Centrais Electricas Brasileiras S A American Depositary Shares (Each representing one Common Share)

Presenting the team from Leto Blas, we have here Shiro Wilson Ferreira, Jr., the president of Leto Blas. Evilde Pesce, the investor relations and financial, family love, governance, risks, and conformity. Enzo Pedro Jacobin, generation director. Rodrigo Limpe, institutional relations, Elio. Business Strategy and Participations, and José Carlos Barros, Legal Director. We inform that this video conference is being recorded and will be made available in the site of the Investors Relations of the company where there will be this presentation in both languages. So I will highlight that whoever needs simultaneous translations, we have these two available in the globe under the bar. the bar below of your screen, so you can choose your language of preference, Portuguese or English. For those listening in English, there will be an option to block the original audio in Portuguese. For the question and answer Q&A, we tell you that you should send them by clicking on the bottom of your screen. Your names will be mentioned, and then you can ask your questions aloud. At this moment, you will be requested to open your microphone, and then you can ask your question. Some declarations during this teleconference related to the business perspective of the company, projections. operational methods and financials constituting the premises of formula to blast and will be made available by the company. Future ones will be not considered as performance because it will be considered risks. The investors should understand that, you know, general economic conditions and other operational conditions could influence the results of such future conditions. Therefore, I'd like now to give the floor to Mr. Fahir, the president of Etobrasil, so that we can start the presentation. Mr. Wilson, you can move on. Thank you. Thank you, ladies and gentlemen. It's a satisfaction to be here to share the results of this company in this fourth quarter, closing the year of 2022. I am five months ahead of the company. I'm really, really happy to be here and especially to be together with my team that is here. And I think I'm not only be able to make this presentation today, but also be the one of one of the dates most brief where we have reported our results. We're talking about the 13th of March, but especially the content of these results, which I believe can be very well appreciated by each one of you. So I'd like to start with these highlights. I'd like to move on to the next slide. We have here the main events in these five months. As I mentioned, there are five teams that are very relevant. I believe that the first one is something that is really important for the company, for the perspective of the company. It's the fixation of the voluntary dismissal plan. It has a 1.2 billion reais cost, estimated cost. We have over 1,000 people who have been dismissed up to February. We're going to make a report to them more specific of this program. We have around 1,000 more until April the 30th. We haven't taken a lot of care. It's a recognition of all the professionals in the companies that, you know, built this company, but it's also something that established, besides this perspective of bringing new people to the company, something that doesn't happen since 2009. The second theme that is very relevant, and then in this, in the Leto Brás, you know, private enterprise and deciding the future of Brazil. First of all, the regional funds, we have already made a fund of almost $900 million and over $300 million to revitalize the San Francisco Basin. also for decarbonization of the Amazon, especially in these times of climate change that we have been living, and the revitalization, the basin of fullness. This has sums to the deposit already made last year into the privatization of 5 billion reais, and other deposit that we make annually, March and April, of over 600 million. So these contributions are important, be it for the development, the regional development, or also from the tariff view, but also for the events that may happen in the capitalization, privatization of the company. So three themes that is very important. Also, first of all, in this compulsory loan, we know who participated in the company refers to these loans over 26 billion reais. We had here the approval by the Board of Advisor in a policy of agreement. We manifested this publicly in the market. We started working on it and the satisfaction of in this first trimester that we start this activity, we have a reduction of 1.23 billion reais in the provision stock and also being with a positive reduction of 563 million guys. It's a policy that shows that the advantage that the company has, you know, to bring forward resources so that we can reduce our provisions, our contingencies, and also put resources in the economy. And most of us, we have industries on the other side that can benefit from this agreement. and take on these actions to guide the society. We also had here in the beginning, in January 5th, the beginning of the year, the 185th AGE, We made the payment, the incorporation of the minority stocks for controlled companies, and they now become 100% belonging to Eletrobras. Finally, here, a very important moment within a very volatile market, especially in our vision of valuing the companies, very diverse in which we find it today. We started buying back shares. We had here an authorization to the acquisition of 10% of total shares in the market, over $202 million. shares and over 27 million PN shares in a timeline of 18 months because it creates values, because this brings this clarity of value that this company is creating, is adding. So it's a very important perspective that will be reinforced along as we share with you how shares are moving forward. And going on to the next slide, when we When we talk about our transformation process that started in our start here in September, and we have here the first guideline, strategic guideline for the company to have a long-term view, you know, creating value to maximize the generation of value for all the stakeholders in the company, right? and shareholders, collaborators, consumers, and contribute to this so that we have an improvement in our business environment in Brazil. And also in relative terms to the environmental process, it's a process that supports on the transformation of resilience, business resilience. Here we have to lead this process of offers of quality service to clients and offer health and safety services and development for our collaborators, our employees, and also sustainable growth this capitalization created perspective in economic and financial so that the company has a virtuous growth focus on the themes related to renewable energy, to the transmission of electric energy, to the commercialization of new geographies, and also something very important for the company to be able to have a rigorous process of growth. Of course, also taking care of being an excellence in efficiency, which is in process as is the face of the company, and also a great team, a great focus on governance, a board of directors very focused on this vision and strategy, and also a transformation that is very relevant also seeking of innovation and technology. We have real conditions that we're going to show later on that we can develop even more in the solutions that assure our competition in the market, in the process, in having more productive operational process and more reality in this technology. And this brings this vision, this green major. you know, looking at this global leadership in renewable solutions of infrastructures and low emissions. So this page, you know, summarizes in some way the track record that we want to follow in Lato Bras and the response directly to the transformation and creating value and adding value to all the to everyone we have a relationship with. Here we have this evidence in which in just five months in my first participation here together with my colleagues in the report in November, the results, we already brought this light and we already showed how the company has moved and has been driven and what we seek the results the leadership in terms of renewable energy. We were second player in this globally and with the least level of intensity in emissions. So we are second place in each one of these aspects, but we are We are moving very quickly. In this quarter, we saw growth with the purchase of Santo Antonio Energia and the conclusion of the third hour machine. And we're also considering here the operation of our assets together with Anel Energia. And also we had last year, In a better situation, with this view of a lot of rain, we had a lot of reduction in the intensity of our transmission. So we are here confirming that the company continues growing towards the leadership of a capacity, of a installed capacity. Looking at the leader, the first place, we had a strong movement here of over 1,000 megawatts, and we have another 1,000 megawatts in the second quarter. We also had a reduction, a relevant reduction of over 40% in our emissions, reaching to 52 tons of carbon dioxide. for megawatt generated. So this track record is very confirmed in these two quarters that we had the opportunity to talk with you. So this is what the company is now seeking and pursuing and leadership when the humanity needs companies that with renewable energy with focuses on ESG standards where we are involved. So all of this, in a way, it states what this is like this year, this theme of transformation. So a privatized company, since... Since September, we started this transformation office. I would like to say thank you to Camila, who leads this effort, has brought this transformation process, and remembering you that we had the elaboration work of conception together with initiatives, with 40 initiatives in which We have some 700 makers of important deliveries, deliverables, and over 40 initiatives. Seventeen of them have deliverables of impact on the short term. I will talk about some of them, like, for example, converging the companies, which brings advantages in terms of governance, in terms of agility of this decision process, obviously, of simplifying, but also brings impacts in the short term. Twenty-three of them are initiatives that provide a plan. So we had a plan, the strategy of commercialization from last year to this year. We're still going to complement this work. But here, the revision, the strategic revision is one of them. And it's very important to tell you that in this moment, seven initiatives have been concluded up to February, and 13 will be concluded up to March, up to the end of March. So we are here two weeks from having half of all the initiatives concluded. And as I mentioned, 17 with important impact. And even in this time, Even in this quarter, we'll have 23 of 40 will be concluded in this quarter. And due to this concluded process, especially those 23 plans, the 23 strategies that we have established, we have initiatives that will be detailed so that we can have also share with you in what way the value will be created. I just want to give an example in the following slide. about this journey that we are living. You know, it starts here, as I mentioned, looking at the, up to December, we had a conclusion of the commercialization strategy, short-term approved and implemented by the board of directors. We're looking at this way to organize in a systematic way, methodical way, controlled all our companies. From the holding and a strategy that we share weekly, you know, mandates that are, that would be, you know, originating in sales or in conditions of products in each one of the subsidiaries. And remembering that in the month of December, that's when we concluded our voluntary demissal plan. It was a structure with over 2,500 people. Effectively, we also started the first group of people up to the end of 2022. And then we started also a new structure on the top of the company, and we started also – The first wave of negotiations of loans already with an initial effect of reducing of 1.3 billion reais in our provisions were 26, 5% in just a quarter. The bringing disadvantage that I will detail a little bit more up ahead also with a committee discussion. and the board of directors so that we have the serenity in the process and a conclusion in this process. We also had here, due to this work, the utilization of one asset of the company that maybe is not so visible, that is the That is the fiscal loss. We have a lot of credits there, and in this quarter due to this process, we could be able to use over 700 million reais. So it's an intense work that continues to happen here in this journey. So when we see the first quarter of this year that we are leaving, as I mentioned, we are – due to that conversion of those controlled companies, subsidiaries companies, integrated subsidiary companies that have already been concluded, we had already deferred the main gains. In the supplies, over 200 million, 120 million capex, 90% of efficiency, with a baseline of 1.4 billion highs. And here a reduction of 80 million highs with an optimization of OPEX, 30% of efficiency versus a baseline of 230 million. So work that is really important. And here we would imagine that, and I have no doubt that you too, that we imagine we have here a space of gain, of efficiency. We are with consultancy. We are here with three waves of the first wave here with great results already. And we're here together with the board of directors in the final stage of concluding our financial, our strategic plan. And our fiscal plan, you know, a pluriannual one, so that in the beginning here in the month of March, and I hope that in this month of March that this new structure, organizational structure that I will show you can be, you know, appointed. And so that I hope that this happens. And I hope to release this up to the end of the month, of this month. And one of the most important things for us is the incorporation of the culture of the company, of the meritocracy, of all the executives of the company. are you know have they have been assessed then we started uh you know uh the recognition of this structure you know appointing and uh and um based on the consideration of the results of this assessment so uh this is still happening this month and with all of these assessments of uh will be made available in N1 so that they can, in a priority way, and not having any options internally where we're gonna go to the market, they will have the systematic approach. And then we'll have the second turn teams of dismissals in the same period of March, over 500 people by the end of this month. And then we'll have a view here of the second quarter starting this April with a new organizational structure and governance of the holding and the subsidiaries implemented. So our how the work will happen in the second quarter, and we'll have the solution now, the defined solution of Santo Antonio Energy. Saiz, who we know in the process of acquisition together with of assets that can add value to the company, you know, renegotiating debts. This has been the objective of the financial directors and the local business director. So along this trimester, we'll have the conclusion of over – of 85% of these voluntary dismissal plans over 2,100 people. And parallel to this, you know, also seeing here, 832 replacements based on those O&M, like based on new hiring in all Brazil. And, again, in this trimester, we'll have an even bigger evidence in the conclusion this first wave of O&M. in terms of actions and supplies in our procurement. And we hope to have a reduction of capex of 200 million, 6% of deficiency with a baseline of 3.6 billion. And also an expected reduction of OPEX of over 116 million. So around 23% with a baseline of 0.7 billion where we are included. So this is an important activity. that we really have a lot of work, but we have a great clear perspective to share with you. And in the second semester, We have continued this action that we started with judicial agreements, legal agreements. Here we're looking at a target. We're working hard internally. We have a great potential that is not focused exclusively on compulsory loans. We're looking here, very focused on the committee. We started working on... on other alternatives, labor alternatives, civil tax so that we can advance. Of course, we know these legal agreements But we have a long-term strategy for commercialization, looking at the leadership of the market starting in 2024, starting the Group B, and then how the company positions in terms of each one of these temporary alternatives, what is the best strategy so that we can capture and attract clients to the base. So the plan of 2023 optimization of SPs, this is we made a consultancy. We still have 74 SPs. And we're looking at a reduction to inhibition to the end of the year to have 31 of them. So it means that 27 of them will be objective of sales. Seven will be seized. And then we'll have five acquisitions of incorporations or four incorporations. So these purchases, these acquisitions, these, like they're called crossing, will be, you know, Neo Energy and also in the case of Saez as well, that will be in a due moment. generating benefits and tax benefits that are known to all of you. So just for you to have an idea that these are some of the initiatives. If I click here, I will detail four of them. Just for us to have an idea, I'm talking about the dismissal plan, the new top structures, the conversion of subsidiaries and some loan negotiations. So let's move on. to the next slide. I will start already with this view of the voluntary dismissal plan. We have here 2,500 people that have signed up with a potential of what we thought would be 2,700. But it's very important to say that this is, in fact, a recognition of the contribution of our retiree. They have an average 62 years old and 33 years, you know, working. So this process, you know, has started for everybody to adhere with a guarantee that in a moment in which the company decides to retire, to subsidize, they have a guaranteed at any moment a recognition in terms of salary bonus that has been offered to each one of them about nine annual salaries and also other benefits that complement in some way this retirement. Remember that all the employees, they are covered by, you know, pension funds, private pension funds that are offered. All of them have a plan, a health plan that following the retirement can be used, the same plan, individually. And the resources that we are sharing is for this end. So on the one side, we're making resources available in the economy, over 1.2 billion reais to inject into the economy. to make this recognition to all of them. It's not an obligation of removing these 2,500 people. We're working to reach 2,100 of this total. But we're guaranteed, as I said, you know, it's a recognition to all of them up to the moment that they are, you know, still working in the company. So it's important to highlight we are working on this replacement of employees. So we have a process here of looking for, you know, looking for hiring OEMs in all of Brazil so that we have any type, you know, continuity process here. As I mentioned, we have over 1,000 that have adhered. By the end of this month, 1,500. This process is undergoing. So in this quarter, over 500 people. That ends in March. So then in this investment of $1.2 billion, we have an economy in our payroll of – 95 million. And, you know, so the payback is around 13 months. So, again, something very relevant that the company never had this transformation or had not had this transformation in a long time. And we're doing this, recognizing the contribution of these employees, clearly compensating people for this contribution, obviously, and making a new phase where we can now resume in a vigorous way due to the capitalization of the company, a process of growth and of modernization. So the next slide also talks about another important activity that will be the process of leadership. As you know, the company had in our own controlled companies over four of them, plus the holding, a high level of redundancy. So Also, with the support of consulting, we have created an organizational structure that has a concentration on the holding, of course, where we can develop strategically planning our actions that the company will develop and have a structure of a head start so that we can have a development and an adapt into our strategy. So we start here with the CEO, Vice President of Operation and Organizational Security, and this executive will be responsible for the management of the four controlled companies, and of Unes Electro Norte, Electro Sul, with a structure, organized structure, simplified related to what is today a focus on EM, focus on commercialization and administration and finance. So these four companies will have a modernized, it's no – It supports and also, you know, especially, you know, from investors' relation, commercialization, financial aspect, you know, orchestrated so that we can have the best efficiency. We're creating here a vice president of engineering, of expansion engineers, so that we can use better CapEx and develop more. advance this great investment. So, commercialization, the commercial activity, which is core to the company, will answer to over half of our activities and have already been created with the presence with Edu Wolf and the strategy in business development where we're looking at this restoration of SPS, the sales of these subsidiaries and The relation, our Vice President of Regulation and Co-Pilot by Link, our Vice President, Financial Vice President, the Investor Relation, the OVIDA, Vice President of Governance and Risks and Compliance, which is already taken by Camila. So we're looking at Vice President of Supply and Service, focus on these activities. And these waves that I had mentioned already, the rationalization of our operational service through the complexization of the union of – the joint of our shared service, and the vice president of people and management and culture able to establish a management model based on meritocracy and collaboration, and that we have a culture – You know, that is enthusiastic to people, motivational to people, that we can attract people in the market so that in the construction that is being done here in Leto Bras, our legal vice president, because we have over 35 billion reais in liabilities, and we have demonstrated already in this quarter that we can – what we can do to make this liability an asset for the company and the counterparts and also vice presidents of innovation research and development and IT, what is the most modern, what is the best way that the companies can grow in a most efficient way, making the job easier, people's job easier, employees or stakeholders of the company, shareholders, clients, and so on. And I also have the support of two companies. two departments, the Department of Communication that we can, the activity of communication is always an activity that is really, I will say, it is less due to the lack of resources that the company has, it is less is less realized and seen by the market. And here we have an activity that is really important of communication in Letobras. After all, besides of all that it can do in the teams where it's involved in its main activity, we believe that here we will have an activity that can look for clients from B2B and B2B From a medium to long-term capacity to look at the clients in the consumer environment, consumer energy consumers environment. So the activity of communication to share the development with our stakeholders or to attract new clients. It will be an activity that is really important. And all of this supported with a view of sustainability in an ESG agenda that is different, that makes us different from our companies in this sector. So we have an ambition to be really a reference in this area. and some steps that are already being taken, and we're going to put this in the end. So it's important to say that this structure has been formulated in a way that is really consciousness, with a lot of consciousness by all the directors, so that we can go ahead in these values that are being here highlighted, but also keeping a brand, a company, our efficiency continuity, especially our reliability in terms of our systems, so that we can, again, make this modernization of the company, adding value, you know, keeping our traditions. So it's worth highlighting that, again, The four companies in the group, they have a regional presence, relevant regional presence, continue to exist. There's always a question about that, but these companies have regional presence. They have characteristics, especially in terms of taxes, state incentives, regional incentives. They have all the resources. They are allocated in these companies. So, So, in fact, we are recognizing the importance of them and establishing a governance model, a management model that would be a greater synergy among them. So, now going on to the third example that I mentioned, which is the loans, the compulsory loans. We have an evolution. So, We started from a stock of 25.8 billion reais. This is stock that is updated by the Selica rate has over 204 million. We had a reduction operational provision of 41 million. And we had a payment of liability legal payments. of 482 million it's worth highlighting you know uh it's a worth saying we have here the first the first package of payments of legal uh agreements and 707 million and uh so it's important to highlight that this doesn't sum 1.3 billion these agreements they are done Some of them can be paid in the quarter, and some of them are paid in the following quarter. But the registration of these agreements and the benefit of this agreement is done here. When the agreement is set, it's worth saying that we had this movement. Some of them have already been paid, $770 million, and all of these agreements have already been registered in – It's also highlighting that our base, you know, $26 billion, $1.3 billion have already been reduced in this last quarter. And this is just, you know, the approved. We also have around $770 million that is called off balance of those possible provisions and remote ones. that is also object of this agreement. So almost 2 billion that we had to, you know, judge here and they have been eliminated due to this agreement. So we're going to continue, you know, looking at this important gain that will allow us to choose our losses in the end. This will bring we had a smaller exposition, a monetary exposition due to the SELIC rate, and these agreements are done to eliminate totally the demands, not those that are proper, but those that are remote, the counterpart, something that we are happy to mention. We are seeing here this disposition of making these agreements that is favorable to both parts. And I'll follow in here the second page. Now we're looking here. the conversion of these subsidiaries. So bringing more efficiency to us. So we make these companies would have to have assemblies to release some teams, you know, meetings with the board of directors, you know, with all things. So these companies, they had basically had an independent level which will also make a difference sharing the synergy and so on. So the operation was approved in January 5th. The shareholders had the option of withdrawing or incorporating shares. So we can see here in the right block where we have 286 million highs in investments, which means over 5,872,000 shares emitted by the holding. So the investment to these minority stakes were in order 202 million. And we had here, you know, some P&As that 202,000 over 4,361 shares. And on the other end, 226 million highs, 3,451,000 shares through our treasury. So this process makes Electrobras 100% effective. owner of these subsidiaries. And this has generated 31 new shareholders that in exchange with one of these shares for Latoba shares, increasing our free flow and the number of shareholders that are investing in the company. So this is a structure that allows our governance and more effective accountants, better coordination among the companies, agility in the decisive process. of not having 100% and also making possible the new structure that will simplify and will make this decision processes faster and more agile. So now we'll move on to one more slide. I'd just like to highlight and conclude here in the space of talking about transformation. So we are here with 40 initiatives ongoing. that we will conclude the first joining them this month of March. And we'll have here over 20 undergoing. So over 36 of the semester, we have here a lot of ambition to 23 of them that's established strategic plans so that we can deploy with plans that can guarantee new shares and impacts and results. We have here a new investment so that we can get this impact, and we also released this strategic plan that is not concluding this month up to the end of this month, so we can release this new strategic plan. So we have talked a lot about it. We have shared a lot of guidelines, but still we'll still need to integrate this document that will be the base of our strategy publicly. So following, only talking about the operational challenges, you know, operational performance of the company, speaking very briefly about generation last year. So the company, you know, has 23% of the generation, installed generation capacity in Brazil. 90% are, you know, clean energy sources. So we have... So by privatization or other segregation of our assets of a nuclear too, over, you know, Brazil has over a typhoon, over... $41,500, and now reaching here $42,500 this quarter in these two, you know, San Antonio and also Corona Una in the second. And this quarter, we also had the operation related to our, you know, the breakdown of the assets of this quarter. União Energia em Lato Bras, and over 29% of all the energy generated in Brazil was done by Lato Bras of no coal install capacity. of hydroelectric have done an even better due to the hydraulic fluids. We have 18.5%, 18 gigawatts average NOAA of 20% of Brazil. So in the physical guarantee. So here we have the performance of our sales. Just to make clear to the market that our operation here, as you can see, are 17,000 long the year. And we have 17 now to 18.5. Basically, we have these two types of assets, assets that were quotes, assets that were renewed. as to Kudui and in the condition of independent production. And also what we see in 2023 is the first movement of decoding, which is 1.3 thousand, which is 5.7, and moving forward. And all of this that we want to bring to you is this. How can you compose, you know, the draft, you know, the structure of Electrobras, you know, its own resources of the installed capacity that is highlighted there on the left, and also buying energy because we have here a set of assets that in general where we buy a part of the energy directly from, and this composes the resources of the company. so that it can make sales of energy. So it's composed of own resources and also by energy. I'm mentioning some examples where we have this type of thing. The sales of the company is also here highlighted, you know, following this. And it sells, as you can see, less value, 26, 24, 25, because it hasn't sold the whole energy yet. And just remember that these sales together are summed with the contract, bilateral contract with CL and ACERI and these ACERI with the quotes with the part of this that's removing from the state. And here we have... the composition of ACL and ACR and the average values of sale in ACR and in ACL and also average of purchase that, you know, mentioned, you know, looking at the average megawatts mentioned here in this line. So this process generates a balance here of, of, of, of capacity that we are not able to sell. And also making a relationship directly to the relevant parts of our plants are hydroelectric. And the volume manager is still not being sold. So we're looking at the – we're still in the month of March, and only 12% of the volume is not sold considering the head that we're going to use. For 2024, 34%, and this way forward. And we're making – and we're doing this together with these clients who are mentioned below. 48% of our commercializers, 43% are, you know, free consumers, and 8.7% generators. So, due to this energy balance here, we're having the following page. A detail of our GSF, as you can see. It was better last year from the year before. Clearly, the 2021 was very dry, you know, and we reached the year 85%. And due to this elevated volume of water, we had a better period. But what weighs all of this scenario, you can see on the left side on the bottom, the variation of our revenues of generation in the fourth semester. in the semesters, in the years, and in the last, just going to look at the right side, our revenue has gone up to 24.2, and this has increased to 6.8%. As you can see, to do the composition, we have reduced our our liquidity in CCR and therefore we had an important growth in the sales of 16% in the market sales ACL and also the decrease of price of prices up to 190 reais in the annual basis. Look in the yellow, we have there the regulated contracts from the company, going up to 288, 22% increase. And also the quotes, which are just by inflation, growth of 11% from 4.2 to 4.7. So this year, you know, confirm this strategy of the company that I'm very happy to say that has already produced effects. So we have here 12% of our capacity to be sold this year, 2020 theory. Also, the next slide we have here, just an important picture related to transmission. The company invested very little due to this low financial capacity, so it was in the transmission over $1 billion, less than $1 billion, and now in 2022, we had this increased post-privatization. We had already growth of 95%, the double in two years, 50% related to 2021, which has already been a good year, and also highlighting that we have 31.1% of our Brazilian system of transmission, 280 substations, and 74 kilometers of transmission line. These are 42 ventures of great sizes, and we include more transmission lines and more MVAs with an RAP of an increase of 115 million highs. We also have done A lot of work here with SPS of 353 kilometers related to the previous year. So this year that already is very positive for the transmission that we'll have auctions, as some of them already mentioned, over 15 billion that will have participation of ElectroBlast. So the next thing, just to show that where this advance is producing results, and the main of them, as you know, is the variable parcel. And this starts to be charged when it was extinct. And this is the result, a global result of Lato Bras, great work that has been done. led by Matthew, and we will be able to reduce, create a reduction at our best level, 1.556%. It's a drop of 26% related to the year before, and a reduction of 65 million reais. This is a positive result for the group of the best quality of our assets. So, again, with this, I end my presentation. My highlights, I will move on to Link, where we have regulatory highlights. I'd like to thank everyone who participated of my team here, Jatobai in the generation commercialization, and Matthew in the transmission, who has helped, you know, share this data and achieve with your team these great results. So, Link, you can move on. Thank you, Wilson. So it's a great pleasure to be here talking to you, having the opportunity to show you very briefly some themes that are regulatory related to the last quarter and also the discussion here in Lato Bras, starting with the RBSE, which is some of the themes that is not only related to the last quarter but has been discussed for a long time. And here I will bring some updated status. Since June last year, we had some manifestation from the technical team of ANEL and also from the attorney's office from 2022 with SCGT. We also had a little improvement in the memorandum from the same technical team. And then we had the legal aspect of the team, and with a discussion with the board of directors, and we decided, monocratic, decided from the director, which is partially, you know, agreed by all the members, and then determined to the new simulations and new calculations that had been made. sent to the transmitters from August. And in this official document, the technical area has executed the command of the company, even though it did not do any evaluation of merit. So since August, we have not had the annual official position from the agency. We are in the process with the two directors. ElectroBus, together with other transmitters, they have participated in the discussions directly, also due to our association with transmitters. And also, we also talked to only one director to make a meeting, which is set for now the month of March. And then we keep on defending our point of views since the beginning that, you know, legal security, regulatory stability based on Anel's decision. Another thing that with a magnitude that is less, but also it's something new since the transmission contracts that we signed due to the 579 we had recently in the approval from Anel of incorporation of assets. that were utilized for importing, exporting energy to Venezuela and Uruguay in these concession contracts, and these before being incorporated in a base, they had a remuneration when When the export and export was done, export to Venezuela since 2019, so these assets were not to be remunerated. So now we start having remunerated OAM with the REPA approved by ANEL. This brings a great increase in our – the revenue of these assets. Moving on to the next slide, two teams related to generation commercialization. One of them is the minimum PLD, which has been discussed annually and now defines the regulation agency. The least and the maximum PLD also based on hour. So in this discussion that was performed by now in the end of the year, there were There was some discussions on the criteria adopted by ANEL, which was a criteria that had already been adopted by them by many years, which is the greatest value between ANEL and the Taipo. So 69 reais was established based on January 1st, 2023. Some commercializers went to justice and some of them were not defined and defined. and then some of them were considered a process in which they have not been affiliated to ITAP anymore. These decisions have not had effect. They have not... they had not the legal possibility to implement the decision because it was not defined what would be the value to be considered, you know, for a minimum PLD. So this was not implemented. And also there's an occasional discussion, you know, where this would only happen to the whole market or not. And what it's clear about is You know, this change of rule of POD along the year without a due process of discussion, regulatory process, would also, you know, affect the financial situation. the financial condition of the sector. We also had last year, you know, for the 709 approval, which, you know, talks about the fiscal guarantee of revision. As we had plans from Latobas, they had new contracts that they started with a process of physical guarantee. So they had a reduction of physical guarantee over 7%. of, you know, physical guarantee. So these plans did not go through the process of revision last year. They, since five years and the other plans with, or they have with 36, 1.2 megawatts average with a reduction of 2.2%. So better values of a, And then also related to the plants in La Torbaz, it already had been – had already gone through a process of physical guarantee. The other plants, not under this – under this process, we had a reduction of 35 megawatts average, which is negative 0.23 percent inside the La Torbaz portfolio. So this team, this all has a judicial process included. So generators, they filed a lawsuit at the end of the year defending the alteration of the critical period adopted by the ministry to define the value of a fixed guarantee and the suspension of this law. 709. This request had an urgency request and it was denied yesterday by the judge. So the discussion now has ended. And possibly there will be some appeals, but in the first moment, the judge has denied that this urgency is requested by the authors. So this law 709 continues to be in effect and also has a legal security to the sector. And also that another discussion has gone through the no audience discussion and carrying the physical guarantee of the process. So moving on to the next slide. This theme is, in fact, relatively new, where there's a direct relationship with recognition by the service provided by the hydroelectrics with this part of the energy that could be inverted. So it cannot be exported that it was developed by the law. September 29th by the Ministry of Energy and Mines. So it was possible, the exploitation of this energy, but it was a modality that was a swap where you generate a credit or debt in the neighboring countries and then compensate it. It was not a modality that is commercial like the one that is this, that is one that held open a audience participation and also there was another law that generates to energy coming from hydroelectric plants so we have identified that but the exploitation of this, you know, the exploitation of thermoelectric energy, and it blew the energy of turbo energy, and this, it can offer values and to buy these energies, so CCA, which is responsible to define the value of this process, the beginning of the year was 75 reais, which was the POD plus 10%. CCE identifies that the competition among the segments of thermoelectric, hydroelectrics, and the potential of acquisition from the importer part to improve the process of defining the legal, the least value. So it goes on to in our graph in this black line, the increase over these values in exporting level, we have 241 reais and we have observed, you know, great increases in terms of production. especially since the end of February, and this has generated the – generated exploitation so much in the prices. But the amount that exported is automatically – we had a greater energy allocated to M&R, which reduces the GSF, and this also benefits the generators and the consumers of energy, especially those that have the hydrologic risk, you know, impact – So this benefits the consumers and also generators looking at the total amount. And then the increase of the minimum price also adds benefits to the consumer in that part of energy that goes besides the GSF. Also, that part of energy that is also quotes and also as a generator is an increase of revenue. for the generators, and this generates the greater proportion of energy by the union states and cities, by the SIFUC, which has strengthened the roles of the hydroelectric. So I think this is a new process that no doubt adds significantly to the relevant results to the hydroelectric plants. So moving on to the next slide that we will talk about, Amazon Energy. where we had a moment in the provision would be the better detailed by our director of EDA. And here today we have, considering all the credits that we have together with Amazon, it was 7.7 million reais. We have a provision over 7 million, which is over 90% of the debt. So when we look at the holding, these non-provision credits, it's important to clarify that these credits That this amount has 344 is refers only to the IC, which is, you know, the assets then that happens due to the privatization of the distributor. So it's a credit that has guaranteed, has been paid in a way that without any default. and also had a little value of GSF, which there is no default for electroblast and electron notch. In the same way, we had provision values, and this value that is shown as non-provision values is in the flow of the electron notch and Amazonas. So here I would like to highlight looking at, in a prospective way, our... Our sales with Amazon, what would the expenses, whether it has with the independent and especially those independent, you know, the default that they had with Electronaut, we have already, you know, in terms of 270 million highs made by the distributor, we received directly from CEC. CCE, which is a part of the CCE due to the decision of Enel from 2020. And we have here a new action in Enel to receive the rest of this amount from CCE, which would reduce our exposition to the risk of default coming from Amazon. We had a We had a statement from Manal last year suspending some of these actions and the new director will, if they approve the process as By the technical areas, our current exposition with Amazon will be restricted to values of average ACR. So looking at the 20 million reais. So it's also important to highlight since May 2022, Amazon is 100% insolvent due to the lot that was made of an industry that has a monthly... payment of CC due to the exposition of involuntary acquisition and also some actions that we have done with the distributors. So inside the scenario of insolvency, it's much better than those seen in the beginning of 2002 when we had a default in the letter of knowledge between January and April. So I think this is the last slide of the highlights of regulatory So very quickly, but the main themes, our hydroelectric, the last POD, the Amazon situation, and things that have been less discussed, but we are following up. So I end my part here. So then we can go on to financial performance. I'd also like to thank you and say just one slide to give the floor to Vida. And also, so we are reporting this result that is due to a series of events, many of them non-reoccurring. So for the good understanding of the performance of this quarter, so changing the slide, I would like a report here. our net income of $9 million, but we have a variation that is great. We're reporting $1.420, and if we eliminate some factors that our industry has not been occurring, we would be talking about an EBITDA of $4 billion, but the last line would be very different. And here we will be talking about $2.5 billion. million in profit, but we're talking about 500 million loss, especially because these things happen, especially because the carrying, having these provisions, the PCLD of Amazon, this event that Deline has already mentioned of 2.5 million that eliminates completely the risks related to this theme. So it's a pity, but we're going to keep on going, fighting for this and negotiating. We're working on... contributing with 1L, interacting with 1L so that we can have a good solution for Amazon. But we have done all the things necessary and the provisions, so 2.5 million. So we generate a great value, which is the PDV, so the voluntary dismissal plan. So we have here, we have two provisions, 1.2 billion reais. We also have here, we have done this transition with Endel Energia. And in this first moment, we had the provision of fatality speed is up 169 million. We are sure that the conclusion of this operation will have to the adjustment that will happen in the operation of sales. That should be positive. But in this moment... which also met for 169 million. So we're talking about a fortune to a billion reais. It's more than the debt that we would report. But two effects are there still additional. The first one is the one that is reoccurring, that happens from the process, the process of prioritization, the amortization of new assets, the new generators that will be renewed the obligations of CDE that would happen along the period of 30 years. So here in the trimester, partly we're looking at 1.4 billion reais. But what is this as a negative effect? Because in the last year, we didn't have this positive side that corresponds to the sales of energy of all volumes. So, it started from the ongoing year. So, here we have this for 2022. We had only the payments without the kind of part of income or revenue. So, we don't. So, this has to be explained by a few that are up ahead. But the way in which we reported the transmission revenue, we have made a great effort, as I mentioned. When we look at our regulatory, we've seen a growth of our revenue. even though the way to report this transmission revenue as a remuneration on the ongoing assets, considering that we have a variation, important variation of PCA, 3.4% in 2021 to 0.7, we have here a cut of 1.4 billion. So adding these other effects, We're talking about 4.2 plus 2.6. We're talking about 7 billion yen. And we had here a positive highlight. We have, as we already mentioned, the agreements of compulsory loan and also consolidation of revenue of Saeza, even though it has a relevant EBITDA. that we're going to look on its efficiency. But it's important that we're talking about a quarter that had this data as a conclusion of a presentation process without covering the revenues. So, you know, especially related to all the management decisions we have made, especially, you know, the voluntary dismissal plan, which I believe are important. But, you know, it affects our reoccurring EBITDA. So we talk about 4.4 billion without these effects. And now the result in the last line are 2.5 in the quarter. So this is evident that the way that the company will take in the following quarters. So it's on you now. So thank you, Wilson. Good afternoon. Let's move on to the next slide. So here I will detail some of the main effect. Wilson has already highlighted some events that are very relevant. So starting with, as you know, this model, the chart here on the left shows our results, the fourth quarter of this year compared to the third quarter last year. And here in the column on the right, we talk about the adjustments of what we consider events not occurring. And so here we can mention here in the revenue, I think the first line, our gross revenue, they had this fall of 9%. it has as a main reason of this reduction, this effect on IPRS in the transmission that has impacted 1.4 billion in reduction. So we're going to show ahead, although from a regulatory point of view, the impact may be different. So it's a question of context. So next generation, so it can highlight... We'll have a greater increase in revenue for the consolidation of Santo Antonio de Chia, 1.2 billion. And also we have less import of Uruguay because Uruguay also has the cost of buying energy. So in the revenue part, these are the main highlights. In the PMSO, which I will show later a graph that is more detailed, it is important in the PMSO. Yes, that we had an impact from the impact of ADV from the dismissal voluntary plan, you know, mainly by this impact. We also had our collective agreement last year that was agreed. and also had here in the surface area some expenses that from the transformation plan that has been detailed by Wilson. So in this first moment, We will see increases in the expenses of consultancies, but we will be compensated by the gains that we are already showing. So in cost and operational costs, we have a highlight here related to the less importing from Uruguay. So we don't have the revenue. We also don't buy the energy. So... So this didn't happen due to the last necessity in the activity in 2002 where we had the full reservoir. So a different situation of what had happened in 2021 where the country had to import energy. So here we have the consolidation of solar energy. It will bring revenues and also bring the acquisition of energy. So no points in these parts of cost. And in the depreciation, And amortization, Wilson has already mentioned we had amortization of new contract with privatization, some activation of 75 billion reais for the next 30 years. So this is already having the amortization. And the electron notch will have a positive effect. In 2021, we had the GSF law that allowed we had a register as a cost reduction. In that time, the contract was going to expire for around two years. So, 2026, as there was a renovation of this contract, it allows, you know, prolong the period of this amortization. So, this is an impact that is also positive. And also, the financial result, the most important point to highlight is the consolidation of Santo Antonio Energy. We also bring in our financial expenses of R$420 million. We also have an increase of, say, liquid rate that impacts the expenses, also mentioned by Wilson in the previous slide, the impact of the capitalization that in this moment of 2022 are still not followed up by the revenue that will come in 2023 with exports and also this correction of of duties and also a special project at 900 million. And from a positive side, we had the revenue of financial application with a positive currency exchange as a main impact. So moving on to the next slide, we're going to see that in the detail of the composition of the gross income. So year after year. So as we can see in the previous slide, the great impact that shows here in red are for 400 are the results of the effect of less information and of MPCA was 0.7% and the same period was 3.4%. So this reflects, as I mentioned, the nexus line. Please. So we here try to bring in a more didactic way these effects. So we have the table on the superior part of the slide. Talks about the fourth quarter 2021. And then the other one, the fourth quarter 2022. This is what we call regulatory is the annual norm and also And also we have to follow a VRS. We have to follow the laws. So there's no difference in the way of accounting this. So we had $5 billion, and it's equal in the same industry concept and below in the same way, $6 billion each side. The problem happens in the transmission due to new accounting rules that are different from the regulatory rules. So as you can see, last year the regulatory revenue was $3 billion, and then the And then 3.9, which is highlighted in green, which, you know, increases 816 million in the regulatory revenue, as Wilson mentioned. But in the gray area, the accounting is, you know, the contractual asset, which has increased. So where we had 22 in the first line, it was 59. It has gone up to 61. So we increased our contractual assets, which is a reason of investment. We have gone up 1.2 billion. But as TRS says that we need to adjust this by the indexes of APCA that have gone down, to 0.7. So this revenue also falls in the view of FRS. So this explains this variation in our revenue. So the following slide will be detailed as we do every quarter, how how the negotiations in several segments have happened in the regulated, in the free, and also what is the spot contract and also short-term one. And so it shows here the revenue, the average cost. The first dark blue, we have a regulated contract. We have an expressed value to San Antonio Energia. So we highlight the hundred million highs in the increase of energy which has increased the average price to see into the first line. to 292. This has increased the revenue. So the quotes, as we have already highlighted, we only start a deep quote in 2022. So 2022, we had seven gigawatts. So the price is a contractual adjustment. It has been 15% increase in the revenue. In the bilateral contract, we had a positive impact on the volume of central energy. As we can see, there was an increase of almost 20% increase in volume and an average price of – it has a small fall. It's 186, which reflects the prices following due to the PLD that in the right side has highlighted the PLD in the first quarter was 135 reais. And now in this quarter, we had due to 55 reais. And also, CCE, the most important to highlight is that the greatest reduction was not properly by what would be the sale, the spot sale, but the reduction of importing energy to Uruguay due to the hydroelectric situations in this moment. This has to do to the smaller PLDs. So moving on to the next slide talking about revenues. Here we highlight the PMSO. The first graph, as we can see, the superior, it was done FRS, IFRS, and then there's the recurring. So as we can see in the superior table, So we have an increase, but this has to do with an event. It has to do with this missile plan, which has accounted for $1.2 billion. So when we look at the reincurring, we can also have – we have explained we have some events that were extraordinary, mainly expenses with the consultancies because of this transition. and also the consolidation of Santo Antonio Energia, which we start bringing expenses from Santo Antonio Energia in this quarter. I would like to highlight that only it's 18 million reais, but a number of a trimester from Santo Antonio is 99. $100 million, but we had a positive impact, which is the end of these arbitraries, and then you could be able to capitalize part of its revenues in the past that was due to the performance of the plant, and... it has done that the expenses of the corridor has been less than usual. The most important to highlight is that So the positive impact on the P, because the reoccurring people, we excluded the dismissal plan, has gone up 4%, even though we have an agreement of 12% in collective agreement. So it shows that we are being more efficient in the expenses related to people. Moving on to the next slide, we're going into detail. the main impacts on the provisions. So starting with the left side, this table shows what were the, what constituted this fourth quarter in 2021, fourth quarter in 2022. In the previous, in 2021, we had done a, had a provision of, As you can see in the last slide, $2.5 billion have reduced to $1.1 billion. It's very great. So it's $2 billion less so that we have done a constitution of $2 million of PLTD in Amazon that Limp has already commented, which is highlighted in this green on the left side. So even having $2 billion in Amazon, we still have a fall. In the volume of provisions, so this explains in a great part by the compulsory, also highlighted by Wilson due to the negotiations that we started with allowing us to reduce 500 million in the provision compared to the constitution of 7 million the previous year. So this... And also we had an important highlight that is here in yellow, the repairment provisions, even though we had a constitution of tele-speedies already explained by Wilson. This happened because... the statement of the operation is a trigger to make the provision of the operation that we are buying. But even though the one that is being bought and the one that is being sold and the conclusion of this operation is what allows us to account the gain with the plant that is being sold so as this operation still depends on the authorization of the foreign position and now we had to register the part that we have already the information of the losses. So this is, these are the 468 million and these have reversions related to what is being provisioned in the previous quarters. So I think they were the main points that show a reduction of our level of provisions. So moving on to the next slide, we have The EBITDA graph showing the variation among these quarters, and we can see these columns in blue are the adjusted basis, removing the events that are non-recurring that basically are related to these compulsory provisions and PCD of Amazon. And we've seen that the revenue falls in the first column, 1,100, and this fall in the revenue is due to transmission and less index of PCAs. So in the expenses part, the positive effect is related to less import of less importation. And also in the provisions, we also have some reversions already of operationals that have been recovered and less provision constituted as shown in the slide before. And for the next slide, to conclude the presentation, to the view of the net profit-based, there was a reduction of 27%. And we explained that due to the previous slide, this variation of EBITDA, It explains 400 million. They have 110 million. That is the most relevant to highlight below on the left side is that this expense is related to the capitalization, the expenses of this retaliation process. And then if estimates in Amazon, this is over 900 million, as we have already mentioned. And the cost utilization of Santo Antonio data brings financial expenses and also positive impact on cash and also exchange rate. Another point that I'd like to highlight is that in the income tax, positive impact of 995 million reais and also the... The JCP that has been agreed with our control brings a tax growth. We had some agreements that have been celebrated that already mentioned the payment being made. And most important, the revision of the income tax rate from the Korea because with the extension of this agreement, We have taken the incentive from Sudan based on this as a contract from the plant of Tukurwi before acquiring this. We were not able to use the full benefit, so now it only translates into a tax benefit. So depreciation, amortization, we have already mentioned. We have impact from a sense of energy and also an impact 175 billion that we had to achieve due to the capitalization, and this will be depreciated along the time. So moving on to the slide of debt. So it's a slide that we show every quarter. So on the left side, on the superior side, we see the net debt and EBITDA. And the yellow line represents the indicator of a net debt and EBITDA over 12 years. We have shown since the last third quarter that's in the net debt. Net debt has gone up due to the consolidation of some zone energy, which brings 20 billion in debts. So we also see the EBITDA below, you know, along the month. So it's also important to highlight, even though we had 100% of the debt, some zone energy already consolidated, we only have six months of EBITDA in this consolidated period. So because we only started this from the central tonic crystallization in the third quarter. And only in the following semester we'll have this this reflection from Santo Antonio, and also we had a debt of 59 billion with a great solid cash condition, which brings net debt of 35 billion, so this 35 million, and it's important to highlight that we were able to make December, we had a capital, we had an acquire of in commercial um in an operation that went very well and we had an obligation on a short term in this year the dividends that we will pay of almost 900 million to be paid over the two months. And also we have the work of a legal compulsory loans. And the first installment of CDA, which last year we put to five billion, and now we had... And now in April, we'll have this hold of $575 million that will still be corrected, and it will be $590 million that we will pay in April. The last slide before we come back to the President, and then the last slide, which is a very important slide that highlights The evolution of our investments, the acceleration that we have already been showing after privatization, so the blue line reflects the CapEx 2022, and the green one, the CapEx of the previous year. So in the accumulated in the year, we have been able to do 20% above. related to the value in the previous year, over a million more. And this acceleration is clearly seen in the second quarter where we start to show agility of the company operating as a private company. And then on the right, we see, so we highlight some investments in the generation we had, you know, we had the wind park, In the state of Rio Grande do Sul, 230 million invested there. In Chefs, it's important to highlight the plan that we are doing of modernizing the assets of these old plants, so Sobratinha, Paulo Afonso IV. In the transmission, Wilson has already shown how much we have advanced in transmission that has increased, you know, 100% related to last year has doubled really in two years. We have almost 2 billion investments, improvements that bring revenue. And the SPS, the main highlight is the fund done with fullness. This is supported with 72% of the capital as we have. So I end my presentation of the financial detail and I come back to you. Thank you, Evita. I think it's now show the last slide, which is exactly this one, the recognitions and the demonstration of our link to this ESG agenda, especially in a set of recognitions that we have had in this quarter, the Transparency Trophy, which is very well known. In the business environment that we have here, we are here in the second consecutive year unit, and the satisfaction to have recognition by our financial director as the CFO of the year 2022. In the 39th edition of the EBF Equilibrium Prize in Sao Paulo, we also had the capitalization of the year. We have... In New York and London, at the end of this month, the follow-on of the year, which is another important process for Brazil, globally speaking. For the third consecutive year, we are in the first place. By Merck, you know, the ranking of Brazilian energies in the electric sector is the best reputation in Brazil. In the sustainability book from S&P Global, one of the most sustainable companies of the world, of 82 out of 100 companies. So the companies in the group of enterprise have been recognized, again, by the Bloomberg seal of gender equality of very, very high, something very, very important. So being seen here in the agenda of a portfolio of B3, I see also with increase of scores and participation, It's the greater liquidity that we have been offering. And the commitment that we had with biodiversity here, we have adhered to the platform of action for nature, you know, with the positive impact by the CBEs for the implementation of guidelines on the task force of nature-related financial disclosures. And... And in the United Nations, we are the only company invited by the United Nations to participate in the opening, the form of companies and human rights in Geneva in Switzerland. So we know our presentation today, even to give a bit better clarity to you here of this six months, specifically in the last quarter, that has been very challenging. And very fulfilling. So I close here the presentation. We open here to questions from my colleagues. So we are at your disposal. So now we will start the questions and answers. We ask now that you make the questions just once, waiting for the answer of the company. To answer the questions, you should send them by the Q&A button. The dynamic, your name will be announced so that you can ask your questions live. And then your microphone will be made available on the screen. Our first question is from Marcelo San, sales side from Itaú. So you can open your microphone so that you can ask your question. So go ahead, Marcelo. Hello, everyone. Thank you for the call. I have two questions. The first one is to talk a little bit about the balance of the energy. So you sold a lot of volume of energy, and the average price has gone down, you know, as we expected. And we tried to make an account in here of reconciliation. to see we have some difficulty due to the contracting of this period. So I'd like to comment a little bit what would be this rate that you have closed some contracts and the other questions related to the use of fiscal credits. So if you plan to use Furnas as holding to optimize the payment of taxes as you have a fiscal credit, we have some companies that are not able to use while Furnas pays a very high rate of taxes. So when you're planning to implement this plan, thank you so much. Thank you, Marcelo. I'd just like to start by the last one. we're doing a great work here, you know, and no doubt about it, it's the optimization of physical incentives and a lot of credits, but the volume of credits is so big that I would say that this transition is not just the first one that we will be evaluating. In the first moment, we are certainly looking at keeping the four companies. We have in this process a lot of credit to be incorporated and obviously as a But to spend the two years in this transformation process where we participate two years, observe, evaluate other alternatives. So in this first moment, we have conditions and we have enough credit to be optimized by the company in a way that this is not something that we would consider to start our transitions. There's a lot to do before that. Related to the energy balance, I'll ask Jatoba and the team that you can talk a little bit about that. But looking at the last quarter of the third and the fourth quarter, the variation is not so relevant because the numbers that we were sharing with you, we have 15% of the volumes of 2023 not contracted. We fall to 12, so there is some for sale naturally. but not so big that it would change the perspective. If you can then compliment, please. So perfectly present. We, Marcelo, we are living in a moment of reduction in the market prices. But this is a conjunction of an overall offer due to the accumulation of projects in the portfolio and also the favorable positions of technology. So what we are seeing, you know, looking for effectively, you know, capturing bigger values and also – And that's something that we could see a mix where we have regulatory and also new contracts that will come in. And then that would be a difference that you would see. And also, as the president mentioned, we have a new policy of commercialization that integrates all the companies into one. It's a policy of management of risk that is very sophisticated that allows effectively this – In that criteria, this is in a very criteria, you know, taking consideration of the risk. Thank you. Thank you so much for participation. You cannot give me any idea of prices of 23, 24, 25 that you're looking at so that we have an idea, given that we have a lot of contracted energy. The price we evaluate within the market situation, especially in the hydroelectric system where, you know, we have great influence of reservoir, but also related to demand. So... So we evaluate this, and what we look at, those niches in the market where the prices are more attractive. We remember that we have a strategy in the free market for 2024, 2025, and certainly these are layers that where you have a capacity of basically to practice better prices than those constitute to the consumers from the free market. Also, I'll compliment Marcelo that we show you here the configuration of the PLD. So we are operating here with a PLD and a base. So the only way for you to have to sell at a better price is for you to sell volumes of energy in greater terms. So recently we – You know, in a water subsidiary or in our car company, we participate in auctions in terms of four or five years where we are able to operate with prices 130, 140 reais for megawatt water, megawatt hour. So this is what Jethro Bob mentioned. The way in which we have great volumes of contracted water, by a great term, so long term. So this type of solution is not everyone who does, and this may be the main advantage of Lato Blas. We are operating in a moment in which the price, the base price, the average price of energy is base, and we are avoiding is to make a sales movement of products of short term, products that we would have made available that seek in some way viabilize the volumes of energy at greater price, greater terms, and greater deadlines, which should be greater prices. Just to complement that, in fact, the medium term, naturally the prices go to the marginal cost of expansion, which is above the value that is being practiced in the market in the short term now. And that is the reason why we extend this product to in a contrast related to the short-term. Our next question is from Maria Carolina Carneiro, and the list is all signed, credit twist. So for questions, she asked two questions first. So we've seen a revolution of loans in this first semester. So to give more details on how many the number of a process that has been settled or in negotiation, these negotiations are within the expectations. Can we wait for similar volumes of negotiations for this period? Paolo, would you like to mention? Paola is our queen of compulsory loans. So I'd like to highlight something of a concept here, Carol. Obviously, we have here a segmentation of this process. So we are here in this first moment in the segmentation that look at the great process. where we believe that on the counterpart, which are companies, and we can generate a benefit of this resource in the financial market, it has a restriction. But we should not. Part of our advantage is a volume of capital that is and that we are renewing. This is an allocation of resources that we're doing to generate an advantage for the company. So it's a resource that the Board of Directors approves in terms of absolute value that we're not going to say which one it is. That provides us this possibility to make negotiations that bring almost a minimal value of debt so that this allocation of resources is profitable to the company. So we have the tradeoff that we're using here, looking at what we know that the financial market needs resources and this option to make an agreement with the advantage to the company when the interest rate is very high, becomes a benefit for those who offer, like in our case, but then the company that can make an agreement and recognizing that the cost of taking these resources in the market would be much bigger. So we're in the first moment. We're looking at the top of the pyramid in the process that has the condition to make us this, to give us this offer. But if you'd like to compliment Paola. So you mentioned, well, Wilson, I'd just like to add that Petrobras also wants to use the resources in its own process. So we have a deposit judicial process. We have guarantees. We also make an approval. we try to make an uh enjoy better these agreements uh sees these agreements is very strategic but you know we're not going to mention the details but along the year you start to see behavior in the reduction of liabilities so it's a great allocation of resources we can tell you recognized by And remembering that we take these liabilities, you know, so it's less than half of our provisions of compulsory laws. We evaluate by the SILICA rate. We have an effect of every quarter in the financial expenses that is high due to the high SILICA rate. But it needs to have an appropriate allocation to have these payments in, you know, a quarter list. Thank you. Thank you for the answer. The second question from Maria Carolina is the following. So the energy balance in the new sales of 140 megawatts near the I would like some more detail on the term of these contracts and the level of prices. So in the past, we had 140 megawatt energy prices, and then for a contract, a medium or long term, the short term, 100 megawatt hours. Can you mention something about this? I believe it's a little bit about what I've just mentioned. The market is operating at a base of below 100 megawatts per hour, for sure, to operate to a level of 140, 150, with long-term such as four or five years to capture the curve going up in expansion. I'll give you two examples. in the car manufacturing and also in the sanitation companies, they have this demand, that are using this demand of greater periods. And this is an advantage, a competitive advantage of Lato Bras, because we have this volume, we were bought in this volume. So it's a way that you can mitigate the risk that if you are going to sell well products in the short term, as much as the company could do, you will not be distant from the base of the market. So we're looking here at a strategy that looks – It looks at the consumers that have a demand for energy in the long term and that we can recapture. So these are the numbers, you know, for contracts for around four or five years, you know, over 140 megawatt hour. So we have two contracts basically closed in this direction. Shuttle buy if you want to complement. Just want to reinforce that in the long term, the projection of price is always near how much this expansion will cost. And we're seeing here an expansion due to the heating up of the demand of renewable energy by the war in Ukraine. So the expectation of prices will be greater here. remembering then we will be very competitive as we have a quantity of energy to be contracting in this horizon. Thank you. Question from Guilherme Lima, an NLSL site from Santander. Guilherme, we will open your microphone so that you can make your question. Go on, please. Good afternoon, everyone. I have two questions. The first, Wilson, mentioned many initiatives to the deficiency. If you'd like to comment a little bit more how the company expects the behavior of your vaccine that starts with the implementation of some measures and whether the company wants to achieve a reoccurring level that would be this level of reoccurring events and can give us an idea of the current level in this quarter and what you can achieve by the end of 2023, 2024. And another question that I had, a question that has already been answered in a way. So I'd like to now ask about transmission auction interest. How do you evaluate this competitive market? which blocks could be more interesting, and how do you evaluate the attractiveness of this auction? It has an important capex versus the accelerated repurchase as it has been following a lot of this value, how attractive it is to make this auction. So that's it. Let me start with the end. Yes, the transmission options is priority in the company. So the demonstration that we have put here is that in terms of applying resources into transmission is a show of this. We have seen – we have been even more efficient. We have to prepare that in the future we have a reduction in our – so that because, you know, it has a defined period, so investing assets that bring – to the letterbox profile, a profile that has a volatility due to the market price, but also that can have an important link or related to the profitability on the assets on the long term, such as transmission with the generation that we are positioned in a market, a regulated market, you know, that like Santo Antonio is a great demonstration showing this, and we have interest in terms of transmission. Yeah, we understand that these are projects that we're not in the conditions to say which, but we have a team here, and Helio and our transmission team is our focus on this. I know we're taking evaluations in terms of priorities, but evidently we have assets here that are of greater value and being of greater competitiveness. There are not many people interested in this financial capacity at this moment. So, obviously, we're looking at this and we are talking with potential partners in a way that we can be in the oxygen in competitive conditions. And as we do it to the repurchase and we report this to you, the process of repurchasing, we have 18 months to do. the value of this share is attractive and this is a great allocation of capital. Our only event here is to respect what periods and also annual relevant event in which we can identify. in the period that the things are happening, but looking at our transmissions as an event or as an asset as a long-term. But in the shares of Lato Blas, it's a great allocation of capital, so related to the OPEX, and we are in the process of – in the MSI and maybe looking at a greater application if we look at the material. Then we have a new process to the purchase of synergic data that bring a volume to the advantage to the company. In this way, we are looking at a program that goes to one or two years. So the values that we imagine have a reincurring potential of 15%, 20%. It will happen starting in two years. So there is a curve, as we already shared, some advantage in this quarter we showed you in my presentation. Obviously, we're going to keep on working on this direction. Maybe you cannot see so much in CapEx because this is going up. But, you know, speaking by the price that we are acquiring, the advantages that have been pointed out by the first wave that we shared today is something that you can look for. So looking at the team of people, we have here two people. two agreements related to the union that represent the employees of the company. In the first movement, the one that is ongoing, which is the recognition to the retirees, our evaluation is that up to April we'll have something around 2, 2.1, 2.2, 2,000 people, you know, which is not the total, which is exactly our objective. There are people here that need to have a mix of diversity. It's not just, you know, new. It's not just young. We have to keep here, you know, the white hair, the experience together with us. So it's a process of looking at this balance. related to our employee chart. This program had to happen before the second, which will be launched in April, for that they can offer to the employees starting in May, other employees. So the same plan, so the movement related to the retirees that has already been offered, people have already adhered, and we will have here 2,500 adherents, and we will have up to month of April 2,100 people being dismissed. The second is a movement that looks at the beginning of the month of May, what is the the reference, uh, of the company, of the, so related to last year, last, the people who have left, and more, the, these 900 people that we are, that we are putting, bringing to the company. So, uh, So then you can make an offer to no more than 20% of this number of people for the next year from May to April to the following year. And I'll say that we will make a voluntary dismissal plan and we will offer that and we'll have the main distribution of efficiency of the company. So this will be really important for this adjustment. And I would say that... This should be the point of view, a reoccurring point of view of the OPEX of the company. So it becomes something reoccurring as we move along. So starting April of next year. So as you will see, the economy of a great economy per month. And then later you have an additional investment demand. On this plan, up to 20% of the number of people with values that will be less than that, remembering that the retirees are those people who have the main remunerations of the company due to the advanced age and also the experience. average experience in the company of 33 years. So these are people that are in positions on top. And then here we have a payback bigger in this group. So would you like to say something else, Elvira, about this? I believe that you have explained the processes in construction. We will have this reduction in expenses in a gradual manner. In the first moment, we start with bigger expenses due to the dismissal plan. The second one that will come up, so we only see the full effect of this on the payroll next year. And then the other expenses, it's very similar because we are starting to change the process of purchasing. We have some examples of... of contracting of insurance that we have centralized, that have shown expressed gains of 30, 40%. And this will intensify as long as we renegotiate this contract. But it doesn't start from the day tonight. So it's a great volume. of contracts and all of this has to be renegotiated. So this takes time. So we can have 100% of the contracts renegotiated. So anyway, so renegotiating this compact, it doesn't require this investment. So how much we need to make this plan of supply and long-term and short-term. And these are, so these are the examples of insurance. So it's the first moment that the company has dealt with this before of the insurance of operational assets, life insurance. We have, in fact, as a fruit of this energy, another related to volume, especially capex, we have what are the volumes that have to be done, what the reoccurrence is. how long this should take place. It's better to have stock, not have a stock. And so this cost of SMR will fall along the time. So we have important investments to make this mobilization, but we also have the advantages of having a payback of 13, 15 months that we will allow to verify the reduction of this cost along the time. Our objective, people, is to, in fact, be the company of the last OEM cost in the generation transmission. So this is the commitment of the company. We're looking for this, and I think this becomes good year along to the year 2024, 2025. But these measures for us to reach this in this condition are taken in 2023 and then in 2024. Thank you. Thank you. We're going to have our next question now. It's from Daniel Almeida, a sales site analyst. So we will open your order so that you can ask your question. Please go ahead. So we will read the question. Okay. Okay. I would like to confirm what will be the hedge that will be used for the energy balance that the 15% that is generally due, for it's another value that in the graph we didn't mention, around 15%. So just that, thank you. The next question is from Juliana. Juliana, we will open your audio so that you can ask your question. Go ahead, Juliana. Juliana, okay, yeah, can you hear me? Great. So it's very interesting to see the generation of value comes from – so now – So the compulsory loan, it's a little part of the OPEX, you know, which comes from the optimization of taxes. And I think the main ones that the company is exactly those in the generation of sales of energy. I congratulate you this presentation, which is very well focused on the generation of value. But something that draws my attention, and I would like to just have a better understanding, is when I compare the energy balance of the third quarter with the fourth quarter, I can see that there is a contraction of energy, 170 mega, 220, 158 into 25. So making a quick math, we can estimate that the price of contracting on these prices. And then maybe what comes to my surprise, I'd like to hear from you is the explanation is that the price contracting in the fourth quarter to 2023 will be 80 reais megawatt water to 2024, 70 megawatt water. And 2025, it falls even more. to 64 megawatt water tanks. So I'd like to understand more if there is something else related that negotiation that closed this agreement with the sale of energy or something else. But this contracting with the average price below becomes a surprise for us. I will thank you for the question of evaluation. I will send your question to Jatoba, but to make this consideration related to prices. So, Juliano, thank you for the question. I received by writing and I could analyze it. So the calculation that you did is the net difference in which we have the total volume contracted in the third quarter and the fourth quarter. Between the average prices, so this is the sum of all the changes that we have had. We had some of these contracts, the long-term, some of them contracts that were not done in this average value that you mentioned. There are some contracts that come in to be regulatory mandatory contracts. 80 megawatts obligated to sell for the transposition of San Francisco at a value below the projected value by the market. All of this sums and provides this effect, but this is not in any way the value that we have been expecting. We are practicing to reach the supplies exclusively to the differences that have been affected exclusively in the fourth quarter, where we have a series of different non-typical situations. Thank you, Jatoba. Thank you so much. Just I would like to ask two more. The first week, they should be the numbers of now should publish the numbers referring to the first auction of energy transformation, something here, 20 billion. And that's all I understand you had here. Do you plan to participate of this auction? It's a great auction. It's to have partners like to understand your expectation. The idea, yes, is we are evaluating the participation. We believe that the business transformation gives stability to our result. We understand the decomposition of this is the stability and also have the possibility to create value. With a great, much more dynamic is what will happen to the free market. Some people see some concerns with the lower prices, but in 2021, they, like today, would be so happy to be selling energy at a greater value. So, obviously, the strategy of the company considers these two things. Besides this, I'd also like to say that the strategy of the company, the only thing that we will not have is to be a minority as we were in the past in terms of 49%. So, obviously, we see the possibility to be together with our competitor that has advantage, competitive advantage, technical knowledge that we can, in a pair, control the venture and create more values and become more competitive. But we have no problems in doing this with competitors. With our competitors, some of them, in fact, we are partners, even though in the inferior condition of 49%. But the share control to create value, to be more competitive is part of the strategy of any business, any private business that is serious in this. So surely we will consider this. We will consider the financial capacities as differential in the market. In the moment, the market is not so – has so much liquidity there. So together with the board of directors, we will work on the fixation of the rates that recognize this moment of financial moment. But I would say that no doubt this is – One of the alternatives of investment and sustainable growth of the company is transmission. And we are working seriously to be competitive in this auction. And no other alternatives. I would also like to say, I forgot to say, that no doubt to pay compulsory loans and to make agreement to compulsory loans using electricity is one of the alternatives that we are considering together. with these counterparts, so stimulating the revenue and also, but we still have not done any of them, just to be clear that those values that you saw that Jatoba explained still don't have these alternatives, and I hope we're able to evaluate some of them and to be competitive, and this generates value for both parts, especially in this moment. Thank you. And then I'd like to just seize the moment and ask one more. We have three events today that are a little bit out of your control, which have caused a little bit of stress, which is the RBCA, you know, that I think Limp has mentioned. But another one is the Angra 3s. So understand a little bit with you what is the expectation for Angra 3s. Then until when there's – So there is cash for construction and expectation on the tariff. Let me – the company has cash up to the end of the year. So these are the values that have been allocated by before the privatization. It's there and following the – what we call – investment in the critical path, which is those on the expectation of a definition related to a tariff. And here, an important point here is we are in this moment waiting for the ordinary process to review these numbers from the development bank. And also the CNPS can get together up to June to approve this tariff. But once this tariff is approved, we will be able to have a process, a tender process, you know, to get this financing. So this company has the continuity of the investment will be based on starting from the financial position once the equity has already been based. This company will be here 70% of the construction is done. And in four years and a half, 2027, 2008, to be concluded this important venture. So we're waiting for this evaluation from TCU to have this, to go on with this work. the tariff that has to cover the capacity to take the finances in the market and also recover the equity of that have already been allocated to the company. So we end now the session of key question and answers. We will give the final word to Ms. Ferreira to the final remarks. Please, Wilson, go on. So thank you so much to everyone who could follow our conference results. So I'm sorry it should be a little bit long, but it was important to characterize this process of change. I have mentioned to my team that we are a company that generation and transmission, we should have a certain capacity. stability with the investors, but with profitability on the results that have already been seen, the operations we have seen. We have seen this already. So on one side, we try to have more of a final cleaning of the balance. On the other side, you know, initiatives that – we have the possibility to to direct our bncr to uh to to directly to to people in the OPEX and the CAPEX related to acquisition services. I think we have the second block, which is to potentialize the value in our liability, you know, contentious here in the company. So we are taking the first steps that are very important. There are assets that are very important, which is the fiscal credits that we're trying to be, you know, selling energy. that generate operational advantage or, you know, compulsory laws to use these fiscal credits, you know. And clearly, The other side is the growth of the company. So the strategy of the company is to, in the final phase, together with the board of directors, is coming to reinforce this growth line in the renewable energy, especially in the transmission, the area transmission, which these are ventures that are happening. So the fact is... I would like just to highlight that the company is six months as private. We have seen increased expressive investment over 50%, and now it's a greater investment of – initiative of the company. We have taken control of companies like Santo Antonio from a minority way. We have already plans, important plans, to the presence of valuable data showing that we have a capacity to make the last movement related to SPS and the rationalization of SPs, which are not just the transition that They have been here. We have done a benchmarking to find all the potential value creations that we have here. We have 74. We say, well, who's operating better? Who's operating worse? And what recommendations can we do? And we have seen the potential value creation. We have the first-time conditions to guide, you know, board of directors. Board of Advisors, you know, to really meet this expectation of an increase of generated value in these ventures. So it's the second point that we're looking. So the moment is a demonstration of a strong grit of a private company contributing to to the growth, and this is also very important, 600,000 investors in the company, 370,000 of them have got together by the grocery loan. So we have a commitment with all of these investors of the company in this creation of value, you know, sustainably. So the strategy of the company will show this. This is the first quarter in which we showed you that where we are heading. So we also like to say in the moment that we are, you know, building this new team in the company, bringing people, people who have a great experience in our group. We will move on in this journey of generating sustainable value with all this balance in the growth process. which is a global corporation with the same pride of a company like Vale, like Embraer, that are companies that are Brazilian companies that are represented, that are managed by Brazilians, that are advised by Brazilians in this process. So we have a great relationship. A great virtual way to follow in the first sprint has already been done in the first semester with great examples in each one of the areas that we have spoken about. This is the commitment of the team that is here represented together with the managers and employees of the company. So our commitment with the Brazilian Society of Generating Value Sustainably in an area that will be especially important globally, not just for Brazil. Brazil will be the main point of this area. No doubt, Eletrobras will be the main symbol in this new economy that is showing up in the economy, the sustainable economy, the decarbonization economy. So it will be this area. Great example. So thank you so much for everyone. And see you in the next meeting in May.