AXIA Energia SA

Good morning, ladies and gentlemen, and welcome to Axia Energia's conference for the discussion of the results for the first quarter of 2026. Present here today are Mr. Ivan de Souza Monteiro, President of Axia Energia, Mr. Eduardo Ayama, Executive Vice President of Finance and Investor Relations, Mr. António Varejão de Godói, Executive Vice President of Operations and Security, Ms. Camila Araújo, Executive Vice President of Governance and Sustainability, Mr. Elio Wolff, Executive Vice President of Strategy and Business Development, Mr. Italo Freitas, Executive Vice President of Commercialization and Energy Solutions, Mr. Juliano Dantas, Executive Vice President of Technology and Innovation, Mr. Marcelo de Siqueira Freitas, Executive Vice President of Legal Affairs, Mr. Renato Carreira, Vice President of Learning, People, and Services, Mr. Robinson Pinheiro de Campos, Executive Vice President of Engineering and Projects, and Mr. Rodrigo Limp, Executive Vice President of Regulation, Institutional and Market. We would like to inform that this event is being recorded and will be made available on the company's investor relations website, along with the presentation being shared today, both in Portuguese and English. To view the presentation in your preferred language, select the corresponding tab located in the upper left corner of the screen, Portuguese screen or English screen. For those who require simultaneous translation, the tool is available via the globe icon labeled Interpretation located at the bottom center of your screen. Upon selecting it, please choose your preferred language. For those listening to the video conference in English, there is an option to mute original audio in Portuguese by clicking on Mute Original Audio. For the Q&A session, if you would like to ask a question, please use the Q&A icon at the bottom of your screen, providing your name, company, and question. As for our standard procedure, your name will be announced so that you can ask your question live. At that time, a request to unmute a microphone will appear on your screen. If you prefer not to open your microphone, please inform this in the Q&A field alongside your question so that our operator can read it out loud. Before we proceed, we would like to clarify that any statements made during this conference call regarding the company's business outlook, projections, operational and financial goals constitute the beliefs and assumptions of Axia Energy as executive management, as well as information currently available to the company. Forward-looking statements are not guarantees of performance as they involve risks and uncertainties and therefore depend on circumstances that may or may not occur. Investors should understand that general economic conditions and other operational factors may affect the results expressed in such forward-looking statements. Now, we invite Mr. Ivan Monteiro, President of Axia Energia, to begin the presentation. Please, Ivan, you may proceed. Good morning and thank you all for attending Axios Earnings Conference Corporate First Quarter of 2026. We maintain the trajectory of consistent improvement of our results, reflecting the changes implemented by the directors after the company's privatization in 2022. We would like to highlight The simplification of administrative and operational sides focused on governance improvement, agility, and adaptation to the new strategy. Continuous reduction of expenses and costs and increased productivity. Active portfolio management focused on end customers. A reduction of relevant contingencies in different natives. highlighting the compulsory loan. Expressive management and focused on the transmission assets and reinforcement and improvements of our assets. Discipline and capital allocation and strong growth in the shareholder payment. I also highlight the beginning of the succession process and the company's governance with the active participation and leadership of the board of directors as set forth in our bylaws. I now turn the floor to our CFO to detail the earnings. Thank you. Thank you, Ivan. Good morning, everyone. So, moving on to the quarter highlights on slide 7. The first is EBITDA reaching 8.6 billion BRLs, up 60% year-on-year, mainly due to the generation segment. and the prices this year are higher than last year. On the right side, along with the higher EBITDA, our investments continue to grow. We increased transmission investments by close to 50% and global investments by 30%. Income is basically a reflection of the operational result. we maintain an avenue of growth, winning the reserve capacity auction with 190 megawatts of power. That was the auction, but the turbine itself that will be added is larger. It's almost 250 megawatts of power at the plant. In terms of operational efficiency, our PMSO continues to go down by 3%, and we are constantly improving our operations. And as for governance, the board has approved, along with the shareholders, the migration to B3's Novo Mercado, the highest level of governance at B3. And at the same time, the board also approved the relisting of the Level 2 ADR at the New York Stock Exchange.

And finally, at the board meeting that assessed the results of the first quarter, as already expected in our capital allocation methodology,

there was an approval of an allocation of capital of 4 billion BRLs, reinforcing our commitment to financial discipline for shareholder value creation and investment capacity. It is important to note that every quarter we will be running this methodology, and this number may change over time as we deliver more results. The following slide, number 8, brings a summary of our earnings. with regulatory revenue growing by 7% in generation, and at the lower cost that we delivered, our EBITDA grew 60% compared to the previous year, and that reflected on our IFRS net income reaching 3,700,000. Slide number nine, getting a little bit into the investments. As we mentioned, investments grew in transmission close to 50% this quarter compared to the previous year, and overall investments at around 36%. The chart on the left shows the investments, 691 million in the quarter, including investment in transmission, reinforcements and improvements, not only small but also large scale. And on the right, we highlight the investments already approved for large-scale improvement and reinforcement. When we combine all the investments in previous auctions and new lines and all the large-scale investments already approved, we've reached the contracted investments of 15 billion BRLs that will be, once implemented, translated into an RAP of close to 2 billion. Slide number 10. Going back to our participation in the auction, we will be adding to our system almost 250 megawatts of installed capacity at the auction. that we participated, we offered 190 with an annual revenue of 1,400,000 per megawatt. Slide 11. In terms of portfolio optimization, we continue to optimize it. uncrossing our stake in IE Madeira and IE Garanhuns with ISA Energia, receiving close to 1.2 billion in this transaction. And on the other disposal, the divestment we made of four lines that are relatively small, receiving 451 million BRLs