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

Presenting the team for Petrobras we have here today, the president of Petrobras, financial vice president and investors relation, vice president of regulation and institutional relations, and the new vice president of Vice President of Commercialization and Vice President of People, Personal and Culture, and Ed Wolf, Vice President of Strategy, Business Strategy and Participations. We inform that this virtual conference is being recorded and will be made available in the site of IR in the company and will be available in both languages. If you need simultaneous translation, we have these two available in the icon called Interpretation located in the bottom of the screen. You can choose Portuguese or English. For you listening in English, the option to silence the original audio, click in Mute Original Audio. For Q&A, We say we should be sent by the Q&A button on the bottom of the screen. Your names will be announced so that you can make the question. To request your microphone whenever you make this request to activate your microphone will appear on the screen. The disclaimer, anything that is said during this presentation about the business perspective of the company projections, operational targets, and financial ones, they are premises of the Board of La Tobras, as well as information that are currently available for the company. Future considerations are not guaranteed of performance because they involve risks and uncertainties, and therefore, they depend on circumstances that may or may not occur. The investors should then understand that economic conditions in general and other operational activities can affect the operational results expressed in the future.

Now, I will speak here to the President of Tobias so that we can start the presentation. Good afternoon, everyone.

I would like to greet the shareholders, the investors, analysts, data workers, so that we can share the main results. of our first trimester, the second that we complete here since we have arrived. We highlight here in the beginning what are the main highlights of this quarter. Basically, on the partnership, the advance that we have had in the process of acquisition of Santo Antônio Energia, the advance in the acquisition of Furnas of 23%. And then our average 92% of the company investors in 160 million reais. We're going to be able to detail here more, but it deals with one of the main companies in Brazil. So this is a very, very important human data investment. The second one, the second highlight here in this quarter is the receiving of 950 million hides referring to the contract of transfer participation, partnership participation in Itaipu. This is one of the preconditions of the privatization and capitalization where where this asset was financed in 20 years. And now with the discount that we speak further ahead, we had an influx of cash of 9 million, which is really important for the liquidity. Another part that is really important, the transitions that we started to develop along the recent years. So we will follow here, not just the team of SAIS, but also the União Energia as a complement to that. We had participation from SEMIG. And with this, we now have a controllership of investment, 200 million reais. We also have a hydroelectric unit and also the hydroelectric unit of Baguari. 393 million reais. Having 100% of these plants, these plants are totally contracted and regulated. So this is not an instrument of competition. It's basically a relevant participation that the company has and that they can start operating these plants with more efficiency. So these are highlights in this quarter, a very important quarter, the continuity of compulsory loans highlighted by some analysts that I follow in the morning. For the second quarter in a row, we have here a reduction in the stocks of provisioning of compulsory loans. We still want to lower our provisions of loans. We're going to and whatever is a benefit for the company. As long as we have an agreement, then we can provide liquidity. And as a counterpart, we have here a decrease in the values that were provisioned. So highlights also in this quarter, the continuity of our process of PDVs. We had 2,500 registered. We had up to April 1,974 people that have been dismissed by this process of voluntary dismissal with an important remuneration for this process. people that could, you know, become part of the program that were retired or to be retired. So there were senior people in the company. And then we had this process of running here up to April 30th. We had, you know, We still have 520 remaining dismissals that we are with new vice presidents evaluating the schedule of the dismissal of these remaining people. So we are launching here in the month of May the second dismissal plan with the remaining group of people in the companies. So It depends on the moment of the career of each person and the demand that the company has. And this has been already cleared up in the presentations. And then strengthening of the holding, the strategic aspects, and the of several dimensions in our restructuring process. So strengthening, we had six directors and now we have 11 vice presidents that I will show a little bit further ahead. But in these vice presidents, we need a complementary of directors appoint the people and more three directors in subsidiaries so it's the beginning of a process of restructuring that we want to finish by June you know appointing everyone in a meritocratic way everyone who is part of a of the current managers or people with high potential that could occupy these positions. So we can have, with a lot of discipline and meritocracy, an important example of creating value, starting the capitalization. All the partnerships, we have renovated them, understanding the simplification that we need to do. And the control now of 100% of each one of our controlled companies. We have also an Excel here, our CDE, the payment of 621 million in this quarter already done here in April. We had done all the deposits in funds. So all the commitment of cash that the company had to do in terms of capitalization has already been done. at the following slide. Moving on to talk about our transformation, and I will now show you on the left side already here some observation about the deliverables already performed. So the dismissal plan already, 80% of the register already dismissed by April 2023. So we have here in supply, we have a commitment in... In a disagreement where we have 80% of the first stage captured, here we have two elements. One, capex, a reduction of 160 million reais. which would be equivalent to 9% of our expenses of $1.82 billion. So this is very important for CapEx and OpEx. And in economy, 143%, mentioning the company insurance. So $280 million addressed, where we had $120 million reduction. We appointed all the end-one managers below presidents for the holdings and the control companies already done. We already worked on – we worked through these levels. All the agreements already agreed in most of the companies with the exception of some subsidiaries and managements. So we also continued the negotiation of our compulsory loans. We have paid around 780 million reais, 43% of stakeholder shares. We have accumulated 640 million in the agile and also We're almost $692 million of off-balance reduction. So almost $2.1 billion total. This is the first time it happens in many years in the company, at least the ones that we have, the ones that I participated in. Another important instrument was 90% of... of a currency exchange exposition without the bonds in the United States. And we have two more operations happening with subsidiaries with lower values. And that we will conclude in this second quarter or semester, second semester, we have here several deliverables that will be operated. I would like to rank here. First of all, we will do by the end of June, 2023, letter of us day, where we will share with the investors and analysts, the essence of our strategic process with a support and reference of goals and strategic actions that the company plans to execute. Along this point, we go through the second phase of supplies That is expected for the semester 2023. So we're looking here at the capex with an expected reduction of 280 million reais, 10% of the expenses of the remainder of 2.8 billion. And in OPEX, 200 million are equivalent to 25%. So these two phases when it talks about supplies is really important, either for OPEX or for more competitiveness in CAPEX in the acquisitions done by the company. So in May, we will launch the dismissal plan for the remaining employees of the company. We are also within an ambition to the partnerships with around 74 agreements to be done, 31 by the end of the year. And there are several operations of the corporation sales, of divesting. And we will also give liquidity to our shareholders to our partners and in our joint ventures, it is important for the liquidity of the company and the results as they go through a control exercise by Alatabras. We have a renegotiation, the structure of capital is running, and this will happen along the third quarter. And then not just to achieve 100% of participation, but also to gather with BMTS so that we can restructure this debt process so that we have a letter of us with... with a bigger share. So we believe that this is a relevant, important, adds a lot of value to the company. And finally, we also, we, we plan to share here with you. This is strategy of optimization of fiscal credits. We have fiscal credits relevant in holding and also in the subsidiaries. I'll gather with you, either capitalizations where we have to provide capital, allocate capital to companies, to partners, to joint ventures. so that we can generate tax revenues in the holdings, M&As in joint ventures, as we have done with CIEs, and the receivables. So this set of values create a lot of worth. This makes viable the important creation of a value for the portfolio of the company. So these are the points that we, in our transformation process led by Camilo. And here we have, I show you here, the new leaders in the company. So as I had mentioned, but we have Antonio Varejao, ex-director of engineering. He's the CEO of the company. He's a professional engineer. He's been in the sector for more than 30 years. who will lead our area of commercialization, also professional, very recognized in the area, has gone through several companies, such as ADP, one of the subsidiaries of Delta as well, and Wolf, who was the head of M&A of ANG outside Brazil and now is with us, involved in a set of operations and the maintenance of two professions that are very valuable to our company, Rodrigo Limping, the regulation, and one of the former ANEL, Elvira, in the financials, been here since I joined in my first time in the company, Camila Araújo, well, risk and conformity and governance. We have brought Renato Carreiro, former director of supply in Vale, with a big experience in CSN and several big-size companies for this. And we also brought Renato Domingos, who do people, management and culture, 30 years of experience in this area of human resources, you know, with... through many own consultancies, but also several companies, TIGRI, CTG. We also made an invitation of verbalizing the... so that Marcelo Siqueira can come, a current board member. And now through May, I will... And then here, our last vice president of research and development, digital and information technology, and bring Augusto Sivera. And then I hope to conclude this. So we have the team basically completed here, working in a process of transformation that is led with me to get the results. together with many, together with Camila and many other of these vice presidents here. And in the next slide, I'd like to show here and give the floor to Zé Renato so that he gives his first comments with you. But four great movements impacting the Lato Brás field. We have the PDV, the reposition, structural optimization, and Zé Renato will make a brief comment about these challenges. Thank you, Wilson. Good afternoon, everyone. It's a great pleasure to be here and talk about these movements that are shown here related to us, to management and to the culture. So the figures of PDV that you see here for the voluntary dismissal that has already shown in the previous slides, but I want to highlight the impact and the expectation we have of this annual savings of 1.1 billion that has already come to 150 million up to April. a monthly of 70 million. And then now in May, we have this dismissal plan that will be launched for the second one with 1,500 people already registered for it, making that the organization comes close to the size in terms of people, fair with its performance and with what it needs in terms of people to operate and operate in an efficient way and annual savings of 680 million. 600 to 800 million. So to gather a total savings, expected savings of almost 2 billion in this process, voluntary dismissal and then here we are replacing some of the some of these professionals especially in the maintenance area of 832 professionals this starts next week we have the first wave 831 people uh arriving in the company and starting the operations by june especially with the focus of operational continuity and renovating this field, which is replacing many of the people that have left, especially retired people in the first dismissal plan. And then optimization of the structure starts the centralization of the organization. Up to June, we will finish implementing this new structure with the strengthening of the corporate functions. So reducing the number of management positions in 30% when we compare with the pre-capitalization. It's an important impact in a point of view in terms of cost and also of being an organization that is much leaner and lighter and more efficient, of course. And lastly, the process of strengthening of cultural transformation with strategic objectives, aligning of the organization with people. And a new design of career track plans and onboarding of young people that we should start to be doing the second semester. So with this, I finish this part and I thank you very much, Wilson. And then I give you back the word. Thank you, Zé Renato. I would just like to... So we have around 8,000 people in the company. But we started here with 10,000. So we see this reduction. So I'm trying to be concise here in the explanation. First, I would like to know about the sustainable growth of the company. In this quarter, we have added... New megawatts to the company with finishing the cycle of Santa Cruz. Our thermal electric in Rio de Janeiro with more 450 megawatts buying the hydroelectric unit of Santo Antônio. So 22% of the capacity in Brazil. So with controls, we have 1,475 megawatts of added megawatts with Saeza, Baguari, Telespires, Hechudo Baixo, and leaving the analysis, which will add the 550 new megawatts. that we, of what we already constitute. And we are here in this seek to become the biggest companies of renewable energy in the world. And with these movements, we are naturally, you know, meeting this and we are here with, uh, Without energy, which is renewable, which is cheaper also, means 20% of the energy generated in Brazil, 22% of the capacity installed, and 97% of it coming from clean sources. In transmission, we had the same behavior. I highlight here the increase of an investment. We doubled the investments in the cooperation in the same quarter compared to the previous year. And now we reach here 74,000 kilometers, 38% of Brazil, 282 substations. Brazil has 194,000 kilometers of transmission. And we also have the perspective, excellent perspective of great investments of implementation of great size investments with a capex of almost 6 billion highs and this 837 million is up into 2027 186 million only in this year 2023 some already implemented in the first quarter so sustainable growth in the in the in the sustainable growth and also transmission, the decarbonization of our generating energy. In the next slide, we have an evaluation here that I'd like to highlight here. It's really important that our revenue, the first quarter reaching 11 billion, 71% of it is revenue regulated, indexed to the IPCA, most of it. So I look here at 4.2 million of the transmission. 2.62 billion in the generation in market in the long term, 38% in the generation of quotes, decreasing along the time, but it means 9%. And all of this comes to 71%. So we'll see here in the superior block about 3 billion or 27% of our revenue coming from markets, free markets. And the highlight here in the free market is that the 86% of it are in bilateral agreements, which is typical in the free market, but also with an index to the inflation rate. Only 4% of this is done in particular liquidities in the short-term market. So these are revenues of rents, of transmission lines, for telecommunication, of providing operational service that we have in Belmont. All of them are also indexed. It would be incorrect to say that 71 plus 2, 73 plus something else close to about 96% of the company is bilateral contracts indexed. So very good. So with that said, Characterize, it's a very robust company in terms of revenue generation. And I go to the second slide where the following slide where I come here to show you John Carlos Guimarães, who together, who is joining us, telling us about what the market has been debating, these bilateral contracts concerning this law from 2015, 13,182. So, John, please, you have the floor.

Good afternoon, everyone.

These contracts, they have been agreed on this law from 2015, and they are electric intensive clients. These contracts, they have amounted 1,241 megas that have been contracted. They have a specific tariff in the contract. 184 megawatt hour. So it's important to highlight that this price, what in fact stays in the petrobras in terms of effective revenue is equivalent to quotes, so 90 reais. So this difference between 90 and the 190 goes to the investment funds in the Northeast and also in the Southeast in terms of generating energy. As these prices are above from a point of view of the client to the prices of the market, many of them have been options of reducing the amount contracted. And this law, you see this in the law says you have six months for this reduction. And also... and also breaking this contract. But in this case, he needs to wait 18 months without being fined. So here we had the first quarter, we had a reduction of this number of processes, and this should increase along the year, and then along 2024 as well. So basically, this is it, Wilson, what I have to say for now. Thank you, João. I'd like to highlight here that in this comment from João, that this rule is the request of a breach with 18 months ahead. So once upon request, we have 18 months to execute the contract in the terms that it exists today. From there on, the following 18 months, we're talking about... into half of 2025, the consumer who took this decision has a risk in terms to contract this energy in the free market at prices above, or if we have the variation of, as we have had already two years ago, in a non-favorable situation when... And then obviously related to economic perspective as well. So we have these two favorable conditions. The risk of this consumer increases a lot, which could impose this decision in the level of responsibility that is really big. So moving on, we have here the variation of our volumes of revenue generated. We see here that... a 90% growth in this quarter compared to the first, the same quarter in the previous year. And we see a growth, the lower, lower quotes, which is the process of decoding. And also we have a growth in ACR with the 86%. So a rigorous growth in, So we have the cooperation of Saez in our portfolio. So the importance of this transition and the free market is growing 29%. Also with the quotes, you know, coming comforted in the two free markets, 29% growth and 27% of the volumes that you have to put in the short-term market. On the other side, we have the growth of the revenues of generation from 22% to 30%. to 1.2 billion reais, reaching 6.5 billion reais. And then here we have readjustments of the quotes that are, but reaching basically, despite the volume of our quotes, we had a growth in the unit values. So with a reduction of volume compensated by the growth of the price of quotes of 1 billion reais, and we have an increase also in the volume of markets or regulated markets, 2.6 billion reais reaching a revenue average of 200 and 20 reais per megawatt hour. And then in the free markets, we have a growth, an important growth of volume of 26% and a growth of revenue of 26% reaching a total revenue of 2.6 billion reais. or 200 megawatt hours. And these volume liquidated in the short term and 440 million reais. So the performance in this generation is very strong besides the economic moment that we are living in Brazil. So here we have this regulatory view of the transmission. So I like to highlight this because as the values of revenue of transmission are different from the regulatory, I like to highlight first that we continue evolving a lot in terms of regulatory. So the green ones on the left side show that in our portfolio, our regulatory revenue of 3,334 billion to about 600 million growth. So it doesn't reflect in this trimester in the reported IFRS and almost 4,216,000,000. This is due to the fact that you have the revenue of the transmission segment indexed here to the variations, basically, especially on the two inflation rates, 2% in this quarter against 2.3% in the same quarter last year, and inflation aiming with an even bigger one. So you can only keep this revenue stable because we have the important growth of the assets in the concession in terms of 350 million high. So this is an important part I'd like to highlight and a 15% increase. Liquidity of inflation of... and the reprofiling of also of the figures you see on the slide. And I'll go speaking on the financial performance. I will help talk about the first slide and then Elvira will take on. I'd like to highlight here a couple of things. In the second quarter, we reported the financial results of growth of IFRS or the adjusted value of 13%, $9.2 billion in the quarter revenue, a growth of a bit reported of 44%. 4.8 billion in the adjusted EBITDA of 5.6, so above the inflation. However, a result in the last line that has a set of items that we have considered non-occurring, that we have reported 406 million highs in profit, 402 million highs in profit. That is adjusted. So these are highlights in this quarter. The growth of revenue, the consolidation of Saeza, and our regulatory recovery, our investments that I will talk more about. the reduction of provision for compulsory loans. So also continuing in this line, and also savings related to three employees that have left to have an add of preventive health plan. So we're already working, as Renato has said, with an expectation of a savings of 70 million reais monthly. Just with the people in the company, we have a growth of, due to the consolidation of SAIS, an increase of also of our consultancies and landlords to viabilize all of this condition. We also had a growth of $400 million in our operational cost because we had here the consolidation of SAIS of $300 million. And the readjust of 15%, those add more than the values that we are reporting here. And then we have here in the facts of what we understand that we have to be observed that non-occurring here are the the anticipation of the payment. We have a discount for anticipation of resources that are brought forward and about 1.8 billion reais. And then also in reducing compulsory loans provisions, we have a reduction of 335 million reais in terms of 377 million reais in the monetary updated. So we have in this, starting this quarter, Part of 1.8 billion, which is amortization of capitalization and part of obligations related to regulatory funds. Totaling, as you can see, 1.8 billion. So this is something that becomes a priority in the company, the valuation of alternatives for this financial expenditure. So moving on to Elvira. So we have a half an hour presentation, so I'd like to reach 40, 45 minutes. So thank you, Wilson. So I'd like to talk about some details related to the demonstration of results. As Wilson has already mentioned, we had here a growth relevant of a gross revenue of 3%, 11 billion. And I would also like to make some comments on our base in which we consider reoccurring, which is our adjusted base. the more relevant of increased revenue already is the consolidation of the energy company in And this is reflecting the regulatory environment as also in the freeze. Santo Antonio also has average prices over 200. And this reflects in this increase of revenue. The slide that I will highlight more up ahead, I'm not going to mention now, but we will show more details later on, but in the block of costs and operational costs that it's in light blue. It's important to highlight the Santo Antônio in the same way that he adds value, he also brings its costs. more in this period. So in construction, we have a lot of investments in adding value to the transmission, which is very positive. And then we have an increase in the revenue of $200 million. And in the case of our thermoelectric Santa Cruz in the first quarter, it did not only was dispatched, but also it was performing some tests to do a cycle, so there was no need to which, so there was no need for fuel, which we saved 200 million in amortization. And I'd like to show here of also consolidation, we have 500 million. So we have an increase of 80%, an expressive increase. And this is an effect non-cash, which is the amortization of these new contracts that we signed with the capitalization. So this brings more or less 350 million. And also, uh, the depreciation that comes, uh, from, uh, and, uh, the final financial results, uh, the, the duties of the debt, which are consolidated that, uh, that after renegotiations, uh, we see a reduction in these amounts and, uh. and the programs for a relevant value that is the PCI and also the duties and so on special projects. They see here very important to highlight that in this moment, we're having this impact on the financial results, which is also non-cash impact, but a cash impact, because it's very important because this impact follows the flow of 20% a year. So we pay this 900 million referring to the initial projects and recovering the basins and also in the Amazon region. And now in April, we have already paid the CDL to the referred to this year, which is 620 million. So from this, in terms of cash up to April, we have done everything, but the amount that will go to the financial result is higher. So it's important to make this comment. And also in the currency exchange situation, we did not... We have even better result, positive result in the quarter last year. So that's why this negative result appears here. And then we showed a hedge here for 90% of our expedition. So starting in May, this exchange, currency exchange variation will stop existing. So now moving on to the second quarter. to the following slides. So we see here the detail of the graph of the composition of our revenue, of gross revenue, remembering always that the two extremes are FIRS, and we are focusing here in these columns of darker blues, whereas the reoccurring results, as already mentioned, the main effect was increasing the degeneration with the concentrations of non-energy. Besides that, we also had the electron north, the regulatory environment, and then this has added 600 million in terms of revenue and already explained, we did not have the, we did not have the operation of of Santa Cruz in the first effect so this brings this result and also from a regulatory view we had an increase of revenue from IFRS we have a light reduction as already explained by Wilson and also due to inflation and now moving on to the to the next slide to the PMSO so on the left side we have the graph the superior part is FRS and the lower one is the what we consider the reoccurring so that we can make a comparison and effect of comparing a regular basis we have deconsidered santo trono santonegia because it has added 72 million of BMSOs. So here on the right side are the main points that I would like to highlight. Our main expenses is people, and that has grown 44 million, as we highlight on the right, reoccurring people, which has only increased 12%, which is much lower than we have just in the collective bargaining. And on the main, we have economy with the dismissals that have already happened. The program with the collective agreement has already explained a hundred and also health plan has been intensified as it usually happens when we have the dismissal plans added more 10 million. And also we had the expenses, even though we have kept the reoccurring. In fact, it doesn't come back to happen again. Other people that have been dismissed together with BDV, the dismissal plan. So these are the main points. And in the block of services, and also the last comment, the perspective is that from now on, continue this reduction in the dismissal plans as they keep on going, and that they will launch and that are still coming out in the next months. in the blocks of services i like to highlight here we had an increase of 59 million but great part of that are expenses that also will happen for a limited time which are the consultancies that are helping us with all of this plan of transformation we had here 20 80 million for the transformation office and other and legal services and also the technical nature like a maintenance of assets from our subsidiaries. So this has added to 22 million. And others, we have a small increase of 7 million, mainly from according to the But they retired from our chefs and we have several savings as we highlight too. It's the initiative of insurance. We had already implemented it last year. And now in this first quarter, we had implemented more $17 million in reduction with insurance. And also, let's assume, which is making some... alienation of assets and rights and had that another $5 million. And now with the operational provisions, this is one of the highlights in the quarter comparing to the same quarter last year, an expressive result. the compulsory loans we did not have an increase of provision we have a reversion where we that due to the work that has already been mentioned in our conferences in the line that highlights as a green PCOD last year we had a provision of amazon energy the distributor to the electronaut and also the all the provisions and we did not have impact basically in any of PCLD. And now going to the last line about legal provisions, we had an increase of 350 to 370 million, which is highlighting a great part of this are the updates in the old process that are already existing and some situations of process that there was a reclassification of risk in function of due to some unfavorable decisions and in the same way that we have the initiative according to the compulsory loans and there's another initiatives led by the by our legal vice president to address these other processes that are non-compulsory and obtain some reductions and agreements in the future. So, to the next slide, we have a variation of the EBITDA with an increase of 10%, which has already been explained by the previous events and And then the partnership, we don't have Itaupu, less 116. And now Itaupu is not controlled by us. And the other effects of expenses I have already explained. So in the next slide, so that we can reach the conclusion, the variation of net profit. which is the most relevant one, the financial result in which has this fall of $3 billion and this variation of $3.2 billion negative. What we have today with reoccurring values that are being addressed are highlighted on the bottom. So it refers to this 1.3 billion refers to these insurance expenses, 709 of the Santo Antonio, which we will renegotiate. And this variable currency, liquidity of 186. And also in the part of a highlight that we have this discount of the 135 million in order to receive 150, which we would take 20 years, we have already received. And this is a single event. So and after the compulsory laws, each trimester, it tends to decrease the volume of contingencies. And this has been over five. This value has already been has already been over 500. And now you see it's lower. And also leverage, we see the company continues in the value of net debt and EBITDA. We have the composition, the gross debt. We had $250 billion last year, and now we're going to $158 billion. And we also had a small decrease in the cash due to the payments that have already been done, but we kept the growth of EBITDA. And also the net debt in two times and also the payment of CDA, which we paid already in April, 126 million dividends that we will pay in the end of May up to June. And also we reached 900 from Edipaq. And also the last slide of the investments that have been, we have seen a significant growth of 191%, you know, consolidating the tendency that started last quarter. So over $1.5 billion in investment is added to the operation that Wilson has already mentioned, adding the companies that also, the same big of the plants of Hichiro Bashi and Baguari, and also continuing the buying of Santo Antonio and also inside investments, the wind park in which we are building. So we end here the financial highlights and then we can go on to link. Thank you, regulatory, because we had an important decision here related to, so I will give the word to Link so that he can explain here. So thank you. Thank you. Good afternoon, everyone. So we'll go here to the slide we brought to here highlights the full domain focus in the RBSE, which is a theme that Wilson has already highlighted. We had the new technical norm. of SGT, which had a difference of nomenclature inside the NEL, but it was issued inside the SGT last Friday, in which it consolidated the analysis of the contributions of transmissions of generators of consumers in relation to what set in the technical norm of the same number of last year. It did not bring a lot of innovation in terms of understanding to the new note, but even brought an understanding that is very similar. And sharing and splitting this in three topics. The first topic, which is amortization. which is the anticipated, and even though it didn't bring a change in understanding the technical terms of 85-2022, but it gave us two ways. the same way of payment up to, which is the post-anticipated, which was widely discussed in our public audience meeting in 2017 and also was in our understanding the position of the of the promoter's office and not to change in this item and keeping this until the flow of payment, the way, you know, this post dissipated manner and also brought some of the possibilities and also shown in the 2022 technical note, the possibility to change of amortization to anticipate as June 2020, which was the understanding the technical terminals concluded in these two ways. related to the separation of flows of application of KR only in the installment that is different from that of the methodology that it was already. It changed bringing this technical term last year and also brought reaffirming the understanding that the agency should be no change so that, I'm sorry, that the arc should be changed so that it can have the calculators The debts that is still due payment and also some difference in calculation. We are still looking at the numbers that were made available. And we had yesterday included in this process inside the meeting. And now on Friday, we are here with Eletto Brás and also Bahia Brás. Discussing with an else for us several times with the legal time the technical team, the legal team in the next week we will be there in the public audience referring the legal reference and predictability of the rules that define in several decisions that were taken in the sector highlighting that of. We don't have any merit decision related to the team, but possibly it will be taken on Tuesday. We are not sure in which way we will forward, which way the board will forward because these votes have not been made available yet. But hopefully they keep the same terms. terms with the consolidated process and the final stage of our discussion is signed now. So only this update of our BSE. So now we wait for the decision in the next Tuesday. So we have two more slides I want to highlight that we made available every month. our annual report that I recommend the reading. We have it complete and summarized in English and Portuguese where we talk about the future of the company and in sequence some recognitions. First of all, the initiative that's launched by the Global Pact of the United Nations of Human Rights in the United in the electric sector and also some recognition done by several organs and agencies and then that puts a little bus as one of the best companies in the electric energies in in brazil in the ifr awards in category of latin america of equity by the capitalization and our stay in many other awards place here. So I just want to say that this is a permanent commitment that we have. And obviously, as closing this, our first interview here with you. I'd like to thank you. This is a work that has been done in a very cohesive way with the board of directors, Velato Brás, and the new executive director, management and I also like to highlight and share the the board has met in a very intense manner and we are advancing. And I clearly have the impression that we are advancing very much so in our strategic agenda, creating value for the company. And this is due to the dedication of everyone to a greater cause, which is adding value to all the companies to everyone who which uh interacts so now uh we're free for questions that you may have so now we will start the q a we ask you to make the q a in the same way and uh wait for the answer of the company and uh to ask questions they should be sent by the q a icon in the bottom of the screen And then based on the order of appearance, your name will appear to ask the question. And then a request to activate your microphone will appear in your screen.

And then now we'll go to the first question, which comes from Andres Sampaio, a sell-side analyst from Santander Bank. And André, you may open your microphone. Please, André. You can go on. So, good afternoon, everyone.

I have two questions. The first question is referring to the contracts of Sobregin to be added. I would like to know more about the what you already understand is a contractor, what has been already been requested in terms of canceling and also any, any, and if this is already known by the company, this is reflected in the energetic balance. So if we, some adjustment needs to be done or not to depending on the discussion of, you know, And the next question, Angra, if you can talk about the expectation of Angra, in fact, and still speaking about Angra, if we decide to build Angra, how would this change? of cost of mobilization and of suppliers, would it be shared by the economic stake or the original one? So thank you, André. So I would like to ask... in the specific case of Carlos talks, so that just go to link. Related to ANGRA3 we had this week, I recommend that you have access to the material that has been shared by Alexandre Silveira, who was there in the National Congress, he reaffirmed that the commitment that we have of this construction of Angra, which I always say is really important for the electric system, especially in the southeast region, the metropolitan area of São Paulo and Minas Gerais, which this process in the clear manifestation from the minister, it's a priority of the government. So now I will give the word to Lynx to talk about the expectation and this risk that you have mentioned. And then João Carlos will talk about Tobiano and Sobradinho. So Lynx, please. So thank you. So I think you approach a very important point that the scenario that we work with is to complete the execution of the project. So the project already has most of it is already concluded is a significant part that is already advanced. So there's still some important parts but most of that has been done we have discussed here, you know, together with the with the with the ministry that has done this interference also with some of our courts so that we can approve the tariff. And all the contact that we have had with public sector where we had some audience, there was specific presentation about nuclear energy, Angra 1, Angra 2, and also mining issues. associated to the nuclear energy and also the project of ANGRA today. So our scenario is executing the project. Our role as shareholders is to contribute and finish the modeling and within the execution of the project. So we are in fact structuring areas that are destined to following this project due to the importance of the project and also something like we don't work with the scenario of non-execution but from electrical nuclear we have to talk about the shareholder there is no rule of how it would be treated so it's not the basic scenario that we work with I'd also like to highlight that this is a project that the risk of 70% of the construction is already concluded. Basically, what's missing from the moment that we follow up with this critical process, which is complying with the civil work, this is a project similar to ANCRA 2, same size, same machine. And we have here in terms of investment, besides commissioning, which is the main activity that needs to be developed, we have here the instrumentation, which is very modern, is the greatest change related to instrumentation. So I think this is the fundamental factor. So we have the development of this construction. So, João Carlos, please. So good afternoon, André. What happens with... This impact, basically it's given to, as I mentioned already, so this volume is unlocked and we consider it as a not contracted energy impacted to the quotation. So the price, 190, 185, A great part of it is for the investment funds, the Northeast, the Southeast. What the company retains basically is the value similar to the quote. So with this receipt, with the breach, we incorporated this volume. It's already in form. And this means value that we can put in new operations.

So thank you. So very clear. Thank you very much. Thank you, André. Our next question comes from Marcelo Sá, NLSL sign from Itaú. Okay, Marcelo, you can ask your question. Please move on.

Hello, everyone. Thank you very much for the call. I have some questions. The first is trying to understand with your head the terms of capacity and what will happen by the end of the year. If you have a relevant potential with the capacity you could offer. And also about Angra, a question that may make sense or not is to have this discussion with the government is a transfer of participation that Eletrobras has in the assets, in the nuclear assets to the government so that to this if it makes sense to have any type of negotiation with the government to take this risk, this uncertainty that you have in these parameters of Angra 3. And the third question is about Sobreginho. in the canceling of this EPTI, it disappears zero for Eletrobras due to the new resources that will go to the fund and will not go to the company.

So these are the three questions, basically. So I'd just like to compliment...

It's not that it's not the state of the company, the resources for the transfer goes to the cash flow to the company, but it's a restricted fund. The company can only use it, these resources, for ends establishing law. So contracting this energy, which is another way of decoding, would be free to sell the way you want. So in hydrological conditions, better price, better market price. So you cannot use these resources to pay dividends. There is a specific destination established by law related to this is like the difference of high and the difference in revenue.

Okay, it's clear. Thank you, Marcel.

And so about the comment, go ahead, please. And this participation that today, there is nothing today that in discussion in this way. So the main focus of, I believe, of the government and Eletrobras is to define the conditions of the viabilization of the venture. The tariff is very important, the contracting, who will supply the equipment, the conclusion of the construction.

These are the main focus related to Angra 3s.

And then about the auction of capacity in the end of the year, you have a potential to much of capacity that you have today. If it's an option to generate value for the company, what would be the amount that could go to auction? And some idea of what do you think would be the contract in terms of capacity in this auction? So I can speak about that. So I think we have to wait first to define what will be the guidelines defined and objective of contracting and the sources that would be able to participate. If it's just the thermal ones, then we don't have anything to evaluate. We have to evaluate the opportunities. But we have the work also planned. here really associated to a regulatory agenda where we have the valuing of the attributes provided by the thermoelectric plants, which could be in a process of contracting due to the necessity of even more system data of the service provided by the hydroelectrics. I don't know if it's in this line, if you were specifically talking about the thermoelectric ones. No, in fact, it's an auction in general. So there's a discussion. There will be different products in the auction, meaning no thermal. There will be two products that will be computing. So this is the question. So what has been raised in terms of hydroelectric is related to the amplification and not to the current capacity, but will be the guidelines defined by the ministry.

Thank you. Rafael Nagando is the next question. And let's see outside from Credit Suisse. Rafael, you have the floor. So good afternoon, everyone. Just one question from my side will be related to...

The employees that are leaving, I would like to know if you have any relation of the average cost of the people who are coming in the company compared to those who are leaving by this dismissal plan. The ones that are coming, they have an average remuneration 50% of those that we have today in the company in the same categories.

Thank you. Thank you, Rafael, for your question.

Our next question now comes from Antonio Junqueira, a sales side analyst from Citi. Antonio, we will open your audio so that you can ask your question.

Please go ahead. So if everyone can hear me, go ahead.

It's not about operational questions. My question is really sometimes the company, they have to defend legally. So now all the companies, they have a lot of contingency money remote. So because absurd questions are presented, they have to be debated. Recently, the government has given demonstration that it wants to... legal question that the number of voters has in these assemblies which is breaching contracts but the company maybe has to defend so I would like to know what is the legal strategy that about the team and what's the official position of the company. The press only talks about one sign. Nobody's defend publicly the fact that the union have to do its right and then to vote. And I want to come back with that. So this debate, you only hear one side of it. So I'd like to ask the company. So first, Junquera, we have to... And I speak very comfortably about this. So this process was an object of ample debate of the society through its representatives in the National Congress. So besides that, it's also a process like all that we have conducted by an evaluation of the accounting court of the union. So this has been an important approval. So remembering that this is that the public audience about this process is a process from a legal point of view. I'm not a lawyer, but it's a perfect process. And so if you look at the process, I consider improbable, so less likely. So what the electrobots can do is to the public organs, so we can clarify any questions. So this has manifested very clearly and continues to... to which the company relates to. So with the minister, which is Mr. Alexandre Silveira, we have had several interventions, interaction with the minister. And all of the times we have a position this way, we have to see that the robustness of the project, the process, you know, over 300,000 workers from the reserve. And so it's not a classic process of privatization. In privatization, you sold all the shares and then for any third party, our process, we didn't sell any shares directly. So, in fact, it was diluted by the size of capital in which the use of this capital is actually allowing that the Brazilian people could have a reduction of its fees due to the quotes that generated those no quotes. those tariff flags. This is the main element that determined and also the worth of this contract as the government received insight and also in terms of society reducing the amount of and also the formation of funds that are interest of the union. So this process in general has a set of advantages. So the advantage that one of the nine points is that the corporation that is a model, is a partnership model preferred by all the companies in the world to make this growth process viable. Our case, we have the advantage that we also have the Brazilian corporation, like Breia, like Vale. So it's a Brazilian corporation. All the members here are Brazilians. All the board members are Brazilians. Decision process is in Brazil. So this is the first to defend the process is a little bit this. It's up to us as a company made available to provide information. I'm talking from a legal, there are four actions. of a of a constitutionality what uh the speculations that have there could be a fifth one so event uh so sure that the questioning is uh is given to anyone is given to the government and it will exist this right so we have uh we are we're not direct part so we don't have a participation it has to be evaluated in the sequence that they come So it can be somebody who can contribute to the process. Since we have done this since the first part, now we have four, and now none of them have been given any specific harm or hazard. So it's a process that can be matured and it will be, you know, it will be sent to court and judged. So they are given this right. So I understand that we have one, maybe we'll have one more in the company providing information or sharing information of everything that is demanded. It is totally open to this and anything above this, it has to be evaluated in another legal sphere. So the company is making available all the information. And I think in this, and it's my second quarter here, but the biggest advantage of the capitalization process is to have the company, the investor be in Brazil. So I think we have this here. We have to triple the transmission value, which is highly important. As the minister mentioned, the importance of... of the growth in this area. And now we have no capital to this investment that in the second quarter, we are explicitly negotiating this. And besides this, also having, we are nationalizing the, you know, putting this, you know, in brackets. So crossing participation in some hydroelectrics, renewable energy is to also bring this greater participation to the Brazilian company Lato Bras. So this is what we can talk about. Besides this, we don't have any way of sensing the legality to ask to question. And from the company side, it's totally available to share any type of information of all of the communities and also to make it clear that we are we are already complying with the objective of the process of capitalization, which is to increase the capacity of investment of the company in the interconnection of Brazil and the development of renewable energy in Brazil.

And this is what's happening and the numbers don't lie. Thank you. Thank you, Antonio, for your question.

Remembering to ask questions, we should be sent a Q&A, and so your name will be announced, and then you can ask the question live. Our next question is from Enrique and a sale sign from JP Morgan. Enrique, we will send your request so that you can open your microphone, please.

You can ask your question. Hello, everyone. I have some questions.

The first is about... We see a great increase in the financial results. Just $1 billion in one quarter. My question is if this value is possible for the following quarters.

My second question would be about Amazon's energy.

We didn't see any relevant provisions related to Amazon in the first quarter, which is good news. I'd like to know, to understand if you plan to keep this. And thank you. So thank you, Henrique. So first of all, let me start clarifying about the financial results. In fact, one billion that appears there, part of it's referring to Santo Antônio, is 70% of the debt, 600 million. The other are other debts of ours. And these are... And these duties will decrease after negotiating this debt, which is the next step that is in our work plan. So we're restructuring. So here we are in treating this with the creditors to renegotiate this debt in a way that this value is reduced. It will not disappear. But the intention is that naturally it decreases. Another point that is important in the financial result is that we had an impact of the discount that was given to Amipan. This isn't a single time event. It doesn't repeat, which is the discount of $350 million. And the event that happens every three quarters is the correction, is the adjustment of the obligations of CDE and the obligations of the reservoir flows and Amazonia Legal, which are obligations from the capitalization. So I think Link can talk about Amazonas. Just to make an observation about the financial result that has been greatly impacted, we have the EPCR. We have an effect of very elevated EPCR. We have a counterpart in the revenue. So 70% of revenue is indexed by EPCR. So well-mentioned. Thank you, Paulo, for the compliment. Elvira, thank you. So, in fact, in the last quarter, we had a relevant provision of Amazonas in which 90% of the debt from Eletrobras with Amazonas provisioned. And then this difference of 100%, in fact, there are values that are current ongoing expenses and also debts and other debts that are being paid and we're not observing any default. And also ongoing expenses that many times is questioned since May last year. We don't observe any default in Amazon distribution. And we have the contract, bilateral contracts, around $315 million a month. So most of it comes directly from CCE, which is part of the CCCH-related True Gas project. And the remainder we received from Amazonas. So we are receiving in a way without default. So we will receive this installment from Manel related to energy of $450 million a month. They had a technical note recently. favorable to an L and then the end is with the director cheeky and we have a, we have a meeting with him in the following weeks to deal with the topic. So today we don't have an expectation of a new provisions because the values have been paid. As I said, since May last year. So we still have the value of less amount, but paid to the ongoing expenses. So the provision has already done it. We have a debt that is provisioned significantly of 7 billion reais, which we have to treat in a global solution, which involves deregulation, the Ministry of Mines and Energy, so that we have a recovery of these provision values.

Thank you. Thank you, Henrique, for your question.

Our next question now is from Danielle Travinsky from Safra Bank. Danielle, we will open your audio so that you can ask your question.

Please proceed. Thank you.

Thank you for the opportunity. I'd like to know a little bit more about the strategy of the company related to the decodization of the energy that is in the scenario of the fall in the prices of electricity and energy. How do you think about the commercial strategy and this will help a lot? Thank you. So I will go to João. So first of all, I'd like to say that this question about the scenario, because we forget that two years ago in the same economy we have today, we were operating with the biggest drought in our history in 91 years. and operating the the highest price so now we are with uh the one of the best uh one of the best uh in indexes of of uh of rain uh and we are operating the we have an excess of uh overflow of uh We have the first steps of... We see the economy growing and we have an acquisition here of volumes of energy of 30 years. So this... And our own results in 2023, results of the strategy implemented last year, they are robust and the prices, they speak for themselves. So I believe that we need to complement. And with that, we have a vice president of commercialization. We have the integration of this vice president with four, we kept four directors for commercialization, commercial ones in our subsidiaries. And we have here a strategy done from the holding with a support of not only by the people in the house, but also by the adding of consultants, things that we didn't have in the past. And now we're and instrumentation and systems. So important measurement of risk in terms of risk of the markets, risk of credit and operation done weekly with mandates by our controlled companies. And we have to come close to the consumer So we brought Sean Carlos here, then he will complement with our answer so he can talk about this commercial transfer, which is in his hand. Joana, Daniel, good afternoon. I think Wilson has already answered most of the work that we have done, but I have 30 years of electric sector and this is a cycle question about the price. Sometimes it's high, sometimes it's low, sometimes it's to have a management of a portfolio that is very efficient. And this is what we are implementing now. We are working with revisiting all the process of developing new process. And we are going to strengthen our base of clients so that we have reoccurring revenues and also allocate and reduce the contraction of contract of energy so that we can allocate it in a more efficient way. and adding more value and also reducing the risk of exposition on the short term. So this is a job that we are starting and we are strengthening our front of retail. As Wilson has already mentioned, we have created these commercialization directors and departments and we are structuring them and putting teams there, visiting clients and looking for contracts. And we hope that this cycle continues As I mentioned that we are going through a low cycle, but a low price cycle, but it's a question of time. This price reacts again, and it's important once reacting, we have to be positioned in our portfolio in a way to have good gains. Thank you. If you could, just a second question, just to, if you could comment about the investments in the improvements in transmission and to enjoy the volume and seize the volume in this segment. So we are, we highlighted in our presentation a set of, we had several I would say, initiatives or demands from ANEL, from ONS, of a set of constructions of improvements. And this was addressed, and Link can complement, each one of these institutions talked about it, so it has been prioritized by our In our budget, a set of ventures, you know, seven of them, six billion reais, that will bring a recurring revenue of 850 million reais. So this should be done along the three to four years. So the interest to do this as quick as possible, of course, but of course, the dealing with the regulatory section as well. So I'd just like to compliment that part of this investment, they have a revenue previously agreed that they have defined by the tariff situation and so have a base of assets together with the operation. specifically in our engineering with the vice president, Vadejão, and Italy with the financial area, so that everything happens in the most efficient way possible and we obtain the maximum value in reinforcing and improvements.

Thank you. Thank you, Daniel.

So now we end our Q&A sessions and we give the final words to Wilson so that he can do the closing. So I'd like to thank for the participation of everyone here. I received here an advice here from our board to try to make this presentation a little bit shorter. So we made an effort because there's a lot to talk about, but we... At least in this quarter, we spoke for 52 minutes. My idea here is that we reach 35. So this is our plan so that we have one hour to speak with you. So we extend a little bit, but we had 45 minutes of debate. We had good questions. I'd like to reinforce with you that my optimism related to the company is So it takes months that I'm back and then I find a vigorous company with a board focused on strategy, focused on creating the instruments that are suitable for us to advance in our strategy to incentive and encourage the business. the management of the company uh doing their best responsible social sociable uh you know in all ways so we have a permanent concern from the group i'm really happy to have here to be with uh 11 main executives and in the companies with all the management constituted in a way that we start gaining some air to breathe in the end of June so we can share with more detail our strategy. what are our priorities, and what we see in the short, medium, and long term, the way that we see creating value to the company. And again, looking at our reports, you have this clarity that the concern that the company has to do this in a sustainable manner, respecting the social and the environmental all the parts of what we relate to all the stakeholders it's a very important is a court is a quarter that brings uh some elements of what we pursued for a long time i highlight the reduction of provisions the reduce the reduction provisions so you put many people you should say that the provisions are not reoccurring if every quarter is is reoccurring so we are We are inverting this curve and the cost of people of MSO with the work that has been done in the procurement area. We have had the possibility to show our capacity to be efficient together with the workers and also the new group of people to the company. focusing on areas that we didn't have a focus so important, what I call people, management and culture. So commercialization, the theme of innovation, digital, several instruments that we need to have here so that the company modernizes and automates and becomes more efficient in looking at a permanent look in the sustainable of communication and say that is a quarter that is starts in shows the first evidence of what we think is the permanent objective of the managers of the company. directors and a board of directors. And I hope that we should be here in June and be here to the beginning of August to talk about the second quarter, which I suppose will be even better. So these are my final, my closing, and I hope everyone has a good afternoon. Now the conference is closed. Thank you for the participation and have a good