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

Good morning, ladies and gentlemen.

Welcome to AXIA Energia's third quarter 2025 earnings call. Joining us today are the following members of our executive team. Mr. Ivan de Souza Monteiro, CEO of AXIA Energia. Mr. Eduardo Rayama, Executive VP of Finance and Investors Relations. Mr. Antonio Varejão de Godoy, Executive VP of Operations and Security. Ms. Camila Araujo, VP of Governance, Risks, Compliance and Sustainability. Mr. Edu Wolf, VP of Strategy and Business Development. Mr. Italo Freitas, Vice President of Commercialization and Energy Solutions. Mr. Juliano Dantos, VP of Innovation, P&D, or R&D, Jadison IT, Mr. Marcelo de Siqueira Freitas, Executive VP of Legal Affairs, Mr. Renato Carrera, VP of People and Services, Mr. Robinson Piers de Campos, VP of Expansion Engineering, and Mr. Rodrigo Limp, Executive VP of Regulation, Institutional and Markets. We would like to inform you that this call is being recorded and it will be made available on the company's IR website, along with the presentation being shared today, both in Portuguese and English. For those who require simultaneous translation, click on the globe icon labeled Interpretation at the bottom center of the screen. Then choose your preferred language. If you're listening in English, you can mute the audio in Portuguese by clicking on Mute Original Audio. For the Q&A session, if you'd like to ask a question, please use the Q&A icon at the bottom of your screen, stating your name, company, and then ask your question. Your name will be announced so that you can ask your question live. At this point in time, a request to unmute your mic will appear on your screen. If you prefer not to open your mic, please let us know in the Q&A field alongside your questions so that the operator can read it out loud. Before we proceed, we would like to clarify that any statements that may be made during this conference call as to the company's business outlook projections, operation and financial goals are based on beliefs and assumptions of Axia Energia's executive management as well as information currently available. Forward-looking statements are not guarantees of performance as they involve risks and uncertainties and therefore depend on circumstances that may or may not occur. Investors should understand that general economic conditions and other operational factors may affect the results expressed in such forward-looking statements. I'll now turn the call over to Mr. Ivan Monteiro, CEO of Axia Energia. Please go ahead, Mr. Monteiro. Good morning, everyone. Welcome to our earnings call for the third quarter. Ever since the beginning, we aimed at building an efficient company, transparent company with predictable results, aimed at serving its customers. The highlights for the quarter are an indication of this goal. Record compensation for shareholders, additional 4.3 billion reals, adding up to those 5 billion we had announced previously. This was only made possible through the de-risking process ever since the capitalization process. We have greater generation margin along the lines of building a company focused on customers, teams in place with robust processes in place that will allow us both financially and commercially capture the benefits of this higher margin. continuous management of our portfolio, and we are divesting in EMI and Electro-Nuclear. After the Cambiota thermal power plant, and again in the gas thermal plants, adding up to the sale of our stake in Santa Cruz Electro-Nuclear, is an indication of divesting our presence in nuclear power plants. That started out with an agreement with the government, and we were not obligated to keep on investing in ANGRA III. The acquisition of Tijuá adds up to several acid disentanglement operations we've been putting in place in the past two years. We are proud of these growth in investments, record highs between 2.5 and 3 billion rails. We are reaching a record, reaching 10 billion this year, focused on operational efficiency and an active participation of auctions. Just like we've seen in the last or the latest auction, we were awarded four lots. I would like to thank you very much for attending, and I'll turn it over to our CFO. Good morning. On to slide 7, please. Let me point out the financial highlights. First, with the revenue, there was a decrease, both regulatory as is the capital. But three highlights. Number one, in transmission, there was an increase in revenue. After the tariff review of 24-25, there was a major impact. We no longer have that as of this quarter. But in generation, just like Ivan mentioned, this has also impacted revenue in generation, as well as that one-off effect by extending the Tokurui contracts last year. As to the EBITDA impact, these impacts are smaller. On the regulatory side, there was a small or a slight decrease of our EBITDA. That was the divestment of the thermal components. They were offset by our PMSO reduction, and also because of the increase of the revenue from transmission onto slide 8, net income. Now, let's address that from the company point of view. The reported net income was a lot smaller than Q3 of last year, driven by the provision we had for the nuclear contract. And in the previous year, given the tariffs review, that posted a positive impact in transmission revenue. But when we look The numbers adjusted by these effects, we would have had a 68% decrease due to the effect of the sale of other assets that would impact the total number. On to slide 10, energy trading. This is our portfolio as is today. We are operating in every region. This is the available energy and energy that has been traded in each of these markets, either through quotas or through the captive market, through ACL. This will impact the energy we have available for the free market. onto slide 11.

That's the energy balance.

We have boosted the hiring for 26 and 27. But let me point out that we are increasing, just like Ivan put it at the beginning, increasing the number of customers. We are transforming the company to put even more focus on the end users. on to slide 12 that's the contribution of our results for the second quarter in a row we've been having good results in commercialization just like we said in q1 so we had low results here weak results would impact the results for the following year and in q4 what you can see on the chart on your right. This is the amount of available energy to be traded in the free contracting environment. And we expect to have yet another strong quarter. On to slide 14, capital allocation. The highlight is the signing of selling electro-nuclear. We will be receiving 535 million for our stake. But there's more. We'll be releasing the guarantees that we had to take over and transfer that to electro-nuclear. And the guarantees will be granted by JNF. And our debentures that we were committed to invest there, to invest in Angra 1. That would amount to $2.4 billion.

On to slide 15 now.

On top of ElectroNuclear, we also signed our stake. We signed the sale of our stake in our email. And a completion of the last thermal power plant we had which was in santa cruz and we also acquired 50.1 this is the role the auction plays out we were awarded The week before. So you can see the highlights on the table. That's the amount of the investment of 1.6 billion. And another 140 million of RAP. Ever since we were privatized, when we add up all the investments already realizing, yet to be realized, We have $17.4 billion worth of investments, with an increase of $2.4 billion in the transmission revenue stream, yet again indicating our competitiveness in this industry. On to slide 17 now. When we combine everything that has happened ever since the last earnings call in which we announced 4 billion dividend payment, signing of electron nuclear sales, selling AMAE and the acquisition of Tejoa, and our participation in the transmission auction, And this announcement of a dividend payout of 4.3 billion, everything is part of our capital allocation strategy. And this is how it plays out. So on slide 18, consistent deliveries, everything we've done to simplify the structure and bring risks down. And it's an indication of the price resilience we are projecting for 2026, advances in energy trading. And, of course, we are improving our long-term pricing model. That is more comforting, in a sense, when you look at the financial status of the company in the mid and long runs. By doing so, we've approved additional dividend payout of 4.3 billion to be paid out in december this year adding up to 8.3 billion in the fiscal year of 2025. by doing so dividends including what have been already paid out will be reaching 4.01 for both P&A and P&B shares and 3.65 for the ordinary or common stock and golden share. Finally, on slide 19, let me address the ESG agenda. I would like to point out our partnership with Google Cloud to develop our weather forecasting system by using AI. will be expanding our capacity to predict extreme events and strengthen operational and energy resilience. We are taking good care of the water resources. We have just started works to protect the source of the San Francisco River, 51 million real investment in the Canasta mountain chain, reinforcing water conservation and environmental safety in one of the most iconic areas of our country. And I would be remiss if I failed to mention that we sold our last thermal power plant back in October. The company is now 100% generating clean and renewable energy. We stand out, and we are leading the energy transition to accelerating the net zero 2030 goal. That concludes my part of the presentation. Thank you. We'll now have the Q&A session for investors and analysts. If you'd like to ask a question, please state your name and company and press the Q&A button at the bottom of the screen. Please ask all your questions at once and wait for the company's answer. To submit a question in writing, simply use the Q&A icon and include your name and company. Please hold while we gather the questions. Thank you Mr. André Sampaio from Santander asks the first question.

Good afternoon.

I have two questions, actually. The first one is related to the price resilience for 2026. Can you elaborate the reasons behind that comfort that you feel? What could be the roadblocks? for prices next year and the second question is more from a more strategic point of view You've been reducing risks, thermal power plants. I believe you have addressed most of those problems you had in the turnaround process since the privatization. Can you elaborate on what the next steps should be? There's the trading portion we're all familiar with.

Is there anything else?

Are you considering going back to the new market as a second step in that de-risk process or de-risking process? Thank you. Thank you, André. As to the resilience, I'll turn it over to Rodrigo Limpe. Well, thank you for your question. Good morning. Despite greater volatility in shorter months, we've been monitoring that throughout the year. However, for 2026, prices are usually around 240, a little over that. As to rainfall, we have a wet season that has started already, but somewhat delayed. And now in November, we've received some rain in important basins, but based on the price model we have today closer to the operator operators that are risk-averse well changing or the change of our matrix a more flexible matrix and especially during peak times that will bring average prices more resilient maybe one or two weeks on the short-term prices may come down those variations tend not to be as relevant for 2026. thank you well as to your second question andre that process started from the capitalization but day one after that capitalization we had to deal with legacy contracts from the period in which it was a government-owned company we had to wait for them to expire and then bring in new contracts the best example you mentioned it was the compulsory loans the legal department did fantastic work we adopted a more active approach we discussed that with the board and we're looking for solutions we did not want to postpone anything or resort to the legal system. We wanted to address the problem, and we were very fortunate. This number is under 12 billion reais, and we are heading in the same direction. This is something that we can manage, it's well known, and we are in a downward trend. Well, what we can expect down the road the company will be completely focused on growing its business. We'll be paying close attention to the next auctions, just like we did in the transmission auction. You can expect active participation of Action Energia in the coming auctions. I hope I have answered your question. As to governance, of course, that will be discussed with the Board of Directors.

Thank you.

Mr. Bruno Amorim from Goldman Sachs asks the next question.

Go ahead, sir.

Good morning. Congratulations on the results and thank you for taking my question. I have two questions, actually, as to capital allocation. My question is, is the company focus will be on looking for dividends to compensate shareholders through reinforcements and improvements, or is there anything else that the company is considering for capital allocation for the near future? second question is actually a request i would like to know what the methodology was adopted for the dividends payout the way i understand it your methodology tries to use net debt and EBITDA, as you gain confidence, you're getting close to that goal, you pay out dividends. My question is, to what extent that leverage includes as a factor to reduce net debt? Why am I asking this question? One of the reasons you gave us to pay out this dividend was the sale of some assets. So I want to understand the rationale behind it. When you announce a dividend, are you considering the assets that are available for sale will be sold, or as they are sold, you can trigger more dividends to pay out?

Thank you for your question.

Well, not necessarily. We do not take into account assets that haven't been traded yet. That's not the rationale of the methodology. As to capital allocation, you're right. As the company starts, well, we're always... had the impression were lagging behind now we're more familiar with the risks that are inherent to the company and preparing the company to live with that risk more proactively with more alternatives financially operational solutions bottom line is that once we know that what the cash flow will be in the future you have more room to allocate capital I would like to give the floor to Elio. I want to hear his thoughts as to those M&A operations and our auction participation. And then Hayama can pitch in to talk about the methodology a little bit more. Good morning. Thank you for the question. Yes. In the recent past, in terms of investments allocation, and capital allocation rather for investments. We've been focusing on transmission. That's true. Our number one focus is reinforcements and improvements. And the second point is transmission auctions. They've been very profitable. We've been involved more and more often. And the next one will be in March next year. But the agenda will be including other topics. We have the capacity auction again in March 2026. We consider being there with some hydroelectric components and the second half of the year, the auction for batteries. So our focus is to provide options for investments as we see an opportunity to allocate capital for this option, either through an auction or elsewhere, we've been increasing that direction. We want to simplify, but the agenda remains robust in 25, 26. There are some assets that can be used elsewhere, and we'll be pursuing those goals to generate even more value. Well, Bruno, let me explain how we make those simulations to understand how much capital we do have to allocate throughout time. M&A operations, for example, that haven't been finalized or they're only in paper, we're still considering it. These things are not included. We have to be conservative. be it when we spend or when you believe you're going to have that receivables. It works in both ends. Just like the energy price. Looking ahead on a mid-term horizon, you include contracts that are actually signed. But everything that hasn't been signed, we will adopt conservative prices. because that's how the methodology was put together, so that the company can be robust all the time to face the volatility we see in the marketplace. So this is written in stone to us. We include several factors, just like we mentioned in the presentation, ever since the signing of the sale of ElectroNuclear, resilient prices for 2026, as well as the acquisition of our stake in Ijoa, we can have better control of the cash flow of a company in which we have a stake in. while everything is put together so that we can feel comfortable to run a company like ours in that kind of environment. Thank you. Thank you.

Have a good day.

Maria Carolina Carneiro from Banco Safra asks the next question. Go ahead, ma'am.

Your mic has been opened.

We cannot hear you, ma'am. Can you hear me now?

Yes, we can.

Go ahead, please. Thank you. Thank you for the call. Let me go back to the question about capital allocation. You mentioned your participation on the auction on Friday. Can you give us more color as to the strategy of the auctions? It's not that common in Brazil. When we compare to other assets you've been developing, is there any synergy? Is there a possibility of anticipating some of these lots? We would like to better understand how attractive this lot is. What's your take on this opportunity? You've just mentioned that you may be part of the capacity reserve auction. Can you elaborate on that ordinance? that will regulate this. Can you help us understand what assets can be regarded as competitive? If you can, please. Thank you. Thank you, Carol. One of the great advantages of predictability of our cash flow in the future is, of course, to be able to participate in those auctions to capture all the synergies of existing assets and the assets will be built we are awarded that bit and a better relationship with our top customers or suppliers we can provide greater predictability as to what we will need and when suppliers of course can schedule their production accordingly Let's now address the strategy of the previous auction and the position of the company for future auctions and our opinion about the ordinance or the RFP. Thank you for your question, Carol. The approach for transmission auctions are similar. We assess all opportunities and we are very careful to make sure we're generating value to the group. This is key, and it was not all that different in this time around, in this auction. Not only in those lots that we were not awarded, we were still competitive. We were awarded 6A, 7A, and 7B. They are somewhat different, as I said. They have more equipment. less construction will be needed and they are very competitive as a product let me try to give you more color we look at the option with a very positive outlook the positive result brings us a more than two digit return We like to strike for mid to low teens, around 15% in a nutshell. Now, in March 2026, we have similar products. We'll be learning from the previous auctions to come up with the best possible strategy. For the capacity auction, on the other hand, We do not give any detail of the ones we are going to be taking part in. We have a very comprehensive portfolio, almost 6 gigawatts capacity. It's not what will qualify the auction, but 6 gigawatts can be implemented. That's our goal. Part of it will be implemented in March. That's our goal for that auction. This is how far I can mention and now onto products the 31 products is a very good alternative an additional option to sell excess capacity for our hydro electric program yes piggyback on edgar's comments that public consultation would include just one product. Now we have the 2031 product, yet another opportunity to get a kick start on our projects. The Granting Power has realized that HPPs have become very important to provide flexibility to the system overall. Thank you. Thank you. Thank you, Carol. Mr. Antonio Junqueira from BTG is up next. Good morning, folks. You can hear me, I believe. My question is about regulation and about the company. We've had the ordinance for the capacity auction and a new provision measure. Considering the draft as is, What are the possible impacts you foresee in the next three to five years? Marginal expansion costs? Are the right incentives in place? If you were to come up with public policies, what changes would you make, especially in the 1234 ordinance? Well, thank you for your question. I'll hand it over to Livi. Good morning, Antonio. Well, that answer could last hours, but I'll try to be as brief as possible. In sum, that provisional measure, our take on it is very positive. It will address the needs and is heading in the right direction. the industry has many substantial distortions that impacted expansion and ended up generating several problems we're faced with now energy reductions among others so that draft bill approved in congress tries to address some problems with a positive approach something that is very important, trying to reduce subsidies, limiting high production models. High production has a way different concept. Consumers wanted to resort to that self-production model to try to have more predictability. Today, the model is used not to pay taxes. There are some positive limitations, And this is something that the industry has to do to organize expansion, and that is price policies. So in that sense, that provisional measure provides important guidelines. They're not only self-applicable. That has to be a methodology. That has to be regulation. But it's heading towards that price policy that is more aligned with the actual needs of the system. such as the expansion of a new will be regulating flexibility availability concepts conceptually speaking they're positive but of course they'll demand some fine-tuning there was something else that we had been discussing for quite some time in the industry it was mature enough which was the complete opening of the market I believe that this addresses these topics especially sustainability of distributors and paying attention to consumers though that won't migrate it will be opening up by providing more flexibility competitors competitiveness not only to come up with an account for the captive consumers and the timeline we believe it's appropriate to meet the needs of the system there are few items that will be more controversial that were included in that provisional measure, and I mean distributed generation, there was the proposal to charge the distributed production, and during a plenary session in Congress that was removed from the draft bill. That distributed is not used with the price tagged to it, unlike decentralized projects. Today, after the approvals of those discounts that have been approved, you have that price indication so that we can have the green light for some projects. We believe there should be some modeling in place that can provide more rationale behind the expansion. And one of the most discussed topics in the industry is to the reimbursement of curtailment that will impact many generators today for both wind and solar generators. A solution was tried, was attempted at least. The government will have the prerogative to increase two-thirds of the provisional measure, one-third for the commission, and one-third Well, they're not conflicting in nature, those two texts, those two drafts, but there are some contradictions. But again, this is a very important topic. The executive branch will come up with a solution to strike the proper balance, trying to approach what should be considered risks for the generator and what's not that could be carried over or transferred over to consumers. So the Congress tried to wear those lenses so that we don't want to allocate costs to consumers. That could be better managed by the generators themselves. As to GD, do you believe that the break will happen only when we run into a serious problem?

When you have that...

can we do that without the regulation well the text of the provisional measure chose not to charge for projects that are for distributed generation you have to take into account investments and you also have the cde discussion that will one way or another, impose limits for distributed generation. They want to strike a balance in the expansion. That was the goal. Mr. Gustavo Faria from Bank of America asks the next question. Your mic has been unmuted, sir. Thank you for taking my question. I have two. One is more operational, the other one is more straightforward. My operational question is about the modulation gain from...

hydroelectric power plants.

What is the trading market for that modulation hedging for other sources? Some traders say they have little liquidity for future markets as to the modulation and the benefit is only for the past prices. My question is about what's your take on the liquidity? Do you believe there will be a spread for Hydric? Can you give us some color as to what the price would be for future contracts, not only on the spot market? And my second question is about the recurrence of dividends payments. You've announced in Q2, Q3. My question is about the frequency of the coming quarters. Can we expect quarterly dividends to be out? I think it would be better for the market to, if we could have that understanding. I'll hand it over to Italo. He'll talk about the modulation. Thank you, Ivan. Limp, I think, can field the questions as to the current status of the modulation system. And then I can address the trading issue and the product we have in the market today. Well, modulation, just a while ago, maybe a year or two ago, it was not something noticeable. We've included a slide today to explain that so that we can actually quantify each one of these sources. Hydroelectrics, for example, it's the source that can supply those times in which prices are higher. It will have that modulation benefit. In the last quarter, it was about 14 to 15 reals. We expect it will grow, not substantially, it will grow as the price reflects the need of the system, or up until the expansion, will prevent again the need for those very clear-cut ramps in place. Again, it's a benefit that is captured by sources, those that are regulated and those that are not, end up being exposed. As to the liquidity of the modulation product and trading, I'll get back. Well, thank you, Lim, for that explanation. This is an energy-only market, as they call it. It only impacts energy. And within that energy, we have a modular characteristic in our system, in the case of hydroelectric power plants. Well, We don't see any discussion of an actual modulation product in the market, especially if you were to modulate wind or solar, for example. Again, it's not a product with liquidity, a product that you can put on a shelf and actually sell it. Well, in the future, there may be that option or the possibility of having such a product. But some rules, some issues will have to be addressed in the regulation so that we can actually have a modulation as a product in a market like that of Brazil. Hayama would talk about the frequency of dividends payments. Thank you, Gustavo. Well, recurrence, every quarter we'll be updating the methodology. That's the recurrence we can guarantee based on the events. These events can be what we've seen this past quarter, selling electronuclear, selling GNI, the acquisition of Tijua, the transmission auctions, and so on and so forth, and the price outlook for 2026.

If, by chance,

significant sales occur. We'll be signing mid-term, long-term contracts that will be included in that calculation. That's the only thing I can say to you now. Paying dividends every quarter, that will depend on the model itself.

The discipline

is what we're going to keep on abiding by so that we can have a company with a financial health that will allow us to execute only what we believe will generate value at the right time. So we have to make that very clear before we make any decision. That's it. That was very clear. Thank you.

Isabella Pacheco from Bank of America.

There are two questions. What's the leverage ratio you can reach by the end of 2026? The second, what's the minimum cash position that is comfortable to you? Are there any policies associated to that? Thank you, Isabella.

Hi, Isabella.

Let me make sure I understand your question. You're looking at 2026 as if it were a hindrance to announce new dividends, new capital allocation. Our methodology does not take into account the short term. We look at the five-year horizon, and we are confident in doing so because our company generates a lot of cash. If you're not allocating, our leverage will plummet. Having said that, when we look at 2026, our leverage won't be that different to the one we have in 2025. And why? On top of the investments we're making this year, some will disappear, just like T&E, Portilheira, For next year, we'll be investing in that auction we were awarded back in 2024. Investment peak in 26 will be ending that cycle in 2027. The global investment won't change all that much if the level we have until July remains the same. We expect a very similar dynamics. As of 2027, as capital allocation that we have today comes down, we'll be beginning to substantially deleveraging the company. That's why we do not take this short term into account. As far as liquidity goes, we have made movements to reduce risks on one hand, and of course the liquidity. We had to have earlier this year and in the previous year, This need is no longer all that important, given these events that has happened in recent time. Of course, we cannot bring the cash to zero. It's a very large corporation, even considering the fixed income market growing exponentially. We do not have a number as the minimum cash we have,

We are 20 odd billion. I would never go below 10 billion. Maybe.

Maybe 20, 30 billion. would be necessary, taking into account everything we've done so far. Raul Candevici from XP asks the following question. The mic has been muted, sir. Go ahead. Good morning. Thank you for the call.

I have three questions.

The number one is about the Tijua acquisition. You are considering being part of the capacity reserve. This could be one of the value levers that you might resort to, but I would like to know if there are others. a deleveraged asset, there may be some value generation, maybe a recap, but there are other levers in Joao. That's my first question. The second question is about dividends. Given the 1087 and the 4.3 billion announcement for this quarter, is it the level you expect two years in? But if you approve, if there's approval of the 1087, is there any possibility of an additional dividends payout before the year's end? And my third question is about storage. You talked about it already. But I believe that provisional measure provides a more comprehensive discussion, and it's under the radar of ANIL. as to how that technology is to be implemented through regulatory routes. My question is, what's the company's take? Because there are many different types of applications in the system, right? I would like to understand what's the company's strategic position. Is it through auctions only? Are there any alternatives focusing more on transmission? I would like to better understand what the company is thinking about. It's an opportunity and a risk, structurally speaking, if we expand on the limitation of the modulation gains. Thank you, Raul. The first and the third question will be addressed by Elio, and dividends will be addressed by Hayala. Thank you for your question. I think you've explained it. You put it very well. Tijuá, the acquisition has been a very appropriate and advantageous decision. 50% of a plant, it's a quota-based plant. When you look back in 2024, 136 million, they have their debt free. In itself, it's a beneficial acquisition for Axia. And there's more. You would have to resort to arbitration. We've put an end to that arbitration. So, you end that discussion, and the main driver, in that sense, is the possibility to expand. You have three additional machines, bedroom there, construction has been concluded. Again, it's an advantageous decision. For the auction in March, we will not be able to take part in that, given the auction regulations. It's a 100% water-based plant. We believe that expansion makes sense to the country, to the company. We expect to put that in practice in the future. As to the batteries, your third question. We have a very substantial battery pipeline. We've been considering several alternatives in that sense. But the way the Brazilian system is being conceived, you cannot capture the value of that intraday. We believe it should be very interesting, very attractive. As a solution, batteries are important to the system. They'll come. We see that happen in many other markets in a more mature stage. It's only at a very early stage in Brazil. And the short-term opportunity, of course, is the battery auction. But the regulations or the rules haven't been published yet. And at the same time, we would like to see opportunities to maximize value through the intraday operation. It hasn't been created yet. That would be great for the market, not only through actions, but rather effective market solution for batteries. Thank you, Edgar. Well, the last payment did not take into account that taxation. But I would like to turn it over to Jaime. Thank you, Raul. As to dividends, of course, we have been monitoring whether there will be taxation on dividends or not. What I can say to you is that any decision the company makes will take into account the look at our methodology. If there's room, it makes sense if we believe that economically to our shareholders it makes sense to pay additional dividends before using, but the methodology for capital allocation will determine whether there is that payment or not that was very clear thank you

Rafael Diaz from Banco do Brasil asks the next question.

What's the expected EBITDA margin and maintenance capex for the lots that you have just been awarded in the latest auction? Is the same for traditional assets, transmissions, substations? Do you expect any efficiency on the annual capex for these assets? Thank you. Turn it over to Elio. That was a very objective question. As far as margins are concerned, they are higher, a higher ROI, Well, it's clear that the competitiveness we brought to this product, just like we've said in the past, it's a trustworthy relationship. The commitment of our suppliers, they'll provide us with that capacity to invest. We've implemented that CapEx optimization. when compared to the original carpet from anil the numbers i've seen around as to the appreciation what that discount would be they're somewhat conservative as to what we got We see that possibility optimized. We'll keep on looking for partnerships with suppliers so that we can have even more competitiveness in the auctions. Well, thank you.

Deborah Borges from Banco Central.

Good morning. Thank you for the call. I have two questions. The first one is about electronuclear. It needs urgent investments. Are you going to make any investments there? And the second question about price dynamics. We still see prices below average. Can you talk on that price dynamic? How can the company address that issue?

Thank you. Thank you, Deborah.

We are still partners of ElectroNuclear, and we keep tracking that management, and we are aware of the company needs. I cannot tell you right now as to we're going to be making additional investments or not. As to price dynamics, you have to be careful when you compare ourselves to the competition. Well, we are 100% hydroelectric, and part of it is contracted out. Our competitors have mid-term, long-term contracts, contracts that have been signed way before. And they may have included some higher prices in there. But when you look, the hydroelectric product, I believe our prices are higher. There are many products out there with wind, solar, when everyone was still developing those sources. But at the end of the day, they'll have to purchase energy and we do not have to incur in those purchases. So our trading margin generation will be probably higher and on a growing trend because the price dynamics, the way we see it, it's trending upwards.

Gustavo Pimenta from BTG Pactual.

The TPI stake in Tijua is connected to other creditors. What are the necessary requirements for the conclusion of the transaction? Elio will fill that question. Well, of course, Gustavo. Any divestment will depend on approval. It's only natural. That's the way it is. It's a condition to finalize that sale. It has to go through the regulatory agency to ANIL. We are pending those approvals. We don't expect any roadblocks along the way. As far as the timing, everything is going on according to plan. Maybe in two to three months we'll be able to finalize that deal. It's a natural time frame. This concludes the Q&A session. I'd like to turn the conference over to Mr. Ivan Monteiro for his closing remarks. Thank you all for attending. If you have additional questions, our IR team is available to answer any questions. Thank you. Have a great day. This concludes Axie Energy's earnings call. Thank you. Have a great day.