ELPC

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[Non-English content] The highlight here is the positive result of modulation and the difference of price in submarkets, in addition to gains in the free market with growth in volume and higher price. Copel Disco also contributes significantly with EBITDA above 10% compared to the first quarter of 2025, sustained by the great market result growth and the variation of costs being under control. Moving on to the Genco results, generation and transmission EBITDA was driven mostly by the result of modulation, totaling BRL 267 million more than the reported in the first quarter of 2025 due to the increase of average PLD in the southern submarket. The increase of BRL 99.2 million in revenue and bilateral contracts resulted from a combination of higher volume and price of sale. Volume grew 11.7% and price 4.7%.

Greater revenue with the availability, with the result of BRL 93 million with the consolidation of Mata de Santa Genebra in the results of June 2025. In the pressures, we had a higher cost of purchased energy for resale due to higher PLD and GSF of 90%, in addition to the wind generation deviation and the higher impact of curtailment that totaled 20.7% in the first quarter of 2026 compared to 8.8% in the first quarter of 2025. Even with this scenario, the message here is execution, active commercial management, and capturing of opportunities with cost control, including the decrease of the MSO in the segment. In distribution, recurring EBITDA was 10% above the first quarter of 2025, reinforcing the original result.

I'd like to stress here the growth of 2.1% in the grid market, reflecting the greater economic activity in concession area and the growth of customer base in the period and the annual tariff adjustment in June 2025, with an average of 1.3% in the big parts that we also captured in the comparative periods. The trading strategy is now on the next slide. We continue to evolve consistently, supported in three well-defined pillars: optimization of portfolio, the offer of flexibility and modulation to end customers, as well as continuous and disciplined activity in risk mitigation.

In the quarter, the active management of the portfolio enabled the capturing of relevant opportunities, with the activity on submarkets contributing to about BRL 70 million, in addition to positive effect on the hour pools that added another BRL 70 million to the result approximately. These effects reflect the decisions made based on technical criteria, disciplined reading of the market, and adherence to established grid limits. Another relevant factor was hydrology risk. We closed the period with GSF of 92% and wind curtailment levels much higher than what we observed in the same period of last year, reinforcing the importance of a structured, active, and consistent commercial strategy, especially in more challenging scenarios in operational view as we are experiencing.

In energy balance, we have a gradual balance expansion of the availability of portfolio, starting at 16% in 2026 and reaching 53% in the horizon from 2029-2030, which is in line with our strategy of capturing attractive prices in different scenarios to sustain the results. As for the hydrology risk exposure, we maintain a comfortable long position in hydro, 19% in 2026. Complementing our quality performance, I highlight our strict credit management, maintaining sound governance in the selection of counterparts, which guarantees an extremely resilient portfolio with very low levels of delinquency, which allows us to operate safely in ACL, guaranteeing that profitability captured in trading converts effectively into cash generation. We continue maintaining flexibility, discipline, and sophistication in portfolio management with hedging operations and customized solutions to clients, consolidating trading as an important driver of results.

Now on PMSO, on cost management, we see a positive evolution in discipline of costs over the quarter. The variation rooted reflects distinct movement in the main lines. We had a BRL 10.3 million increase in the others line due mostly to the lease equipment and software focused on operational efficiency and growth of BRL 2.9 million in materials for Genco. On the other hand, this was offset partially by the reductions in manage pools lines with a drop of BRL 26.3 million in third-party expenses. If we isolate the PPD, PLR, and LP, expenses with personnel increased BRL 7.6 million, 0.2% in this quarter as we kept up with the salary adjustments of 5.01% defined in the collective bargaining agreement.

In practice, discounting the inflation, the costs would be stable compared to last year. PMSO management, we reinforce our continued commitment to profitability. This effort and discipline, in contracts with business that are significantly different from previous years, the increase of standards of service requiring adaptation and implying additional cost. Within the rationale of efficiency and customer focus, I highlight initiatives that are relevant like Copel Agro, as Daniel mentioned, where we created a dedicated structure to enhance our relationship model with agribusiness and increase the level of customer experience. Our focus in cost effectiveness this year will be on optimizing the base of suppliers, dimensioning of our workforce, developing long-term contracts, and the reduction of commercial costs and sale of non-strategic real estate.

In net income, we posted a result 10.7% above last year due to the very robust operational results, partially offset by higher financial expenses. Leverage result of a company that operated in a more structured, optimized capital structure, actually, than the first quarter of 29. On CapEx, in the quarter we invested BRL 581 million, 75% of which were invested within the distribution company and the remaining balance on generation and transmission. The priority of this investment, this CapEx, targeted towards operational pillars, service quality, and sustainability of long-term performance. Finally, getting into indebtedness, giving you more color on leverage, we remain in a comfortable position in line to the optimum capital structure, closing the period with 2.8x net debt to EBITDA, which is precisely in line with the optimum point of the capital structure.

Our debt is 63% linked to the CDI, 34% to IPCA, and 3% to the long-term interest rates. We closed the month of March with nominals of the debt of 13.05% a year, equivalent to 89% of the CDI, a result of our active management of liabilities that seek a balance between duration, cost, and profile of indexing. This concludes the presentation. We will move on to the Q&A session. Thank you.

[Non-English content] We will now begin the question and answer session. In order to ask a question, please click on Raise Hand. If your question is answered, you may leave the queue by clicking Lower Hand. In order to ask a question in writing, simply submit it on the Q&A icon, giving your name and company. Please wait while we collect the questions.

[Non-English content] Our first question. Vem do Ricardo Bello da Safra. Ricardo Bello from Safra.

Ricardo [Non-English content] Ricardo, please, you may go ahead.

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The question in writing. Good morning, team. Thank you for the opportunity for taking my questions. I have two. First, I would like to ask for more details about the ADA, which led to this increase in the quarter. Apparently, there's been little energy sale on this quarter in particular. What's the environment of negotiation and the expectation of PLD with the closing of the public hearing on the CVaR and the ONS/CCEE that they opened? Do you believe this is already impacting the price curve or should impact it significantly? Thank you. [Non-English content]

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[Non-English content] Juliano, da UBS BB. Juliano, [Non-English content] Juliano please go ahead [Foreign language].

Daniel, team, good morning.

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Excellent, Felipe. First point, really. We already have a strong indication that there will be actual El Niño on the second half. What's uncertain is how intense it's going to be and where it's going to have an actual impact. This trend seems in the South, and we're seeing the prices in the second half reflecting that. An important point that that's where the active portfolio management strategy is that during previous windows of price increases, we captured prices higher than what they are today. The first assumption is the base never being ignored. That's always going to be met. There's no point having taken a long position to the minimum in a base scenario. If there's extreme scenario, it's a possibility.

Always trying to weight this, how to value that number, saving in the short scenarios, but capturing market spikes. We see a lot of probability of a strong El Niño in the second half, which can impact hydrology, especially in the South. In Paraná, we tend to have higher temperatures in the southeast that can offset this a little bit. In this scenario, the prices may slow down, especially in the third quarter. Obviously, there's an advance of rainy periods. You may have the end of this period of lock forward. What's an area where the prices start to increase again in December, beginning of next year. That corroborates our strategy. Getting into modulation, I think it's very important to emphasize that they run in parallel. Irrespective of the contracting strategy, we are not letting go of the benefits of hydro modulation.

We already have the consumption profile of our customers as a flat profile, never selling out this benefit. Even if we have a scenario of 80%, 75% contracted, the benefit of modulation will be our political guarantee. That's our assumption. That's, as I mentioned in the previous question, we have the expectation of attribute this more and more. The trend is to maintain that in the Copel's portfolio. To add, Felipe and everyone, if the El Niño intensity is above expectation and it has an impact in price variation too significant for the second half or going forward in the price perspective, I would say that it may even open opportunities for us to buy more energy, increasing exposures maybe, or closing some quarterly gaps that may come up considering the GSF curve.

That only reinforces that potential, one-off price adjustments resulting from El Niño may actually be opportunities for the company to purchase some other lots of energy if that does come to happen.

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Felipe.

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[Non-English content] that's the timeline that Daniel mentioned.

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Good morning, ladies and gentlemen. Welcome to Companhia Paranaense de Energia, COPEL Video Conference Call to discuss the results for the fourth quarter and full year 2025. This video conference is being recorded. The replay will be available on the company's website at ri.copel.com. The presentation is also available for download. [Operator Instructions]. Before proceeding, I'd like to stress that forward-looking statements are based on the beliefs and assumptions of COPEL's management and on information currently available to the company. These statements may involve risks and uncertainties as they relate to future events and therefore, should be treated as forecasts dependent on the macroeconomic environment, the country's economic situation, the performance and regulation of the electricity sector in addition to other variables and are therefore subject to change. This video conference is presented by Mr. Daniel Slaviero and Mr. Felipe Gutterres, respectively, CEO and CFO of COPEL as well as general managers and officers of the subsidiaries who will be available for the question-and-answer session. Now I would like to give the floor to the company's CEO, who will begin the presentation. Please, Mr. Slaviero, you may proceed.

Good morning to all. Thank you all for participating in our video conference call. We ended 2025 with another quarter of consistent operating performance and significant value deliveries for our COPEL. Even in the face of challenging conditions such as a GSF of 67% and curtailment of 34%, we recorded recurring EBITDA of nearly BRL 1.4 billion, up 16% year-on-year in addition to recurring net income of close to BRL 700 million, an increase of 30% year-on-year. These figures reinforce the company's robustness and the maturity of the integrated model even in adverse scenarios. It is worth noting that we recorded a nonrecurring event related to curtailment offsets, which had a positive impact of BRL 266 million on EBITDA and BRL 8 million on financial revenue. In terms of investments, we ended the quarter with CapEx of BRL 768 million, totaling BRL 3.4 billion for the full year, excluding the unbundling of assets with Axia. This amount was directed to network modernization, continuous quality improvement, infrastructure expansion and strengthening operational safety. We also ended the year with leverage of 2.7x, fully in line with our optimal capital structure, preserving financial strength and the ability to sustain our growth plan. Finally, I would like to reinforce a very important pillar in the beginning of the call, which is shareholder remuneration. Adding up the amounts paid in the form of dividend distributions, interest and capital and the Novo Mercado migration premium, we reached a record of BRL 3.8 billion throughout 2025, we can consider an "aggregate payout" of 144% and an equivalent dividend yield of 14%. This reinforces our belief that dividend distribution is also an efficient way to create value. But 2025 was also a year of many, many achievements. We made important advances on several fronts of the company. At our last COPEL Day in November of last year, we presented our strategic plan, Vision 2035 and the multiyear investment plan totaling a record BRL 18 billion over the next 5 years. We also announced the optimal capital structure pursued by the company and the new dividend policy with the highest minimum payout in the sector. We also received prestigious recognition from Standard & Poor's in corporate sustainability. However, I would like to highlight what I consider to be the most significant achievement of the year, i.e., the migration to Novo Mercado. In addition to placing us at the highest level of governance on B3, the migration increases the liquidity of the stock and helps attract new foreign and Brazilian investors to the company. We are already seeing this in practice. This achievement is in the legacy category and goes way beyond a mere change in listing. It reaffirms our strategic commitment to transparency, fairness and sustainable value creation. All these achievements were only possible because we work with clear planning, disciplined execution and an ever-increasing alignment between culture, strategy and results. Looking at the agenda of short-term opportunities, I would like to provide an update on a recurring theme in our conversations with the market, which is the DISCO Tariff Review scheduled to happen in June of 2026. We are on schedule with our activities. And last Tuesday, February 24, we delivered the assessment report to ANEEL. Throughout March, there will be a public consultation where all data will be available. But I can say in advance that once again, we will fulfill the promise we made to the market on COPEL Day. In fact, we expect to slightly exceed the level or the mark of BRL 18.5 billion for the new net remuneration base of COPEL. For us, this review is another concrete opportunity to capture value and recognition for the technical and judicious work we have done over the last few years. Another important front for COPEL is the LRCAP, the Reserve Capacity Auction. Both in Foz do Areia and Segredo, Copel is fully prepared for the auction that will take place on March 18. We already have the installation license issued, a precontract with the EPC contractors and a margin for both projects -- flow margin for both projects. Now the most important thing is to highlight the attributes and the advantages of the water front. First and foremost, it is the cheapest source for the system and will result in lower costs for consumers and consequently for the tariff. Secondly, it is a renewable source and with equipment produced mostly in Brazil, which results in job and revenue creation for the country. Hydroelectric power plants have greater unique operational flexibility. And as they operate synchronously when activated by the ONS, they reach their maximum power in a few seconds in moments when we have our changes, which is expected by ONS in the coming years and the water sources are very strategic and they offer great efficiency at a lower cost. Finally, the 2026 LRCAP will be an auction with high contracting with experts estimating that there will be total amounts to be defined by the Ministry of Mines & Energy for the reasons already listed. We believe that the best thing for the SIN is to have a relevant offer for hydroelectric products for 2030 and 2031. We are convinced that the MME or the Ministry of Mines & Energy is sensitive to this issue. For COPEL, LRCAP is an opportunity to create value. It will drive our strategy, will be one of the levers for the 2035 strategy. Before handing over to Felipe to detail the results and earnings of the quarter, I would like to make a special announcement and express my gratitude to this person on my left. This morning, Rogerio Jorge took office as General Officer of the GenCo, of the Generation and Transmission company, and he is with us on this video conference. He's a professional with over 25 -- almost 30 years of experience in this sector, solid training and a background in several companies. He joins the other members of this management with great challenges ahead. I'd like to welcome you, Rogerio. And a very special recognition goes to our Board of Directors member, Moacir Carlos Bertol, who had already held this position from 2019 to the end of 2024. He went to our Board of Directors, and he has been once again serving on an interim basis for the last 6 months. Bertol, your experience, knowledge of the electricity sector, work ethic in respect for the Brazilian electricity sector over the last few decades are very valuable to us. We will count on your ongoing work at the Board of Directors. Thank you very much. Bertol will be with us for the Q&A session. And Rogerio is also joining us. And now I give the floor to Felipe to detail the results of the call. At the end, all of us will be available for the Q&A session. Thank you very much.

Thank you, Daniel. Good morning to all. I will begin by highlighting the performance of consolidated recurring EBITDA of the company, which was BRL 1.4 billion in Q4 '25, up 16% compared to Q4 '24. This performance reflects the company's operational resilience and the balanced contribution of its businesses. COPEL DISCO accounted for approximately 54% of the total, while the GenCo and the TradeCo accounted for the remaining 46%. Performance was particularly robust at the GenCo, which grew 24%, supported by the increased incorporation of the Mata de Santa Genebra transmission company and an increase in the APR of transmission companies, which contributed an additional BRL 103 million. In addition, we had a more favorable result in transactions carried out in the short-term market and a significant reduction in the PMSO. In distribution, we saw a 1.8% increase sustained by the annual tariff adjustment and the stability of the built grid market. In the TradeCo, there was a complete reversal of the loss recorded in Q4 '24 with an increase of BRL 18.8 million in recurring EBITDA, driven by an increase of approximately 70% in the volume of bilateral contracts negotiated in the period. It is important to note that nonrecurring effects, especially curtailment results were isolated, allowing for better comparison between periods. Moving on to the slide of COPEL Generation and Transmission, the GeTCo segment posted recurring EBITDA of BRL 654 million, a significant increase of 24% compared to the fourth quarter of 2024. This performance reflects a combination of greater efficiency and sound operational decisions between the periods analyzed. Availability revenue increased by BRL 102.7 million, a result directly linked to the consolidation of Mata de Santa Genebra and the average 2.2% adjustment in APR for the 2025, '26 cycle. On the expense side, we saw significant reduction in manageable costs. The 73% decrease in PMSO influenced by the higher write-off of assets at the GenCo in Q4 '24. In addition, the short-term market contributed significantly, adding BRL 35 million to the bottom line as a result of the efficient modulation of hydroelectric generation during a period of a higher spot market. Sales in bilateral contracts also grew generating an additional effect of BRL 8.4 million in the annual comparison. On the other hand, we faced pressures that cannot be ignored. The cost of purchased energy increased by BRL 104.7 million, reflecting a GSF of 67.4% and an average PLD of BRL 265 million megawatt hour in the quarter and the deviation in wind generation, which resulted in a result by BRL 37 million associated with the impact of curtailment, which rose from 15.7% in Q4 '24 to 34.2% in Q4 '25. Despite these effects, the GenCo ended 2025 with BRL 2.9 billion in recurring EBITDA, an increase of 15% year-on-year, demonstrating resilience and consistent operational execution in a more challenging hydrological scenario. Moving to COPEL DISCO. We recorded a recurring EBITDA of BRL 728.4 million in the fourth quarter, up 1.8% over the same period last year. Although more moderate, this result brings important structural advances. The gross distribution margin grew 8.4%, driven by annual tariff adjustment of 1.3%, a significant increase of BRL 668 million in CVA, higher supply revenue with 663 gigawatt hours settled in the MCP and 0.3% growth in the [indiscernible] grid market. On the other hand, PMSO recorded 31.5% increase equivalent to an additional BRL 127 million, driven by losses in asset decommissioning and higher maintenance volumes and increased operational demands related to cycle building initiatives. When we look only at personnel costs, if we exclude the effect of programs such as PLR, PPD and ILP, we see an 8.1% decrease in Q4 '25 versus Q4 '24. Energy purchased for resale also increased significantly, up BRL 338.5 million, influenced by the expansion of MMGD and the increase in purchases via auctions in CCEE. In 2025, DISCO delivered BRL 2.6 billion in recurring EBITDA, up 5.4% year-on-year. Moving on to the next slide. COPEL TradeCo, while recurring EBITDA was BRL 3.5 million, reversing the loss of BRL 15.4 million recorded in the same quarter of the previous year. This performance was sustained by a 70% growth in the volume traded in bilateral contracts, reaching 3,824 gigawatt hour and by the mitigation of the impacts of intermittent contracts, which have reduced the result by approximately BRL 18 million in Q4 '24. Analyzing the energy balance, hydro and wind assets together, we see exactly what we have always shared with you. In the long term, we operate with a higher level of uncontracted capacity, which gives us the flexibility to capture market opportunities more efficiently. In the short term, looking exclusively at water sources, hydro, our energy availability for 2026 is approximately 20% to 22%, which puts us in a comfortable position in relation to possible impacts from the GSF. Consolidated PMSO totaled BRL 779 million, a reduction of approximately 2% in the quarter, isolating the effect of inflation and variable compensation, the reduction is around 5%. This movement mainly reflects the 16% reduction in personnel expenses, not considering the programs I mentioned, performance bonus, long-term incentives, et cetera, and a 20% reduction in the item other costs and expenses, mainly due to net losses on the decommissioning of assets in Q4 '24. These effects were partially offset in particular by a 14% increase or BRL 42.3 million in third-party services resulting from the intensification of maintenance activities in distribution, which is essential to maintaining the quality and reliability of the network. Moving on to recurring net income. We delivered growth of nearly 30% compared to Q4 '24, driven by a 16.1% increase in EBITDA. In addition, we saw a significant reduction in our tax burden, reflecting the efficient use of IOC concentrated in the last quarter of 2025 as an instrument for tax optimization. On the other hand, increased leverage close to the optimal capital structure target, the rise in CDI, the reduction in the average cash balance year-on-year had a negative impact on the financial result line item. Even in a challenging environment, we delivered solid recurring net income, BRL 683 million in fourth quarter '25, which reinforces the company's ability to continuously create value and maintain its consistent track record of operating and financial efficiency. Consolidated CapEx totaled BRL 768 million in Q4, totaling BRL 3.4 billion in the full year. Of the amount invested in Q4 '25, 84% was allocated to distribution with emphasis on the progress of Parana 3 phase and the smart grid, which surpassed the mark of 2 million smart meters installed. The remaining of the CapEx was basically invested in generation and transmission, of which we focused mainly on modernizing hydroelectric power plants, wind farms and reinforcing and expanding transmission lines, consolidating the reliability and safety of the electricity system. Moving on to the next slide, closing with debt. COPEL ended the year with BRL 20 billion in total debt and BRL 16 billion in net debt. Leverage ended the period at 2.7x, in line with our optimal capital structure. The average nominal cost of debt was equivalent to 87.74% of the CDI, significant improvement over the 98.46% observed at the end of 2024. This evolution is the result of the strategic debt management and the efficiency of the recurring funding process as well as a more favorable market scenario in 2025. We ended the year with an average amortization term of 4.9 years compared to 4.2 years in 2024, maintaining a balanced profile between trends, indexes and market instruments. In a nutshell, we had a quarter marked by operational progress, financial discipline, greater efficiency and recurring growth in virtually all segments. We combined EBITDA expansion, active portfolio management and financial balance, which are fundamental elements for us to continue sustaining robust investments and competitive returns to shareholders. With that, I conclude my presentation, and we now move on to the question-and-answer session. Thank you very much.

[Operator Instructions] Our first question is from Ms. Maria Carolina Carneiro with Safra.

I would like to elaborate -- I'd like you to elaborate more on LRCAP. At the beginning of the presentation, you mentioned the 2 projects that you want to include in the competition. And recently, we had the cap price mentioned and some details on the bidding process. Could you elaborate on what you're thinking about the document and the adequacy of the cap price? And how this can change your strategy? We know that Foz do Areia seems to be a project that is kind of more ready to participate in the auction. Is there any visibility of how the cap price will influence your ability to participate? And also Segredo, if you can start with that, we would appreciate it?

Thank you, Maria. I think that regarding the strategy and how we are going to position ourselves, I think that we are very close to the auction itself. And we're being very cautious because it's a competitive process, which is very, very strong, considering the hydro companies in these 2 products for 2030, 2031 and for the general context. So in terms of the cap price for the hydros, we believe that it's tight. It's a cap price that is kind of tight for the hydros that have more unique characteristics. In our expectation, some projects in general terms will be very tight with these cap prices because they were in line with what we expected, with what we imagined. As for the cap price for the other sources, I haven't got any elements to give you an opinion. What I can say from what we saw is that the hydro product will be the one with the lowest cost, and this will be the most beneficial for consumers for low tariffs. This has been our advocacy with granting authority with ANEEL. And this, in our view, justifies that we should contract as much as possible for the hydro products. So you mentioned the parameters, the capacities. They are more advanced, but there's always a discussion regarding the supply, the offering, the size of every product. We advocate that we will have the highest offer possible. The ministry is not making this public before the auction. But that's what we advocate given all of the advantages, all of the elements. But in normal conditions of temperature and pressure, we are sure, given the work that COPEL has been doing, not just now, but over the last few years, preparing these 2 projects. As you know, as I said in the presentation, we have the IL, the installation license already authorized. We already have a very in-depth knowledge of these projects. So we see this as a create -- a good opportunity to create value for the company.

One last question from me. Changing gears to energy balance. We noted a slight evolution in the average sales for the coming years. Other companies in the sector continued placing more contracts, but apparently with a little less liquidity and obviously, with still attractive prices. Could you comment on how the market is behaving given a kind of bullish pressure that we saw in the end of the year -- in the beginning of this year?

Rodolfo, perhaps you can give us the context, and then I will complement Felipe Gutterres as well can add.

Perfect. Good morning. [indiscernible] tough contracting in a more accelerated pace is a strategic view more than a liquidity issue. Even with high prices, we still have a lot of liquidity for the next 5 years. So this is much more strategic decision to decelerate given this increase that we see in this humid period rather than a difficulty in executing the strategy. So this doesn't entail lack of liquidity in the 2 products. This was the company's option to hold on to this power for some time longer.

[Carol] and everyone, this is in line with our review. The prices we're seeing today are a reflection of the circumstance. We still see a gap with the prices generated and operated by the sector. In other words, there is an expectation of structural higher prices in the coming years. And in our view, this volatility, which is ever present in the last few months is a trend that is maintained. So our view is to keep more energy when we have [A+1] during the current year because as you have seen, even in liquidations of the spot price in a very, very short term, this was the case in February and January. This is very advantageous for the company. So as Rodolfo mentioned, this is kind of our strategy. We want to take advantage of this volatility. For this, we need to have more short-term trading possibilities. So we are very comfortable, very at ease that this is a strategy that will generate more value for the company. And to end, I think that this is a beauty, and we've been saying this for a while. This is the beauty of an integrated company. When we have a robust and solid arm as was the DISCO with an EBITDA of almost BRL 800 million in generation and transmission. In transmission, we have an APR that is very high in the year. We have comfort. We have the right elements to be able to better enjoy the opportunities that arise from this price volatility.

[Operator Instructions] Next question from Mr. [indiscernible], an investor.

I'd like to congratulate you on the excellent work. I'd like to know whether COPEL is considering paying dividends in installments with the amount to be distributed over 3 months. For example, as ISA ENERGIA does to help shareholders not pay the income tax of 10% when they receive more than BRL 50,000 from the same company in the same month.

Felipe?

As part of our policy, we have a minimum policy of paying twice a year, which gives us flexibility to consider payments with different intervals, perhaps more than 2x. So this has not been defined. But yes, we can consider that considering the cash flow of the company and dividend declarations.

Well, thank you for your concern. It is a legitimate one, particularly considering the new context of taxes leverage on income over BRL 50,000. Well, it is not in our short-term plans to have quarterly payments. I think that the policy is very robust with at least 2 dividend payouts. If there are extraordinary events, we can reassess that. That would be the frequency. And our company likes to be predictable. I think that this is one of COPEL's characteristics. You see this in our quarterly earnings. And there is little variability between market expectations, what we report and operational data. And I think that this is all about predictability. And this is one of the greatest outputs of our capital structure and our dividend policy. And this is for individual investors like ourselves and for the big investment funds. Everyone wants to have a COPEL that is very consistent, operational, excellent and predictable.

Next question from Bruno Amorim with Goldman Sachs.

Congratulations on the deliveries over the last few years. I have a follow-up question regarding capital allocation. I think that your position is clear regarding LRCAP, the Capacity Reserve Auction. It would be interesting if you could comment on other priority areas. Would you consider M&As in distribution, in the area of distribution outside Parana state? Anything you're considering? And a follow-up question regarding the discussion of power prices. Perhaps a question to Rodolfo.

I understand that from the structural standpoint, there's still a constructive view for the coming years. On the other hand, we're living a year of weaker hydrology. In parallel with this more positive structural dynamics, there's also a higher price than what would be sustainable given everything else constant because the hydrology is favorable for the price of energy. My provocation is, wouldn't it make sense in such a moment to take more advantage of this moment because it's very hard to predict rainfall in the coming years. I think we should assume a more normal rainfall in the coming years, it's the best we can say.

So how are you thinking about the cyclical versus the structural because I tend to agree, it's positive?

Excellent, Bruno. Well, let's talk about capital allocation first, and then Rodolfo can complement talking about power prices and trading strategy because we don't want to put all of the eggs in the same basket, of course. We always try to have attractive average prices. But Bruno, I think that for starters, our planning has shown that we are agnostic with the segments as long as they are in hydroelectric, electricity, generation, transmission, distribution and trading of energy. So in these 4 segments, our view is agnostic. And we are always paying attention to the opportunities. Today, we didn't learn about any opportunities in the distribution market. If that opportunity arises, we will. Of course, we are diligent. We will look into that and consider that. It doesn't mean we will go forward with it. But after the LRCAP auction, after the third wave of structuring measures that started in 2024, 2025 and are ending and all of the transformational changes we implemented for the next cycles in the 2035 view, it became clear that we intend to assess the opportunities and grow in these 4 segments as opportunities arise, and it is our diligent duty to consider them, but always being very disciplined in capital allocation, which is the essence of your question. We have to be very cautious and careful about these opportunities because capital allocation can destroy value. And we have seen consistency in the deliveries by COPEL and our actions in our TSR. And all of us, shareholders and employees of the company are committed to create sustainable value. This is an agenda, this is a topic that will be in our agenda in the coming years. Rodolfo?

Speaking about the long-term price view, we maintain what we presented at COPEL Day -- on COPEL Day. There are scenarios that may vary a little, but we really believe in this increasing trend. That's number one. Number two, speaking about the strategy, how do we have a mix between short term and long term in the effects of hydrology? I think that a very important point that we saw over 2025 and in 2026 as well is the dissociation between short term and long term. This is very common in the past, and we saw a lot of price volatility in the short-term prices, not impacting so much the long term. So that's the first point. We see kind of stability, prices kind of converging to the long-term view. We haven't gotten there yet. But short-term volatility is not impacting the long term so much. And speaking about the short term, the most relevant is the strategy of contracting at the beginning of the year. The first big premise is not to be short because as you put it yourself, volatility is great, and the strategy has proven to be very resilient. Q4 was very strict about GSF, and we continue to perform. Even with the rainfall taking longer to happen, we still captured price increases. In terms of contracting, we have a very dynamic analysis always done by Felipe's team, balancing EBITDA and risk. These price windows in the short term may impact the long term a little bit. So we combine this with volatility in EBITDA. So we have an optimal strategy of how much we want to be contracted and at what price. The idea is to pros that with the market. It's a living process. Every month, we sit together to assess what the next steps should be and the pace, always trying to balance well these 2 worlds.

Next question came in writing by Mr. Thiago Borges, an investor. He says, congrats on the results. I would like to learn more about how you're seeing energy prices for 2026 and how COPEL can benefit from this scenario?

Thiago, I think that Rodolfo kind of touched on that. 2026 prices are way above the historical average. So considering the strategy, I think that the first step is always, as Rodolfo mentioned, not to be short. You saw in the aggregate chart. But when we look specifically at the hydro product where we have more than 85% of our power, we are at 20% to 22% to be able to face the more challenging moments of the sector. And I think that this is the first big message. We want to be long and to be long over the year 2026. There might be a month when we are not long, but in the aggregate for the year will be long. And this puts us in a very advantageous position compared to the rest of the market. And it is what Rodolfo said. There are moments when we have a price that we see as a long-term structural price. Of course, there are many elements impacting that, the marginal cost of expansion, other factors that make up the foundation of our long-term price formation. And as we get close to that or exceed that, we will have phased sales in batches so that we can achieve average prices. What we saw 2, 3 years ago in the market, we had an outlook that the prices in the long term would be close to BRL 140, BRL 150. Today, no one talks about a long-term price below BRL 200 because that's the reality. And this is for companies with our generation profile. This is an opportunity for us, but it leads us to evolve as the facts unfold. And to -- we had prices above BRL 250 in February. And to us, this was good news.

[Operator Instructions] The Q&A session is now closed. We would like to turn the floor back to Mr. Daniel Slaviero for his final statements.

We are in a very positive phase for COPEL. I think that our consistent deliveries, as we have mentioned here, consistent disciplined deliveries matched with value creation and coupled with a clear strategy and plan communicated to the market. This is one of our main virtues. I would like to end this video conference call by thanking all COPELians who contributed to these extraordinary results. I would like to thank the management, the Vice Presidents, the officers and the whole team for the exceptional work they did. And I would like to reinforce our commitment of excellent deliveries and operation of our assets providing better and better service to our customers. In 2025, we ended with some of the best quality indicators in the recent history of COPEL. And above all, discipline and a very robust analysis in any capital allocation. And we're seeing very, very positive and unique opportunities in COPEL's trajectory. Thank you very much. Have a great day. Have a great day to all.

COPEL's video conference call is now coming to an end. Thank you very much, and have a great day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good evening, ladies and gentlemen. Welcome to Companhia Paranaense de Energia COPEL's video conference call to discuss third quarter 2025 earnings results. This video conference is being recorded, and the replay can be accessed on the company's website, ri.copel.com. The presentation is also available for download. [Operator Instructions]. Then we will start the Q&A session when further instructions to participate will be provided. Before proceeding, I would like to stress that forward-looking statements are based on the beliefs and assumptions of COPEL's management and on information currently available to the company. These statements may involve risks and uncertainties as they relate to future events and therefore, should be treated as forecasts dependent on the macroeconomic environment, the country's economic situation, the performance and regulation of the energy sector in addition to other variables -- such forward-looking statements are therefore subject to change. This video conference will be presented by Mr. Daniel Slaviero, CEO of COPEL; and Mr. Felipe Gutterres, CFO, as well as officers of the subsidiaries. They will be available during the question-and-answer session. I would now like to give the floor to the CEO of COPEL, who will begin the presentation. Please proceed, Mr. Slaviero.

Good morning, everyone. I would like to thank you all for joining us in this video conference call. I'd like to start highlighting the healthy operating and financial performance of the company in this third quarter. We posted recurring EBITDA of BRL 1.3 billion, up almost 8% over the same period last year and a recurring net income of BRL 375 million. These numbers show the -- how solid and consistent COPEL's results are. Another point that deserves to highlight is the strong investment made in the period, BRL 981 million in CapEx in the third quarter alone, totaling BRL 2.6 billion in the 9 months of 2025. This level of investment reflects our commitment with quality of service expansion and modernizing our asset base and ensures that we are preparing for a historical tariff review in the distribution company in 2026, in line with our commitment to continuously optimize our portfolio. This month, we completed the divestment of 4 photovoltaic solar plants totaling 22 megawatts peak in distributed generation in a deal evaluated at BRL 78 million. This follows our commitment to simplify our portfolio. Additionally, with the completion of the Mashigua Sue HPP divestment in the start of October, our leverage ratio is at 2.8x net debt over EBITDA ratio, well on target of our optimal capital structure. This fact reinforces 2 things. Firstly, our excellence in executing the commitments that we set forth with the market. And secondly, this [indiscernible] deal with its characteristics, it represents the essence of this new phase of COPEL, a company that is agile, attentive to opportunities and focused on creating value. On the operational side, we recorded sales of almost 5 gigawatts and the build market of DISCO grew 1.7%, still comparing with a very high base recorded in Q3 2024. These indicators reinforce the resilience of our business, the abundance of our concession area and the trust of our customers. On the side of generation, it is important to put things into context. The results obtained by [indiscernible] were recorded in a very challenging scenario. In this quarter, we had a GSF of approximately 65% and a curtailment of almost 35%. Fortunately, these assets subject to curtailment are very small in the structure base of COPEL. On the positive side, we had an increase of PLD spot market of close to 50% compared to Q3 '24, totaling about BRL 250 per megawatt hour. The intelligence of our strategy and trading structures led by Rodolfo and risk mitigation, coupled with the positive effect of optimizing our portfolio and special the modulation of the hybrid source made all the difference. To end the slide in this period, for the first time, we had a consolidation of the results of Mata de Santa Genebra, the transmission company and [indiscernible] ensuring a more robust and efficient portfolio, which contributed to better results. This reinforces our differential, the fact that we are an integrated company with a solid presence in all 4 segments where we operate. I take this moment to give you an update on the process to migrate to Novo Mercado. The structure of the deal is already known to all of you, but I would like to record the steps that have been completed. On August 22, we had the approval of the common shareholders in the special general meeting, and we got waivers of debenture holders in all of the necessary issuances, and we have handled the unification of preferred shares, Class B to Class A. Lastly, we had the approval conditioned by B3 to migrate to Novo Mercado. And now next Monday, November 17, at 11:00 a.m., we will have the Special General Meeting and the agenda is to ratify the conversion of preferred shares into common shares in a rate of 1:1 plus a new Class B preferred share redeemable. I would like to invite all preferred shareholders to take part in this special meeting and to give us their vote. This is a decisive step for us to consolidate a simpler, more transparent shareholder structure and one which is more aligned with the best practices of the market. In parallel, unification of shares into one single class will bring more liquidity to our security to our share, which is a relevant factor to attract new investors. Should this measure be approved, we will be prepared to end or to complete the whole process by year-end, which will open up a path to distribute part of the dividends referring to the first event of the exercise as set forth in our dividend payout policy. This will be a historical moment in our journey to create value at COPEL. Last Friday, we launched to our employees the new element of the COPEL culture. Reason of existing ambition and our values. The T-shirt that myself and my partners are wearing today is part of the -- of this event and part of the internal communication process. This year, we revisited the company's strategic planning and thus built a vision for COPEL 2035. We cannot think about strategy if it's not coupled with culture and vice versa. A strong culture is a central pillar to sustain a long-term vision and a very bold one, I should say, more than a concept. We believe that our culture is a competitive differential for COPEL. All these elements of culture as well as strategic planning will be presented to the market in our COPEL Day. By the way, before I give the floor to Felipe, who will detail the financials of the quarter, I would like to reinforce the invitation for you to sign up to our COPEL Day, which will be held next Wednesday, November 19, directly from Rio de Janeiro, the wonderful city with an online broadcast starting at 9:30 a.m. It's going to be a big event. Thank you very much.

Thank you, Daniel. Good morning, everyone. I'll start highlighting the consistency of our results, COPEL's discipline in capital allocation and the operating efficiency of our business, which is proven by the robust numbers we posted in the quarter even in a more challenging business environment. In the quarter, our recurring EBITDA consolidated grew 7.8% over Q3 '24, reflecting the health of our operation and the efficacy of the measures adopted for efficiency. COPEL [indiscernible] was responsible for 53% of this result [indiscernible] 49%. I will give you more color on COPEL Generation and Transmission in a minute. Recurring EBITDA of COPEL Genco grew 11% over Q3 '24, driven by a combination of factors, better performance of assets, integration of new enterprises or endeavors and consolidation of strategic asset results. In the transmission company, the highlight was the increase of BRL 119.4 million in EBITDA with the consolidation of Mata de Santa Genebra and the average increase of 2.2% in RAP of the transmission companies. In the Generation segment, we were able to mitigate the impact through a smart trading strategy, optimization of the portfolio captured the positive effects of hydro modulation despite an adverse event with GSF of 64.9% and curtailment of 34.4%. The result was positive, especially given the BRL 23 million increase in short-term market sales, 21% up in volumes sold, incremental BRL 10 million in bilateral contracts, BRL 7 million coming from revenues of regulated contracts. I highlight the startup supply of Jandaira in the consolidation of the Mashigua Sue HPP. These results were partially offset by greater curtailment, which generated a negative effect of BRL 39 million more in the generation deviation in the quarter. Now moving to COPEL [indiscernible] Distribution presented a recurring EBITDA 7.2% up in this quarter. This result is the result of a 1.7% growth in the build grid market with an average adjustment of 6.8% at TUSD occurring in June in RTA and the efficient management of costs, highlights going to 16% reduction in personnel year-on-year. Now moving to trading. COPEL com EBITDA recurring posted a drop of BRL 7.3 million in the margin, mainly due to the effect of legacy contracts of electricity starting from intermittent sources as well as a 39.1% increase in the PMSO expenses, a reflects of the advancement of the process of restructuring the trading company. On the other hand, sales volume for 2026 to 2030 grew 96.2% in relation to Q2 '25, adding an amount sold of 431 megawatts, which shows the potential of expansion of the business. So ending the analysis of, I highlight the advances obtained in operating efficiency in Q3. PMSO expenses, recurring ones totaled BRL 718.7 million, a 4.1% reduction over the same period last year. This is a reflection of the discipline in cost management, which is a priority across the company. Main highlight was an 18.4% reduction in personnel and administrative expenses driven by structuring measures such as the voluntary severance program, which contributed to adjusting the headcount. We also saw a reduction of 8.5% in costs with pension plans and health plans, reinforcing the positive impact of rationalization actions. In addition, we reduced 3.6% of expenses with materials, while third-party services posted a 4.7% increase, reflecting the hiring of specialized services for maintenance and operation. The others line, the 10% basically related to the write-off of the activation of assets, especially in DISCO, given the high level of investment in the period. We reduced cost of preserving safety of the operation and quality of services provided, which reinforce -- reinforces our commitment to operating efficiency and excellence. In Q3 '25, COPEL presented a recurring net income of BRL 374.8 million, down 36.5% over the same period last year, which is a result of a 7.8% EBITDA increase, offset by an increasing negative financial results, driven by robust investment cycle funded by the company within the parameters of an optimal capital structure. In addition, in the comparative period, we had in cash BRL 4 billion, which we used to pay the granting bonus for the renewal of generation assets for another 30 years. Another highlight is the CDI increase year-on-year, which negatively impacted the cost of debt. Income tax and social contribution was higher than past year as a result of interest on equity that we executed in '24 and have now been executed in '25. In other variation, I highlight the impact of reduction of equity income of Mata de Santa Genebra that started be 100% consolidated. Now talking about investments in this quarter. On the slide, we can see consolidated CapEx totaling BRL 981.4 million, maintaining the planned rhythm and aligned to the company's plan. Year-to-date, investments totaled BRL 2.6 billion with a focus on assets that broaden the remuneration base, modernize the infrastructure and ensure quality of service. Most of the resources was directed to the segments of distribution and generation, highlights going to projects that strengthen the reliability of the energy system, increase installed capacity and promote operating efficiency gains. We continue with a disciplined capital allocation, prioritizing projects with attractive return and aligned with the long-term strategy of the company. Coming to the end, I speak about the capital structure. Net debt over EBITDA ratio was 3x in the quarter within the range established in our study of optimal capital structure. But if we consider the sale of Mashigua Sue HPP completed in October, this ratio would have been 2.8x, reinforcing our financial discipline. Net debt totaled BRL 16.6 billion with a diversified makeup among financial institutions and market insurance debentures and securities. This diversification is strategic, reduces risk and improves the forecast of predictability of the financial flow. Important to mention that the company has a AAA rating, reflecting the solidity of our balance sheet and the dimension of our manifest of capital allocation. As for the CDI equivalent cost of debt, we had a debt costing 98.46% of the CDI to 88.7%, showing our efficiency in funding and managing our debt. We continue to pay attention to market dynamics, and we remain committed to maintaining a healthy capital structure that would allow COPEL to continue to invest with safety, competitiveness and a focus on value creation for our shareholders. With this, I come to the end of the presentation, and we can now start the Q&A session.

[Operator Instructions]. Our first question comes from Guilherme Bosso with Goldman Sachs.

I have 2 actually. First, I believe it has been partly addressed in the presentation about the migration to Novo Mercado. I just want to clarify, I'd like to confirm if the expectation of completion remains at the end of December? Or can you tell us when this is expected to happen? And in that regard, what is the company thinking about dividend payout -- are you expecting an announcement for this year after you complete the migration process? Or can we expect something before? That's the first question. Secondly, I'd like you to elaborate on the cost efficiency agenda. In this quarter, we saw again manageable costs dropping year-on-year. So I would like to understand if for next year, the company still sees room to reduce costs. And if so, the extent of these cuts.

Well, I'll answer part of your question, and then Felipe will speak about efficiency gains. It is exactly as you -- and then as we said, our idea is on Monday, the 17th, if we get approval by the preferred shareholders, our expectation is that we will complete the operation -- the migration by year-end. It will be towards the end of the year because if we have approval on the 17th, we have 30 days of recess as determined by law. And then the operational time line, the notary public [indiscernible] and our expectation is to end to complete the migration still this year, but more towards the last week of December, but still in 2025. And then we have a commitment regardless of the -- regardless but linked to the migration, which is our base scenario, we expect to announce dividends, dividends payment for the first event of the year as set forth in our policy with a minimum of 2 events. So it will be the first year consolidating the result of the first half and according to our financial analysis of the company. So we're quite excited, and we are working hard. The process to obtain the waiver with several debentures being very polarized. It was very hard work led by Felipe and the whole team. By the way, I'd like to publicly thank them for the efficiency. We have the support of many financial institutions, which helped us access the huge amount of shareholders. So this is moving on, moving forward smoothly, and it's all conditioned to next Monday. Thank you, Daniel. As regards to the process of cost reduction, we continue in an attempt to capture more efficiencies. Please remember that our goal is compared to 2023 annualized until 2026. So there is an effort to reduce costs in 2026 with an important move concentrated in some business units as status quo, but also there are other moves which are more geared by supply, the shared services center. So there are a number of initiatives and the value creation levers that are actionable expected in 2026. We'll give you more on that at COPEL Day. And just to add to that, Guilherme and everyone, we are completing this phase of structuring efficiencies and operating excellence in cost reduction. As Felipe mentioned, during COPEL Day, we'll give you more detail of the 10 promises that we took on at the follow-on time by Novo Mercado, we need 3. So we have also the tariff review in mid next year and the completion of this phase of structuring efficiency gains. And then we'll speak a lot about this at COPEL Day. Then we'll turn the page. You've heard me tell you over and over that no company creates value sustainably in the long term, just cutting costs and selling assets. We have to finalize the cycle throughout 2026 and then turn the page, change the chapter and focus on efficiencies, profitability indicators. And Felipe will have a session dedicated to this in his presentation on November 19, COPEL Day.

Next question from Raul Cavendish with XP. Mr. Cavendish, go ahead.

My question has to do with the Genco, GMT generation and transmission. What we saw this quarter was a portfolio strategy that was very well performed by the company. We can see this at a much lower cost of energy [indiscernible]. So my question is, in terms of the strategy of the trading company, taking one step back to understand the process to build this portfolio hedge strategy for the year. And what is the [indiscernible] for next year in terms of price, market and strategy to continue to maximize the value of the GEN portfolio?

Well, excellent question. We have worked to develop an internal expertise with Rodolfo and the whole team to add this competitive edge, this market intelligence and this trading strategy. So Rodolfo, perhaps you can share with Raul and the investors our macro strategy, -- remembering that our competitors also join our calls. And then that's why, you can add whatever you want. So Rodolfo?

Excellent. So let's divide this into 2. Let's speak about the hedge strategy for this year, and then I'll speak about the market currently. In the mid-2024, we had some windows of good opportunities of low prices. Before materializing the need of power with the increasing price in September, we had good windows to purchase energy. And that's when we purchased most of the energy. And coupled with that, we had a lot of swaps. We know the need for electricity in Q3 and have some excess at the end. So much of advantage of this moment to have this kind of swap using these more competitive prices in Q3. And that's why we were successful in our strategy vis-a-vis the spot market. Now speaking about the market currently, the market is at very high levels. We understand that there's still a lot of room to increase. And what matters is with a lot of liquidity. We have high demand in the market. We are weighing our speed of sale. You could see that we have good sales, but quite contained compared to the amount we have available. So overall, I believe these are the 2 main insights regarding our strategy for short term, Q3 and mid- and long-term thinking about the future electricity prices. Brittol, any comment?

Yes. Good morning, everyone. Well, I think Rodolfo spoke well about the strategies. The strategies are executed by the TradeCo, but it's all discussed with COPEL generation and transmissions led by Daniel, and we execute the strategy. We posted good results this year given the opportunities mentioned by Rodolfo for the price window for energy purchases. And during this period, we had a strong result regarding modulation of the hydropower plants, which accounted for quite a lot of our results. So this is a solid articulated strategy executed by the TradeCo based on the analysis of COPEL Genco. I can just to final comments, Raul and everyone. Brittol mentioned an important point about the benefit of hydro modulation and the role it has played and how it has been better priced here in this environment. Given the role it has to sustain the hydroelectric system, in addition, [ AMP304, SMP304 ] that is to be approved to bring some positive elements in our view in terms of ancillary operational services. And coupled with all that is the fact that the bulk of our portfolio, especially our hydro plants are in the South region, and we see an appreciation of price. I guess this reinforces the unique characteristic of COPEL's portfolio. In broader terms, what have we seen? And this is our strategic approach. Firstly, we see pricing structures that are much better than 2, 3 years ago, but still below the price potential that we envision, particularly if we consider marginal cost of expansion for 2028, '29 and 2030 and beyond. So we'll see and you will see that we have some room here regarding prices. So what is our strategy? We don't want to put all eggs in one single basket. So strategically, we sell some small blocks along A plus 2, A plus 3 so that we can ensure an average price. But clearly, with the price volatility we have seen hourly prices and also with the need that the system has for power, and we are going to talk a lot about that at COPEL Day. So we will need to work with more uncontracted energy, plus 1, plus 2, so that we can capture these better energy prices greater than BRL 250, BRL 280, which is what we have seen. This is the fact that COPEL has 64% stress, 64% of its EBITDA linked to the grid distribution and transmission grids. This gives us comfort in our balance sheet to be able to execute these strategies quite easily in trying to capture better price opportunities.

Perfect. It is clear. If I may ask another 2 quick questions. Because there is, in terms of looking forward and turning the page in terms of cost cuts and efficiency gains, the strategic vision in addition to the auction of capacity reserves and now including batteries, I would like to understand how does the company see the opportunity in batteries? Does it make strategic sense for the company or given the structure, this is a kind of a [indiscernible] business that will not add so much value to the portfolio. And in terms of prices, if I may ask another question, we have seen some small complex elements that have pushed prices down. Nothing transformational, but kind of a weaker load given the climate in the end of Q3, beginning of Q4, slightly better rainfall. In your view, do these elements would [indiscernible] downside for 2026? Or have you priced this?

All excellent points. So let's start with the end. Rodolfo, perhaps you could give us more color on the second part of the question, and I will answer the first question, and Felipe can help me.

Well, excellent. I think that you raised the main variables that can impact price. But we see this happening in a one-off basis. There is 1 month with more rain perhaps. The trend is that the prices will be higher. Why do we say this? If again, how the system is being operated this year compared to last year with the same scenario of storage and rainfall, the prices are different. We're talking about a floor versus BRL 300 in March. So I can't have a specific month when it rains a lot, and I don't have the need for thermal dispatch and the prices can be lower. And that's when we take the opportunity to hedge the operation, as I mentioned. But in the midterm, the need for thermal dispatch is abundant. So I think it is almost impossible to have a scenario where it will rain a lot throughout the year to the point that we can only serve the system with hydro. And that's why we believe that prices will be higher in the mid- to long term. Very well put. And Raul, looking forward, I think it is important to highlight that the efficiency agenda remains. It is permanent. Cost, it's like nails, you trim them, they grow back, you trim them, they grow back. But the centerpiece is that previously, we had structuring inefficiencies, either due to the hiring process, materials, bidding forces, everything we know about. I just want to make this clear. The centerpiece of our agenda will lose some momentum and this other agenda focus on efficiency. Good, correct disciplined capital allocation will gain more relevance. To that end, [indiscernible] CAP in our view is a strategic point with 2 products in 2030, 2031. Of the 5.5 gigawatts recorded for both auctions, 2 gig COPEL project, Foz do Areia and Segredo. We've been repeating this, but this auction was expected to happen has been postponed. And now it has been set for March also because there are very important needs from the system. So I guess it will arrive with very competitive projects. We'll analyze size, product size, capital price. There are some elements that are not yet very clear, but we are going to be very disciplined. Although we do like the project, although the projects are competitive with all necessary licenses ready, it is at the moment of the auction that theory will meet practice. Having said that, as for batteries, well, we're looking into that. We have a due diligence for that. But I think that this entails an assessment of the level of competitiveness that we can have, that we can add to these auctions, considering that most of it is linked to the battery acquisition cost. If you have easier access to the inputs, they might be more competitive. But we believe a lot in the elements of power and need. This can be supplied in different ways. Hydro -- reversible hydroelectric power plants that exist around the world, China with almost 90 gig, Japan and others, this can be a path forward, and we will address this in the future based on this work front, where we have know-how, knowledge, engineering expertise of decades, which is the management operation and construction of hydroelectric power plants. And also Raul and everyone to end, I think we will speak a lot about this. We have to work towards a scenario where prices will reflect the operation. There's an effort by ONS to move to this kind of model, and we will need to discuss greater progress so that the price signals will be correctly aligned with the effective cost of generation. Where else we're going to see what has been happening in Brazil over and over the explosion of cost subsidies and so on and so forth. But anyway, this is a different discussion, and we can talk about this later at COPEL Day, we'll speak more about this. And mainly then regarding attributes of the hydro source. This needs to be done.

Next question from João Pimentel with Citi.

I would like to build on Raul's question and also saying that [indiscernible] Always talks about.

Can you hear me? My thoughts and my connection has crushed. And you normally said that the company cannot create value over time just paying dividends that eventually you need to look at opportunities for growth and so on and so forth. And now talking about [indiscernible] And the batteries auction, this is kind of mapped already. So beyond that, I'd like to understand what are you looking at beyond that? Are you considering any other segments in addition to the ones you operate in or in the segments where you operate, do you see any opportunities in terms of inorganic growth? We see a number of players of renewable sources facing difficulties given curtailment. They don't have such an integrated portfolio with COPEL. So I'd like to understand how do you see this dichotomy between I'm going to grow, I'm just going to pay dividends or I'm going to grow and I want to transform COPEL in a much bigger company than it is today. So I'd like to hear your take on growth.

Well, you have an excellent point actually. And just to clarify, what I normally say is it has always been and will continue to be, given my own belief and the partners' belief that the company does not create value in the long run, just cutting costs and selling assets. Paying dividends is a good and interesting option for us and one that we intend to materialize either paying dividends or through a share buyback program. We have a minimum payout in our policy of 75% as a consequence of an optimal capital structure as is with the current base of 2.8. In addition to being the boldest in the sector, it is a big competitive edge for us.

And we see an appreciation of compressing our return rate. You know this better than a lot of people. You know this dynamic of how things work. But I think that our case and Felipe has been saying this that we can balance both. We can be a good company, paying good dividends because we have mature assets, a solid cash generation, a lot of depreciation. So we are not just fixed on net income, although it is a fundamental reference for any dividend payout policy. But we look at the whole context of the company being a cash cow in the context of good opportunities. Good opportunities in our view, do not appear every year. So we have to be prepared with a well-behaved disciplined capital structure so that as opportunities arise, we can make structural moves. And to address another point of your question, which was excellent, by the way, we are actively -- whether we are actively looking at an asset. I can share this with you. We are not also because we are still in the phase of digital transformation of looking internally. And next week, we're very much focused on COPEL Day because it is our big event. We're preparing for it. And we are going to announce the CapEx plan of the distribution company for the next cycle and also for the generation company. So we still have a lot of room to invest organically, which is low risk with super attractive returns. In addition to the regulatory walks that [indiscernible] and Genco have, these bring efficiency gains with this [indiscernible] to create with the operation with cost reductions. We had an event last week. You will follow that. We had an event a tornado of climate events. We are having extreme climate events, and this has required a new model of operation. [indiscernible] is also going to give you more detail on this at COPEL Day. And this has to do with our CapEx planning, with our -- it has to do with our operations, number of crews and so on and so forth. And this is a strategic view. And I think that COPEL in that episode and in others has shown to be a benchmark in the sector.

The next question from Giuliano Ajeje with Citi. Just a correction. I'm with UBS.

Okay. I have 2 questions. Daniel, we're getting to the end of the year, and that's the moment when we start looking at 2026. And next year, we have a super important event for the company, which will be the process of tariff review. And this is going to be the first tariff review process with the company having been privatized. So what do you expect from next year's tariff review process? What is the company doing differently? My second question has to do with [indiscernible] I think it brings 2 points that kind of change the long-term horizon of the company. The first is [indiscernible] contracting of energy. Could this reduce the size of [indiscernible] next year? And what could the company do with its current project? And secondly, [indiscernible] under the possibility of renewal of hydroelectric power plant? And if your base case continues to be a [indiscernible] process or given that there's a possibility of renewal could this quite inorganic growth in jeopardy with more possibility of the hydroelectric power plant assets.

Excellent points. Very important structuring questions, which I think. Let me try to address them. First tariff review. I think that this is a milestone. It's going to be a historical tariff review. [indiscernible] is dealing with this firsthand, but we have our regulatory VP, the whole team, accounting. We are all working together. We hold weekly meetings. I, myself, lead a working group following this on a monthly basis, given the importance it has in this expertise and the freedom that a private company has, of course, it makes us look at all opportunities. But this is a regulated sector. And COPEL has a track record of good tariff reviews. In the last 2 cycles, the denial that COPEL had resumed [indiscernible] a good track record. But of course, there is always room for improvement. [indiscernible] and how we can optimize things. And Ajeje, you have your reports and you have talked with us, have approached us on this before. And I think you know that we have the right conditions to exceed the consensus of the market, which is around EUR 18 billion or slightly above EUR 18 billion. And this is our commitment. Felana, would you like to comment on this? And then I can speak about the [indiscernible] 304.

Yes, we have a working group with several departments involved with full attention on the tariff review event, which goes beyond the investment plan. We are looking at the regulatory standards of [indiscernible] indicators. We are looking at losses, recovery of unrecoverable revenues [indiscernible] and also to complete the main works of the investment plan by December because we know that whatever goes or stretches to the next year will only remunerate in the next cycle. So we meet on a weekly basis. We follow all the works and all of the process of the tariff review. And [indiscernible] all of the people on the call, the market consensus is close to EUR 18 billion, as I mentioned, given the relevance and our track record of fulfilling our promises. It is very important for us to be able to achieve this number or perhaps exceed it or deliver. Having said that, tariff review is at the top of our agenda. This will change the game for COPEL, this point COPEL. [indiscernible] Well, Ajeje, we could have an earnings call just to talk about that. But I'll go straight to the points that you raised, this compulsory contracting. Of course, it tends to affect the dynamics of the LR cap. But in our view, it will not be that structuring also because of thermal power plants in the Eletrobras law, fortunately, they were left out to run the risk of analysis of [indiscernible] That's a big risk. I don't know how many gigs it will be 5 or 8 gig is flexible in the sector from the technical standpoint, it does not make any sense. And this would be the most deleterious effect in our view. Fortunately, the Congress had common sense and didn't take forward this point. And the second point is that we're very confident in the hydric products because they're unprecedented. We recognize [indiscernible] M&E was and everyone involved with the auction. They made an effort to include 2 hydro products because they are national technology, renewable and with a totally national industry. This will be the cheapest product compared with any other thermal product with all respect. But the hydroelectric plants have the conditions to offer an end price to consumers that will be lower -- always lower. So there will be some impact. But it is not going to be that relevant, and we believe that the characteristics of the hydro products tend to perform better. As regards to renewal of the HPPs, I think that a lot of expectations were created. But what the text of [ BNB ] says is basically part of the legal framework with the exception of the quotas. And when [ BNB ] [indiscernible] talked about the possibility of renewable and concession that will be in the hands of the breaking power. In our view, this was the base scenario, one of bidding process. We at COPEL do not envision a scenario without a competitive process. Given what is happening in other sectors, what's happening in highways, renowned [ DS ] highway and all the other highways, they all go through a bidding process, given the auction of GSF by [ CCE ] 60% margin. So this competitive process shows the appetite that the operators have. They have an inherent advantage. Of course, they know it's better than anyone else, but that other competitors can bring. In our base scenario, the law didn't change anything. Actually, brought a benefit, which is not allowing the renewals to be by quotas. But in our view, I don't think it's very likely. I think it's highly unlikely that there will not be competitive processes given what's happening in other infrastructure segments in the country, either by the granting power or by resolution of the Federal Court of accounts.

Next question from [indiscernible] with Santander.

Congratulations on the results. I have 2 quick questions. First, still on MP1304. [indiscernible] Understand the company's view, what were the most relevant points that were left out in the text and that should be discussed in the short to medium term if you need a quick resolution of the issue. And another quick question about the possibility of extraordinary dividends with the possibility of taxation of dividends. What do you think about that?

[indiscernible] all right. Let me try to slice your question. Let's start with the dividends. Felipe, you've been studying this -- could you give us more color on what we're thinking and our studies to address this? And then I will answer about the 1304.

We cannot disregard the phase in which we are migration to Novo Mercado and the current dividend payout policy. And the taxation environment, the taxation on dividends in 2026 still to be approved by the President. We haven't come to a definition yet. This is most likely happening in the coming weeks. We are studying the several scenarios and possible impacts using our shareholder base, here also supported by our external advisers and by our tax department. But of course, we will position the company with a defined framework and strategy in light of the current shareholder base.

Excellent. And Felipe, you're leading this process in the coming weeks as you put it yourself, we will be announcing what we intend to do. But obviously, there is a new fact when you have a 10% taxation individuals for foreign investors, even if there are some [indiscernible] to sovereign funds and others, there is a new fact there that requires, as Felipe mentioned, some diligence with the company. We have to look into this. And we have to do the best considering the company's balance sheet. There we have a profit reserves, which is reasonably high. And also considering that in our trajectory, we are focused on attracting new investors. So we have to find the optimal point at sweet spot. And I'm sure that Felipe and the whole team will bring you something quite balanced until the end of the year. So that's the first. And secondly, this needs to be finalized whether this conflict with the corporate law, if this is going to be paid in 2027, '28, '29, which is not so likely or whether this is going to be paid only within the 12 months. So there are some elements that need to be more clear, right, Felipe, so that we and all publicly traded companies can position themselves. But after Novo Mercado, that will be the top priority in our agenda. And as for the MP1504, absolutely, the topic that was left out that should not have been left out and that shows how the pressure is important is the [indiscernible] distributed generation in the apportionment and the curtailment in terms of having a contribution of EUR 20, EUR 15 or whatever. So I think that the reality will impose itself if this is not addressed and it will be because the reality is physical. -- knows this is already causing terrible problems for the system. This needs to be addressed because this has become big. It doesn't make sense for this segment to carry the level of subsidies that exist today. So I think that [indiscernible] Pedro, this is the more pressing matter to be addressed in this initiative by ANEEL in terms of tariffs, white flags, that could be a mitigating path. And I think that this will help remove the perverse incentive of the subsidies in the electric system [indiscernible] . What could improve the separation. We have several initiatives, LR contracting capacity in the form of voltage. We should have the separation of ballast and energy as expected in [indiscernible] that was being discussed at Congress. It was not addressed. And now we have to wait for the approval of MP1304 and wait for the regulation and see what will happen in terms of modernizing the electricity, the [indiscernible]

Last question from Victor [indiscernible] with Itaú BBA.

I'm sorry to go back to this [indiscernible] Could you could tell us what they included in terms of curtailment and also the definition that should come in the next 3 weeks, 21 days regarding what is renewable versus oversupply, renewable oversupply, if this can have a significant impact and what will be considered curtailment that could be reimbursable looking forward, depending on the definition by the Ministry of Mines and Energy, MME and whether the totality of curtailment could be reimbursable. Could you give us more color on that specific point that would be much appreciated.

Victor, I think that is an excellent point. We are monitoring this, not just in the press, but the discussions of several sectors about that. I think that we have to look at the glass as being half full. A half full glass means that it is possible. It is consolidated that the electric part and reliability is of value of the pure renewables, the wind plants and the solar power plant. They will have the right because this happened independent of [indiscernible] . The big problem, as you mentioned, is the energy piece. In my view, when we have the original tax and the amendment of the tax, in my view, that's a sign that one of the 2 will be too. And I think that this is a legitimate discussions on both ends of the generation companies trying to address this by saying that this will not have an impact for the consumer in terms of charges or not reducing tariffs. This is undeniable. There will be an impact. This is a structural decision. This is about what the government wants, what the Ministry of Mines and Energy and the central government understand. This is a risk of the entrepreneur, which is one thesis or if this could be reimbursed if they choose. If they choose this path, think that this will not have an impact on consumers, well, this is not sustainable. But we're monitoring this closely because, of course, curtailment is something that needs to be addressed in the future because it is indeed a topic that has made this segment of wind and solar power feasible specifically. I think that we are going to be seeing what's going to happen next, and we'll see what the government -- how the government will interpret the policy and understanding how to reconcile these 2 arguments, which are legitimate for both sides.

The Q&A session is closed. I would like now to give the floor to Mr. Daniel Slaviero for his final statements.

Well, I can only thank all [ COPELLIONS ] for another quarter of solid, stable results. They show how COPEL is a predictable company that has been performing well and delivering consistent results quarter after quarter. I think this is the first element. Secondly, I'd like to thank all of you for joining us your questions that were very relevant. The sector is going through a transformational moment and the regulatory and legal framework will undoubtedly have many impacts in the coming months and over 2026, some regulations will be necessary. But I think that we are moving forward with some structural changes. We have some positives, some not so good things, but we are moving forward. And I always stress the price signaling. If we have adequate price signaling, that's the best way. Whenever the government chooses certain segments or categories, I think that this causes future long-term deleterious effects. And we've seen this not just in the energy sector, but in several sectors. Once you give players benefits to remove them, it is very hard to remove them. And I'd like to close with the elements here on the T-shirt, it's about the culture, the cultural transformation that we are living at COPEL. As I mentioned on the 19th, we will share with you these elements about our culture, our ambition, our bold ambition, one that is relevant value generation, value creation for the company. Myself, all of my partners and all [ COPELLIONS ] are enthusiastic and very engaged with this new moment of COPEL, a moment that we are building together. We are building together a company that is and will continue to be a big benchmark in the Brazilian energy sector. Thank you very much. Have a good day.

COPEL's video conference call is closed. Thank you very much, and have a good day.

Good morning, ladies and gentlemen. Welcome to Companhia Paranaense de Energia, Copel's video conference to discuss the earnings for the second quarter of 2025. This video conference is being recorded and will be available on the company's website, ri.copel.com. The presentation is also available for download. Please be advised that all participants will only be watching the video conference during the presentation, and then we will begin the Q&A session, and further instructions will be provided. Before proceeding, I would like to note that the forward-looking statements are based on the beliefs and assumptions of Copel's management, and the information currently available to the company. These statements may involve risks and uncertainties as they relate to future events and therefore, depend on circumstances that may or may not occur. Investors, analysts and journalists should consider that events related to the macroeconomic environment, industry and other factors could lead results to differ materially from those expressed in such forward-looking statements. This video conference will be presented by Mr. Daniel Slaviero, CEO of Copel; Mr. Felipe Gutterres, CFO of Copel; as well as Directors of the subsidiaries who will be available for the Q&A session. I would now like to turn the floor to Copel's CEO, who will start the presentation. Please, Daniel, you may begin.

Hello. Good morning. I thank you all for attending our video conference. We're presenting yet another quarter with sound business results. EBITDA of BRL 1.3 billion, a growth of 4.2% compared to the same quarter of last year and recurring net income above BRL 450 million. Our CapEx in the period was of approximately BRL 1 billion, BRL 975 million to be precise, in line with our projection of more than BRL 3 billion by the end of 2025. We are monitoring every week the execution of the investment plan, especially in the distribution company, because this is the last year of the tariff cycle. Our leverage closed at 3.1x, basically due to the temporary acquisition of Baixo Iguacu, and we'll complete the second stage of the operation, which is the sale of the entire asset now in the third quarter. If we consider this process, our leverage is at 2.9x net debt over EBITDA, in line with our dividend policy and our projections, always noting that we have deleverage contracted for the coming years, especially due to tariff review, reduction of costs that Copel has been running on its plan, and its market commitments as well as the improvements that we've been perceiving in the price of energy sold by our company. So speaking of divestments, in July, we also had the conclusion of the small hydro asset sales that were part of Copel's divestment plan, and we closed yet another tranche of this operation with the final element, which is the Figueira plant that will likely conclude its closing now in the third quarter. Combined to that in the second quarter, we also had the closing of the asset swap operations with Eletrobras consolidating the results of HPP Maua, and the transmitting company, Mata de Santa Genebra, 2 important steps in our strategy to optimize our portfolio. In this period, we also had an important recognition that reinforced our commitment to excellence and sustainability. We received the best ESG Award for the Electrical sector granted by Exame Magazine. And for the third consecutive year, we ranked first in Aneel's Ombudsman Award. I would like to congratulate everyone at the distribution company for this award. And thank you all for your engagement and commitment, all of our collaborators at Copel receiving these awards and recognitions. So without their effort, dedication and professionalism of all Copellans, these accomplishments would simply not be possible. Thank you all very much. Now, we will enter the first or the top subject of this moment, which is the migration of Copel to Novo Mercado. I'd like to remind you all that in addition of being at the highest level of governance of B3, our main objective with this migration is to unify the classes of shares, generating increasing liquidity for the company and to all our shareholders. The terms approved by the Board of Directors considered in the first phase the unification of the 2 classes of preferred shares without prejudice to any right of the classes involved. The following step in the proposal will be the migration without dilution to any shareholder in a ratio of 1:1, and to equalize dividends with a payment of a premium to preferred shares of BRL 0.7749. This state will depend on the approval of the majority of preferred shareholders in a special meeting that will be booked by the company at the right time. So in addition to guaranteeing equity between the classes of shares, the proposal includes the migration of all preferred shares to common shares, which will grant the same right to vote and alignment between shareholders. We believe that this will unlock a lot of value for the company through higher liquidity of shares, as I mentioned, and it will be an important tool to attract new investors to Copel, especially foreign investors. However, on August 1, we were surprised by the deferral from CVM of a request to interrupt the General Meeting for up to 2 weeks, 15 days that was requested by one single Class A preferred shareholder. I note that these class of shares represent approximately only 3 million shares in a universe of close to 3 billion shares -- so a universe of 3 billion shares, so that's slightly over 0.1% of the company's total capital. And even with this representation, our proposal brings benefits to Class A preferred shares, in particular, a significant increase in liquidity. We are convinced that the proposal presented by Copel is in compliance with the legislation and protects the interest of all shareholders for the company. We are dedicated to clarify all of the points raised at CVM with full transparency and responsibility so that this process may be resumed within these 15 days and follow its natural flow that is to be assessed and discussed with our shareholders. We trust that CVM will not harbor any type of abuse from any minority shareholder to the detriment of the best for the company and our more than 360,000 minority shareholders of Copel. We'll continue to maintain the market informed of all the relevant steps of this process. And I now turn the floor to Felipe, who will detail the results of our quarter. Felipe, please.

Thank you, Daniel. Good morning, everyone. I would also like to thank all of you for attending our earnings conference call. I would like to start by highlighting the 4.2% increase in recurring EBITDA, which totaled BRL 1.3 billion in the period with GeT and Com representing 58.4% of this result and 42.6% remaining are generated by the distribution company. The variation was a result mostly of the better result of GeT, mostly due to the best results of transactions in the short-term market, lower generation deviation in wind complexes despite the higher curtailment, increase in revenue from the availability of electricity in the incorporation of Mata de Santa Genebra. These are the 3 main points. But on the other hand, there was an increase of BRL 126.3 million in the cost of purchase -- energy purchased for resale, which partially pressured the results, especially in the distribution segment. Still, the consolidated performance reflects the consistency of our strategy and the company's capacity to generate value sustainably even in a challenging scenario as well as the power of the integration of its business. At Copel GeT -- going to the next slide, we posted recurring EBITDA of BRL 761.4 million, up 12.6% compared to the second quarter of '24. Note the positive result in the short-term market with BRL 45 million additional coming from the time modulation and lower generation deviation in wind complexes contributing to more than BRL 18.9 million. Despite the cost increase in energy purchase for resale, the result maintained the consistency in operating results. In transmission, we had an increase of BRL 16.9 million with the consolidation of results at MSG. In terms of sales, we found liquidity in the price market at prices that we considered adequate, which allowed us to close contracts, reducing on average the exposure of our portfolio in approximately 50 megawatts year between '27 and '30. This result show the solidity of our operation and Copel GeT's capacity to generate value with discipline and technical excellence. On Slide 9, we'll have more color on distribution. Copel distribution posted EBITDA -- recurring EBITDA of BRL 569.3 million, up 0.6% compared to the same period last year. This performance was driven mostly for tariff adjustments in June 2024 with an average increase of 2.7% on TUSD. However, this quarter, the effect was practically neutralized by the drop of 2.6% in the billed grid market. Even with these challenges, Copel Dis maintained sound results, reflecting operational discipline with an EBITDA -- regulatory EBITDA of 42.8% higher. I also note that the new tariff has an average effect to be perceived by consumers of 2.02% impacting results as of the third quarter of '25. Second quarter of '25, the trading strategy progressed, sales increased 21% compared to the second quarter of '24, reflecting a more dynamic, efficient activity in the market. However, we also had a drop of BRL 15.3 million on margin impacted by macro factors and adjustments in the operations structure. We also had an increase of 40.2% in expenses with PMSO to prepare the units for the new growth cycle. We are confident that the change in course at Copel trading strengthened the trading company and consolidate our relevance in the free trade energy market. We posted a 3.7% reduction in expenses with PMSO totaling BRL 708.3 million compared to BRL 735.9 million posted in the same period of last year. This result was driven mostly for the almost 15% drop in personnel and administrative expenses in addition to a reduction of 13% in costs with pension and assistance plans, especially due to the voluntary severance program that was partially offset by the salary adjustment applied for the -- between the period. We reduced costs, increased efficiency, and at the same time, we're leveraging the safety of the operation, and the quality of services provided. It's an important point here in this compilation of actions. Moving on to net income, we delivered recurring net income at BRL 452.4 million, down 9.5% compared to the second quarter of '24. EBITDA increased 4.2% versus second Q '24, despite an increase of 38.7% in financial expenses as a result of the increase in debt required to face the renewal of concessions, investments and acquisitions in line with the company's strategy, as well as an impact of a higher CDI, compared to the same quarter of last year. Copel's performance remains sound, reflecting disciplined strategic management. Now discussing the investments. Consolidated CapEx totaled BRL 975.3 million in the quarter and BRL 1.6 billion in the first half of the year, maintaining the planned pace. Investments are concentrated in assets that expand the remuneration base, focusing on quality of services, operational efficiency and modernization of infrastructure as well as one-off investments in strategic areas. On our last slide, the second quarter of '25, the company's leverage was at 2.9x net debt over recurring EBITDA, excluding the effect of acquisition of Baixo Iguacu that will be concluded in the third quarter -- the divestment will be concluded. This level is in line with our optimal capital structure. Total net debt was BRL 16.6 billion with a diversified composition between financial institution market instruments with debentures and securities. The rating was reconfirmed as AAA, reinforcing the trust on Copel's financial soundness. As for the nominal debt -- cost of debt, even though it went up, the equivalence to CDI went down, demonstrating the efficiency in our funding. We remain attentive to the market dynamics and committed to the maintenance of a healthy capital structure discipline, allowing Copel to continue to invest safely, generating value to our shareholders. This concludes our presentation, and we can move on to the Q&A.

[Operator Instructions] First question, Luiza Candiota of Itau BBA.

I have 2 questions. First, I'd like you to, if possible, give more color about the trading strategy for the quarter, since there were some movements of asset swaps and the comparison with the first quarter is a little bit more difficult. But apparently, you focused on selling more on longer vertices like '28, '29. So if you can give more color on the trading front. And the second question about the migration to Novo Mercado, as you mentioned in the beginning of the presentation, just to understand if in your mind it is still feasible to conclude this migration by the end of the year to have a little bit of a perspective of your time line.

Luiza, I'll start from your second question, and then we will complement. But since this interruption was for 15 days, Luiza, and this will be next Saturday, we are doing, as I said, providing all the clarification and all the additional information. And if this is resolved in this period, which is what we believe will happen with a favorable decision to the company, it will be feasible for us to maintain our time line to get this all concluded by the end of 2025. So despite this slight delay, depending on the decision, we will have to resummon the general meeting, and this fits into our time line. We had some excess time planned and then things will be a little bit tighter, but the other issues that do not depend on CVM continue to be prepared and continue to advance waiting for this point that will be solved by the 16th. Any comment about this, Felipe?

No, that's it.

Rodolfo, so if you can give a little bit color about the trading strategy, please.

Excellent. I think the first point referring to the M&A and this asset swap strategy, since the beginning when we outlined our long-term trading strategy, we already had a plan for this type of operation. So irrespective of what happened, there were slight adjustments. But in any time did we have to buy energy or reduce the price. That's the first important point. With that said, we also saw during this quarter, great opportunity, especially for the long-term. This is a movement that's been unfolding since the end of last year with a change of perception and the complexity of the system operation. In September of last year, when we saw the need of dispatch from thermal power plants to cover that, the market started to see our levels, and this materialized this quarter. So we made the most to sell BRL 27, BRL 28, BRL 29, almost BRL 40 above what was sold in the past. We don't see the same for '25, '26. So there was space for some portfolio adjustment, but we focus a lot more on these longer sales. The price is very contained, waiting for a better window.

Just to add, Luiza and everyone, these volumes, these percentages here are still very small considering the amount of energy that the company has for these medium-term period. And this is within our strategy and dilutions between a plus 4 plus 3 plus 2. So that's in line and showing this volatility of the market, either from the price parameters, the complexity of the operation, the need for power has been showing opportunities in the trend of continued improvement in our view in the PLD price.

Our next question, Bruno Amorim from Goldman Sachs.

I have -- I'd like to get an update about the strategic view looking forward. You delivered some important levers in terms of creation of value recently, establishing the new dividend policy, the migration to Novo Mercado. You put together a very strong team of directors in the recent months. So the question is to that end, you are clearly preparing the company for the next cycle. So if you can comment about this coming cycle, the areas of interest, in addition to the auction of the capacity reserve, what you believe will be interesting for the company? Should we expect any relevant M&A movement this year or next year? Or is this something more for 2027 onwards? So if you can give us an update on the strategic side of capital allocation, how you see the company going forward, that would be great.

I think you mentioned something important here. Going back, all of the promises that we made since our follow-on, we've been delivering in full -- all of the promises. In many of the cases, delivering them even faster and with better results. So quickly, renewal of the grant bonus, renewal of concessions, that was the first item that we always talked about. The second, a significant reduction in the PMSO costs through the first voluntary dismissal program, we're seeing the results of the PMSO considering inflation, especially in the EPE line. Third, it was the decarbonization of the matrix with the sale of Compagas and UEGA. Four, the reorganization of the portfolios under small PCAs and the crossing, the swaps in the portfolio with the assets with Eletrobras that was the object that will be concluded this half year. We also saw the reorganization of the company and the attraction of new talents, as you so rightly mentioned, and this has an effect not only on the C-level, but also some strategic areas in leadership and other specific areas has been said in a lot of units of the company. So in retrospect, this maintains the optimal capital structure. That's an important promise, the update in the dividend policy. And for us to close this cycle of promises, what are the 3 that are moving along to be concluded by the end of 2026. It's the migration to Novo Mercado that we mentioned, the tariff review in 2026 that has a follow-up from the entire company, not only Villela or Andre from regulation or Felipe, but this is a big group considering the relevance and the results that we will deliver to the company and the market. And finally, what's also the closing, the complement of the final reduction of our commitment to reduce 20% of costs based on the 2023 nominal LTM that we intend to present, all of this closing by the end of this period in 2025. So it's a long story short, just to reinforce the excellence and the consistency that Copel has delivering its commitments. So with that said, in a medium to long term, we still have a lot being done in the company, not only the capacity bid, but digital transformation, restructuring, migration to new systems, the transformation of technology. So a lot of other fronts and questions in addition to those 3, so commitments that need to be delivered. And we are moving along and increasing the attractiveness, and the enthusiasm and work with our team. So long story short, we don't have any view or any rush to consider M&As or capital allocation, because I think we still have all of the facts to generate value. So in this path of extracting more value of our current base, and in this Copel Day on November 19, we'll invite all of you to attend, we will show what we see, the avenues for growth from now to 2035. So this is something we will address. Why such a long environment? Because we are here with a long-term view with a commitment to generate value. And the final point here on our energies that are being focused currently. We're very strong in an aspect of strengthening the culture of Copel as a corporation. So the elements of ambition, purpose, values, what guides us, because we consider this as a competitive differentiator in our management model. So this needs to be consolidated. People and management is an area where all of us partners of the company, in particular, Marcia Baena, that's the Management VP that's been dedicating a lot. I went on for a little bit too long, Bruno, because this is something that I really enjoy talking about. That's a view of the trajectory of generating value in the long term, but these things will need to be done at the right time, and we have here a lot that may be delivered in this execution process, without any transformational movement that will have to come, but in a view of 2027 onwards in a way that this may come up. But we don't have anything on the short term.

Congratulations again for the deliveries so far.

Next question, Maria Carolina Carneiro from Safra.

Daniel, I'd like to -- since you talked about what you've been delivering in terms of cost, this is another consecutive quarter where we see a lot of lines improvement. You mentioned you're going to talk about this on the Investor Day, but if you can give us an overview of the type of measures and projects you're adopting, let's say, the so-called second wave of efficiency so that we can be prepared for the coming quarters, where this additional outperformance could be coming up that remains strong quarter-on-quarter. And if you can also talk a little bit about the other side. We've been seeing energy tariffs being a bother, I mean, pressuring somehow, the public opinion, the government thinking about solutions like the measures that we saw, how this has been reflecting in the trading policy, your management of ADA. And other companies have been commenting on how this has been the trend of working closer in the trading side and paying debt on PLD, the spot price of each classes. If you can talk about that a little bit as well, that would be interesting.

It's a broad scope of your question here, Carol. So I'll break it down, and I'll ask Felipe, Villela to please also contribute to the answer. So first about the levers. I think the company, Copel, has been coming from a very serious, efficient management even before the transformation process. So we had already been demonstrating good deliveries. But always in line with our road shows, you'd probably remember, there was also that discussion, oh, Copel had already had deliveries. And the inherent size of company always allow for opportunities. I think we've done some things, and the people part, I think is already overcome. But there's always -- we always look not only supplies that you've been able to change everything in procurement and supply with the director that is connected to Filipe, a review of some contracts, some gains in scale that were achieved and do not require bidding processes so we can gain agility, flexibility, not only for the contracts, but also volumes. I'd say that we've been seeing good reflexes of that on GeT. So there's all that shock in a third wave, and the shock of digitalization, transformation, project -- process revision, not only with smart grid, that we have the largest smart grid in Brazil and the investments we've made, robust CapEx, but also in technology and processes, software. And then a coming wave that we're already perceiving for artificial intelligence. So there's nothing major. But if you add up the small, consistent moves, that's how we intend to get to that commitment of the 20%. So I think this would be a first main step on your question. The second part, the tariff side is a concern for all of us, not only here in Parana, but also everywhere in Brazil. Just before continuing on the tariff, all of these moves that we're making to reduce costs and improve performance, the objective is to seek efficiency, but always, always focusing on improving customer service. That's why there's in some areas, in some lines at the distribution company, you've been seeing a certain increase in service provision. Because at the end, what's more important is to always take care of our customers, especially in a concession area that has been growing historically above national averages. So that closes the first part, because it's also a strong focus. Our view is the quality of service provided to our customers that are demanding more and more quality, especially in the economic growth we're seeing. With that said, the tariff aspect is a point of attention. It is a point of concern. But historically, and the tariff adjustment this year shows that the concession here in the state of Parana, we are seeing considerably moderate adjustment. I think a lot of it still comes from the subsidies to tariffs. This one of the 2%, 2.02%, more than 5% come from costs, so the [ subsidies ]. So I think it's a structural concern. And when you talk about opening the market and the provisionary measures and so on, they always have to open, but we cannot lose sight of the client, the customer who's at the base, because the customer is being penalized with rates and tariffs and subsidies. That's a big issue. And to close the ADA question, I don't know if you have, Felipe, anything to add to that and the ZBB.

I can -- I have some comments. I think there are some very relevant fronts in these levers as we did in the ZBB exercise and implementation. So some units will be more diversified in 2026, especially at the distribution company. The supply department has a strategy to review all contracts, simplify contracts, unify contracts, which also brings a new competence for negotiation that we always, obviously, capture value. This is intensifying. And there is an important front of reviewing and simplifying processes where technology plays a very relevant role. So when you combine all of these fronts, that's where we find opportunities for cost efficiency. We prefer the concept of efficiency rather than reduction of cost because you also have a better allocation in efficiency.

Just to add, this question, Carolina, is in line and connected to Bruno's previous question. And one thing that I've been saying repeatedly, internally and to the market. No company generates long-term value simply by reducing costs and selling assets. The company must make good capital allocation. So that's why the Phase 3 of the expansion is very relevant in the medium, long term for the company. Right now, I hear about ADA and cost. You see that we have that very controlled in the company. But if you can, Villela, give some color on the initiatives to address Carol's question.

Excellent, Carol. We have a strong culture and a robust process for collection and many negotiation channels and payment in installments. And this year, in the first half, we achieved 1.5 million in smart meters. That's one of the biggest smart grid programs in the country. So that allows us to remotely shut down the energy without having to go to the customer's house. And when the payment is made, the client is reconnected within seconds. So all of that -- and that combined to the state of Parana culture, which is a paying state. We have an ADA below the tariff coverage. So I think this is a big strong feature for Copel.

Next question, Andre Sampaio at Santander.

I have 2 questions here quickly on my side that should add to what has already been discussed. First, about migration. I'd like to hear a little bit from you about the dividend dynamics, and what the strategy will be in the announcements for the year, if there is any delay, if there will be the announcement of new dividends before the migration potentially adjust the numbers or potentially delayed dividends? And the second question on the provisionary measures, I'd like to hear a little bit from you about implementation, if we have any -- if we should expect any positive or negative surprise in the process.

So let's go, Felipe. First about the migration and how we address the dividend policy, and then I'll talk about the legislation side of the 1,300 and 1,304. We continue working on our migration program with dividends payments by the end of -- until the end of the year. The dividend policy is whole, both in the parameters for payout payments and the minimum number of payments of dividends. So this is the scenario we work on today. So basically, our policy talks about at least a minimum of 2 payments, 2 annual events. And we always have in the fourth quarter, we announced the dividend of the first half of the year. So the idea is to maintain that. Of course, with this migration to Novo Mercado, it is also part of this equation, as Felipe said. But what's most important is that we'll maintain the 2 events that we committed to in the policy, and the announcement of that during the fourth quarter as the company has always been doing in recent years. So that addresses the first part of your question, Andre. The second part about the environment. I mean, everybody is seeing the news and discussions, the political institutional environment in Brazil is highly contaminated, very controversial. And this has an impact in all fronts, either in the naming of new directors at the different government agencies or the developments of bills and provisional measures in Congress. So at least, we are monitoring all of that, but I believe that no one, not even the highest authorities are able to know exactly what's going to happen, because every week, there is something new. There's a new decision. There is a new tariff or an evolution or a legal decision. So everything ends up contaminating the political environment. But bringing it to our question, I think in the base scenario that we work on, MP 1,300, 1,304 will probably merge in a single tax, and one of them will have to be approved at some point because of the implementation of the social tariff, which has already occurred. So this must be approved. So even if it's a minimum scope of the approval of anything of these 2/3, that's our base view. It will be needed. And I think this is a point that is feasible in our view that generates one element and another important view for the government and society and the discussion is opening the market. The discussion is whether the proposed time lines are in line with what is feasible and addressable for the questions, and a reduction of subsidies. So I think these points are in the right line, and the opportunities that may be for any change. And our advantage, at least in the 1,300 is that we have a writer who knows it in-depth. It's a Congressman Fernando, who's very reasonable, competent. He knows this in depth. He used to be minister. So I think this brings confidence to the players. But a concern that is left is that everything that comes in, Congress never knows what comes out. The concern is that what comes out of Congress includes more subsidies. When there was that discussion of the vetoes, they actually made it worse for the tariff environment, for the safety and the planning -- the technical planning was made worse. So this is a point of attention that we have. And when we work here, Andre, institutional -- through the entities or with Copel directly, we work to defend and stand for what we consider fair in the political, institutional environment. So that requires permanent monitoring considering the reality, as I mentioned, and something will be approved, because it carries the social tariff aspect, which is something that is very dear to the population and the government.

Our next question is in writing from [ Mr. Renaldo Verissimo ]. He says, "at the conference last quarter, you informed the intention to participate in the bid of 2 energy generators. Could you update us? Is there anything new on this?"

I think here you're mentioning the capacity bid [ LRK ] that we have 2 plants, Foz do Areia and Segredo that are 2 robust, very competitive processes. I imagine that you're referring to because there's not any other view to invest in plants in the short term other than these that we're mentioning in the LRK Unfortunately, since our last conference call until now, that's almost 90 days, the ministry has not published the ordinance yet, and the ordinance is crucial for that. This ordinance will not only bring the guidelines, because the bid should have happened at the end of June, but the ordinance will also bring some evolutions And what we're seeing, and these are statements by the [ ONS ] itself is that there's an urgent need of power for the system, the load and the expressive increase of GeT with the generation. There's an increase of excess energy at lunchtime, and a deficit of power at the end of the day that's been basically fulfilled by hydropower plants and thermal power plants. So this need is urgent for the system. It's not we're saying that, it's the government's declaration. And what we're expecting is that for the coming weeks, we should have an announcement so that the bid could occur in the first quarter of 2026. I don't see possibility for this to be delayed further, because people are even talking about a very expressive bid, way above 12 gigs in the need of power to supply the next few years. And the advantage here is that hydropower plants like Copel and others with more than 5 gigawatts registered is that it's a completely renewable source of energy. Without a doubt, it will be the lowest cost for consumers, considering all products of all years, and this will always be done with technology products and equipments that are national. It's clean, sustainable energy, the most affordable for consumers and strengthens the Brazilian industry. So we don't see any other path different than giving room and preference to this size proportional to representation. And we're working on our side, doing our homework. We've pretty much concluded everything for both projects, waiting for this definition of the ordinance and the date of the capacity auction.

[Operator Instructions] The question-and-answer session is concluded. I would like to turn the floor to Mr. Daniel for his final closing remarks.

So if there are no further questions, I would like to once again thank you all for your participation. I send my greetings to my partners at Copel, all Copellans for yet another quarter of consistent deliveries without hiccups, delivering what we had committed to not only during the last few years, but year-on-year in terms of efficiency, quality to our customers, and valuing and strengthening of our team and our Copellans. So we move forward with the execution of our strategy plan. And the priority now is the execution of the plan, and the deliberation to our shareholders. They will discuss and whatever they discuss will be the rule in our meetings, but so that we can, as soon as possible, continue on with the Novo Mercado process. Because in our view, this will unleash more value, as I said, and will generate value or benefits to all shareholders, every shareholder. And the biggest asset for valuing the company is what drives us forward, and what unites us. So I'd like to thank you and say that we remain committed with the delivery of excellence in execution, and the operation of our assets, our companies, the care with our people and complete, full discipline and capital allocation, so that with all of these elements, we can continue generating a lot of value to the company and to all our shareholders and stakeholders. Thank you very much. Have a great day.

Copel's video conference is concluded. We thank you all for attending. 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 Companhia Paranaense de Energia, Copel's Video Conference to discuss the Earnings of the Fourth Quarter of 2024. This video conference is being recorded and will be available on the company's website, ri.copel.com. The presentation is also available for download. Please be advised that all participants will only be watching the video conference during the presentation and then we will begin the Q&A session when further instructions will be provided. Before proceeding, I would like to note that the forward-looking statements are based on the beliefs and assumptions of Copel's management and on information currently available to the company. These statements may involve risks and uncertainties as they relate to future events and therefore depend on circumstances that may or may not occur. Investors, analysts and journalists should consider that events related to the macroeconomic environment, industry and other factors could lead results to differ materially from those expressed in such forward-looking statements. This video conference will be presented by Mr. Daniel Slaviero, CEO of Copel; Mr. Felipe Gutterres, CFO of Copel, as well as directors of the subsidiaries will be available for the Q&A. I would like to turn the floor to CEO -- the CEO of Copel, who will start the presentation. Please, Daniel, you may proceed.

Good morning. I thank you all for attending our video conference and it is with great pleasure that we present another quarter with sound results. 2024 was the first full year in which Copel operated with its new legal nature, a corporation without a defined controller. Among the many deliveries we had during the year, I would like to highlight one of the most important ones, the formation of a new C level. At the beginning of January, the team received Fernando Mano, who took over the leadership of Copel Geracao e Transmissao. Mano this is your first earnings conference call with us. Welcome to Copel and I am confident that your experience and knowledge of the industry will be of great value for the company's new moment. Now, talking about the highlights of the quarter, I begin with our financial results. In the year-to-date, we had a fourth quarter with an adjusted EBITDA of BRL1.3 billion and net income of almost BRL600 million. In the year, we closed with adjusted EBITDA of BRL5.1 billion and net income of BRL2.8 billion, almost BRL3 billion. In this quarter, these robust results were partially offset by the performance of wind parks as a result of curtailment, ANEEL availability and the unavailability of some wind turbines at Brisa and Cutia. This is a temporary event that will be equated in the coming periods and we have been working quickly and assertively to correct this, this installment that is manageable. We remain focused on the excellence of the operation of our assets and the delivery of sustainable results. With that said, the main highlight was Copel Distribuicao, which contributed significantly to the company's results. With efficiency and EBITDA of almost 46% compared to the regulatory level. I'd like to point the robust dividends proposed for this year and this general meeting. In addition to the BRL1.3 billion already paid, we are proposing to our shareholders an additional BRL1.3 billion in additional dividends totaling BRL2.3 billion of dividends for the year of 2024. So, ladies and gentlemen, this means a payout of 86% and dividend yield of approximately 8.4%. This proposal, as I mentioned, will be taken to the general meeting of April and the first payment is expected for until June of this year. But what's relevant here is that we have proven in practice what we've been saying to the market that Copel is a company that combines good dividends and is mindful to the good opportunities for capital allocation. Our focus is to generate value to the company based on the activities as an integrated player in energy. Now I present a brief summary of the deliveries that happened since our last conference call in November. First, we guaranteed Copel's 100th anniversary with a renewal for an additional 30 years of our three main power generation plants. Aligned with that was the payment of the grant bonus of BRL4.1 billion. And this event was very important, among other things, because it helped us reach a better leverage level. Felipe will give you more details of the financial results and indicators. Next, three operations that are essential for the execution of our strategic plan since the follow-on. The asset swap with Eletrobras, where we consolidated the HPP in Maua and Transmitter in Mata de Santa Genebra, sale of small assets of hydropower generation for BRL450 million and finally the exercise of the preemptive rights and the sale of Baixo Iguacu. In the next slide I'll briefly mention the rationale behind these movements, but I point that in addition to all of that, in November of last year we opened a share buyback program and we've already executed BRL120 million in this first phase. So starting with the asset swap with Eletrobras. In addition to executing 100% of Maua and Santa Genebra, as I mentioned, the rationale of this operation is to optimize our asset portfolio, simplifying our operating structure and guaranteeing high predictability of cash. On the other hand, Eletrobras will receive 100% of Colider and BRL365 million in cash at the closing of the deal. This operation brings immediate benefits to Copel because in addition to the gains in terms of synergy, we can offset approximately BRL170 million of tax losses accounted in Colider. This transaction generated a lot of value to Copel. In Baixo Iguacu, in turn, the objective was to potentiate the company's returns, making the most of an opportunity to recycle assets and minority stakes. As I mentioned, we exercised our pre-emptive rights and we saw in this opportunity a chance to sell our 30% stake, which were sold for BRL570 million to DK Holding Investments, also known as Energia Prod. The main message here is that we are an agile company, disciplined in capital allocation. I would like to congratulate our partners Felipe Gutterres, Fernando Mano, Diogo Mac Cord and Yuri Ledra for leading the teams to conclude these deals. This indicates how much our new management and our employees are aligned in the search for alternatives that bring always the best possible results for the company. And to conclude, all of that is behind us because now we have for the coming months and the year 2025 a very positive year for the company. So first, we'll conclude with excellence our investment program for Copel Distribuicao, aiming not only at the quality of services provided, but also the integration of investments made during the entire cycle for our next upcoming tariff review. Second, operating excellence, as we talked about in the beginning, but in all of our businesses we can extract as much value from our assets. Third, the bid of the capacity reserve. We are very focused also to make the most of this opportunity with the two assets that will be for that [indiscernible]. And finally, the consistency in the strategy of energy trading, where we've already seen some windows and the volatility is being tapped into by Rodolfo and the trading team. And finally, we'll be strict in executing and reaching our efficiency targets that we set forth for this year's budget. Now I turn the floor to Felipe, who will detail the results of the fourth quarter.

Good morning. Thank you, Daniel. I'd like to once again begin by stressing an essential point of our thesis that was extremely important for our results. We are an integrated company with a diverse portfolio with long term concessions. Once again we had a challenging quarter at Copel GeT and Copel Com affected by the effect of the curtailment, wind and unavailability of wind assets, modulation and detachment of energy prices in submarkets. At times like this our business models reinforced their importance because we were able to reduce risks and ensure robust results even in an adverse scenario. This quarter we delivered adjusted EBITDA of BRL1.3 billion, BRL715 million coming from Copel Dis and BRL613 from GeT. This result was 12% lower than the BRL1.4 billion of fourth quarter of 2023 due mainly to the smaller mix of sales at GeT, the deviation of generation of BRL93 million, 49% above the fourth quarter of 2023 caused by the wind volume below certification, curtailment of 13.1% in fourth quarter of 2024 compared to 8.3% in fourth quarter of 2023 and the unavailability of the generating park resulting from maintenance and installations as well as a higher volume of energy coming from MMGD of BRL180 million. And to conclude the additional litigation provisions of BRL63 million, especially due to civil lawsuits. On the other hand, our business in grid stood out with an increase of BRL23.6 in EBITDA at Copel Dis offsetting a lot of the results mentioned before. In the next slides I'll give you more color about the results of each business unit starting with distribution. Copel Distribuicao generated EBITDA of BRL715 million in fourth quarter of 2024, the highest resulting result -- recurring results in the history of our distribution company, 23.6% higher than the same period of last year. This result was mainly driven by the growth of 2.5% in the billed grid market and the readjustment of 2.7% of TUSD in June of last year and the reduction of 36% in expenses with personnel, a result mainly due to the voluntary severance program from 2024. These effects were partially offset with the highest volume of the offsetting system of MMGD. We closed 2024 with an EBITDA efficiency almost 46% above the regulatory EBITDA, confirming our continuous trajectory of efficiency in our operations. On the next slide, I'll talk to you about generation and transmission, with an adjusted EBITDA of BRL613 million, Copel GeT had a PMX lower than the last year during the fourth quarter. In addition, the performance of wind complexes was negatively affected in BRL93 million due to the lower performance of wind complexes, a result of a smaller volume of winds below certification curtailment of 13% compared to 8.3% of the fourth quarter of 2023 and unavailability of the generating parts occurring as a result of maintenance and installations. In addition, there was the effect of reversion of revision in fourth quarter of 2023 and the amount of BRL83 million referring to the decision of the calculation methodology that impacted, as I said, the results of 2023 and did not reoccur in 2024. Partially offsetting these items, there was a reduction of 30% in personnel costs in the quarter, basically as a result of the voluntary severance program. Giving you more details about trading, we closed the quarter with adjusted EBITDA negative in BRL15 million compared to BRL9.7 million positive last year. The reflection mostly of the lower trading margin due to the price variation in the submarkets caused especially by the generation from intermittent sources with an impact of approximately BRL18 million. But I'd like to stress the excellent execution of a strategy for energy trading, which reduced risks during the entire year and as in the third quarter we intensified energy sales at a moment with better market prices. We sold 500 megawatts average on the quarter for the 2025 to 2029 period and we had already sold 537 megawatts in the third quarter generating value for the group, which will be captured in the coming years. In addition, I also -- we don't have a lot of exposure in our portfolio to modulation. So it's a limited exposure at lower levels. With an one off impact in the results of the trader, in the consolidated context and very little materiality. So, zooming into our manageable costs in the next slide, we maintained strict control of costs, but always preserving quality and safety of our activities. The highlights of the quarter are the positive impacts in the first quarter after the conclusion of the voluntary severance program. For better comparability among periods, we have two PMSO lines, manageable costs and other costs. In variable costs, we adjusted PLR and premium per performance and in addition in the line of other costs, we isolated the effect of a study about the repatriation of GSF that happened in fourth quarter of 2023 and adjusted non-recurring losses for the disinflation of assets in fourth quarter of 2024. With these adjustments, looking at personnel costs, we see a reduction of 26.2% in the quarter, an effect of the reduction of 1,415 employees. I am sorry, I am not listening to him. Is there anything with the sound? And if we isolate the inflation in the period, there will be a reduction of 29.5% and the costs in personnel reinforcing our execution capacity and consistency in delivery. Looking at the other lines of PMSO, we increased by BRL34 million, 13% of services of third-parties essential to strengthen the prevention and grid maintenance operations for the distribution company focused specially to guaranteeing levels of quality and safety of our concession areas. These activities also include investigation of tree trimming and maintenance close to our distribution lines. We also had a small growth of BRL11 million under other costs with an impact of the dis-saturation of equipment that presented residual values in the company's investment programs. I reinforce that this effect represented less than 33% in investment of Copel Dis in the quarter. Moving on to the net income analysis, speaking on, recurring terms, income exceeded BRL639 million in the quarter, 12% higher than what was posted in the third quarter. Quarter-on-quarter the result was 7.2% higher as an effect, in addition to what we already mentioned, the tax efficiency captured by the declaration of IOC. We delivered year-to-date results of BRL2.7 billion, 5% higher than last year in recurring terms and the reported results reached BRL2.8 billion, 20.3% higher than the results of 2023. Now, speaking of investments, we executed historical CapEx strongly led by the distribution company's investment plan responding to 88% of the total for the year focused on the regulatory remuneration base and efficiency and quality of services. The highest investment in the history of Copel Distribuicao that's important to mention. As for the most of the investments was in line with our timeline and now we have full focus in the CapEx of 2025 and its unitization. Now about our indebtedness, due to the grant bonus payment for the renewed plans we saw an increase in leverage to 2.6% times -- 2.6 times of net debt over EBITDA. And as we've been talking about in recent calls, this was already expected. Remember that our limit covenant today is 3.5 times net debt over EBITDA. So it's quite comfortable, but with a structure of leverage that is more suitable. Our operating cash generation exceeded once again the mark of BRL1.2 billion in the quarter, totaling in the year BRL5 billion. Our average amortization period of around four years with more BRL8 billion maturing only after 2029 and a total of BRL17 billion. I'd also like to point that we have initiated the execution of our share buyback program. We rebought BRL50 million in December and BRL70 million in January as Daniel mentioned. I conclude my presentation here thanking each of the Copel employees for their strong work, commitment and continued dedication. We are confident that with our long-term strategy and a focus on efficiency, quality, and results we'll continue to advance and deliver more and more value to our -- all of our stakeholders. Thank you once again for your participation, and we can now move on to the questions-and-answer session.

We will now begin the questions-and-answer session. [Operator instructions] Our first question, Bruno Amorim, Goldman Sachs. Please, Bruno, go ahead.

Good morning and congratulations on the delivery during this year. I have a question about capital allocation. I know you announced publicly that you're running studies to publish at some time what you understand to be the optimum capital structure for the company. So could you talk a little bit about how you think about this, irrespective of what this optimum level will be, how do you think about optimizing the structure in the short term versus leaving some space in the balance sheet for future allocation, especially in the context of a relevant increase in EBITDA for the next two years in the distribution operations. So more to understand today what your mindset is about, the view in terms of capital allocation over the next two, three years? Whether you think there's opportunities in the short term or whether it makes sense to leverage a little bit more, get a little bit closer to optimum and leave some flexibility for the future. Thank you.

Good morning, Bruno. I think it's an excellent point, with all the interactions in the market. This is a question that has been raised a lot. So I'll give you some context and then I'll ask Felipe who's leading this work to add to my comments. So today our covenant is 3.5. That was a reflection of the structure of the company's legal entity as being a state held company. But now as a corporation with the AAA and the level of maturity we have, we're operating with covenants above that between 4, 4.5. So I think Felipe is leading this study first to find what should be the best covenant limit. And second, we also want to do that if possible, with the discussion of Mercado and the market was informed today about Eletrobras agreement with the federal government and we see that as very positive, not only because it strengthens the corporation model with a limit of 10% of capital votes, but also unlocks a lot of value for the biggest company in the energy sector. But going back to our point, I think we're going to seek with this work to reach a capital structure. Over time it's not going to be all at once because we're in a very restrictive interest environment in the country. And finally, there always will be space for you to make good investments. The company's priority is to make good investments, good capital allocation. So there's nothing in the very short term or on the short term that is not the focus on that capacity auction and all the other agendas we're looking at on the tariff cycle, the improvement of assets and the trading strategy that is bolder and mindful of the volatility opportunities. Good allocation is always good and good -- is always a priority. But if there isn't, we believe that direct dividends either buy share buyback, as always is a path not to allow the company to be deleveraged. As you mentioned and starting on 2026, with the renewal of the tariff cycle and the improvement in the energy prices and the cost reductions, you saw more than 30% only in the P line due to the severance -- voluntary severance program's impacts. The company already has very well established contracted growth. So we don't intend at all to let the company get deleveraged much beyond the current level at around 2.5. And for that we can always work on this leveraging in terms of buyback and dividends. So also considering that the payout of the fiscal year of 2024 is there at around 86%. So Felipe, I got into other subjects, but if you can talk a little bit about times and movements in the main lines of this study of the optimum capital structure.

First is to assure that the company is not going to work in sub-optimum ways in our capital structure. So this is the first point. The other point is that our concept being discussed, it's much more in terms of convergence once we define the optimum structure rather than always working with a limitation, a limiter, and always working at this optimum point. So just to give you our mind side there's convergence, but some flexibility slightly below or above as long as it's defined, times a movement we close or conclude the studies and we'll present them to the market with the results of the first quarter where our idea is also to present the simplified dividend or enhanced dividend policy. Our current dividend policy is very flexible, but we understand that there are opportunities to simplify this policy and make it more straightforward. Always noting that what we presented at Copel Day, our manifest for capital allocation is to always look at return at the center, but always considering minimum cash to give us flexibility to face our obligations in terms of investments that are already accounted for. Even the flexibility for us to also make the most of opportunities. The focus always in the preservation of our AAA rating that we have and obviously looking at making any capital allocation in opportunities that bring a clear return above our minimum acceptable rate.

Excellent. Can I ask a second question, a follow up? Just actually changing -- switching gears a little bit, talking about the energy price scenario. The curves moved upwards. Some of the vortices of the energy price curves close to BRL200. So the question is, how have you been working on this environment? You've been seeing reasonable liquidity to be able to contract at those prices. Whatever you can add would be helpful? It seems that there is an upside for the non-contracted part.

Excellent Bruno, that's precisely it, and what we've been doing and Felipe is here and he works with Rodolph with Copel Comercializa, but it's -- to make the most of this moment the fourth quarter, the volumes of energy traded for 2026 already exceeds the BRL180. That was one year before the level that few people could see, could foresee. For this quarter now, we've already been able -- the moments when the price was above BRL200 and we made some sales, and this will appear in the results of the fourth quarter on the next conference call. So I think that's an advantage. There is still moderate levels, nothing that expressive, but we're not seeing any serious issues or any critical liquidity issues, the whole markets after those events with some of the traders restricted some of the credits, which, in our view, is very good. And it doesn't make any sense to have it and sell and then have that kind of problem. And Copel is a big generator is very cautious and attentive to all of that. But we are being able to make the most of those opportunities and volatility to be able to allocate a little bit of our energy that is not contracted and generated value not only to 2026, but also as Felipe said, Felipe Gutterres, with a view for 2026, 2027, 2028 and at some point, even a little bit a smaller amount, but a little bit for 2029 for those clients who have a longer view. Felipe be any additional detail, any comment?

It's just important to note as well, in line to the definition of the strategy that we have that has been positive for us is our agility and execution as well as our discipline. Daniel mentioned it well for the average cost at a higher price.

Great, thank you.

Next question. Guilherme Lima, Santander. Please, Guillermo, go ahead.

Good morning. Thank you. I'd just like to confirm -- I'm sorry if you already mentioned it, and I missed it. But just the timing for concluding the optimum capital structure study and the new dividend policy. If there is a timing for that. And for the capacity auction, if you can talk about the ordinance that the invitation to bid that was published and we saw some points already defining the capacity factor for plants located in the South and Southeast. If you can talk a little bit about what you see in terms of positive points and competitive edge for Copel? Thank you.

Guilherme, first the timing, as Felipe mentioned, the idea is to present the optimum structure view and the time that it will take -- what time we're thinking about the execution will be along with the simplification. It's important to mention that our dividend policy is already very good. It already allows us and gives us a lot of flexibility, but we're going to simplify and maybe not have as many steps to bring more benefits to the company in our view. Always keeping in mind that our policy privileges, bonus and investment, so the available cash flow. So Guilherme, our idea is to present all of that in May, along with our first quarter earnings conference call. So that's the first part of your question. The second part of your question about the capacity auction. They're already making progress on EL this week as well approved for consultation, some items and some terms, but what we're seeing is the minister also made comments during the week that almost 7 gigawatt of project, but just to simplify the ones that will be -- how many will be ready and how many with the guarantees and the deposits to be approved for the auction, but it is going to be big. Some people are saying there's no concrete numbers, but they're talking about more than 10 giga for this auction. Most obviously, considering the amount of products, it will be for focused on thermal power plants, but we believe that the hydro product will have an interesting size that we've been able to estimate. We don't know what -- how big it's going to be 2.5, 3, what it will be, but we believe it will be a reasonable size because it is without discussion, the most affordable sorts and the only renewable source for that auction. So in benefit of the price. And for the consumers, I am convinced that the hydro product will be the cheapest from all of the products that will be auctioned in July 2026 -- 2027, but we're working here to have two plants there, Foz do Areia, with 840 mega and Segredo with another1.2 gigs and firing computing for --- competing for good allocation. So we have -- these projects, each one of these projects has its own features and competitiveness, but we're very confident that the hydro product for the first time will show an additional attribute in terms of power that is completely required by the operation -- for the operation.

Excellent, thank you.

Next question. Maria Carolina Carneiro, Safra. Please go ahead.

Thank you for the call and for the opportunity. If you could talk a little bit. I'd like to see -- to hear an overview of what you believe are there in terms of regulatory discussions to try and help address curtailment, of course, your portfolio is a lot more hydropower, but this quarter as well as in other quarters, we still saw a lot of stress and negative impact of this phenomenon for the company. So if you can share with us -- how this topic is progressing in terms of regulation and maybe could reduce this for the companies. And the second point, you had another interesting divestments in case of Baixo Iguacu. If you could remind us, within your asset portfolio, if you have another asset or another opportunity that you are identifying -- or you are looking at both to continue in this optimization process of your asset balance sheet or working on the better capital allocation, as you mentioned at the beginning of the call? Thank you.

Hi Carol, Good morning. I'll start from the end of your question, which is about Baixo Iguacu. So if we look, if you remember, at the time of the follow-on, what we said was we want to optimize and simplify our structure, and decarbonization of our matrix. So we started with Banco Compagas than the small hydro centrals that we mentioned in the opening remarks, in the sense of focusing on the larger assets. And then we started the granularity. So that was the asset swap with Eletrobras that I also mentioned that was very positive consolidating the Mata de Santa Genebra. We know the assets well, all have synergies with our current operations. Within these lines of simplification, there are a few assets where we have minority stakes and our plan, we're paying attention to all of that, but they're smaller and less relevant for the size of transaction. As for Baixo Iguacu, it was a movement, I'd say a window of opportunity that came up, and I think it reinforces what we had said that our company, our minds are focused on capital allocation of where we can generate the best returns for the company. So we saw that opportunity, and the competitive process that was led by our partner, and we optimize that in the way that we saw as best for the company, showing the quality and the work of the new management along with our current team, as I mentioned, that was led by Diogo Mac Cord along with our team here, our partners done excellent work. So with that said, Carol, in terms of optimization and simplification, the majority has already happened. So there may be very specific things here and there of swaps and some transmission companies where Copel has 24.5 but less expressive values. And the next stage, I believe, it should make good capital allocation in the medium, long term to be able to add other opportunities, business opportunities that may arise, always within the scope of generation, transmission, distribution and trading of energy. Now about curtailment. This has been talked and discussed, it's a reality that's here to stay. It's a reality that has been hurting a lot of companies. Fortunately, Copel as Felipe said, since it's an integrated company with a distribution arm that has been proving significant to the results and even in generation and transmission, a lot of GeT results come from transmission, which is a very safe segment. And in generation, 18% only comes from wind power, 82% from hydro power plants, and the impact is very limited. But nobody likes to see resources being wasted or not being accounted for. So what we believe and what would be reasonable in the short term is that classification of what is an availability was electric and availability and try to mitigate this. That's the very, very short-term solution, at least addresses partially the impact. And a broader discussion in terms of restructuring, we do not see that in the short and medium term. I think it's going to be a more complex discussion. You see the Ministry and ANEEL engaged and concerned, and we are monitoring as well and working hard. But in the short term, I think the reclassification of what is unavailability and what is an energy aspect at least mitigate partially. We believe that in the medium and longer-term views that tends to be a single digit, not much more than that. The operator on the past year was a little bit more restrictive than what could be -- and I believe that they are monitoring and analyzing this. I don't know if you have anything else to add, any elements to share with Carolina everyone.

No, I think you mentioned it well. We are very well protected when we look at our portfolio for generation and transmission, that's a smaller impact. But of course, we continue through the associations and the agents and the support of the Ministry and ANEEL seeking a solution that won't come in the short term, but seeking a solution for the curtailment issue.

Excellent, thank you.

The next question is in writing from Francisco Navarrete, Bradesco BBI.

Good morning. I would like to ask about the performance of wind assets. This quarter was slightly below compared to the other quarters. Could you give us more details of why and how this could be recovered?

Excellent, I think Navarrete, we mentioned -- it's an excellent point. Thank you for your question. In addition to the curtailment and the wind harvest that in 2024 was not very favorable, we have very one-off temporary issues. So Mano, if you can bring more details and see how we are addressing it and the small dimension that it has in our portfolio and the companies wind power plants.

So as Daniel mentioned, we had a curtailment, and we continue with a considerable 13% curtailment this quarter compared to 8% in the fourth quarter of 2023. So curtailment remains a point, an issue and some specific parts. We had resources below expected, especially parts where we had good commercial conditions. So that remains a factor that have a second effect, as mentioned. And thirdly, we have one-off issues that are controlled and part of the day-to-day of the plants, we have corrective maintenance and preventive maintenance, especially in the beginning of the year that have been addressed, are being addressed. We have very strong tools for predictive analysis, and we're consolidating these tools. And we've been working on the specific points we identified along with the OEM suppliers. So things that are being addressed that we shouldn't see an impact, a relevant impact. And adding to this, Navarrete is that in addition to everything that was mentioned, that was very specific in Brisa and Cutia and temporary transient. So in the coming periods, this has been addressed is that it was in the quarter more affected in these terms, especially due to the ADA. So -- specifically this quarter, there was an impact, a little bit worse due to this detachment of the spot price rather.

Next question in writing, Reinaldo Verissimo, Investor.

Congratulations on the results. Does Copel intend to participate in the next transmission auctions in addition to the generation auctions, is there any possibility that Copel will go beyond the state of its origin?

Hello, Reinaldo. Excellent points. First, looking at 2025, the transmission auction in October in our analysis doesn't have any asset that could make sense for us. So we do not intend to participate. The transmission segment overall is a segment that we have to look at very cautiously because we've seen historically lower and lower results. So that's a point of attention. But what we focused as you mentioned in your question, is precisely the capacity auction. And in terms of the borders of Parana, I think Copel for quite some time transcends its activity. Copel's operating in 10 states now with Colider, it is going to be nine states, but we didn't have that limitation in the past. So [indiscernible] Copel is the second biggest generator there with almost 1.2 gigs of energy. So -- but we are very well known by Copel Distribuicao and the concession in state of Parana. So there wasn't, and especially not now, the distribution segment is a segment that we believe is very attractive. It's a segment where we've been developing over time, a lot of expertise in operation and serving our customers and reforming the grid vis-a-vis the climate events. And it's also a segment where that we believe is very stable, but it's a segment that doesn't have any product on the shelf. There is no asset available. But what I'm saying is that, what we've already developed over time and with the arrival of [indiscernible] and the new team and the changes that he's been making there, I believe we're developing a management model that definitely, if there is a good opportunity, could be expanded beyond the borders of our state.

Our next question in writing. Mr. Antonio Rizzo, [indiscernible].

Thank you for the opportunity. If possible, could you talk a little bit more about the trend of price of energy in 2025, 2026 covering a little bit about the level of the reservoirs transmission lines, minimizing specific issues of energy peaks, et cetera?

So Antonio, this is such a broad question that it would merit its own conference call. I'll answer part of it, but please feel free Felipe and Mano to add because it's a great question. So what do we see? The report high levels -- so we have a good level of rainfall in the beginning of January. Temperatures are milder. We have the reservoirs here at levels that are higher than 2024 even. And still, we are seeing prices varying at a higher level and peaks of even 2015 --- 215, 220 for the coming year, a period where normally the prices would be relatively low. And this has repercussions referred to what, first, there's a hybrid new wave that's new model that is a lot more sensitive to the rainfall and it gets a lot closer to what happens in operations in the real world. So it is very healthy in our view, a very adequate for prices. So we believe that this is something that must continue for us to have that the sign of prices being a lot closer than what we see in practice. And even with all of that with the level of the reservoirs in January, and I tried to dispatch more than [indiscernible] with thermal power plant. So that shows that at peak moments, there is a very relevant need of power that's both hydro or thermal power. That's one point. And then there's the distributed generation size. That's something that's unavoidable. The agencies have to look at that more cautiously because it's the only source that's growing, and it's growing basically based on subsidies that are still permeating. And fortunately, that was [indiscernible] on the offshore that was only going to correct the portions. And there's a final element that you mentioned that are the transmission lines. In September, October, that was more critical. I think there was a big line there for the outflow. And if that comes in, it normalizes somewhat. So long story short from all that I think that the scenario for this industry so that to have reliable operations, you need to have a price signal that's closer to the real operation of the system. And that will lead to periods or moments of higher prices, be it intraday due to the -- our price or longer periods. I went up on for a little bit longer. But Felipe, anything to add to this, any point?

Just to add that this should continue over the year, and this need for power that we see.

Mano, any additional comments?

No, I think you addressed it very well.

And Antonio, I think that on this point here and this price level, we spent two years with the price at the basis are very close to it. So 2024 is close to that on average price at Copel with a P-mix above BRL200 migrated to a P-mix close to BRL175 million. So I'm saying overall because there's still the regulated market. So with this recovery, we are certainly going to see Copel in 2026, 2027 with a very virtuous growth with the recovery of prices, the new tariff base that has been discussed broadly and the level of efficiency that we'll have with the structure operating as a private company, a privately held company. In addition to the operating excellence of our assets that was a strong focus, we are going to have a company certainly in a path to change level that was going to open opportunities for new investments and growth or for better and more significant payments of dividends.

The questions-and-answers session is concluded. I turn the floor to Mr. Daniel Slaviero for his closing remarks.

As was said here during this presentation, I would like to thank you all very much for your presence and attendance the day before carnival festivities begin. But that shows that the number of people participating in questions. The interest that Copel has been seen from the Brazilian market. So remembering that today, we're more than 380,000 shareholders. And we got here in 2019 close to 40,000 shareholders. So that shows the growth and visibility of the company. Another point is, a quarter with a lot of deliveries, consistency and the delivery. And as I mentioned, in the beginning, one of the main deliveries and levers was people, talent, talent retention is the crucial talent we already had in the company and mostly the attraction of new talents. So in January here, concluding in February, we approved this week at the Board a new structure for short term targets, we had already approved the targets on the long-term package in May of last year. April of last year in the General Shareholders' Meeting. So that has a strong alignment in the company that intends to generate value consistently with a culture of ownership and the best management practices. So all of this together in this context, make us here at Copel, me, my partners here at the company, all of our employees are very confident and excited with a lot of enthusiasm for the coming months, quarters and years at Copel. Have a great carnival. Thank you very much.

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

Good morning, ladies and gentlemen. Welcome to Companhia Paranaense de Energia-Copel's Video Conference to Discuss the Earnings for the Third Quarter of 2024. This video conference is being recorded and will be available on the company's website, ri.copel.com. The presentation is also available for download. [Operator Instructions]. Before proceeding, I would like to note that the forward-looking statements are based on the beliefs and assumptions of Copel's management and on the information currently available to the company. These statements may involve risks and uncertainties as they relate to future events and therefore, depend on circumstances that may or may not occur. Investors, analysts and journalists should consider that events related to the macroeconomic environment, industry and other factors could lead results to differ materially from those expressed in such forward-looking statements. This video conference will be presented by Mr. Daniel Slaviero, CEO of Copel; Mr. Felipe Gutterres, CFO; as well as directors of the subsidiaries who will be available for the Q&A session. I would now like to turn the floor to Copel's CEO, who will start the presentation. Please, Daniel, you may proceed.

Hello. Good morning. I thank you all for participating in our video conference. I'd like to greet my colleagues, the directors of Copel who are here. In addition to another quarter with sound operating results, I'm happy to share with you, relevant deliveries that occurred during this third quarter. And year-to-date, Copel, our adjusted EBITDA exceeded BRL1.2 billion. Reported net income also broke the same barrier of BRL1.2 billion, driven by the results of our business, but also positively impacted by some extraordinary events which together reached approximately BRL645 million. The first is the closing of the divestment at Compagas and UEGA with a recognition of BRL170 million in the period. Both divestitures are in line with our matrix decarbonization strategy and our focus on the electrical electricity core. Second, the conclusion of the sale of Copel G&T's real estate in the amount of BRL286 million, adding approximately BRL175 million to the net income. Those properties were comprised of several plots of land scattered throughout the state of Parana, including residential villages at the plants, which did not contribute to energy generation and cost nearly BRL5 million annually in maintenance costs. So, these two moves represent yet another example of the flawless execution of our strategic plan that we presented to our investors in our follow-on in mid-2023. I'd also like to highlight that in line with our practices and our dividend policy, we declared dividends of BRL485 million to be paid on November 29, equivalent to 50% of the payout considering the results of the first half of this year. Another hallmark of our management is the consistency in deliveries. This quarter, in addition to completing the exit of 1,258 employees on August 14, we made this move by ensuring the quality of service to our customers. This was only possible due to an extensive mapping of critical processes and activities, combined with a detailed plan for knowledge transfer, mobility and internal promotions. All of this work developed over the last few months has enabled a safe transition and the maintenance of the quality levels of our services. The reduction in personnel costs, isolating the inflationary effect and placing it on a comparable basis was a drop of 11.2%. Felipe will bring more details of the P and MSO numbers during this quarter. Within the people aspect, one of the things that has brought me the most joy in this new phase at Copel is the ability to retain and attract the best talent from the market to our company. We have been joined in recent weeks and months, the following Vice Presidents: Marcia Baena, People and Management; Diogo McCord, Strategy, New Business and Digital Transformation; this week, Yuri Ledra, Legal and Compliance; and Marco Antonio Villa at Copel Distribution, who's here with us at this call. All of these professionals with a long background, having been through renowned companies, but mainly with the skills required for this moment of transformation at our company, and they came to join the more than 4,500 Copelians who constitute the main asset of our Copel, which on October 26 celebrated 70 years. To conclude, I'd like to address an extremely relevant topic for the sector, the commercialization or trading of energy, especially from the Copel G&T portfolio. We execute our energy sales strategy with excellence this quarter. Since the end of last year, we have made several sales in a staggered manner and small amounts and medium-sized amounts to reduce the risk of disengagement and seek the optimal P mix. We reached the third quarter and the prices have improved considerably. We've intensified our sales, resulting in a significant margin increase, and we closed the quarter with a sum of higher than the volume of the previous two quarters or the first two quarters of the year, more than 537 average megawatts contracts for the period between 25 and 28. So this approach not only optimizes our financial results, but it also positions us as an agile player who's attentive to market opportunities and responsive to price volatility. With that, we can see in the chart that the contracting levels of Copel G&T's portfolio for '25 and '26 are practically closed and in line, considering the hedge of around 15%. That's what we normally have with additional room, especially for 2026. Another point I'd like to address is the credit risk in the market with rumors that another trader of a reasonable size would be facing financial difficulties. This was not the first, and it will not be the last time that this happens, even more so with this new market reality with abrupt price variation, submarket risk modulation among so many other aspects. And what we've been doing is to increasingly seek a restrictive credit policy, maintaining long-term relationships only with large counterparties or end consumers or customers. This has made it possible for us to go through this period of turbulence with practically zero or very low impact for a company the size of Copel. And finally, I'd like to invite everyone to attend our Copel Day on November 26 here at the company's headquarters in Curitiba for those who attend in person as well as online, of course. I reinforce this invitation so that as many investors as possible can be here with us. Our agenda will feature the presentation of the company's new C-level and panels with the main topics of our value generation strategy. Topics such as organizational transformation, people management and culture, efficiency, investments, innovation, trading, as we talked about, portfolio management, tariff review and regulation will be addressed. At the end, there will be thematic rooms with our main executives. I'd like to emphasize that we're leaving a unique moment for the company, and we are convinced that Copel will be the great reference in the electricity sector in coming years. Now I invite Felipe to give you more details on the company's earnings, and we will move to the Q&A session afterwards. Thank you.

Good morning, everyone. I'd like to start by reinforcing a fundamental point of our thesis. We are an integrated company with diversified portfolio and long-term concessions. In this sense, I highlight that in the coming weeks, we should sign the new concession contracts for our three largest hydroelectric plants, which correspond to 64% of Copel's installed capacity. And subsequently, we will pay the grant bonus in the updated amount of about BRL4 billion. This is an important milestone for Copel because it further strengthens our position and ensures the continuity of our operations in a sustainable way. Our concessions are a fundamental pillar in this process with long-term contracts that guarantee the stability and continuity of our operations. Now moving to the analysis of the quarter. This is a challenging quarter at Copel G&T and COM, affected by the curtailment effect on wind assets and the decoupling of energy prices between submarkets. At times like this, our integrated company strategy and our diversified portfolio showed their strength, and we're able to reduce risks and ensure good results even in an adverse scenario. This quarter, we delivered a robust adjusted EBITDA of BRL1.2 billion with 52% from Copel G&T and Copel Com and 48% coming from Copel Distribution. Adjusted EBITDA was 10.9% lower than the BRL1.4 billion in the third quarter of '23, mainly due to the reduction in the average energy price at Copel Jet portfolio to BRL176.31 compared to BRL204 last year as a result of the termination of a contract in the regulated market that occurred in September '23 that had an average price of BRL253-megawatt hour. There's also a drop in the results of wind farms, mainly impacting by the generation deviation with an effect of BRL67 million, mainly caused by the 23% curtailment in the period. On the other hand, our network business stood out with an increase in EBITDA of 8.7% at Copel Dis, reaching BRL607 million. In the coming slides, I'll give you more color about the results of the business units, starting with distribution on the next slide. Copel Distribution, as I just mentioned, generated an EBITDA of BRL607 million in the third quarter of '24, 8.7% better than the same period last year. This result was mainly driven by the 4.4% growth in build consumption as a result of higher temperatures and greater economic activity in our concession area in Parana. The tariff adjustment of June '24 also contributed to the results with an average increase of 2.7% in the tariffs for the use in distribution system. Another highlight was a 32% reduction in provisions and reversals with a drop of BRL27 million in expected credit losses. In the last 12 months, we've reached -- actually, year-to-date, the last nine months, we've reached BRL2.4 billion in adjusted EBITDA, BRL700 million above the regulatory level, equivalent to 41% better. Speaking now about generation and transmission with an adjusted EBITDA of BRL649 million, Copel Jet had a lower P mix than last year during the third quarter as we had a contract in the ACR of 478 average megawatts with a sales price of around BRL253 per megawatt hour, which ended in September of '23. In addition, the performance of the wind complexes was negatively affected by the generation deviation, mainly caused by the 23% curtailment as mentioned. And on the other hand, there was a decrease of BRL34 million in the revenue from the availability of the electricity network, mainly as a result of the periodic tariff review applied to transmission contracts. All of these effects were partially offset by the reduction of costs with the acquiring of electricity for resale by BRL33 million. Year-to-date, Copel G&T recorded EBITDA of BRL2 billion, a double-digit reduction compared to the same period of the previous year, basically due to the drop in energy P mix and the curtailment effects already mentioned. Moving to trading. We closed the quarter with an adjusted EBITDA of BRL3.2 million compared to almost BRL20 million last year, reflecting mainly the difference between the hourly contract generation curve compared to the consumption profile and the difference of price between energy submarkets with an impact of approximately BRL30 million. But I'd like to reinforce, as Daniel already mentioned at the beginning of the presentation, the excellent execution of our energy trading strategy, which resolved risks throughout the year and now in the third quarter, intensified energy sales at a better time of market prices, generating value for the group. In addition, I also reiterate that we do not have a large exposure of our portfolio to modulation. That is, it's a limited exposure at a low level. Note that despite the one-off impact on the trading company's results, when taken to the consolidated context, the amount was little materiality. Zooming in on manageable costs, we have maintained strict control of manageable costs, but always with the care to preserve the quality and safety of our activities. Highlight of the quarter were the first positive post-voluntary severance program impact, for better comparability, we've adjusted the PMSO lines, given that last year, the personnel line was impacted by the record of BRL610 million in provision for the severance program. And this quarter, in the line of other costs, there was a recognition of the sale of Copel G&T real estate in the amount of BRL264 million and an addition of the voluntary severance program of BRL18 million. So, on a comparable basis, neutralizing the effects of provisions related to compensation, such as performance bonuses, profit sharing, long-term incentives, et cetera, there was a reduction of 7.7% as a result of the reduction of 1,393 employees in the comparison between the period, mostly related to the department employees on August 14. If we isolate inflation accumulated in the period, we would have a reduction of 11.3% or BRL25 million in personnel costs, in line with the cost reduction reference that the company previously reported. In the fourth quarter is when we're actually going to see the full effect of the voluntary severance program, we see a partial impact of 45 days in the quarter. This reinforces our ability to execute and our consistency in delivery. Looking at the other PMSO lines, we noticed a small growth of BRL9 million in third-party services, essential to strengthen the prevention and maintenance operations of the distributor network, especially aiming at ensuring quality and safety levels in our concession area. These activities include, for example, intensification of pruning and mowing in the vicinity of our distribution lines. We also see an increase of BRL26 million in the other costs not directly related to OpEx, but due to the activation of equipment that we had residual values with the scope of the distribution investment program. I reinforce that this effect represents less than 5% of Copel's investment in this quarter. Concluding this topic, we also see a reduction of BRL73 million with provisional reversals and effect of a provision related to the MCST methodology held in the third quarter of '23 and the reduction of BRL27 million in EBITDA for the quarter. Now on net income, we'll talk about recurring items in this regard exceeded BRL572 million in the quarter, 16% higher than the record in the second quarter. Quarter-on-quarter, the lower result was especially due to the effect on the high amount of IOC declared in September '23, impacting the tax line. In the year-to-date in the first nine months of September, recurring profit was already exceeding BRL1.6 billion. Now with the reported results, we have a profit of BRL1.2 billion in the quarter, leveraged mainly by the result of the sale of Compagas UEGA and the properties of Copel GeT, Libi real Estate, which together impacted the income by BRL644 million. As a result, we have a result year-to-date of BRL2.2 billion, 61% above last year. Now on investments, we had historic levels of CapEx, strongly driven by the distribution divestment plan focused on regulatory remuneration base efficiency and quality of services. We've already paid 75% of CapEx forecast for the year, especially at Copel Dis, which accounts for 86% of the forecast. Progress of the investments is in line with the schedule. Finally, talking about indebtedness. Given the robustness of our cash due to the BRL2 billion raised in the follow-on last year for the payment of the grant bonus for the plants and the renovation, we maintained a leverage of around 1.5 times in the net debt over EBITDA ratio. This scenario will change as soon as we make the payment of the grant bonus, which should happen in the coming weeks. I'll remind you that our covenant limit today is 3.5 times net debt over EBITDA. Our operating cash generation exceeded BRL1 billion mark. Our average amortization period is four years with BRL6 billion maturing only after 2029. I end my presentation here by thanking each one of Copel's employees for their strong work, commitment and continuous dedication. We are confident that our long-term strategy and focus on efficiency, quality and results will continue to help us move forward and deliver value to all of our stakeholders. I would also like to reinforce, as Daniel said, the invitation to Copel Day on November 26. Thank you again for your participation, and we will now move on to the Q&A session.

Thank you. We will now begin the question-and-answer session. [Operator Instructions]. Our first question is from [Indiscernible] by Reynaldo Francisco.

Congratulations on the earnings. With the divestments, Copel will come strongly in the '25, '26 season in transmission auctions. Is there a possibility for Copel to invest in the free market?

Hello, Reynaldo, good morning. We don't have any expected investments in transmission auctions, at least not for 2025. We participated on the last auction this year because it was here right next to our operations with a lot of synergies. But otherwise, it's not in our focus or priorities for 2025 or 2026.

Why?

Because we see some opportunities that we consider organic, even in the capacity auction here and on the last cycle, of investments at Copel Distribution in 2025. Yesterday, we also announced CapEx for 2025 of BRL3.29 billion that the market may perceive as another commitment that is robust for investments in the improvement of our network, reduction of costs and improving customer service. Copel G&T at the same time also has expressive values above BRL200 million for improvements. As for investments in the trading areas, I think Rodolfo is running ahead and restructuring the team. So initially, we don't see any opportunities that may make sense to us. We are restructuring and improving and expanding our structure, our sales capacity, our strength. With clients in the market, and we believe we can do this organically. Also, because we have the most important asset for that, 2.4 gig of physical guarantee of average megawatts to sell in Copel G&T. Of course, it's something that's very opportune comes up, if it makes sense to us. But we understand that we have here an organic opportunity with the structuring our trading company, attracting new employees and strengthening our teams. And the earnings in the quarter in terms of sale already expresses some of our vision and efficiency that Rodolfo has been implementing with his arrival as well as the new wave of professionals on Copel's team.

Next question from Bruno Amorin from Goldman Sachs. Bruno, your microphone is enabled.

Good morning. Thank you for this opportunity. Even with the payment of the grant bonus with the renewal of the concessions, your leverage will remain at a level that seems very comfortable. It's 1.5 times today, maybe 2.2 times after the payment of the grant bonus. So, the question is whether you understand this as the right level or if there's room to leverage the company increasing the dividend payout. You just talked a little bit about the capital allocation strategy. So, it seems that the company will be very disciplined, focusing on the current portfolio. So just to understand the trade-off of maybe having a deleverage balance to make the most of opportunity vis-a-vis the possibility of the payout of more dividends from now on. Thank you.

Bruno, excellent point, especially considering the market scenario with the level of discounts and prices, how Copel is going to be positioned. So, we'll break it down into two parts, okay, talking a little bit about the current policy that already expects this level of leverage that you mentioned in this range from 1.5 to 2.7 with a minimum payout of 50% and extraordinary events as the sales and the sale of real estate, for example, we treated that in an extraordinary manner, and that's what we intend to submit to the Board at the right time. As for the optimum capital structure, Felipe is running this work, so I'll ask him to give you more details. Will give you a better view of times and movements at Copel Day. You'll see more. But Felipe, if you can share.

What we see and noting that both ordinary and extraordinary payouts such as the case that I mentioned, they will be addressed according to the materialized sales of assets and additional opportunities, they in depend of an optimal structure discussion. And we have this, but already executing and seeking the optimum structure considering the opportunity for the ordinary and extraordinary dividend payout. I think it's important to say that the company is not going to operate in a suboptimum point. This is very important to know. And another important point is that, of course, we're acting with a capital structure that is still a legacy. And we have to think and reflect on it, and this reflection will follow a few parameters. One, to look at the optimum asset portfolio, the modeling of all of the cash-generating business units, the transversal variables that have to be considered in the modeling so that with that, and especially with the price of energy, we'll define the minimum strategic cash that the company has to maintain. And then based on that, the optimum capital structure that gives us room to optimize the structure, either through dividend payout, of course, and other capital allocations.

In addition, just a comment, Bruno. As Felipe said, the structure and our policy gives us flexibility already even for us to analyze IOC. During the year, there have already been payments in this format. And as usual, we always reassess. So, by the end of the year, we'll reassess whether there's room and opportunities to optimize using the IOC tool. So, all of that moves along so that with the closing of the year, already with that increase of BRL2.2 billion of the net income of the last nine months that would already correspond to 50% plus the extraordinary that I mentioned, we'll be getting close or moving towards Copel's path as a mature company with assets and excellent cash generation can use this dividend payout as a way of correcting leverage. So just noting, remember that on Copel's history, this has already been done in the first cycle here in the cycle of '19 to '24, we had a very low leverage below 1x. And we said that the profit sharing was part of the strategy with the sale of Copel Telecom at other levels, other value dimension. But that's something that over time, it's something we've done, and we've been using that very well. And we know that at this time, when the market is at a discount, this is one of the best possibilities of capital allocation for those resources that come from the company's operations.

Next question in writing from Lilyanna Yang, HSBC.

Good morning, could you please comment on the strategy for energy trading of energy that has not yet been contracted and the uncertainty of the hydrology impact in the short-term prices. Thank you.

Rodolfo, I'll give you this question to make some of the comments and Bertol, if you want to talk as well about GSF or hydrology. So please, Rodolfo, share our strategy and how we've executed and making the most of the opportunities in terms of price volatility.

Good morning. So okay. First, this recent price drop was expected. We had already simulated it. And therefore, our strategy was to accelerate sales in '25, '26 forward a little bit this quarter in October before the wet season. So how can I say it? For 2025, our revenue is completely locked. And this price drop is good because it's an interesting time for us to run some operations to reduce risks, both in market risks and GSF. For 2026 onwards, considering the new structure of the system, we'll have increasing volatility, as Daniel said. So even with the rain, we still don't see a relevant recovery of the reservoirs. And we understand that at the end of it, there will be good opportunities for us to lock energy for the sales in 2026, noting that it's an amount that responds to about 10% of our physical guarantees. And the same thing from 2027 onwards. So, the idea was also to have the windows with a high price and low price. So, we have to be fine-tuned commercially to make the most of the windows. If the price goes down, it's a good moment for us to reduce risk and lock the portfolio and run opportunities for results. If the price goes up, we lock the revenue always at the credit limit with good liquidity with the commercial stance adapted to the market reality. But all GSF.

Good morning. So, GSF is always a concern for energy traders, especially for generators in the hydroelectric plants. The wet season now with the rains is more favorable, but it came in late, right, Rodolfo? The level of reservoirs in the system and the storage index is lower than the same period of last year. So Copel with a very well-articulated strategy has been leaving the hedge for this GSF exposure. And we expect here in the way we put it, that it's very predictable compared to the expectation of GSF for next year in the short to medium term. So, this strategy is articulated and very efficient, represented by the great success that we've seen in trading this third quarter of '24.

Our next question, [Indiscernible].

Could you please comment about the company's expectation for the curtailment levels for the fourth quarter of '24 and the beginning of '25, considering the changes in the methodology and the investment and the entry of transmission lines in the Northeast.

That's an excellent point. The curtailment is something that's been very sensitive for the entire sector. But first, I'd like to put it into context. What is the size of these impacts in the Copel environment? First, I know you keep track. And I think one of Copel's biggest strengths is being an integrated company where you have the distribution company with about 50% of our earnings in the quarter coming from distribution with an excellent performance from Vilas and the team. Then generation and transmission, we have a share of more than BRL1 billion per year on the RAP that are immune. And when you go into the generation portfolio, we have 81% of our generation from a hydro source that gives stability to the system. And this will, in our view, have characteristics to be valued and priced in the best way possible in coming years. So, in this context, 19% in an area that responds to less than 20% of the company, we've been seeing complex situations. You can see that at Copel, curtailment represented about more than 20%. So, we have a very critical period for -- and has been very restricted, and there was a delay in some important lines and the flow of more than 2 gigs. And with the entry and it's already normalized, so the energy available now at this point is smaller. But it's an inherent issue that has to have the regulatory, technical and even indemnity aspects for the different generators. We're talking about a reality of developments in Rio Grande do Norte and Ceara that are the most affected regions had very relevant impact. Even for Copel, one of the parks had a very significant process. So, what we see looking forward for '25 onwards is that this is a new reality that will remain for the curtailment tends to be an effect that's here to stay. And what we think is that there will be maybe lower levels, not so significant, not so expressive. We also expect that the treatment of this by ONS is more balanced. We had an improvement already decentralizing and reducing it for all the operators in the Northeast region, especially. But this is a reality that needs to be addressed in structural terms by ANEEL and the Ministry and ONS, and we intend to have an active discussion even with the relatively small impact. Nobody likes to leave money on the table, especially money that was not expected in the operation reality, at least until mid-last year. Bertol, please go ahead.

The effect of this curtailment hasn't affected the entire renewable generation results, especially in Rio Grande do Norte and Ceara. As you said, Daniel, the third quarter was the worst quarter for the restriction of generation, we saw smaller values last year, smaller figures in the first quarter as well, but this third quarter expanded restriction of generation due to the limitations of transmission and generation and local generation in the Northeast. But with the entry of three transmission lines on October 16, has allowed us to expand the energy transfer in this exchange between thee Southeast and Northeast regions and the Northeast and North. So that's already improved. Almost 1.6 giga to the Southeast and almost 2 gigs to the north. And there's also the expected entry of an SQV network in the state of Bahia that will also expand this energy exchange that gives us a better expectation to reduce curtailment, especially regulatory and operation actions in the system that are required to the system reclassification, and we expect ENA to be sensitive to reclassify these losses based on the regulatory instrument.

Next question, Mr. Daniel Travitzky from Safra. Please go ahead.

Good morning, thank you for the opportunity. I'd like you to please talk a little bit more about the cost dynamic. We've seen a reduction in the personnel line in line with the voluntary severance program that you talked about. But we see an increase, especially in the third-party line when we look on the year-on-year comparison. I'd like to understand a little bit more how you see this dynamic and what we can expect looking at 2025 onwards. Thank you.

So, we had a reduction, as you mentioned. And during the presentation, we saw a significant reduction due to the severance program, and we only not full it because we're still seeing it with an impact in the salary. But looking and zooming into the distribution, we have an effect on, basically related to the quality of service and Vilela can talk about it. And we also had write-offs of equipment that have affected in more than BRL20 million on the PMSO line that is related not necessarily to OpEx, but to our investment plan at the distribution company that will obviously -- that will have a counterpart at the basis in terms of remuneration.

Good morning, everyone. Reinforcing what Felipe said, we had a quarter due to the atypical storms, we reinforced our operating teams to maintain the quality of supply to our clients, and that was the main reason for the increase in the service line. And adding to that, Daniel, we're going to give you more color and more detail on all of this and how we see the projection of cost and PMSO at our Copel Day, so that for the '25 and '26 cycle. Remembering that last year, we already have that commitment to reduce by 17% with the LTM PMSO for 2023. And we are here very much in line. We are on track at this execution, as Felipe already mentioned. And we're starting to f partially this quarter, but we'll see this more clearly in the fourth quarter and especially in 2025. And on Copel Day, we'll show you the lines overall permeating the entire company with a very relevant reduction path, those BRL5 million in maintenance cost because of the real estate, selling the real estate. So, with the distribution company, there's another characteristic that not only with the climate events, but with the reinforcement and maintenance and preventive efforts as we've seen in different distributors around the country. And we also have to consider that this is the last tariff cycle -- and there must be some points of attention where we're going to have the 2025, 2026 cycle, hoping not only to reach the targets that we talked about on Copel Day 2023, but also bolder goals in that line. It's not an end on itself, cutting costs, but reviewing and removing inefficiencies from the period of the company being state, but also gaining competitiveness, moving hand-in-hand with the best reference companies. In the first quarter, we already have it in different areas, different segments and operation, maintenance of wind generation is already a reference. And we're also seeking for a general line for the company as a whole.

Excellent. Thank you.

Next question, Marcelo Sa, Itau BBA. Please, Mr. Marcelo, your microphone’s been enabled.

Good morning. Thank you for the call. I have a question about the capacity reserve auction. If you can give us more information, the invitation to bid should have been released already. We expected it to have happened this year, but now definitely only next year. And of course, there's also on the last weeks, a relevant change in the hydrology scenario. I'd like to understand whether you think there may be any implication for the amount of capacity to be contracted. I understand, I think no, but I'd like to understand your view, what you understand in the capacity for this contracted energy. And finally, if you can talk about the volume that you sold in energy, especially from '26 to '28, an idea of price range, BRL160, BRL150, considering the quarter was positive for trading.

Marcelo, for the capacity auction, the system has an urgent need, and we believe and we continue to believe that this ordinance with the invitation to be with the conditions, the lines are coming in at any time. I find it hard to believe that this will be delayed. They must do this by November. They must publish this invitation by November. And then as you said, it's going to be for the first quarter of next year, probably the end of the first quarter by the month of March. We don't have any information about the size of this, the segmentation of the products. But the expectation is that there will be a reasonable volume of hydropower plants, and we believe it will be, we expect it to be the biggest possible because they complement a lot in terms of the need for the safety of the system. So, this is urgent for 2027, '28 and also the end of '26. In our view, this is something that should take days or maybe weeks for this to be released. And as we said, we are getting ready, and we're quite advanced in order to be able to participate very competitively.

Now for the volumes, if you can give us a range or just highlights with some amplitude, not a lot, but not that little either. But for the strategy and confidentiality of this information. But anyway.

Okay. So, in major terms, we can consider not in '25 that's above the market price, but we shortened our strategy to BRL10 to BRL15 above price today. So, it's BRL26 above BRL260, BRL27 on 2050. So, it's a macro number, 25 above BRL275. So, it's around that range. Respecting the credit limit, we have to be careful with the market oscillation that comes in. There's a lot of good proposals coming up, but they're not necessarily robust. So, we have to be very cautious considering the market situation, being able to lock that and maintain the quality of the portfolio.

Excellent, Thank you.

Our next question Guilherme Lima, Santander. Guilherme, you may go ahead.

Good morning. Thank you for the question. You mentioned on the release the impact of approximately BRL30 million resulting from the differences on our generation curve and the contracts and consumption, the price difference here between the submarkets. If you can talk a little bit more about how you see this risk from now on, how it could impact the company and how you're positioning yourselves?

Great, Guilherme. I think you put it very well. Rodolfo, that would be in a trading topic that's very present in the market.

Volatility is the new normal. It's already been mentioned, talking about the sale and now a little bit about prices. That's what you said as the minimum Marcelo and everyone.

With this new reality, taking the most of the opportunities. Now about submarket and modulation, if you can give some color.

I think we've had the most critical period was September, completely different from the rest of the year and everything that we've seen for October and November. So, starting with that from September, it was an atypical situation. October has already normalized. It ends in November. I believe it will be close to zero in December. But looking at Copel's portfolio, -- we have a very small percentage of contracts that bring us this type of exposure, either modulation of the sun power generation, solar generation or -- but we've been managing this risk in different ways. The first is intrinsic to our business. The mix of sources that we have in our portfolio really helps us with that. When solar power is with a small result, we have the benefit of hydro plants or wind farms. That's the first point. Still, we've been adopting some commercial strategy to further mitigate this. First, we had an intense analysis of which customers have the proper consumption that help us mitigate this type of problem. We're working heavily in the clients to improve the portfolio in terms of energy provision and supply as well, reducing that. And as I said on the previous question, when the prices drop during those windows, there's an opportunity for some financial hedges for that type of product. Submarkets or modulation. And we take this moment to lock these positions. The 25%, if we take submarket, it's almost 50% equated and 26% as well. So overall, that's the balance that we work on. As we are not selling, we make the most to lock and position ourselves for this risk. In this amount, Guilherme, half basically was submarkets and half was about modulation. And when you only have one or two months atypical, we need to look at it as a net product. And on off on a month or a quarter, we need to look at the risk calculation to see the value that should be or would be worth considering on the annual hedging. So, we're getting to an optimum portfolio so that this exposure is the lower possible. Of course, with this consumption client, but also finding purchasing hedges when the market is at a good scenario, paying too much for that. Well, sometimes it's worth running a risk 10, 11 months in the year and having 1 month or another with a slightly higher impact.

Great. Thank you.

Our next question, Antonio Junqueira, BTG Pactual. Antonio, your microphone is enabled.

Good morning. It's great to see the company in the past months being reinforced with a lot of heavyweight people to help Daniel, you and your team on the day-to-day. So, the last announcements have been very good. And I'd like to ask a question about this specifically. Just about a month ago, you brought Diogo in. He's highly respected with a very interesting career, and he was brought in to run strategy and new business. And naturally, it made me very happy, made a lot of people very happy, of course, because he's highly qualified in his career and his intellect. And there's also a question. I mean, someone so capable to run new business. So, I'd like to hear from you. What you think, of course, about him in the company and new businesses as well. I don't know if the company is thinking about things outside of the box, maybe that we haven't identified. So first, really, congratulations. It's a very great hire. But I'd like to understand a little bit more of how you see the strategy for new business by bringing him in.

Well, thank you, Antonio. So first, Diogo very similar to you, actually, he's coming back to his origins. He's coming home. I mean, he has been through Copel not as an employee, but working at the beginning of the first tariff reviews and you're also having a great new challenge here at your new home. And Diogo lived in Curitiba for a long time. He graduated here, and then he followed his brilliant career, as you mentioned. So, people already knew him and he knew us. So, what brought him here, first of all, is a long-term vision and a belief. I mean, he was doing very well as well as the other executives that we brought in. They were all very well positioned in their previous places of work, but it's a real belief in Copel's case and the possibility for growth. But it's a belief in a growth potential in the long term. So, what's his mandate? First, he has a chair now he's a VP that is very much stronger than it was in the past because we included strategy, new business, M&As, IT innovation and digital transformation. So, it's a seat that is very adequate to his level, to his experience. So here this year, this month, since his arrival and at least for the coming year, there's a lot of processes and internal visions for digital transformation and then running this digitalization shock that we're running to provide support to the exits of so many people, the restructuring of the organization. So, the work being done from the door in is very relevant, and we'll give you more details during our Copel Day. And we also have a strategic discussion point, the strategic objectives for the long term, the year of 2030 or even further. So, we need to build this in the coming months. And this will be presented to the market probably at Copel Day 2026. So, I'd say his mandate is first, to organize house and provide support in the views of the organic growth opportunities, so to place his knowledge in regulation, for example, he will help Andre, that's the Regulation and Market Vice President in tariff review or the definition with Villela of the new investment cycle for 2026 to 2031. So, there's a lot of opportunities for internal improvement, structuring improvements in-house so that later, when the company already have the efficiency and a clear view to be able to make opportunistic moves in the future. But always, and that's a lot of how Diogo is and Felipe and the entire team here with a lot of discipline. I think we've shown this in other opportunities, right, Antonio. We showed this in the transmission bid where we went to that asset class with a lot of discipline. And we have here the regulatory institutional view for the infrastructure of the business. We're reviewing all of our processes and frameworks working together with Felipe and the way that the investments are analyzed, the capital structures for investments and divestments. So, we are very pleased, and I appreciate, I thank you for your recognition, yours and a lot of the market with Diogo's arrival to add to this team of great talents who came now and the talents who have already been at the company and brought the company to the present moment.

Excellent. Thank you.

At this time, we close the question-and-answer session, and I will turn the floor to Daniel for his closing remarks.

Once again, I'd like to thank you all for attending our conference call. The number of attendees and questions show us how the market is very interested in Copel's case. And since this quarter here with my colleagues and the Board of Directors and the C-suite and all of the workers at Copel, we concluded another quarter of deliveries with a consistent execution of our strategic plan of what's already contracted and of other opportunities that may arise for the company, be it in terms of reorganization, structuring, efficiency gains, organic growth, and at the right time in the future, other opportunities that may come up for the company. I would like to conclude by really showing and reinforcing that we are going through this unique moment with the arrival of this new C-level that we talked about, all of the deliveries that we've already mentioned, but mostly our commitment of all of us at the Board, the C-suite, the people with a long-term vision, and we are convinced that Copel will be the major reference of the electrical industry in coming years. Thank you all very much. Have a great day.

Copel's conference call is now closed. We thank you all for your presence. Have a great day.