Welcome. Presenting the team from Petrobras we have here today, Wilson Ferreira Jr., the President of Eletrobrás; Elvira Presta, Financial Vice President and Investor Relations; Rodrigo Limp, Vice President of Regulation and Institutional Relations and the new Vice President of Commercialization and Vice President of People, Personal and Culture; and Élio Wolff, Vice President of Strategy, Business strategy and participations. We inform that this video conference is being recorded and will be made available in the site of IR of the company, and will be available in both languages. If you need simultaneous translation, we have these two available in the icon called the interpretation located in the bottom of the screen, you can choose Portuguese or English. For you listening in English, the option to silence the regional audio, clicking mute or regional audio. For Q&A, we should be send by the Q&A button on the bottom of the screen. Your names will be announced, so that you can be – so that you can make the question. Should request your microphone whenever you make this, I request to activate your microphone will appear on the screen. The disclaimer, anything that said during this presentation about the business perspective of the company projections, operational targets and financial ones, they are premises of the Board of Eletrobras as well as informations that are currently available for the company. Future considerations are not guarantees of performance because they involve risks, uncertainties and therefore, they depend on circumstances that can may or may not occur. The investors should then understand that economical conditions in general and other operational activities can affect the operational results expressed in the future. Now Mr. Wilson Ferreira, President of Eletrobras that we can start the presentation.

Good afternoon, everyone. I'd like to greet the shareholders, the investors, analysts that work at Eletrobras that we can share the main results of our first trimester, the second that we complete here since we have arrived. We highlight here in the beginning, what are the main highlights of this quarter. Basically on the partnership, the advance that we have had in the process of acquisition of Santo Antônio Energia, the advance and acquisition of owners of 23% and then our average 92% of the company, invested BRL168 million. We're going to be able to detail here more, but it deals with one of the main companies in Brazil. So this is a very, very important data investment. The second one, second highlight here this quarter is the receiving of BRL950 million referring to the contract of transfer partnership participation in Itaipu. This is one of the preconditions of the privatization and capitalization where this asset was financed in 20 years. And now with the discount, I will speak further ahead, we'll have – we had an influx of cash of BRL9 million, which is really important for the liquidity. Another part that is really important, the transitions that we started to develop along the recent years. So we will follow here, not just the team of sales, but also the – in SAESA [ph] as a complement to that we had participation from Cemig. And with this, we now have – we have a controllership of investment BRL200 million, also of [indiscernible] hydroelectric unit and also the hydroelectric unit of [indiscernible] BRL393 million, having 100% of these plants. These plants are totally contracted and regulated. So this is not an instrument of competition. It's basically relative participation that the company has and that they can start operating these plants…

Thank you, Wilson. Good afternoon, everyone. It's a great pleasure to be here and talk about these movements that are shown here related to us, to management and to the culture. So the figures of PDV that you see here for the voluntary dismissal that has already shown in some – in the previous slides, but I want to highlight the impact and the expectation we have of this annual savings of R$1.1 billion, that has already come to R$150 million up to April and [indiscernible]. And then now in May, we have this dismissal plan that will be launched for the second one with 1,500 people already registered for making that the organization comes close to the size in terms of people fair with its performance and with what it needs in terms of people to operate and operate in an efficient way and annual savings of R$680 million – R$600 million to R$800 million. So together, the total savings – expected savings of almost R$2 billion in this process, not voluntary dismissal. And then here, we are replacing some of these professionals, especially in the maintenance area of 832 professionals. This starts next week. We have the first wave, 831 people arriving in the company and starting the operations by June, especially with the focus of operational continuity and renovating this field, which is replacing many of the people that have left, especially retired people in the first dismissal plan. And then optimization of the structure starts, the centralization of the organization. Up to June, we will finish implementing this new structure with the strengthening of the corporate functions. So reducing the number of management positions in 30% when we compare with the pre-capitalization. It's an important impact in terms of – point of view in terms of cost and also of being an organization that is much leaner and lighter and more efficient, of course. And lastly, the process of strengthening of cultural transformation with our strategic objectives aligning of the organization with people and a new design of career track plans and onboarding of young people that we should start to be doing in the second semester. So with this, I finish this part, and I thank you very much, Wilson, and I give you back the word.

Thank you, Renato. I would just like to – so we have around 8,000 people in the company. But we started here with 10,000, so we see this reduction. So I'm trying to be concise here in the explanation first. I would like to talk about the sustainable growth of the company. In this quarter, we have added new megawatts to the company. We were finishing the cycle of Santa Cruz, our thermoelectric in Rio de Janeiro with more 450 megawatts buying hydroelectric unit of Santo António. So 22% of the capacity in Brazil. So with controls, we have 1,475 megawatts of added megawatts with SAESA, Baguari, Teles Pires, Retiro Baixo and leaving that which will add the 550 megawatts that we offer to be already constituted. We are hearing this to become the biggest components of renewable energy in the world. And with these movements, we are naturally meeting this. And we are here with our energy, which is renewable, which is cheaper also, means 20% of the energy generated in Brazil, 22% of the capacity installed. And 87% of it coming from clean sources. In transmission, we had the same behavior. I highlight here the increase of an investment. We doubled the investments in their cooperation in the same quarter compared to the previous year. And now we reached here 74,000 kilometers, 38% of Brazil, 282 substations. Brazil has 194,000 kilometers of transmission. And we also have the perspective – excellent perspective of great of – implementation of great size investments with a CapEx of almost R$6 billion, and this 827 million 2027, R$186 million only in this year 2023, some already implemented in the first quarter. So a sustainable growth in the – in the sustainable growth and also transmission, the decarbonization of our generating energy. In…

Thank you, João. I'd like to highlight here that in this comment comes around that this rule is the request of breach with 18 months ahead. So once upon request, we have 18 months to execute the contract in the terms that it exists today. From there on, the following 18 months, we're talking about half of 2025. The consumer who took this decision has a risk in terms of contracted energy in the free market as prices are above or if we have the variation of – as we have had already two years ago a non-favorable situation when – and then obviously related to economic perspective as well. So we have these favorable conditions, the risk of this consumer increases a lot, which could impose this decision in the level of responsibility that is really big. So moving on, we have here the variation of our volumes of revenue generated. We see here that 90% growth in this quarter compared to the first – the same quarter in the previous year, and we see a growth – the lower quotes, which is the process of decoding. And also, we have a growth in the ACR with 86%, so rigorous growth. So we have the cooperation of SAESA in our portfolio. So the importance of this transition and the free market growing 29%, also with the growth in outcome income comforted in the two, three markets, 29% growth and 27% of the volumes that you have to put in the short-term market. On the other side, we have the growth of the revenues of generation from 22% to R$1.2 billion, reaching R$6.5 billion. And then here, we have readjustments of the quotes that are – but reaching basically despite the volume of quote, we had growth in the units…

So we have half an hour presentation. So I’d like to reach 45 minutes. So thank you, Wilson. So I’d like to talk about some details related to the demonstration of results. As Wilson has already mentioned, we had here a growth relevant of our gross revenue of 3% to R$11 billion. And I would also like to make some comments on our base in which we consider reoccurring, which is our adjusted base. The more relevant of increase of revenue already is the consolidation of the SAESA energy company and that are – and this is reflecting the regulatory environment. As also in the Santo Antônio also has price – average prices of over 200. And this reflects in this increase of revenue. The slide that I’ll highlight more of ahead, I’m not going to mention now, but we will show more details later on. But in the block of costs [indiscernible], the operational costs that is in light blue, it’s important to highlight the Santo Antônio with the same way that he hedge value, it also brings its costs more in this period. So in the construction, we have especially has accelerated later, a lot of the investments in – adding value to the transmission, which is very positive. And then we have an increase in the revenue of R$200 million. And in the case of our thermoelectric Santa Cruz in the first quarter, it did not only was dispatched but also it was performing some test to do a cycle. So there was no need, which – so there was no need for field, which we save R$200 million in amortization. And I’d like to show you here about – also consolidation, we have R$500 million. So we have an increase of 80% in expressing increases, and…

So thank you. Thank you and good afternoon, everyone. So we’ll go here to the slide we brought here the highlights the full main focus in the RBSE, which is a theme that Wilson has already highlighted, we had a new technical norm of SGT which had a difference of nomenclature inside ANEEL, but it was issued inside the SGT U.S. filing, which consolidated the analyses of the contributions of transmissions, of generators, of consumers in relation to what sit in the technical norm of the same number of last year. It brought – it did not bring a lot of innovation in terms of understanding to the new note, but it brought an understanding that is very similar, and sharing in this meeting in three topics. The first topic which is amortization which is anticipated and even though it didn’t bring a change in of understanding the technical terms of 86 – 85/2022 but it gave us two ways the same way of payment up to which is post anticipated, which was widely discussed in our public audience meeting in 2017 and also was in our understanding the position of the promoter’s office and not to changing this item and keep it until the flow of payment to waive this post anticipated manner and also brought some of the possibilities. And also as shown in the 2022 Technical Note, the possibility of change of amortization to anticipate as June 2020, which was the understanding the technical term that was concluded in these two ways related to the separation of flows of application of KR only in the installment that is different from that of the methodology that was already run. It changed the – bringing in this technical term last year and also about reaffirming the understanding that the…

[Operator Instructions] And then now we will go to the first question, which comes from Andre Sampaio sell-side analysts from Santander Bank. Andre, you may open your microphone. Please Andre, you can go on.

So, well, good afternoon, everyone. I have two questions. The first question is referring to the contracts of [indiscernible] to be added like to know more about what you already understand is a contract, what has been already been requested in terms of canceling and also any – and if this is already known by the company, this is reflected in the energetic balance. So if we – some adjustment it should be done or not. So depending on the discussion of today. And the next question, Angra, if you can talk about the expectation of Angra, in fact, in – and still speaking about Angra if we decide to build Angra, how would this division of cost of mobilization and of suppliers? Would it be shared by the stake – economic stake or original owners.

So thank you, Andre. So, I’d like to – I’ll ask in the specific case of [indiscernible] Carlos talk so that just going to leave – related to Angra III, we had this week, I recommend that you have access to the material that has been shared by Alexandre Silveira who was there in the National Congress. He reaffirmed that the commitment that we have of this construction of Angra, which I said is really important for the electric system, especially in the Southeast region, the metropolitan area of Sao Paulo and ministry, which this process in the clear manifestation from the minister, it’s a priority of the government. So now I will give the word to Limp – so to talk about the expectation and this risk that you have mentioned, and National Congress will talk about indiscernible . So Limp please.

So thank you. So, I think your approach a very important point that the scenario that we work with is to complete execution of the project. So the project already has – most of it is already concluded. It’s a significant part that is already advanced. So there is still some important parts. But most of that has been done, we have discussed here together with the ministry that has done this interference also with some of our courts that – so that we can approve the tariff. And all the contracts that we have had with public sector and where we had some audience, there was a specific presentation about nuclear energy, Angra – Angra I, Angra II and also mining associated to the nuclear energy and also the project of Angra III. So our scenario is executing the project. Our role as shareholders is to contribute and finish the modeling and within the execution of the project. So we are in, in fact, structuring inside those areas that are – that’s into following this project due to the importance of the project to Eletrobras and also something, like, as is we don’t work in this area non-execution, but from electrical nuclear it’s – we talk about – we have to talk about the shareholders. There is no rule of how it will be treated. So it’s not the basic scenario that we worked with. I’d like to highlight that this is a project that the risk of 70% of the construction is already concluded, what – basically what’s missing from the moment that we follow up with this critical process, which is compliant with the CFO work. This is a project is similar Angra II, same size, same machine. And we have here in terms of investment besides commissioning, which is the main activity that needs to be developed. We have here the instrumentation, which is a very modern is the greatest change related to instrumentation. So, I think this is the fundamental factors so we have the development of this construction. So Joao Carlos, please. João Carlos Guimarães: So good afternoon Andre, what happens with this impact. Basically, it’s given to as I mentioned already. So this volume is unlocked. We consider it as not contracted energy impacted to the cultivation. So the price R$109 million, R$185 million great part of it is for the investment funds in Northeast and Southeast. What the company retains basically is the very similar to the court. So with this we with the breach – we incorporated this volume is already informed, and this means value that we can put in new operations of – new operations.

So thank you. So very clear. Thank you very much.

Thank, Andre. Our next question comes from Marcelo Sa analyst from Itau. Okay, Marcelo you can ask your question. Please move on.

Hello everyone. Thank you very much for the call. I have some questions. The first is trying to understand with your head, the terms of capacity, what will happen by the end of the year. If you have a relevant potential with the capacity you could offer and also about another question, that makes sense or not is to have this discussion with the government is a transfer of participation that Eletrobras has in the assets – in the nuclear assets, the government so that to the – if it will make sense to have any type of negotiations with the government to take this risk, this uncertainty that you have in these parameters of Angra III. And the third question, it’s about [indiscernible] in the canceling of this appears zero for Eletrobras due to the new resources that we will go to the fund that will not go to the company. So these are the three questions, basically.

So I’d just like to complement, it’s not that it’s not the state of the company, the resources to the transfer cost to the cash flow to the company. And – but it’s a restricted fund, the company can only use these resources for and establishing law, so contracting this energy, which is another way of decoding it would be free to sell the way you want. So in hydrological conditions, pay better price, better market price data. So you cannot use these resources to pay dividends. There are – there is a specific destination established by law related to – this is like the difference of hike and the difference in revenue.

Okay. It’s clear.

Thank you Marcelo. And so about the comments, go ahead please. This participation that today there is nothing today that in discussion in this way. So the main focus of, I believe, of the government and Eletrobras is to define the conditions of the verbalization of the venture, the tariff, it’s very important the contract who will supply the equipment, the conclusion of the construction. These are the main focus related to Angra III.

Then about the auction of capacity at the end of the year, you have the potential to much of capacity that you have today if it’s an option to generate that for the company and what will be the amount that could go to auction and some idea about what do you think will be the contract in terms of capacity in this auction. So I can speak about that. So I think we have to wait first to define what will be the guidelines, the final objective of contracting and as far as that would be able to participate. If it’s just the thermal ones and then we have – we don’t have any – we don’t have anything to evaluate where we have to evaluate the opportunities. And – but we have the work also here really associated to regulatory agenda, where we have the valuing of the attributes provided by the thermal electric plants, which could be in the process of contracting due to the necessity of even more system that of the service provided by the hydroelectrics.

I don’t know if it’s in this line, if you were specifically talking about the thermal electric ones.

No, in fact, is an auction in general. So there’s a discussion. There will be different products in the auction. Mainly in the thermal we will ship products that will be computing. So this is the question. So what has been raised in terms of hydroelectric is related to the amplification and not the current capacity, but will be the guidelines defined by the ministry.

Thank you.

Rafael Nagano is the next question; analyst sell side from Credit Suisse. Rafael, you have the floor.

So, good afternoon. I have one – just one question from my side. It will be related to all the employees that are leaving, I don’t know if you – I would like to know if you have any relation of the average cost of the people who are coming in the company compared to those who are leaving by this dismissal plan.

The ones that are coming, they have an average remuneration, 50% of those that we have today in the company in the same categories. Thank you, Rafael, for your question.

Our next question now comes from Antonio Junqueira, sell-side analyst from Citi. Antonio, we will open your audio. So that you can ask your question. Please go ahead.

So everyone can hear me?

Go ahead.

It’s not about operational questions. My question is sometimes the company, they have to defend legally. So now other companies, they have so a lot of contingency money removed. So because short questions are presented, they have to be debated recently. The government has given demonstration that it wants to a legal question, the number of what it has in these assemblies, which is breaching contract, but the company maybe has to defend. So I would like to know what is the legal strategy that – about the team and what’s the official position of the company. The press only talks about one side. Nobody’s defend publicly the fact that they’re going to have to sort it, it’s right and then to vote, and I want to come back with that. So this date, you only hear one side of it, so I’d like to ask the company.

So first, Junqueira, we have to – and I speak very comfortably about this. And so this process was an object of ample debate of the society through its representatives in the National Congress. So besides that, it’s also a process like a call, we have conducted by an evaluation of the accounting court of the union. So this has been an important approval. So remembering that this – the public audience about is a process from a legal point of view, I’m not a lawyer, but it’s a perfect process. And so if you look at the process considering improbable. So less likely. So what Eletrobrás can do is to the public audience. So we can clarify any questions. So this has manifested many very clearly and continues to which the company relates to. So with the minister, which is Mr. Alexandre Silveira we had several interventions – interactions with the minister. And all other times, we have a position this way. We have to see that the robustness of the project, the process over 300,000 workers from the reserve. So it’s not a classic process of privatization. Into privatization, you sold all the shares and then for the third – for any third-party or process, there was – we didn’t sell any shares directly. So in fact, it was diluted by the size of capital, in which the use of this capital is exactly allowing that the Brazilian people could have a reduction of its fees due to the quotes that generated those no – those tariff leg. These were the main elements that determine the – and also – and under the worth of this contract from – as the government received an insight and also in terms of society reducing the amount of – and also…

Thank you.

[Operating Instructions] Our next question is from Henrique analyst sell side from J.P. Morgan. Henrique, send your request so that we can open your microphone. Please you can ask your question.

Hello everyone. I have some questions. The first is about we've seen an increase or a great increase in the financial results; just R$1 billion in one-quarter. My question is if this value is possible for the following quarters? My second question would be about Amazonas Energia. We didn't see any relevant provisions related to Amazon in the first quarter, which is a good news. I would like to know to understand if this -- if you plan to keep this? Thank you. João Carlos Guimarães: So thank you Henrique. So first of all, let me start clarifying about the financial results. In fact, R$1 billion that appears there, part of it referring to Santo António is 70% debt, R$600 million are the other debts of ours. And these duties will decrease after negotiating this debt, which is the next step that is in our work plan. So we're restructuring. So – and here we're not trading this with the creditors to renegotiate this debt in a way that this value is reduced. It will not disappear, but the intention is that naturally to decrease this another point that is important in the financial results is that we had an impact of the discount that was given to ENBPar. This is a single time event, it doesn't repeat, which is a discount of R$350 million. And the event that happens every three quarters is the correction is the adjustment of the applications of CDE and obligations of the reservoir flows and Amazon [indiscernible], which are obligations from the capitalization. So I think Limp can talk about Amazonas.

Just to make observation about the financial result, there has been greater impact. We have with IPCA. We have an effect very elevated IPCA. We had a counterpart in the revenue. So 70% of revenue is indexed by IPCA, so just to – so well mentioned. João Carlos Guimarães: Thank you, Paulo [ph], for the complement. Thank you. So in fact, our – in the last quarter, we had a relevant provision of Amazonas which really is 90% of that debt from Eletrobrás with Amazon provision. And then this difference of 100%, in fact there are values that are current ongoing expenses and also debt and other debts that are being paid and we're not observing any default and also growing expenses that many times is question since May last year. We don't observe any default in Amazon distribution, and we have the contract – bilateral contracting around R$350 million a year – a month. So most of it comes directly from CCE, which is part of the [indiscernible] natural gas, and the remainder we received from Amazonas. So we are receiving in a way without default. So we have – so we would decrease – we will receive this instrument from ANEEL related to energy of R$150 million a month that they had a technical note favorable ANEEL with the Director [indiscernible] we have a meeting with him in the following weeks to deal with the topic. So today, we don't have an expectation of under provisions because the values have been paid as I said since May last year. So we still have the value of a less amount but paid to the ongoing expenses. So the provision has already done and we have a debt that is provision significantly above R$7 billion, which we have to treating in a global solution, which involves deregulation, the Ministry of Mines and Energy, so that we have a recovery of these provision values.

Thank you.

Thank you, Henrique for your question.

Our next question now is from Daniel Travitzky, analyst sell side from Safra Bank. Daniel, we will open your audio so that you can ask your question. Please proceed.

Thank you for the opportunity. I'd like to know a little bit more about the strategy of the company related to the [indiscernible] of the energy that is in the scenario of fall in the prices of electricity and energy. How do you think about the strategy – commercial strategy, and this will help a lot?

Thank you. So I will go to [indiscernible]. So first of all, I refer to [indiscernible] the discussion about the scenario because we forget that two years ago, the same economy we have today, we are operating with the biggest drought in our history, 91 years an operating in the highest price. So now we are with one of the best – one of the best indexes of rain and we are operating the – we have an excess of – overflow of, at least, we have the first steps of – we see the economy growing and we have an acquisition here of volumes of energy of 30 years. So this – and our own results into 2023, results of the strategy implemented last year they are robust and the prices they speak for themselves. So I believe that we need to complement. And then with that, we have a Vice President of Commercialization. We have the integration of this Vice President with four – we kept four directors of commercialization, commercial ones in our subsidiaries. And we have here a strategy done from the holding with the support of not only by the people in the house, but also – but we are adding of consultants, things that we didn't have in the past and now instrumentation systems. So an important measurement of risk in terms of, risk of the market, risk of credit and operations done weekly with the mandate to our – by our controlled companies, and we have to come close to the consumer. So we brought João Carlos that here, then he will complement with our answer. So he can talk about this commercial transfer, which is in his hand.

Daniel, good afternoon. I think we also have already answered most of the work that we have done, but have 30 years of electric sector. And this is a cycle question about the price. Sometimes its high, sometimes its low, sometimes it is to have a management of our portfolio that is very efficient and this is what we are implementing now. We are working with revisiting all the process of developing new process. And we are going to strengthen our base of clients so that we have reocurring revenues and also allocate and we reduce the contraction of – contract of energy so that we can allocate it in a more efficient and adding more value and also reducing the risk of exposition to – on the short term, so this is a job that we are studying and we are strengthening our front of retail. As Wilson has already mentioned, we have created these commercialization directors, departments, and we are structuring them and putting teams there visiting clients and looking for contracts. And we hope that the cycle, as I mentioned that we are going through a low cycle, but – low price cycle, but it is a question of time. This price reacts again, and it's important ones reacting, we have to be positioned in our portfolio, we have to have good kings.

Thank you. If you could just a second question, just to – if you could comment about the investments in the improvements in transmission and to enjoy the volume – and seize the volume in this segment. So we highlighted in our presentation set of – we had several, I would say, initiatives or demands from ANEEL, from ONS of a set of constructions to improve – of improvements and this was addressed and link and complement each one of these institutions talked about. So it has been prioritized by our in our budget a set of ventures, seven of them R$6 billion in that will bring a reoccurring revenue R$850 million. So this would be done along the three to four years. So the interest to do this as quick as possible, of course. But of course, dealing with the regulatory section as well. So I'd just like to complement that part of this investment, they have revenue previously agreed that they have defined by the tariff situation and so we have a base of assets together with the operation, specifically in our engineering with the Vice President, Varejão and Italo with the financial area, so that everything happens in the most efficient way possible, and then we will retain the maximum value in reinforcing and improvements. Thank you.

Thanks, Daniel.

So now we end our Q&A session, and we will give the final words to Wilson, so that he can do the closing.

So I'd like to thank for the participation to everyone here. I received here in an advice from our Board to try to make this presentation a little bit shorter. So we made an effort because there is a lot to talk about, but we – at least in this quarter, which we spoke for 52 minutes. My idea here is that we reached 35 minutes. So this is our plan so that we have one hour to speak with you. So we extend a little bit, but we had 45 minutes of debate. We have good questions. I'd like to reinforce with you that my optimism related to the company. So it takes months that I'm back and then I find a vigorous company with a Board of focus on strategy, focus on creating the instruments that are suitable for us to advance in our strategy to incentive and encourage the management of the company doing their best responsible, sociable in all ways. So we have a permanent concern from the group. I'm really happy to have here to be with 11 main executives and in the companies without the management constituted in a way that we start gaining some air to breathe in the end of June. So we can share with more detail our strategy. What are our priorities, and what we see in the short, medium and long term, the way that we see creating value to the company. And again, and looking in our report, you have this clarity, concern that the company has to do this in a sustainable manner, respecting the social and the environment all the parts of what we relate to all the stakeholders. It's very important. It's a quarter that brings some elements of what we pursued for a long…

Now the conference Eletrobras is closed. Thank you for the participation, and have a good afternoon.