Good afternoon, everyone. Thank you for waiting. Welcome to Cemig's First Quarter 2025 Earnings Video Conference Call. Should you need simultaneous interpretation, the feature is available on this platform. Just click on the globe icon located on the bottom of the screen and choose interpretation. Then, select the language of your choice, Portuguese or English. Should you choose to follow the call in English, you may also select mute original audio to mute the Portuguese original audio on the back. This video conference is being recorded and will be available on the company's IR website, ri.cemig.com.br. Or, you'll also find the full package on our earnings call. You can also download the company's presentation via the chat icon in Portuguese or in English. During the company's presentation, all participants will have their microphones muted. After the presentation, we will start the Q&A session. [Operator Instructions] So, now we would like to turn the floor to Carolina Senna, Cemig's IR Superintendent. Carolina, the floor is yours.

Good morning, everyone. I am Carolina Senna, Cemig's Investor Relations Superintendent. We start now the first quarter 2025 earnings video conference call. And with us, we have Reynaldo Passanezi Filho, our CEO; Andrea Marques de Almeida, CFO and IR officer; Cristiana Maria Fortini Pinto e Silva, Chief Legal Officer; Marco da Camino Ancona Lopez Soligo, Chief Generation and Transmission Officer; Sergio Lopes Cabral, Chief Commercialization Officer; Marney Tadeu Antunes, Chief Distribution Officer; and Luis Claudio Correa Villani, Chief Information Officer. For the initial remarks, I would like to turn the floor to our CEO, Reynaldo Passanezi Filho.

Good morning, everyone. Welcome to our earnings call for the first quarter of 2025, another quarter where we post, as you can see here, resilience and results; sound results. Of course, we had some impacts in our trading company. Andrea will go into the details. But it is important to highlight that we had an EBITDA of BRL1.8 billion, very significant EBITDA. Also, with positive results in all of the segments, exception made to the trading company, also net profit of BRL1 billion. We are paying dividends here, interest on equity of BRL541 million. Also, a very significant event to finance our investment program are the ventures, BRL5 billion and the ventures. But what I would like to highlight here is, our mantras, our direction. For me, it is to carry out the largest investment program in the company's history. We will see our CapEx, the investment program. It is still ramping up. We have grown 6x our investments since 2018. This is really a significant figure. We went from BRL950 million of investments in 2018 to BRL5.700 billion in 2024, and we have a forecast reaching BRL6.3 billion in 2025, and this is what we are showing investments growing 18% from 2024 to 2025. As all of you know, these investments will mature in the tariff review, and then we will be able the financial results of these investments after the tariff review, which is going to happen in 2028. And it is very important to understand the characteristic of these investments. Most of them, over 75% is dedicated to network, to infrastructure. We are talking about investments in distribution, transmission, and also in gas. All of that involves network development. And this is a topic that is currently being discussed. If you follow the energy transition, you see…

Thank you very much, Reynaldo. Good morning, everyone. I'm very happy to be here with you. And of course, to talk about our issuance, which was very successful. In the first quarter, we had just those two top parts, which was issuing BRL2.5 billion Cemig D and BRL625 million and Cemig GT. At the time, of course, we compared ourselves to our peers. And in fact, we were able to have a issuance lower than our peers and very close to the sovereignty. This is a very, very relevant, a figure for us. We were happy because the demand was huge, over 2.5 times our booking. And that's why we're able to issue the lower, one -- the one on the bottom of the page. Because of the high demand, we had an opportunity of having an additional issuance of BRL1.9 billion. It's not in this quarter. We are just posting showing it here. It happened in April. And then, we were able to reduce a little bit more the rate of the issuance. It's for seven years. So, we were able to do something even better. So, the tenure helped. So, we were able to extend our debt from 4.8 to 5.5 years. And some relevant landmarks is that we were able to maintain the AAA credit rating assigned by Fitch Ratings. And this is another debenture that is considered green and sustainable, and we are very aware about that. Now moving towards the results, and Reynaldo already, touched up on that. So, we did have a drop of 9% in our EBITDA. That was because of the effect of the price difference in the submarkets and the trading company, which had an impact of around BRL133 million. In addition, we are already expecting lower margins from the trading…

Moving on, we will now start our Q&A session. [Operator Instructions] Our first question is from sell-side analyst, Victor Cunha from Itau BBA. Please, Victor, feel free to ask your question.

Good morning, everyone. Good morning, Carol, and thank you for this opportunity. Now my question is looking at the energy balance that the company posted, we see an increase in the short position, especially for the next years. Can you share with us what was the rationale behind this decision, especially doing a period of a pressure for energy prices considering also the recent adoption of the hybrid new wave and the new parameters for risk aversion? Can we consider a marginal cost of expansion that might be higher than what we have today? I just would like to have your understanding regarding this decision. What was the rationale behind it and the perspective, that we have looking ahead?

Thank you, Victor. Now, who is going to answer the question is our trading officer, Sergio Cabral. Please, Sergio?

Good morning. Good morning, everyone. Good morning, Victor, and thank you for your question. Actually, we have not increased. We still have a short exposure this year because of the deliveries that have not been, carried out. For 2026 and 2027, we will maintain a short position. We should bring it over to the future a little bit more when we analyze prices, and we are already looking at a price stabilization. And as Andrea said, the end of this submarket effect, but we do not intend to increase exposure, we are trying to work with the lowest exposure possible and also observing these changes and fluctuations in price.

Thank you, Sergio.

Victor, anything else?

No. It's very clear. Thank you.

Thank you, Sergio.

Now moving on, our next question is from sell-side analyst from Safra, Maria Carolina Carneiro.

Hello, everyone. Good morning, and thank you for the call and for this opportunity. I have two questions. The first, on the details that you mentioned and efficiency, in this quarter, we have seen, as you said, the initial impact of the health care plan migration. In fact, can you tell us what we could what we could expect for the next quarters? And Andrea, you said that you have a new window for enrollment. I would like to understand how this is going to move forward over the year. Also, my second question on the trading company, I would like to understand if in 2025, you have been able or if you're looking for a way of mitigating the impact of the submarket. We see that there is a mismatch of prices or a detachment of prices, not with the same strength of March, but still a strong. But I would like to understand if the company is trying to mitigate these impacts for the next quarters in terms of the prices for the submarket. Thank you. To ask the question about the health care plan, Andrea Almeida, our CFO. Thanks, Andrea.

Thank you very much for your question. What we can expect in the next quarter in terms of this migration, we have 700 employees migrating, so we will have an amount to be reduced because of this provision reversal. But this is not as significant as we saw we had a migration of 1,000 and we had 28 million in reversal. As a provision, as a whole of course, we are negotiating with our Unions in order to come to an agreement. And as this agreement is finalized, we might have it, but we don't have a final date for that. We don't know when it's going to happen, and not even the amount because it's still something we are working on that's not possible to define right now. Now already answering the other question on the trading, yes of course, we are looking at mitigation tools for the current year. And for the current year, of course, the instruments considering the price differences are very expensive. But if we have an opportunity to have clients buying in the regions where we have that production, we will be working on it. So, yes, we are always looking at it, but we have to come up to a price that is reasonable. We are also looking at the development of what is happening and also the possibility of having the energy agency being less conservative and to make a more feasible transference from the Northeast to the Southeast to the Southeast and so that we can reduce the difference between the submarkets. So, this is all part of a study that we are running in house about this issue. Thank you very much.

Thank you, Andrea for your answers. If there are no further questions, we will now end. Oh, there is another one. I'm sorry. Victor, sell-side analyst from Genial Investimentos. Please, you can open your microphone and ask your question.

Good morning, everyone and thank you very much for taking my question. You can ask if someone wants to ask another question also. Well, it's now being back this in discussion in the media, the decision of CEMIG regarding Propag, and it has to do with the decision of Romeu Zema, the Minas Gerais Governor. Is there anything you knew about this topic comparing to what has already been discussed? The legislative assembly Minas Gerais has anything new. It's a feeling like things come and go and we are kind of lost regarding whatever has been discussed. What can we expect from this topic now?

I turn the floor to Reynaldo, our CEO, to answer this question.

Well, Victor, I think the matter here is just the same. The government just sent a project to deal with Propag. And in this project to deal with Propag, it included some assets. Among the assets, we have CEMIG. And just like you're asking about CEMIG, COPASA is also included here. So, this is a relevant topic for Minas Gerais legislative assembly, and it has to be discussed there. So, what is new is that this topic is going to be prioritized, to be discussed at this legislative assembly.

The next question comes from the analyst [Xin Lai from Trigono] (ph). [Operator Instructions] Yes, we can hear you.

I would like to know if you will have any changes in the dividends policy of the company in regards to the payout. What are you considering for 2025?

Thank you, Xin. Who's going to answer your question? It's Andrea Almeida, our CFO.

Thank you, Xin, for your question. And actually, Xin, we do not expect any changes in our dividends policy. We'll keep on paying 50% of our profits. And as you have seen in prior years when we had non-recurring effects, we were able to pay -- even if they were not generating cash, we were able to pay dividends as well. So, it is our practice. If it happens, it's also going to happen this year. But the policy is the same, 50% of net profit. And that is in our bylaws.

Thank you, Andrea. Our next question is from sell-side analyst from HSBC, Liliana Yang. Please, Liliana, you may ask your question.

Hello, and thank you for this opportunity. I would like to hear from you about the capital structure. And this has to do with what Andrea talked about related to dividends. But how do you see this indebtedness structure and capital? Because some companies in the sector are indicating that they should be more conservative considering the price volatility in the energy market. Thank you.

Thank you. And I turn the floor to our CFO, Andrea Almeida.

Thank you very much for your question. I think Cemig was already being conservative. We had a low leverage. We know that leverage over the investment period was going to reach around 2.5 times net over EBITDA up to 2027. In 2028, we have the tariff review, or Cemig D that will bring us to another level. So, it's fine. Our leverage will come down then. So, we believe we have room to adjust that additional volatility that we see now. And with those prices, I believe that when compared to other companies, you are already in a more conservative situation. I'm sorry. Reynaldo wants to comment as well.

Our results are of great resiliency. So, we are bringing resilient results in this quarter in spite of the volatility. And I think that we also mentioned that we aim to reduce risk exposure. So, both banks are moving towards keeping the dividends distribution policy and not changing our investment plan. Either we will keep on working with our investment plan as well as our dividends distribution policy on the same terms and dates. I see the last question here, the same periods of time that the company already does. We'll keep on following that. Thank you very much.

Thank you, Reynaldo. If there are further questions, please feel free to ask them. Please write your name in our Q&A icon. Since there are no further questions, we end here our Q&A session. Thank you very much for participating in the first quarter 2025 videoconference call. There is another one, it looks like it. It looks like his was not answered, Antonio Alex. The IR Superintendent is available to answer any other questions you might have. Thank you all very much, and have a nice day. If you have additional questions, Amelia and our website is available to get your questions, and we will be answering them. Thank you all very much, and have a nice day.