Presenting the team from Eletrobrás here, Wilson Ferreira, the Junior, the President of Eletrobrás; Elvira Presta, Investor Relations and Financial; Camila,, Governance, Risk and Compliance; Pedro Jatobá, Generation Director; and Rodrigo Limp, Institutional Relations; Élio Business Strategy and Participations and José Barros, our Legal Director. We inform you that this video call is being recorded and will be made available in the site of the investor relations of the company's where there will be this presentation in both languages. So I will highlight whoever needs simultaneous translations we have these two available in the globe on the bar -- at the bar below of your screen, so you can choose your language of preference, Portuguese or English. For those listening in English, there will be an option to block the original audio in Portuguese. For the question and answers, Q&A, we tell you that you should send them by clicking on the bottom of your screen. Your names will be mentioned and then you can ask your questions aloud. At this moment, you will be requested to open your microphone and then you can ask your question. Some declarations during this teleconference related to the perspectives, business perspective of the company, projections, operational matters and financials constitute the premises of Eletrobrás and will be available made available by the company. Future ones will not consider as performance because will be considered risks. The investors should understand that general economic conditions and other operational conditions could influence the results of such future conditions. Therefore, I'd like now give the floor to Wilson Ferreira the President of Eletrobrás, that we can start the presentation. Mr. Wilson, you can move on.

Thank you. Thank you, ladies and gentlemen. It's a satisfaction to be here to share the results of this company, this fourth quarter, closing the year of 2022. I am five months as head of the company, I'm really, really happy to be here. And especially to be together with my team that is here. And I thank them not only be able to make this presentation today, but also be the one on -- one of the dates most brief where we have reported our results. We're talking about the 13 of March, but especially the content of these results, which I believe can be very well appreciated by each one of you. So let's just start with these highlights. I'd like to move on onto the next slide. We have here the main events. In these five months, as I mentioned, there are five themes that are very relevant. I believe that the first one is something that is really important for the company, for the perspective of the company. It's the fixation of the voluntary dismissal plan. It has R$1.2 billion cost, estimated cost. We have over 1,000 people who have been dismissed up to February. We're going to make a report that more specific of this program, will have another 1,000 more until April the 30. We haven't taken a lot of care. It's a recognition of all the professionals in the companies that built this company, but it's also something that establish besides the perspective of bringing new people to the company, something that doesn't happen since 2009. The second theme that is very relevant then in this -- in the enterprise, private enterprise and deciding the future of bridges, first of all this, the regional funds we have already made it, and fund of…

Thank you, Wilson. So it's a great pleasure to be here talking to you, having to show you very briefly some themes that are regulatory-related to the last quarter and also the discussion here in Eletrobrás starting with the RBSE, which is some of the themes that is not only related to the last quarter, but has been discussed for a long time. And here I will bring some updated status. Since June last year we had some manifestation from the technical team of ANEEL and also from the from the Attorney's office from 2022, with SGT also had -- we have a little improvement in the memorandum from the same technical team. And then we had the legal impact aspect of the team and with a discussion with the Board of Directors, we decided to [indiscernible] decided, from the Director which is partially agreed by all the members. And then determined the new simulations and calculations that had been sent to the transmitters from August. And in this the official document, the technical area is executed. The command of the company even though it did not do any evaluation of merit. So since August, we have not had the ANEEL official position from the agency. We are in a process with the two directors Eletrobrás, together with other transmitters they have participated in the discussions directly also due to the -- in our association with transmitters. And also we have talked to all the directors to make a meeting which is set for now the month of March. And they will be keep on defending our point of views since the beginning that legal security, regulatory stability based on ANEEL's decision. Another team that dealt with the magnitude that is less but also it's something new, since the contract,…

And also so we are reporting this result that is due to a series of events, many of them non-reoccurring. So for the good understanding of the performance of this quarter, so changing this slide, I would like to report here, our net income of R$90 million, but we have a variation that is great reporting one for '20. And if we eliminate some factors that are known as non-reoccurring, we would be talking about an EBITDA of R$4 billion, but this will be the last line would be very different. And here we'll be talking about R$2.5 billion in profit. But we're talking about R$500 million loss especially because these things happen, especially because the carrying having these provisions is a PCLD of Amazonas disadvantage that Limp has already mentioned of R$2.5 million that eliminates completely our the risks related to this gain. So it's a pity, but we're going to keep on going fighting for this and negotiating. We are working on contributing with ANEEL, interacting with ANEEL, so that we can have a good solution for Amazonas. But we have done all the things necessary in the provision. So R$2.5 million, so we generate a great value, which is the -- so the PDP, so the dismissal of voluntary dismissal plan. So we have here -- we are we have provisional R$1.2 billion. We also have here we have done this transition with Amazon Energia. And in the first moment we had the provision of Teles Pires of R$169 million. We are sure that the conclusion of this operation will have the adjustment that will happen in the operation of sales that should be positive. But in this moment with the Teles Pires, which so made R$469 meters. So we're talking about $$2 billion. It's more than…

Thank you Oliveira. I think it's now show the last slide, which is exactly this one of the recognitions and the demonstration of our link to this ESG agenda especially with that setup of recognitions that we have in this quarter. The Transparency Trophy which is very well known, in the business environment that we have here. And we are here in the second consecutive year, and satisfaction to have recognition by Elvira, by our Financial Director, as the CFO of the Year 2022, in the 29th Edition of the Ibef, in Sao Paulo. We also had the Capitalization of the Year. We have New York and London in the end of this month, the follow-on of the Deal of the Year, which another important process for Brazil, globally speaking. And for the third consecutive year we are in the first place by Merco in the ranking of Brazilian Energies in the electric sector as the best reputation Brazil. In the sustainability book from S&P Global, one of the most sustainable companies of the world, 82 out of 100. So the companies in the group Eletrobrás have been recognized again by the Bloomberg as seal of Gender Equality, very, very high, something very, very important. So being a key thing here in the agenda of portfolio of B3 [ph]. Also with increase of scores and participation is the greater liquidity in our -- that we have been offering and the commitment that we had with biodiversity here. We have adhered to the Platform of Action by Nature, the Positive Impact by the CEBDs for the implementation of our guidelines on the Task Force of Nature related financial disclosures. And in the United Nations we are the only company funded by the United Nations to participate in the opening, in the form of companies that human rights in Geneva, in Switzerland. So we know our presentation today even to give a better clarity to you here of this six months specifically in the last quarter that has been very challenging and very fulfilling. So I close here the presentation. We open here to questions for my colleagues. So we are at your disposal.

So now we will start the questions and answers. [Operator Instructions]. Our first question is from Marcelo Sá, sell side from Itau. So you can open your microphone, so that you can ask your question. So go ahead, Marcelo. Marcelo Sá : Hello everyone. Thank you for the call. I have two questions. The first one is to talk a little bit about the balance of energy. So you've sold a lot of volume of energy, and the average price has gone down as we expected. And we tried to make an accounting reconciliation to see we have some difficulty due to the contracting in this period. So I'd like to comment a little bit what will be this rate that you have closed some contracts? And the other question's related to the use of fiscal credits. So if you plan to use Furnas to optimize the payment of taxes, as you have a fiscal credit, we have some companies that are not able to use, while Furnas pays a very high rate of taxes. So if you -- when you're planning to implement this plan? Thank you so much.

Thank you, Marcelo. Just like to start with -- by the last one. We're doing a great work here in about optimization of fiscal incentives and have a lot of credits. But the volume of credits is so big that I would say that this transition is not just the first one that we will be evaluating. In the first moment we are certainly looking at keeping the four companies we have in this process, a lot of credit to be incorporated. And obviously as we spent three years in this transformation process where we participate two years, observe and evaluate, are there alternatives. So this first moment we have conditions and we have enough credit to be optimized by the company, in a way that this Furnas is not something that we would consider to start our transition. There's a lot to do before there. Related to the energy balance, I'll ask Jatobá and the team that you can talk a bit about that. But looking at the last quarter of the third and the fourth quarter, the variation is not so relevant, because the numbers that we're sharing with you, we have 15% of the volumes for 2023 not contracted before 2/12. So there is some for sale naturally, but not so big that it would change the perspective. So Jatobá if you can then complement please. Pedro de Oliveira Jatobá: So perfectly President. We must -- we are here living in a moment of reduction in the market prices. But this is a conjunction of over offer to the accumulation of projects in the portfolio, and also the favorable positions of technology. So what we are seeing, looking for effectively capturing bigger values. And also -- and I don't know long term, and that's something that we could see a mix where we have regulatory and also new contracts that will come in. And then that will be a difference that you will see. And also as the President mentioned, we have a new policy of commercialization that integrates all the companies into one, is a policy of management of risk that is very sophisticated. That allows effectively this -- in that criteria to say this is a criteria, taking in consideration the risk. Marcelo Sá : Thank you. Thank you so much for participation. You can now give me an idea of prices of '23, '24, '25 that you're looking at, so that we have an idea, given that we have a lot of contracted energy.

The price we evaluate within the market situation, especially in the hydroelectric system, where a great influence of reservoir is also related to demand. So we evaluate this and what we look at those niches in the market where the prices are more attractive. Remember that we have a strategy in a free market for 2024-2025 and certainly these layers are layers that where you have a capacity of basically to practice better prices than those constitute the consumers from the free market. Also allow complement Marcelo that we show you here the configuration of the PLD. So we operate here with a PLD and a base. So the only way for you to have to sell at a better price is for you to sell volumes of energy in a greater terms. So recently, we in our water subsidiary or in our car company we participate in auctions in terms of four or five years where we are able to operate with prices R$130, R$140 per megawatt water -- megawatts hour. So this is what Jatobá mentioned. The way you which you have -- we have great volumes of contracted, by a greater term, so long term. So this type of solution is not over 100 days and this may be the main advantage of Eletrobrás. We are operating in a moment in which the price, the base price, the average price of energy is based and we are avoiding to make a sales movement of projects of short term projects that we would make available, that seek in some way, verbalize the volumes of energy at greater price, greater terms and greater deadlines, which will be greater price. So just show a couple of minutes that in fact, the medium term, naturally the prices go to the marginal cost of expansion, which is above the value that is being practiced in the market in the short term now. And that is the reason why we extend this product in a contrast related to the short term.

Our next question is from Maria Carolina in Canada, in the sell side Credit Suisse. So her questions, she asked her question first. So we've seen a revolution of loans in this first semester. So she gives more details on how many the number of a process that has been settled, or in negotiation. These are negotiations are within the expectations. Can we await for similar volumes or negotiations for this period. Paula would like to mention, Paula is our queen of compulsory loans. So I'd like to highlight something of a concept here. Obviously, we have here a segmentation of this process. So we are here in this first moment in the segmentation, then look at the grid process, where we believe that other counterparts, which are companies and we can generate a benefit of this resource in a definition market, it has a restriction. So but we should not part with our advantage, is the volume of capital that is finite. And we are renewing this allocation of resources that we're going through. It has to generate an advantage for the company. So it's a resource that the Board of Directors approves in terms of absolute value that we're not going to say which one it is. That provides us this possibility to make negotiations that bring almost a minimal value of that. So that is this allocation of resources is profitable to the company. So we have a trade-off that we're using here, looking at the what, we know that the financial market is also -- is now needs resources and disruption to make an agreement with advantage of the company, when the interest rate is very high becomes a benefit for those who offer, like in our case, but then the company that can they make an agreement and recognizing that the cost of taking these resource in the market would be much bigger. So we're in the first moment that we're looking at the top of the pyramid in the process that has the condition to make us this -- to give us this offer. But if you'd like to complement Paula.

So you mentioned well. Would just like to add Eletrobrás also wants to use the resources in its own process. So we have a judicial process, we have guarantees. We have -- we also make an approval -- we try to make -- enjoy better agreements, since these agreements is very strategic, but we're not going to mention the details. But along the year you will start to see behavior in the reduction of liabilities. So it's a great allocation of resources, we can tell you, recognized by -- and remembering that we take these liabilities. So it's less than half of our provisions of compulsory loans. We evaluated by the SELIC rate. We have an effect of every quarter in the financial expenses that is high due to the high SELIC rate. But it needs to have an appropriate location to have these payments in accordingly.

Thank you. Thank you for the answer. The second question, Maria Carolina is the following. So the energy balance and new sales of 140 megawatts near the -- I would like more detail on the term of these contracts and the level of prices. So in the past, we had 140 megawatts energy prices and that further contract and medium and long term. The short term, say 100 megawatts hours. Can you mention something about this?

I believe it's a little bit about what I've just mentioned. The market is operation at a base below 100 megawatts hour, for sure, both to operate will have a 140, 150, with a long term such as four, five years to capture the curve, going up and expansion. I'll give two examples in the car manufacturing and also the sanitation companies that have this demand that are using this demand of greater periods of. And this is an advantage a competitive advantage of Eletrobrás, because we have this volume. We reported this volume. So it's a way that you can mitigate the risk, that if you're going to sell products on the short term, the model, as much as the company could do, not to be distant from the base of the market. So we're looking here at a strategy that looks at consumers that have a demand for energy on the long term and that we can recapture. So these are the numbers, for contracts for last four or five years, R$140 megawatt/hour. So we have two contracts in basically closed in this direction. Jatobá, if you want to complement. Pedro de Oliveira Jatobá: Just want to reinforce that in the long term the projection of price is always near how much this expansion will cost. And we're seeing here an expansion due to the heating up of the demand of renewable energy by the war in Ukraine. So the expectation of prices will be greater. And remembering then we will be very competitive as we have a quantity of energy should be contracting this all right.

Thank you. Question from Guilherme Lima in the sell side from Santander. Guilherme, we will open your microphone so that you can make your question. Go on please.

Good afternoon, everyone. I have two questions. The first Wilson mentioned many initiatives to deficiency if you'd like to comment a little bit more how the company expects the behavior of your plants in 2023 with the implementation of some measures and where the company wants to achieve in reoccurring levels that would be this level of reoccurring events and to give us an idea of the current level in this quarter and what you can achieve by the end of 2020 through 2024? And there's another question that I had, a question that has already been answered already. So I'd like to now ask about no transmission auction interest, how do you evaluate this competitive market? Which blocks could be more interesting and how do you find a way to the attractiveness of this auction, has a important CapEx versus the accelerated the repurchase as it has been falling a lot, how attractive it is to make this option. So that's it.

Let me start with the end. Yes, the transmission options is a priority in our company. So the demonstration that we have put here is that in terms of applying resources into transmission is that there is a show of this. We have seen -- we have been even more efficient. We have to prepare that's in the future we have a reduction in EBITDA [ph] so that because it has a defined period. So you invest in assets, that bringing to the Eletrobrás profile, a profile that has a volatility due to the market price, but also that can have an important anchor related to the profitability on the assets on the long term, such as transmission with the generation that we are positioned in a market a regulated market, like Santo Antônio is a great demonstration showing this, and we have any interest in terms of transmission. Now we understand that these are projects that were not in the conditions to say which, but we have a team here and our transmission team is focused on this and we are taking evaluations in terms of priorities. But evidently we have assets here that are greater value and being a greater competitiveness. There are not many people interested in this financial capacity at this moment. So obviously, we're looking at this and we are talking with potential partners in a way that we can be in the competitive conditions. And we do to the repurchase and we report this too the process of repurchasing. We have 18 months to do. The value of this share is attractive and it's a great allocation of our capital. Our only event here is to respect what periods and also annual relevant events in which we can identify in the period that things…

I believe that you have explained the processes in construction. We will have this reduction experiences in a gradual manner. In this first moment we start with bigger expenses due to the dismissal plan that the second one that will come up. So we only see the full effect of this on the payroll next year. And then the other expenses is very similar, because we are starting to change the process of purchasing. We have some samples of contracting of insurance that we have centralized that have shown expressed gains of 30%, 40%. And this you intensify as long as we as we negotiate negotiated this contract. But it doesn't start from the day to night. So it's a greater volume of contracts and this all of this has to be renegotiated. So this takes time. So we can have 100% of the contracts negotiated. So anyway -- so renegotiating this is complex. It doesn't require this investment. So how much we need to make this plan of supply and long term and short term. And these are -- so this is this samples of insurance. So it's the first moment that the company has dealt with this before of the insurance of operational assets, life insurance. We have it in fact, as a fruit of this energy, now another issue related to volume is especially CapEx. We have -- what are the volumes that have to be done, what the reoccurrence, how long this should take place. It's better to have stock, not have a stock? And so this cost of SMR will fall along the time. So we have a important investments to make this mobilization but we also the advantages of have a payback of 13, 15 months that we will allow our allowed to verify the reduction of this cost along the time. Our objective people wish to in fact be the company of the last OEM causing degeneration in transmission. So this is the commitment of the company we're looking for this and I think this becomes could be a year long, year 2024, 2025. But these measures for us to reach this in this condition are taken in 2023 and then in this 24. Thank you.

Thank you Guilherme. Your next question now is Daniel Omeda, sell side analyst from -- so we will open your audio so that you can ask your question. Please go ahead. So we will read the question. Okay. I would like to confirm what will be the hedge that will be used for the energy balance that is 15% that is generally do it, or if it's another value that in the graph it didn't mention?

Around 15%.

So just that. Thank you. The next question is from Giuliano. Giuliano we will open your audio so that you can ask your question. Go ahead, Giuliano.

Giuliano, okay. Yeah, can you hear me? Great. So it's very interesting to see the generation of value comes from -- so now -- so the [indiscernible] it's a little part of the OpEx. And though it comes from the optimization of taxes and I think the main ones that the company is exactly those in the generation of sales of energy. I congratulate you this presentation, which is very well focused on the generation of value. But something that draws my attention, we also would like to just know, have a better understanding is when I compare the energy balance of the third quarter with the fourth quarter, I can see that there is a contraction of energy, 130 mega, 320, 158 into '25. So making a quick math, we can estimate that the price of the contracting on these prices. And then maybe what comes to my surprise, I'd like to hear from you is the explanation, is the price contracting in the fourth quarter 2023 will be R$80 megawatt water to 2024, R$70 megawatt water, and 2025 it falls even more to R$64 megawatts water. So like to understand more if there is something else related that negotiation that closes a disagreement with the sale of energy or something else but this contracting with the average price below becomes a surprise for us.

Thank you for the question of evaluation. I will send your question to Jatobá but to make this consideration related to prices. Pedro de Oliveira Jatobá: So Giuliano, thank you for the question. I received by writing and I could analyze it. So the calculation that you did is the net difference in which we have the total volume contracted in the third quarter, the fourth quarter administering the average prices. So this is the sum of all the changes that we have had. We had some of these contracts, the long term and some of them are contracts that were not done in this average band that you mentioned. There are some contracts that come in due to be regulatory mandatory at 18 megawatts, obligated to sell for the transposition of San Francisco at a value below the projected value. But the market all of this comes and provides is effective. But this is any way that we have been, we are practicing and in which this applies exclusively to the differences that have been affected exclusively in the fourth in the fourth quarter, where we have a series of different non typical situations.

Thank you Jatobá. Thank you so much. Just I would like to ask two more. The first week, they should be the -- should the numbers of ANEEL should publish the numbers referring to the first auction of energy transformation, something here R$20 billion. Just so I understand your head here, do you plan to participate of this auction. It's a great auction that need to have a partner, like to understand your expectation.

The idea, yes, we are evaluating the participation. We believe that the business transformation gives us stability to our result. We understand that the composition of this is the stability, and also have the possibility to create value in with a greater, much more dynamic is what will happen to the free market. Some people see some concerns with lower prices. But in 2021, a day like today would be so happy to be selling energy at a greater value. So obviously the strategy or the company is considers these two things. Besides this, I'd also like to say that the strategy of the company, the only thing that we will not have is to be a minority as we were in the past in terms of 49%. So obviously, we see the possibility to be together with our competitor that has the advantage, competitive advantage, technical knowledge that we can in a pair control the financial and create more value and become more competitive. So we have no problems in doing this with our competitors. And some of them in fact, we are partners, even though you're a condition for 90%, but share control to create value or to be more competitive, it's part of the strategy of any business, any private business that is serious in this. So surely, we will consider this. We will consider the financial capacities that differential in the market. At the moment the market is not so -- has so much liquidity. So together with the Board of Director, we will work on the fixation of the rates that recognize this moment -- of financial moment. But I would say that, no doubt this is one of the alternatives of investments and sustainable growth of the company, this transmission. And we are working seriously to be competitive in this auction and there are no other alternatives. I would also like to say, I forgot to say a comment that no doubt, should pay compulsory loans and should make an agreement to compulsory loans using electricity is one of the alternatives that we are considering together with these counterparts. So stimulate in revenue and also -- but we still have not done any of them, just to be clear that those values that you saw that Jatobá explained to you don't have these alternatives. And I hope we're able to evaluate some of them and to be competitive and this generates value for both parties, especially in this moment.

Thank you. And then I'd like to just seize the moment and ask one more. We have three events today that are little bit, another to your control which have caused a little bit of stress, which is the [indiscernible] that that I think ANEEL has mentioned, but another one is the [indiscernible]. So understand a little bit with you what is the expectation for [indiscernible] then until when the -- so there is cash for construction and expectation on the tariff.

Let me -- the company has cash up to the end of the year. So these are the factors that have been allocated by before the privatization is there in the following the, what we call investment in the critical path which is those on the expectation of a definition related to tariff. And here an important point here is we are in this moment waiting for the ordinary process to review these numbers from the development bank, and also the [indiscernible] can get together up to June to approve this tariff. But once this tariff is approved, we will be able to have a process a tender process to get this financing. So this company has the continuity of the investment will be based on started from a different financial position, once the equity has already been based. This company will be here 70% of the construction is done. And in four years and a half to June 2020, transform to vehicle it is important venture. So we're waiting for this evaluation from the TCU to have this -- to go along with this work The tariff that has to call for the capacity to take the finances in the market and also recall for the equity that have already been allocated for the company.

So we end now this session of question-and-answers. We will have -- we will give the final word to Mr. Ferreira for the final remarks. Please, Wilson go on.

So thank you so much to everyone who could follow our conference results. So I'm sorry it should be a little bit longer, but it was important to characterize this process of change. I have mentioned to my team that we are a company that generation and transmission we should have a certain stability with investing with the investors, but with profitability on the other results that have already been seen. The operations we have seen, we have seen this already. So on one side, we try to have more of a final cleaning of the balance and the other side, initiatives that we have the possibility to direct our -- to direct to people in the OpEx and CapEx related to acquisition services. I think we have the second block which is to potentialize the value in our liability, contiguous here in the company. So we are taking this the first steps that are very important. They are assets that are very important, which is the fiscal credits that we're trying to be selling energy that generate operational advantage or compulsory loans to use these fiscal credits. And clearly, the other side is the growth of the company. So the strategy of the company is to in the final phase together with the Board of Directors is come to reinforce this growth, align the renewable energy specialty in the transmission the area transmission, which are -- these are ventures that are happening. So the fact is, I would like just to highlight that the company is six months as private. We have seen increased expressive investment over 50%. And those are greater investment initiative of the company. We have taken control of companies like Santo Antonio, from a minority way. We have already plans important plans to the presence…