Engie Brasil Ene Sa S/Adr

Good morning and welcome to the Engie Brazil Energia's Third Quarter 25 Earnings Results video conference. I'm Adriana Bachmet, Investor Relations Analyst of Engie Brazil. and i would like to make a few announcements before we start the video conference at this moment the people connected are in listener mode later when we open the q a session participants will be able to send their questions through the Zoom Q&A option. It is worth remembering that this video conference is being recorded at our site, www.ng.com.br. Investors, we have made available the results presentation and earnings release. filed at the CVM, which analyzes financial statements, operational results, ESG indicators, and progress in the implementation of new projects in detail. Before proceeding, I would like to clarify that all statements that may be made during this video conference regarding the company's business outlook should be treated as forecast depending on the country's macroeconomic conditions of the performance regulation of the electric sector besides other variables. They are therefore subject to change. We remind the journalists who wish to ask questions that they can do it through email sending it to the company's press conference to present the results we have with us today, Mr. Pierre Leblanc, the CFO and IRO, Guilherme Tejada, Renewable Energy and Storage Officer, Marcos Keller, Director of Energy Trading, and Leonardo Depinet, Manager for Investor Relationships. I would like to give the floor to Pierre to begin the presentation.

Okay. Hello. So good morning, everyone. I will do it in English. So I hope it will be fine for everyone. So thanks for joining us during this hour. Always a very, very important moment for us to meet you and to explain you the financial results and the main highlights for the last quarter 25. So if we start with the highlights, it can be the main achievement we realized during this quarter. are the following. First of all, regarding our project Asfou Roi and Asfou Sol, we now almost complete the physical phases and we are starting the operational commercial operations. So we are on time and it's a very, very great achievement for us. Then we complete also the acquisition and the integration in our portfolio of the two hydropower plants, San Antonio, Dojari, and Cachoeira. So now the two assets are fully embedded in our portfolio management since mid-August, and they are starting to contribute in our EBITDA. And we won for the 15th time the Trophy of Transparency in Accounting, ANEFAC, which recognizes the transparency and the quality of our financial statements. And it's a very, very great job from Romary teams and our accounting team. We also be certified as the best place to work according to the GPTW, Great Place to Work Brazil. So good company and good achievement from our HR team. Then I have to mention that there is a subsequent event from Q3. This is an increase of our social capital. So we decided because we need to comply with the law and our profit reserve was above our social capital in late 24. So we need to increase our capitals through the profit reserve incorporation. So we will do it during November month and we will do it through bonus shares. Then Q3 results in terms of finance is a very, very good, robust, and solid results. As you can see on the slide, our EBITDA grew by almost 12.54% compared to last quarter, 24, which is good results. And if we look at year-to-date EBITDA, of course, on a recurring basis, we increased our EBITDA in 25 by 6.4%. Okay. It's a little bit less true regarding the net recurring results because we do, you can see that we decrease by, in year to date, by 8.4% our net income. due to the two main mainly three factors uh uh first of all we so we see the an increase of our depreciation of assets because we do have compared to last year uh three big assets you would uh in in now in operation like cruzeiro uh cashware uh we also have an increase of our financial expenses linked to the high interest rate in Brazil in 25, much higher than in 24. And we do have an increase in our tax expenses also. But overall, Very good results. Robust. We deliver what we say. So NGEB is an healthy company on that. Then, regarding the ESG KPIs, well-oriented, to be fair, all of them, except maybe, and unfortunately, we have to deflore four accidents during the last quarter, 25, four accidents with ESG. work stop days, some works of days. So we are still paying a lot of attention, a lot of focus on that. And we also support a lot the increase of the women in our leadership team. So we are on track. We are on the good way to achieve our results. We increase the percentage of women in our leadership team. and we continue to invest uh in um in the innovation and in our response responsibility social responsibility even if we decrease a little bit our contribution on that now time to leave the floor to guillaume in order for him to present the operation in for in renewables

Very well, I'm going to explain what underlies these figures. Here we have the availability of our wind, solar and electric assets. Our performance continues to improve, especially in wind and photovoltaic. We have a team that works closely with our suppliers so that we can have greater availability in our equipment this is the effort of our team of course with the help of investment always seeking good performance of our assets now the performance has been significant in these two technologies in energy, we're subject to seasonality, but we're also following a very good availability standard in transmission. also a very high availability and, of course, these are assets that are more predictable in terms of operation, except for unforeseen things, but we're doing well in transmission as well. Now, regarding containment, the hot topic in the sector of renewable energy, it has been significantly impacting our generation. The impact is on wind, solar assets, and very much aligned with what is happening in the system. We attempt, of course, to minimize this, optimize everything with maintenance, management of these curtailments. We hope that a solution for curtailment will come. in the fourth quarter with operational adjustments that should come from ANEL and the National Integration System. Now, another important point that has already been mentioned by Pierre is the acquisition of Cachoeira Calderon and Santo Antonio do Jari. And I think you can go on to the next slide. No, perhaps not. If you could go back, therefore, the organic growth in this quarter where we added 680 megas additionally from Cerrado al Surua and Azul Sol. And additionally, the two hydroelectric plants mentioned by Pierre Cachoeira Calderon and Santo Antonio de Jari with 612 megawatts. Next slide, please. As has already been mentioned, we see a growth in generation. This comes from our organic growth and from the M&A operation we have just carried out. Once again, it's organic growth and an enhancement in performance. This year, the wind situation was above what we had expected, helping us to minimize the issue of curtailment, operational enhancement, better natural resources, both solar and wind. All of these are helping us have an increase in power generation. Next slide. keller you have the floor good morning to everybody and i think this slide summarizes our trading activity for the quarter it was an excellent quarter And in the graph to the right, you can observe that we had very good sales during the quarter. Now, this is a comment we made in the call of last quarter that some operations that were under negotiation are still not reflected in our balance. And this is the case of this quarter where they are reflected. the variation is due to the accounting of new productions with high production levels and we're showing the availability new contracts for all the years until 2029 so we have good volumes as you can see. And besides these good production volumes, you can see the number of our consumers. We have a good evolution in that figure of consumers when compared with the same quarter last year, 17.6% increase of consumers. We have 2056 at the close of the year. quarter, and a growth of 24% in consumer units served in the third quarter of 2025 until the end. Once again, very positive figures in energy sold, volume sold, as well as in our consumer for its folio with a lower ticket perhaps, but with higher margin. We can see the position of our resources available until 2030 going forward. This means that we continue with that strategy of contracting through time, fine-tuning tactical adjustments, gradual growth, guaranteeing revenues, and the predictability of our results. I think this is what I wanted to say regarding that slide, and I am at your disposal during Q&A. Well, to go back to the projects that are under implementation, the Asurua wind complex, as Pierre mentioned, the physical progress has been concluded. It is 100% operational. We're waiting for a new dispatch to enter commercial operations of 100% of this complex. And we're waiting for the decision of ONS that has created new procedures. to obtain, well, the license and to test these assets. It's worth highlighting that the Asurua wind complex, as you already know, has quite a bit of supply and the performance has been much above what is expected. It surprises us in terms of its performance. It's the largest wind complex in Brazil and also the park with the best performance throughout Brazil. This project was delivered within the foreseen budget, within the right timeline, with health and security fully complied with. And we're in the final stage of execution, the environmental part, the recovery of degraded areas and investment in social areas surrounding the asset location. Next slide, please. Asusó, we have concluded it. We are progressing in installation activities and because of this new procedure of the ONS, we're waiting to signal all of the procedures to be able to enter commercial activity. This is an asset with very good performance, top-line performance. Now, in terms of CAPEX, it's all according to what has been scheduled. It is in accordance to our scheduling. And the same holds true for health and security. We have a recovery plan for the degraded areas. These are activities that tend to take longer, but within what is foreseen and as part of the social work that we carry out.