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FAG's second quarter 2025 earnings conference call. I would like to highlight that simultaneous translation is available on the platform through the Interplay Station button via the globe icon at the bottom of your screen. We would like to inform you that this conference call is being broadcasted, and after its conclusion, the audio will be available on our investor relations website. During the company's presentation, all participants will be on mute. Following the presentation, we'll begin the Q&A session. To ask a question, please click on the raise hand icon at the bottom of your screen to join the queue. When announced, a request to unmute your mic will appear on your screen, and then you should turn on your mic to ask your question. If you have more than one question, we recommend that you ask them all at once. If you do not have time to answer all questions live, please feel free to send your questions to our email at ri.bank.net, and we will answer your questions after the conclusion of the conference call. We would like to emphasize that any forward-looking statements contained in this document or any statements that may be made during the conference call regarding future events, business outlook, operational and financial projections goals, and WEG's potential future growth are merely the beliefs and expectations of WEG's management, based on currently available information. These statements involve risks and uncertainties and therefore depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions, and other operational factors could affect WEG's future performance and lead to results that will be materially different from those in the forward-looking statements. Joining us today from Jaraguá do Sul are André Luiz Rodrigues, Chief Administrative and Financial Officer, André Merequete Salgueiro, Finance and Investor Relations Officer, and Felipe Escopel Hoffman, Investor Relations Manager. Please, Mr. André Rodrigues, you may proceed. Good morning, everyone. It's a pleasure to be with you once again for VAC's Earnings Conference Call. Let me begin with the highlights for the quarter on slide 3, where net operating revenue grew 10.1% compared to the second quarter, 24. In Brazil, we had a positive performance in the solar generation business and continued delivery of transmission and distribution projects, despite slower overall growth, due mainly to a significant drop in revenue from the wind generation business. Abroad, we saw another quarter of growth in the power generation, transmission, and distribution businesses, particularly in North America. along with a healthy level of industrial activity and higher sales of short-cycle equipment across key regions where we operate. Our operating result, measured by EBITDA, reached R$2.3 billion, up 6.5% from 2024. EBITDA margin closed the quarter at 22.1%. remaining at a very healthy level. Along the presentation, Andrés Aguero will provide you more details of these points. Return on invested capital, one of our key financial indicators, remained at a high level of 32.9%, as we'll see in more detail on the next slide. Revenue growth and operating margins in the period helped maintain return on invested capital at a high level, even though there was a decline compared to the same period last year. In addition to the increase in invested capital due to investments in fixed assets and acquisitions during the period, it's important to note that the second quarter 24 return on invested capital was positively impacted by the recognition of non-recurring tax incentives. Now I'll turn to André Salgueiro. Thanks, André. Good morning, everyone. On slide five, I will go over revenue trends across our business areas. In Brazil, we saw a strong demand for low-voltage electric motors spread across the various segments we serve. For serial automation equipment, demand fluctuated mainly due to high inventory levels and peak clients. For long-cycle equipment, such as medium-voltage electric motors and automation panels, project deliveries slowed down, reflecting a more cautious environment for large-scale investments. In the GTD segment, despite lower wind projects revenues in 2025, we maintained a high volume of centralized solar generation project deliveries. combined with solid performance in the T&D business, thus contributed positively to the quarter. It's worth noting that, excluding the wind generation business, all relevant segments posted double-digit growth this quarter. In the commercial motors and appliance segment, we maintained sales in line with the same period last year. with solid results in key sectors such as air conditioning and matter pumps manufacturers, although revenue in the washing machine segment declined. In coats and furnaces, demand remained strong, particularly in the water and sanitation and agricultural equipment segments. Industry activity improved across all our main regions of operation, with solid performance in short-cycle equipment, such as electric motors and serial automation products. For long-cycle equipment, we continue to see good demand in the oil and gas and water and sanitation sectors. However, the current global political and economic scenario has been impacting decision-making for new investments. In GTD, We continue to benefit from opportunities in the T&D market in North America, despite a lower concentration of project deliveries this quarter. It's important to highlight that the T&D order backlog remains healthy and plans are running at full capacity. Generated business from Marathon in the United States and China also contributed to segment growth. In commercial matters and appliance, we saw revenue growth in several key regions, especially in China and North America. In coatings and varnishes, demand growth was mainly driven by the strong performance of our operations in Mexico, along with exports from Brazil to other Latin American countries. Slide 6 shows EBITDA evolution, which grew 6.5%. while EBITDA margin closed the quarter at 22.1%, improving compared to the first quarter 25% and slightly down versus the same period last year. This is mainly due to the change in the product mix, as well as the consolidation of acquired businesses during the period. Finally, on slide 7, we showed the evolution of our investments, which totaled R$583 million, with 63% allocated in Brazil and 37% abroad. In Brazil, we continue to modernize and expand T&D production capacity, as well as increase capacity and productivity gains in Gena Grado Sul. Abroad, we are moving forward with investments in Mexico, particularly with the construction of a new transformer plant. That concludes my remarks, and I'll turn the floor back to André. On slide 8, before we move on to the Q&A session, I'd like to highlight the following. First, in May, we announced the acquisition of the assets of Herosite Protective Coatings, a U.S.-based industrial coating company founded in 1935. Herosite is well-established in the industrial coatings market, with operations in the U.S. and strong international presence.

Last week,

We also announced our continued and significant improvement in the FTSE For Good Index, one of the world's leading benchmarks for corporate sustainability performance. VAG has been part of the index since 2016, and this recognition reflects our ongoing efforts to foster sustainable business practices both within and outside the company. Finally, a few words on the outlook for the rest of the year. We continue to see healthy operational dynamics, and the product mix should keep supporting good operation margins. We remain confident in our strategy based on global presence, I diversified product portfolio and operations across several segments. This allows us to respond quickly to changing scenarios and mitigate potential macroeconomic impacts. Lastly, it's essential to keep a close eye on the geopolitical and macroeconomic context, as shifts in this environment could affect business dynamics throughout the rest of the year. This concludes our presentation, and we can now proceed to the Q&A session. We'll now start the Q&A session. To ask a question, click on the raise hand icon to join the queue. If announced, a request to activate your mic will show up on your screen, then you should enable audio to ask your question. We kindly ask you to make all questions at once. To start, our first question comes from Roger from Bank of America. Roger, your mic is on. You may go on. Hello, everyone. Good morning. Thanks for taking my question. I have two on my site. The first, I'd like to explore the DTD market abroad. We see that most of the segment comes from T&D, and we see a level of organic revenue in dollars going down, low T's lower than the fourth quarter, 24, and going up now 2% year-on-year in the second quarter. that has been lower than what we have seen in global companies in the electrification segment. However, when we see the profit for T&D in North America, it continues to go up. So it shows that you're probably having some incremental price increases in deliveries, which make us conclude that we might be seeing a drop in volume compared to the fourth quarter, and less growth than global peers. Does it make sense what I'm saying? Is it a matter of a mix? Is it because of generation and expectations for the coming quarters? This is my first question. The second question is with regards to growth in revenue. Wind had a steep drop in the second, third, and fourth quarters, 24. Now it is... And thinking of the expectation for centralized solar generation going down in the coming quarters, do we see a lower GDP for Brazil in the coming quarters? Do you think you'll have a more adjusted base? How do you see that? And so in revenue growth, you're talking the release for less demand for long-term cycle products and industrials, both in Brazil and abroad, and we do not see a drop in revenue in industrials in any of the regions. Can that be an advanced indicator of lower growth for the division for the coming quarters or not necessarily?