Engie Brasil Ene Sa S/Adr

Hello, good morning. We're now starting Angels Brazil Energias, fourth quarter of 24. Earnings Result video conference. I'm Adriana Wagner, Investors Relations Analyst, and would like to make a few announcements before we start the video conference. At this moment, people are connected using the listener mode, and later, when we open the Q&A session, participants will be able to send them through the Zoom Q&A option. I would like to remind you that this video conference is being recorded. It is available at our website, www.eng.com.br slash investidores. and the earnings released, in addition to the complete financial statements and other documents filled at CVM, where analysis of financial statements, operational results, ESG indicators, and progress and implementation of new projects are disclosed in detail, among other highlights of the period. And before moving on, I would like to clarify that all statements that may be made during this video conference regarding the business outlook of the company should be treated as forecasts depending on the country's macroeconomic conditions and the performance of the regulation of the electric sector in addition to other variables. Therefore, they may change. Also, we would like to remind journalists who wish to ask questions that they can do so by email, sending them to the company's press office. And to present Energia's performance in the fourth quarter in the year of 24, we have Mr. Eduardo Takamori, Chief Financial and Investor Relations Officer, and Rafael Bozio, Investors Relations Manager. Good morning, everyone. I would like to start with the highlights. And before talking about that, I would like to remind you that we had excellent results in Engie Brazil Energy, demonstrating that our strategy has worked really well. We're all familiar with the very challenging context we're going through. In the first slide, we talk about the operations. And here, in the highlights, we can see an early entry into operational projects under construction. And in ASUSol photovoltaic complex, we reached 25% of the installed capacity under business operation. in 24 we were able to have 1.2 giga of insult capacity 9.6 of investments demonstrating our capacity to have operational projects implementations with excellence and asus saw And in Asura, we had significant anticipation. Of course, everything is within our budget, and these are long-term operators. And the second highlight I would like to make here on the upper right side is regarding the gross energy production, which increased 24% when compared to 23%. We've reviewed it. As we all know, containment reached approximately 9% of wind and solar generation in 24. But this is extremely diluted and neutralized by the generation of our total portfolio. It affects only 1% of our total portfolio. And then on the lower left side, we highlight that Fitch Ratings reaffirmed the company's long-term national rating at a triple A for Brazil. This is very important because the company is pursuing new projects quite frequently, And therefore, this rating makes a difference for us. And then finally, on the right side, on the bottom, for the first time, Engie Brazil Energy has become a component of the Dow Jones Sustainability Emerging Markets Index. This is a new name. But it's better known as the global 100 ranking. I will explain about this later on. And then in the next slide, we have our main figures, our adjusted ETIDA for the fourth quarter of 24, had significant increases of a little over 18%. And the highlight here is the accumulated results for 12 years, where it was basically 20%. It is significant. And naturally, an important part of it results from tags and cooperation in early 24 and therefore this was associated to this operation and then what are the main drivers of the very interesting result we had a higher contribution of the generation segment in transmission act well there was an additional increment of 221 million. And the result for equity income tag was 279 million. The adjusted ETDA was approximately 100 million VRLs on the right side of the slide here. And then the format is more or less the same. and the results were higher than 1 trillion BRLs. When we look at the accumulated results for 12 months, we've reached 3.4. We're down to these effects, and that generates more or less a net profit, which is very close to the best cycle. But of course, when we take into account tax result, we had an increase of 4.3 billion BRLs. So ETEDA has contributed. But we had a series of other investments as well, and they're part of our portfolio. And naturally, we have a higher asset base. We have an effect, including ETA and profit, and the financial result is basically the same we had in the previous period. We had an increase in the cost of debt, CDI. It was capitalized. because we have some assets that are under construction. And now we will move on to the next slide, where we will talk a little bit more in detail of our inclusion in the Dow Jones index. So for those of you who are not familiar with it, it is very important. It's a global ranking. And basically, they analyzed 7,690 companies and 800 were eligible for the DJSI emerging markets. We did an amazing job both at home and we were also able to communicate it very effectively. It led to better performances in Brazil in the energy sector, but we're also considered among the best companies in the world. On the bottom, we see the indicators, the emerging markets, And the other highlight, we went back to the corporate nights ranking, and we are one of the three Brazilian companies in this ranking. and also we are the only one which is not headquartered in Europe. In the next slide we talk about quantitative indicators. We had a decrease in our emissions if we compare it over year over year. Regarding health care and safety, despite everything that we're doing here in Brazil with a very high number of employees and the number of accidents, decreased significantly when compared to our results in 23. It makes me really proud. One of the pillars at our company is not having our employees at risk of situations which may cause serious accidents. We also have information on the percentage of women in the workforce. We have increased this share in a gradual and sustainable manner. Out of the total of women in the workforce, you can see the results, which are quite expressive. We had basically a 4% increase when compared to last year in the percentage of women in leadership positions. We had more resources available, and they were associated to tax profit, and so not only did we increase this amount, but in fact we used 100% of the amounts available to us for social responsibility investments. And then finally, on the right side, on the bottom, the number... of employees and the number of engaged people increased around us, between us and the community. In the next slide, we have the operating highlights. You can see the gross power generation, and here I'm going to focus On the left side bar is a total energy generation, and the results accumulated for 12 months. On the bottom in dark blue, we have the hydropower plants, where we had a significant increase. And note that last year, we had a mean GFS of 39, almost, yeah. 38, almost 39. So in the south, where we had a lot of assets, the generation was higher. And in combination, we had a higher generation by hydro power plants. Now, generation by complementary source. In this slide here, you can see that the accrued results for 12 months on the bottom part have the operational wind plants. There was a significant performance increase thanks to structural improvements and availability. we had over 10 percent of increase in the generation we also had an increase in the generation and of course so we had a series of investments which started operating we call this additional scope with the new wind So even though we had the curtailment, there was a significant increase of wind power generation. Biomass was a little lower than last year, and that's because of our current model. For solar energy, there was a higher penalty, and we went down to 48 megawatts, a significant decrease. but we also had new assets in our portfolio both resulting from acquisitions but also because of our asus saw green fields so we had an upgrade we had significant growth complementary generation, increasing almost 10% when compared to the previous year. A little bit more of highlights in the next slide. I will talk a little bit about curtailment and perhaps this is something that deserves our attention, the curtailment effect, the constraint of, also known as curtailment, refers to the request for restriction of generation in wind and photovoltaic plants by the national electric system operator the so-called ons and you can see the results compared to the brazilian average showing that our containment is very similar to the brazilian range we have assets with containment that are much above this amount but we also have others which are below leading our level of containment to the national average when you have the combination of wind and solar energy the combined impact is nine percent for the year of total containment compared to the national results of five. And our portfolio ends up being extremely diluted And this is very important because it shows that we pay our debts, we can absorb these debts. And of course, we are working to deal with this at the origin with increases in new lines, a more efficient management of assets, But at the end of the day, the impact is very limited in our total generation.

will move on.

Good morning.

I am going to cover two sessions, our commercial strategy and an update on the projects that are being implemented and how we are progressing in terms of installed capacity. So starting with our commercial strategy, slide 13, we have an update of our energy balance. And if compared to what we disseminated in the third quarter, it's possible to disseminate our performance in the business area. And as the market already knows, the strategy whose pillar is to try to have contracts for the short term so that we are not exposed... to PLD because it may be high or low and our objective here is to somehow shield the company's revenue so that we can face different situations such as economic deacceleration, ideological controversies, which are factors that we've gone through in the past years, including the pandemic and therefore the company's revenue. is protected because we are always working for the short term in 25 26 we have a marginal volume of energy to 27 in 26 4 and 25 and then and as of 27 these amounts increase in the free market consumers do not buy energy way ahead of time. They buy it a year, year and a half before they need the resources. So on the left side, we have the energy balance. And compared to the previous year, you can see that we sold 110 megawatts per hour. This increased. But we have actually been able to sign contracts. which will not lead to a significant dilution in our average price and then on the right side you can see exactly our sales and the benefits of not having to sell energy you can see that some of the bars from one period to the other you accelerate sales reduce and we can choose the best moment to contract energy and not being forced to sell our product in moments that are not appropriate or most appropriate. And then in the next slide, the energy commercial strategy, we have introduced it in such a way As to open it to the free market, you can see that we had an increase in the number of consumers in our portfolio with over 28% average. So we went from 870 to over 1,800 clients or customers contracted in our portfolio. This was a choice we made. We had a very difficult year in 21. With a more conservative approach in our portfolio, we made less energy available. We were protecting more against GSF. And now, with the operation of new projects, as mentioned here before, we have a higher volume of resources, and we can see an inflection point here, and this volume stabilizes and goes up with the new projects. Even though there was a decrease in our market share when compared to the fourth quarter of 23, we were able to keep stable, demonstrating that the new resources are now part of our portfolio. And then, in the next slide, slide 16, we update our status in comparison And then on December 31, we have 97%, and the construction is basically concluded. You can see the results for the fourth quarter. And now we have an update. And at the end of last year, we started our commercial operation with 30 generators, 21 were generators whose construction was concluded. They have three generators under construction right now, demonstrating that the total operation In the near future, within the next few weeks or a month and a half, more or less, we will have a full operation of Serra do Açúcar.

And then... You can see...

A very large project with almost 800 megawatts of installed capacity, and it has moved on with implementation activities. The connection is totally concluded. And we started operating at the end of 24. And now, in the beginning of 25, we already have four of the five plants which were operating and testing. They are already in the operating phase. They are either being tested or in commercial operation.

by the end of June. But we will update the market as we move on. We have

the generation, and the first one, which is in a more advanced stage, is the Asa Branca project.

The licensing has been issued to construct the project.

And we are now effectively implementing everything so that we can maintain our... In at least 24 months, which is ANL's deadline for 2019.

Everything is... Everything is... de maneira que a gente comece a implantação efetiva no próximo ano, também permitindo atender o prazo limite da ANEL, que é, ao contrário de Asa Branca, que é março de 29, Graúna é dezembro de 29. Então, dois projetos que vão estar em operação nos próximos anos em transmissão. Going to the next slide, it's our traditional slide about the General Hydroelectric Power Plant. For those who don't follow the company closely or haven't for a long time, this is a power plant whose controller, Engie Brasil Participações, has a stake of 40% of the capital and 60% of the energy and the possibility that this project will be transferred to EngBrasil Energia, respecting, naturally, a process of transactions with related parties, through a committee that will be led by independent counselors of the company. So, no big news here on this slide, just reinforcing that operationally the plant is performing very well, 100% availability factor in 2024, and that we are here waiting for the controller's decision to bring this TINI for transfer. Going to the last slide of this session, which now we make here a summary of what we have in expansion. On the left side, the projects in construction, both in generation and transmission. On the right side, projects in development. So, just to make it clear, these projects are still on paper, they are waiting for an opportunity for them to be implemented. What opportunity is this? Commercial conditions. Energy prices that make these projects feasible in order to deliver the minimum return we expect. It's the least we expect.

And with this, I conclude my slides and I return the floor to you, Takamori. Well, thank you very much. Here, we return both our ROE against our ROIC. And this is all explained by the results, which were not converted into what we put into business operation. And I would like to remind you that, as Rafa mentioned, our portfolio is being constructed. It was in construction last year, and... hasn't led to results yet and so it's only natural that these amounts are reduced here and we had uh 23 percent but i would like to remind that 27 is a very expressive amount. The same is true for ROIC. You can see the results decrease in 24, but we are still at a very comfortable level. And then on the right side of the slide, we usually show the evolution of our adjusted ecteda. with a little lower than 10 years for the generation. And over time, we have some diversification, tax. We've reduced tax participation, as you can see, in this reduction of the adjusted ETSDA. But on the other hand, we have gradually increased the share of transmission in our total amounts. And in the next slide, we open our details a little bit more. You can see the net operating and then the results of equity income. But there are some nuances that we would like to highlight now. And this is basically because of delays we had. This was offset in our contract with providers, and therefore this led to positive outcomes. And for the same volume of sales, you can see the performance, sales volume. But then on the other hand, we no longer have the contribution of Pampa Sul. And then when you compare 23 to 24, we can still see the effect of the Pampa Sul construction in 23. And then we no longer have this revenue in our portfolio.

And then we also have CCE. This was basically

the results of short-term operations, and the results of our hydro power plants. And naturally, we have had increased revenue because of our financial assets. And in the next blocks, we can see a reduction in trading of in the order of 160 million vrls but we also had less expenses with trading and therefore this is offset and does not impact our ecteda and then finally we have the transmission segment with a very important positive assessment when we compare it to the previous year specially regarding the constructions that this is a non-cash event it suffers the impact of accounting and transmission here in Brazil which generating into the contribution even before we the operations but this is well known to everybody and actually the highlight here is that we've had an increase of 4.4 percent in our net operating revenue in the next slide we make a bridge showing tax contribution It was $9,424,000 after payment of taxes. The net... Profit was in the order of 4 billion. And the contribution to ETEDA is 714. And now the next slide. Here is perhaps our most complex slide, but it's also one that everybody is looking forward to. You can see different concepts. I will start from outside with the accounting with non-recurring effects. So we go from 7.3 BRLs and go up to 8, a significant increase, greater than Now you can see the non-recurring effects of the partial sale of TAG in the beginning of last year, and therefore we removed this effect in the order of 1.4, and this leads to an increase of 100 million BRLs. This is fantastic, taking into account the local and global context, which has really complicated our lives. Note that the contribution of TEDA for 24 On the bottom, you can have 5.7 billion resulting from trading and things that we already explained in the prior slide, considering the IFRS effect. And here, you can look at the results we got from 5.4. to 7, an increase in the NTAG had a lower contribution, and transmission went up to almost 1 billion. And then when you look at the internal brackets, we can see that we went from $7 billion to almost $9 billion. And the main elements that were added in this prize were operational performance, basically a combination of price and volume. You can see the results on the slide. And later on, we will give other highlights. But in the remaining portfolio, we had a significant contribution as well. But we also had a reduction leading to the figures that you can see here. And then we had another element with a comparative base of the benefits of santo augustino in 24 the net profit was 175 million brls and then short-term operations and royalties leading to approximately 160 brls with a higher generation that was already deducted of what we pay leading to a higher contribution of water resources. And as mentioned in the beginning, our contribution suffers a little bit with the exit from our Porto Açú basin. It was part of our portfolio. In 23, and comparatively speaking, we have this reduction. And then in the case of insurances, we pay more charges, and this is automated. Also, services, they add proportionally to our portfolio. Regarding cost, basically, We have a more significant increase in materials and services and third parties, including consultancy and mechanical aspects. But we can explore this in detail later on. And then, finally, when you remove the effects of accounting, you generate an RAP increase. And finally, with a reduction of contribution, we went from basically 1 billion in 23, and in light blue, In brackets, you can see these amounts displayed. The highlight here is that the ETEDA increased significantly throughout the year, and even without tax effect, we were able to keep the previous levels, which are reasons to celebrate. And now the net income change. You can see the comparison for 23 and 24. We went from three to four. And we had basically an increase of 26%. even if these are not core, they generate value when we make these investments. When you remove this non-recurring effect with tanks and this element of 931 million BRLs, we had net profits which are basically the same we had in 23, for the ETDA with an added value of approximately 100 billion DRLs greater than in 23. This is neutralized and reverted. both internally and externally, and they generated this additional value of 147 billion BRLs. social contribution was about the same as in the previous year, generating the same level of net profit as last year. Now, the balanced debt, we've been discussing this in the last calls, and of course, the company is leveraged in an efficient and competitive manner both in terms of the players in our segment and other segments here in Brazil. We increased our leverage from 23 to 24 0.6 times, which is significant, but it's also compatible with our growth and ambition. We went from 2.7 of net debt over the adjusted entity and we went from 2.9 to 3.2 of our adjusted entity. Our gross debt is about 1 billion higher than in the fourth quarter we had last year. Because we also made more debts, cash and equivalents was maintained at approximately the same level as last year. 357 of us fraud deposits leading to a net debt of 20 million DRL so we expect this to keep on increasing next year and we will talk about this next and it's all according to our expectations with some flexibility so that we can maintain our AAA with excellent capacity to pay for our financial debts and also to be competitive. And now the depth profile and composition, we have approximately 2.7 or 2.6 with maturity depth for 25, a little bit less than this for 26. And then you can see also the figures for 27 and 28. In the upcoming months and years, this will evolve with new debts and repayment of our debts. In this slide, I would like to highlight our profile is compatible with our cash, and we also pay special attention to the composition of our debt. It was stronger in IPCA, in the order of about 80%, but we rebalanced this position to CDI so that we diversify and also so that we have a lower impact in case of inflation. And then in the next slide, we can see our expansion plan. 24 was a more challenging year in terms of our financial structure because we had to, in fact, make an investment of 9.7 billion BROs, which is quite significant. So our management of cash had to be very careful. This year and in the upcoming years, we will gradually go back to normality. And basically half of this is explained by Asa Branca with the transmission. We've already signed our contracts and now start the implementation cycle. In 26 and 27, we will go back to 2.1, 2.2 billion BRL for the next three years, including this year. Regarding our dividend policy, we, whenever possible, raise our levels of payout. But even with a lower payout, we were able to have a payout of 55%. Can we close this part? Yes. And now we have our Q&A. Yeah, this is the fun part. We're now going to start the Q&A session. To ask a question, write them in the Q&A. on the Zoom bar. Our first question is from Rafael Oliveira, our investor, and he wants to know about dividends that are open, and also he wants to know about the payout for 25, if there are any guidances. Well, as soon as possible, we're going to inform you of the dates. We don't have the dates yet. And regarding the payout for 2025, of course, we depend on the evolution of the market. We know that this year there is a lot going on. We still have a lot of commitments. Also, we always see market opportunities that make sense to us. It's a bit too early to give any guidance on payment dates. Anything else? Well, I would like to highlight that we have this minimum payment policy of 55%. It's longstanding. It's been around for over a decade.

And it's always been respected.

So we considered that even at the lowest level, the dividends are considerable. If you look at other companies that are listed in the stock market. And so we distribute over half of the amount generated to shareholders. And so it's a partnership. our second question well I would also like to close this question this is a good question keep in mind that whenever possible we pay out as much as we can so this is what we do we try not to grow strategically only or in any random way without any purpose or without any guidance. Our mission here is in fact to grow by adding value.

Thank you.

Our second question is from Santander's analyst, João Pedro Ferreira, and he would like to have some more details on costs with materials from third parties, which could better explain the moments we're going through. Well, we had important variations, but of course, there are some effects there, natural effects. We also have the scope of variation, which is probably the main element here. We have a lot of new assets, and we have included new assets in our M&A portfolio so that it represents a significant part. And it was caused by this change in our scope. Also, we have some maintenance actions in hydropower plants. They're not recurring, and they're only true for this year.

And they also generate some variation here.

that it's, as I mentioned before. Okay, thank you, Taka. The next question is by Rodrigo Gressler, an investor, and he asks, in face of the modest increase of the adjusted ETRA and margin compression, what are the strategies to renegotiate contracts to improve profitability?

Thanks, Ophelia.

I would like to comment a little bit about the decrease in the average sale price. Actually, there was a recent change.

I will restart it.

The expectation is extremely positive. hydrology was confirmed for this period but there was a significant reversal from now on we will have less rain where it's needed And this will lead to a lot less water in combination to our price model, which doesn't like risks as much. we tend to have very interesting prices. The expectation until last year was of lower prices, as you mentioned, but the market has prices are going up, and they are going up significantly. And there is a trend for contracts to be expanded. But note that in addition to the mean price, there is a lot more volatility. as a result of the aversion to risk model and the higher impact of our energy matrix, which now strongly depends on wind and solar energy, and therefore it's more difficult to anticipate prices. In average, the price is higher, and this has become the market dynamics. Now, in terms of strategy and renegotiating energy contracts, we try to improve profitability We hire well when we understand that prices are favorable to the generators, but we honor our contracts. And I don't know whether this could be applied to the question you asked, but we always try to keep our client base and renovate our contracts or expand them. I would like to highlight here that we have a lot of short-term contracts, as I commented during my presentation. This is our strategy, and this volatility with lower prices for the share and then higher prices, it has an impact on a portfolio. but what is really important is what is the impact here in the short and long term and this is what we try to capture so that we can make the decision to sell less or more and this should be highlighted yes and of course prices for an have gone from 170 to 200 or even over 200 this week. Naturally, there is a strong impact on the short term, but as Rafa mentioned, and because we're well protected, we capture these amounts now. And of course, the prices for 27 and 28 will also increase. We do this so that we can maximize our... Thank you, Taka. And now we have a question by Daniel Travixis, SAFRA analyst. He has two questions. How are you navigating the scenario of high volatility of energy prices? And what is... the market liquidity. Also, second question, what is your vision on the expansion of investments in renewable energy projects right now, taking into account the context of this segment, which is impacted by curtailment? Well, the first part of your question was already answered when we talked about our strategy. We can really see this increase in the short term. But naturally, when we say energy in the short term, we take into account that we have a hydropower plant reserve. And so we are relatively protected. We're monitoring the markets to find good moments for reentry. And liquidity seems to be active. We did have some loss of liquidity in the beginning of the year, but the market seems to have re-established, and of course, more criteria when we decide our contracts. Regarding our second question on the expansion of investments in renewable projects, we continue analyzing the market, but of course we're careful when investing in new greenfield projects, because right now it's very difficult to define the prices for the mid and long term. Our portfolio is well designed, we already have all of the contracts in place for the short and mid term, and this enables us to manage our portfolio really well, enabling us to sell energy only when really needed or when we are interested when we have new renewable energy contracts on the cost of energy we end being fearful of new projects right now because they are not really predictable and so we monitor the market we analyze projects that are well established and are easy to internalize here but as a summary we analyze the market we have a pipeline We monitor the market. We have them well constructed so that we maintain our value. Thank you, Taka. And now with the next question from Juan Aquino. He asks, what is the expectation of the company as to the efficiency of CAPEX and the anticipated anticipation of the lot for transmission, which was overdue in 2024. Well, Grauna is considered as an expressive anticipation, and we hope to be able to deliver it in our next reports. Rafa can complement this answer, but we do not usually give accurate anticipation data. This is a bit strategic. Regarding CAPEX efficiency, in general, it's not an element that we can change a lot. as regulated by ANAEL. Our strategy is to have simple use. We do it with some partners so that we do not have higher costs during construction. We have top-tier partners so that the execution is smooth. We want to be competitive. It's important to highlight, Saka, that we also have a lot of synergism in this project.

We have Gralha Azul.

And we are considering that this is going to generate a relevant amount for the development of new projects. Our next question is by Jung Yang. And he would like to ask us to comment on the curtailment expectation for the year with discussions on the report for repay and what are Engie's contributions on this topic. Well, structurally and physically, We have modest new transmission additions. There is nothing relevant here, but on the other hand, we have more offers, but we will continue selling 10% in average per year. Nothing really different from that. But of course, the stratification is significant, depending on the portfolio that you're analyzing. We also take into account wind and solar energy generation. And we imagine something very similar for 2024 and 2025. Eventually, things worsen a little with the main transmissions for this energy block and in the area of generation for the northeast and center and south. There was another part of the question. I hope I have answered it. I don't really remember what it was. I'm going to go back to the question quickly.

About repayment.

We understand that there are different elements here. The first one, and perhaps the main one, is the aversion to risk. without getting into the merit of the reasons. The fact is that curtailment goes up significantly because of the higher aversion of the operator to risks. Also, the planning of transmission, and the end consumer, because these are elements that we cannot anticipate.

This is the main factor, I would say.

Next question. Our next question is by two investors on tech. I will combine the two questions because they are very similar ones by Herbert. And the first one is the other one by Valder. Do you consider the sales of part of tech positive since it has a been having good problem even with a lower participation and now what are the new investments that you are making with the resources from tech well we had close to 10 billion euros and naturally when At the end of 23, we realized that partial divestments seemed feasible for our CAPEX in 24. So when we made the decision to sell part of it, of course, the resources were allocated for other projects and their constructions, like Solve, And these investments naturally already had their decision cycle made in previous years. So it wasn't like we used a TAGS project in any new project. This is part of a strategy of our funding for the CAPEX in 24. We went to the market. to analyze infrastructure, fomenting banks, to be part of this strategy. And this is connected to the next question by Waldir. Why will the tax sale gain not be distributed? effect of TAG would be diluted and we, in fact, used this money, all of money obtained from the sales to be part of our third strategy for the kpax last last year also to address the end of herbert's question how are the new investments going the ones that are used in tag choices We presented this during the presentation and Taka commented about it. We can see the results with the earlier aeration of ASUA, ASUSO, anticipated operations, and so we did not have to buy energy from third parties and therefore we are generating values with that. We know that the implementation of a new project takes two to three years, and initially we carry the weight of the debt to have the funding, and then when the projects start operating, you start... deleveraging and waiting for new assets i think we can move on to the next question so we have a question by william a sylvan he would like to know what the company anticipates for the leveraging and if it will be equal or higher than three times the net debt or add to that with an increase of interest rates. Would that have an impact on the company? Well, of course. We analyze leveraging, and the maximum leveraging is 3.5, the ETEDA, which is very expensive for us. We could reach this level right now. We don't think that we will reach 3.5 times. But of course, this is our leverage roof. And of course, throughout the cycle, we will have other debts, and so our initial index is likely to surpass three times. in the half of the year or more towards the end of the year. But that's part of our strategy already, and it's a way for us to balance out so that we can continue paying 55%.

To do this,

We will not reach more than 3.5 times our exita. We do not see it as a problem. Of course, we will suffer with interest rates a little bit, and CDI, and CELINC, but it's all as expected, and it's part of the game. Well, thank you, Taka. We've reached the end of our call. We have received other questions, which will be addressed directly with the participants. And I now turn back to Taka Mori and Rafa for their final considerations. Well, it was a pleasure to have you all here. At our call, we will wrap up. It's been very gratifying with the start of new projects, and we have a lot ahead of us. Well, thank you very much, and as Adriana said, we are... Available to support you, please count on our IR team. Just contact us if you need any further information. And thank you very much, and we'll see you next time. Engie Brazil Energy video conference is now over. We thank you all for your participation and wish you a good evening.