1 and 2. The EBITDA is robust and positive. So it can cover for any adverse effects. It won't be able to clearly withstand all of those negative effects. And Limpy and Elvira, you can also provide more detail about the financing. And according to the law and based on the agreement that we signed.

I was trying to unmute myself. Well, on to the debt, BRL6 billion. Eletrobras is the guarantor of the debt. So if they cannot cover, Eletrobras can become sued. But legally speaking, we are entitled to look for compensation from Electronuclear, if we are executed. As to the demobilization costs, there's no direct guarantee from Eletrobras. It's up to Electronuclear. If Electronuclear is not able to cover for that cost that can reach shareholders, but not Eletrobras alone, that is also valid for the controller. If you increase the capital, we would have to make an assessment, but that would involve the entire legislation of Eletrobras. As a shareholder, I wouldn't be able to tell you whether Eletrobras would be forced to allocate resources there. If it's not related to the construction part, but we have to take a deeper dive to better understand this topic. And there are no exact answers. You cannot quantify the impact in numbers. It's not a recipe. Given the current situation, we are the guarantors, but we can find compensation. All the other costs as Electronuclear, but there's a direct guarantee as we said. But if Electronuclear is not able to do that, that can impact shareholders, not only Eletrobras.

But when you say impacting shareholders, would that mean the equity? So your equity at Electronuclear would be worth less. If you increase capital to decommission, would you have to follow the 36% rule? Or that's not the case?

Well, we do not have that answer. We have to analyze the scenario because that's not the scenario we're working with. But we have to take a deeper analysis if that's the case. You cannot guarantee anything. You'll not be purchasing equipment, the commissioning costs ex debt. The company is not -- we're not creditors, no. And that decision of decommissioning is not taken by Eletrobras, that would be the burden of those that make the decision. In such a case, this is going to be assessed by the controller. As a controller itself, we'll be answering according to our participation. Electronuclear has debt net to EBITDA about 3-odd. But the entire debt is from Angra 3. Yes, the rest is net cash. It's a very solid company, generating EBITDA. It's a 3x budget. It's a company owned by the state, but you're talking about the state defaulting of debt. A state that would be BRL1 trillion worth of debt. It would default that debt, I think the stress is due to lack of information. That's not your base scenario, but I think it's worth further explaining it on a step-by-step basis so that everyone would speak the same language. You're right. You're right. We're working in that direction with [indiscernible]. The Board will be addressing that issue.

Mr. Marcelo Sa, Itau BBA, asks the next question.

Could you please elaborate on the CapEx? You break that down by segment. But out of this commission CapEx, what part of it does not generate revenue? It's 1.5% worth of revenue generation, but there was an additional CapEx that is nonrecurring. But should we consider that BRL1.5 billion. For maintenance purposes, that wouldn't be generating revenue necessarily. And could you please elaborate on the capacity auction that is scheduled to be held in Q1 of next year? And competitors are not looking for a hydro-only solution. So what's your take on this next auction? Are there any projects willing to take part? What would be the amount available? And what is your estimate as far as capacity hiring is concerned?

I'll turn it over to Elio Wolff, and then Limp can jump in to talk about CapEx and the capacity auction. Over to you, Elio.

Hello, Marcelo. The first block is related to revenue, and I mean transmission. The second block, the maintenance CapEx. And this should be regarded as recurring CapEx that is nonrevenue-generating. It's BRL1.5 billion or BRL0.75 billion in 3 years. So that's the maintenance recurring CapEx that will -- this is the nonrevenue generating, right?

Yes, exactly. The BRL3 billion is a mix. Part of it should generate revenue from improvements and there's a part from modernizing equipment. And I think it's important to speed up that process of MSO. But this is a one-off event. As far as the environment, most of it coming from size, these obligations would be dwindling. As years go by, these are nonrevenue generating, but there's a progressive phasing out of that process. And the [indiscernible] is a new asset, and then there's M&A. So in essence, as far as modeling is concerned, BRL1.5 billion is nonrecurring -- rather is recurring, non-revenue generating. This is the best answer I can give you for your model and for the auction.

Well, let me clarify one thing about CapEx. As you're showing, you said that nonrecurring for generation, there's a little bit of improvement. But in 30 years, would there be any leaps for modernization efforts that would be outside those BRL1.5 billion? Are there any surprises looking ahead?

No, there are no relevant surprises further down the road. Well, if we detect any opportunities to modernize or maybe repower our units that could generate important revenue, of course, we'll take that into consideration, but we don't envision any of those surprises as we speak. On to the auctions. We have projects of renewable sources. As far as thermal plants, we are divesting or divesting from those operations. It's currently underway. There's a teaser in the marketplace about it. So we are divesting in those areas. But of course, we'll be addressing the capacity depending on how EPE designs it. We'll be looking for opportunities not only to sell energy, but also to come up with new projects to make that opportunity possible for the group to grow even further. But we have no volumes set aside, specifically for the auction. We have to learn how the government will be defining that auction, the types of modalities, direct participation, whether it's a possibility, hybrid services. So these are possibilities we have to take into consideration so that we can define how we are going to be part of that auction.

[Indiscernible] from Trulia investments is asking the next question.

Can you elaborate on your interest in the capacity auction for next year?

That's the question we have just answered. I think he read Marcelo's mind. Would you like to say anything else, Limp?

No, that's it. We have to better learn about the premises and how the rules will be detailed just like the previous auction. Only for thermal plants, that would be completely the opposite of our directions today.

We turn over the floor to Mr. Wilson Ferreira for his final remarks.

Well, thank you for attending our Q2 earnings call. I'm very pleased, as well as the team is, as to the start of the realization of the results after the privatization process. Some benefits are evident. We're talking about more revenue from the free market. This is the result of that decommissioning. And we have better benefits to extract once we have the trading company set in place. Last year, the company was reduced through to a series of voluntary termination program. We have had two of these programs. We are hiring new people, some people are leaving the company and we do have to have a mix in place that can provide more productivity and cost reductions and being more productive in the marketplace. We have a very experienced team as far as MSO head -- or led by Renato Carreira. He has a lot of experience, even abroad, but we brought in several people from or to Renato's team to be able to better negotiate materials, third-party services inventory. We have 95 warehouses. We have 7 data centers, 4 shared services centers. So we have been working hard to optimize these assets. These are currently underway. And once again, we have advanced significantly our liability management strategies. We'll be able to show those results in the near future. We've done that at Electronorte. So this is just the beginning of that effort. We still have a lot of homework to do as far as tax and fiscal optimization. That's our focus. This is our priority. And absolutely, we not only have to operate efficiently and with safety, but also remaining competitive and focusing our opportunities on transmission. I'd say it's a need for the country. That's exactly where we can contribute substantially and also generating value and being competitive. And our reversal of cross-ownership, especially taking opportunity of M&A opportunities in the marketplace. So I'm certain we are heading in the right direction. We've been here only for 3 quarters. But for the first time, we have a clear vision of the entire team. I would like to thank the entire team. I failed to mention the nonrecurring of compulsory loans. And we have managed to evolve dramatically after 6, 7 months, an effort led by Paula and Marcelo Siqueira. I think there's important road ahead of us, but over 20% of provisions have been brought down in record times. We're gaining -- or we're gaining traction. Processes are better structured. There is no other company in the energy industry with our size with our possibility to reduce costs and generate value, reducing financial costs and at the same time, creating value to optimize our tax expenses and also have the possibility to grow. No other company can do that. It's a unique asset at a time in which our target price is much bigger, the upside is very relevant. It's important to mention that. The team is committed to realize those possibilities, and we'll be seeing those results coming in, in the near future. Once again, thank you for attending our earnings call. I wish everyone a great day.

This concludes Eletrobras earnings call. Thank you for attending. Have a good afternoon.