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.