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

Ladies and gentlemen, thank you for waiting. Welcome to Electrobras' third quarter earnings video conference. With us today, we have Mr. Ivan de Souza Monteiro, the president of Electrobras. The fourth quarter, pardon me. We have Eduardo Heimer, the VP of Finance and Investor Relations. Mr. Rodrigo Lemp, VP of Regulation and Institutional Relations. Mr. Elvi Wolf, VP of Strategy and Business Development. Mr. Italo Freitas, VP of Commercialization. Mr. Antonio Barajan del Godoy, VP of Operations and Security. And VP, and pardon me, and Marcelo Sequeira Freitas, VP for Legal. This video conference is being recorded and will be made available on the company's IR website, both in Portuguese and English. Should you need simultaneous translation, you can click the globe icon at the bottom of the screen. It reads interpretation. When you click on it, you can choose Portuguese or English. If you're listening to the video conference in English, you may click on mute original audio to listen only to the translation. For the Q&A session, please use the Q&A icon at the bottom of the screen. When time comes, your name will be called out and a pop-up will allow you to unmute your microphone. Should you not want to unmute yourself, you can just say, no microphone or I do not have a microphone at the end of your question and the operator will read your question out loud. would like to say that any statements made about the company in this video conference regarding future-looking statements are only our beliefs and depend on the information that is currently available to the company. Forward-looking statements are no guarantee of performance, as they involve risks and uncertainties and depend on circumstances that may or may not come to pass. Investors should understand that macroeconomic conditions, as well as other operating factors, can have an impact on the company's performance. I'd now like to turn the floor over to Mr. Iván de Sousa Monteiro, the CEO and President of Eletrobras, for him to start the presentation. Good morning, everyone. Welcome to our earnings call, the first one in 2023, the first one in 2024, about the year of 2023. We're now going to look at some highlights. I'd like to start off speaking about the simplification of the administrative structure. We are spread all over the country, and our objective in the administration was to be able to manage the business in all of the possibilities. That applies to hiring new staff, how we deal with the market whenever hiring new assets and services, also whatever businesses each company from the holding carries. but we should follow single-centered guidelines. We can see that on slide number six already. We can see a decrease of PMSO, the personal material services and other. The expectation is that it'd be 7.3 billion or it amounted to 7.3 billion in the fourth quarter. So PMSO was 7 billion reals. We have a voluntary dismissal plan. We have it in 2024 as well. We have the number of people who chose to be part of a program and the number of people who have already left the company. Security and safety are the most important aspects of this company, and we don't want any asset to pose a risk to anyone. The company should not have any other voluntary dismissal plan. In the course of 2024, we have the collective agreement with the labor union. The administration is focusing on PMSO as a whole. We're following a guidance that we had already given, which is to have 7 billion for 2024 as well. This is the best expectation we have at this moment. And why is it that we're making this effort? We want to increase the company's investment capacity. As you can see on slide number seven, this is happening. We have the Cochilla Negro project, among other very important projects, like the connection between Manaus and Boa Vista. These are good examples. We can see how resilient the devices are, not only for generation and transmission, but we have approved a very important amount for reinforcement and improvement this year. Baguerie, Telespecie and Retirobancio are also highlights I'd like to mention. In 2024, we should have a similar performance. The company looks at the assets and manages them as a portfolio focusing on generating return for the company. There is a CapEx growth. It's quite substantial for this year. And they should be at a higher level than when the company was a state-owned company. There was also an approval regarding furnace. There was no sense in having two structures here in Rio de Janeiro. So now we have the corporate and the organizational structures brought together. We have acquired the Candiota thermal plant. It's coal-based. And we also have been looking at the gas plants, which the market is really interested in. We are constantly looking at improvements on the performance of our portfolio. We want to be a client-centered company as well. We have had a growth in the client base, but it's still small in comparison to what we expect to have. We want to have thousands of clients, and that's why we have restructured the commercialization department or the trading department of the company. We want to deliver solutions to our clients. And again, we expect to have thousands of clients in the next years. The culture is another challenge. Now we're on slide number 10. We had a leaders summit with 520 leaders taking part in this meeting. It was very important to hear what these leaders had to say. They joined the meeting for the first time, and they spoke about their executive departments as well as the board of directors. It's important to understand what we expect of the leaders. And now as a private company, we need to be more efficient and we need to be very responsible for our actions. We need to be liable for them. ESG. I mentioned the coal thermal plant in Candiota and also the gas plants. and Electrobras is still in every reference for ratings. We want to remove from the company's balance sheet non-recurring events. The administration is more and more comfortable around how to make Electrobras a company with much more predictable results than in the past. Thank you all for joining the call. And now I'd like to give the floor to Eduardo Arrayon, our CFO. Now, slide 13.

In the third quarter, we talked about the energy market prices.

We said that the portfolio was not really or the numbers are not reflecting the portfolio generation numbers. And we had some peaks of heat and meteorology was better or worse. But we're coming to the end of the rainy season with less rain than average. And the prices have behaved as expected. We have more and more renewable energy. In 2024, before the heat waves, prices were at 65. This year, they are going to be about 110. And when we look at 25 or 28, it's going to be 150, 160, maybe 170. And when you look at the bottom chart, we can see what happens within a day. So in the wee hours of morning or the early hours of morning between midnight and 7 a.m., you have basically wind energy and the hydro power plants running as well. They're in blue. In the early morning, then you have less wind energy and more hydropower. And then in the middle of the afternoon, closer to the evening, you have some peaks in demand. And you need not only more power from the hydropower plants, but you also need additional power to give security to the system. The thermal energy is growing. You can see them in dark gray. And the orange line is the price. It goes from 69 to 300 reals. Also with hydro power plants generating more. Hydropower plants are perfect, where you have more and more distributed power with less control over the flow. And the hydropower plant will have this balance, delivering more when more is necessary. We understand that this is a structural organization or a structural point that should continue like that. Now we're on to slide 14. We have our power balance, our energy balance. Our focus in trading is to have a position that is more and more client oriented. And we have had more 220 clients.