Ladies and gentlemen, thank you for waiting. Welcome to Equatorial Energia's Q3 2023's earnings call. Today, we have Mr. Augusto Miranda, CEO, Mr. Leonardo Lucas, CFO, Mr. Cristiano Logrado, Director of Regulations, Mr. Tinn Freire Amado, CEO of Echoenergia, Mr. Liu Aquino, Operations Director of Echoenergia, and Ms. Tatiana Vasques, Superintendent of Investor Relations. This is being recorded. All participants will be in a listen-only mode during the company's presentation. We will then have a Q&A session. If you need assistance during the call, please press zero or star zero, rather, for an operator. This is also being broadcast via webcast at http://www.equatorialenergia.com.br/ where you can also find the presentation for download. You have control over the slide selection. This recording will be available shortly after its conclusion. Webcast participants can submit questions via the website. They'll be replied shortly after the call. Before we continue, we would like to inform that any statements made during this call regarding the company's business prospects, projections, operational and financial goals, are based on beliefs and assumptions of the company's management. Future considerations do not guarantee performance. They involve risks, uncertainties, and assumptions as they relate to future events, and therefore depend on circumstances that may or may not occur. Investors and analysts should understand that general conditions in industry and operational factors can affect future results and may lead to outcomes that substantially differ from those expressed in such forward-looking statements. I would like to turn the floor over to Mr. Augusto Miranda. You may proceed now, sir. Good morning. Thank you for attending. We'll be showing Q3 results of Equatorial Energia's Group. As far as the operational environment, Q3 was marked by strong operational and economic financial performance, despite extraordinary weather events in Rio Grande do Sul, with massive cyclones and in Goiás with intense heat waves that strained the grid. In addition to the progress of group's tariff process in the regulatory environment, we do have positive prospects regarding renewable concessions based on the technical note issued by the ministry, which outlined a positive framework for the renewal process. In the macroeconomic scenario, the start of the smaller interest rates started in July to contribute to a reduction of the cost of our debt, providing an opportunity to advance managing our liabilities at more attractive costs. Let me start with slide three. Let me start with the operational highlights. I would like to point out the growth of distributed energy. In a consolidated view, showed a 6.8% increase on an annual comparison basis. This growth is suggested, taking into account the pro forma data from Q3 of 2022 with Equatorial Goiás. From coming from a strong temperature quarter in most regions we operate, and driven by the results we have achieved in implementing our loss reduction strategy, which recorded a consolidated level of 18.6%, a 0.9 percentage point reduction on an annual basis, influenced by significant reductions in both Amapá and Rio Grande do Sul. We achieved BRL 2.5 billion of adjusted EBITDA in the quarter, a 33% higher performance than previous quarter, led by the remarkable performance of the distribution sector, in addition to consolidation of Equatorial Goiás. This view already excludes the non-cash effects of VNR, IFRS, and MTM, invested about BRL 3 billion in the quarter. The highlight is in renewables, with two solar plants that are scheduled to start operations next year. We ended the quarter with a 0.2 x reduction in the net debt-EBITDA ratio compared to the previous quarter, going 3.6 x in the covenant view. This is the third consecutive quarter of reduction since the consolidation of Equatorial Goiás, which confirms our focus on leverage management. To that extent, let me highlight the asset recycling movement announced just last week with the signing of the purchase and sale contract, 100% of Intesa Capital. One of our transmission assets. This is yet another initiative to accelerate the various, the leverage, which is expected to impact the next quarter. Finally, I would like to highlight the conclusion of the tariff reviews of the two largest distributor in the group, Equatorial Pará in August, and more recently, Equatorial Goiás, back in October. With the recognition of the base investments worth BRL 9.4 billion, this will be crucial to keep on advancing in the investments that are necessary to the quality of supply region. I'll turn over to Leo on slide five. We'll start with our consolidated view of the economic and financial performance of the group. Over to you, Leo. Thank you, Augusto. Good morning, everyone. I'll briefly talk about the group's economic and financial performance. This is the consolidated view. These numbers are adjusted by non-recurring and non-cash effects, such as VNR and distributors and IFRS in transmission and MTM in marketing. Our consolidated group margin grew by 39.9% compared to Q3 of last year. This growth is primarily linked to the strong performance of the distribution sector, driven by the growth in the tariff market mix, alongside with loss reduction, on top of the consolidation effect of Equatorial Goiás, which added BRL 662 million to the margin in the quarter. Within the same concept, the adjusted OpEx in the distribution sector, excluding Goiás, grew by 5.0%, in line with inflation rates, consolidated grew by 11% when we quarterly compare it, primarily due to the Equatorial services growth with the inclusion of Equatorial Goiás. The reported EBITDA for the quarter reached BRL 2.8 billion, 69% higher year-on-year. Adjusting for non-recurring, non-cash effects, EBITDA reached BRL 2.5 billion, 33%, 33% higher than Q3 2022. The group is mostly driven by distribution assets, which in the next Goiás view, grew by 16% when compared to the same period of last year, thus reflecting a strong market increase and the evolution in loss reduction strategies. Moving on to slide six now. These are investments and debt information. We had a significant volume of investments in the quarter, totaling BRL 3 billion. This amount is driven by the peak of CapEx, the execution of Echoenergia pipeline, which in the quarter reached about BRL 1.1 billion in the development of two solar parks in both Bahia and Piauí. As far as distribution is concerned, excluding Goiás, the 13% reduction demonstrate the appropriateness of investments considering the current stage of tariff review processes. Furthermore, regarding the renewable segment, it's worth mentioning that back in October, we completed the financial agreement for the Ribeirão Gonçalves Solar Park up to BRL 1 million. There's a 24 years with 15 months of interest in principal grace period at a cost of IPCA plus 5.34% per annum. On the right, you can see the company's debt profile. We ended the quarter with a consolidated net debt of BRL 37 billion. Despite the significant investments, the substantial EBITDA growth has contributed to leverage reduction. We are at 3.6 x, a 0.2x reduction when compared to the previous quarter. This is the third consecutive quarter of reductions since the consolidation of Equatorial Goiás. Once again, restating our strong deleveraging capacity in addition to our robust cash position of approximately BRL 10 billion. Moving on to slide eight, on to distribution now. We now show an overview of operational and commercial performances of our distributors. For comparison purposes, operational data are presented with the Q3 2022 version, adjusted with Equatorial Goiás data. I would like to draw your attention on this slide to the strong market performance, a distributed energy growth of 6.8%, driven by high temperatures during the period and advancements in loss reduction. We closed the quarter with a consolidated loss level of 18.6%, only 0.2 percentage points from the consolidated regulatory limit. When compared to the same period of last year, we recorded significant reductions in Amapá, 6.9 percentage points, and Rio Grande do Sul, minus 3.6 percentage points. However, I would like to point out Equatorial Pará. For the first time, it's now operating within the regulatory tariff coverage for loss levels. As to the commercial performance now, we keep on delivering good performance in both PECLD and revenue collection. In terms of quality, I would like to highlight the significant reduction in Maranhão, 12.9 hours when compared to the previous year, on top of Alagoas, with a 6.1-hour reduction when compared to Q3 of last year. In the adjusted OpEx, a 5.6% growth in the next Goiás view. Once again, that points out our ability to manage and control costs within Equatorial. When we compare adjusted EBITDA, we show a strong growth of 25%, influenced by improved growth margins, driven by market growth, loss reductions on top of cost discipline. On to slide nine now. Here we show our recent tariff processes very quickly. In the quarter, we had a tariff revision for Equatorial Pará in August, and more recently, we had the approval of the revision of the new cycle for Equatorial Goiás, now back in October. I would like to draw your attention to two important points: losses in Pará and the approved asset base in Goiás. As a result of efforts to kind of fight losses in recent years to the outcome of tariff review, real losses in Pará reached the regulatory level. Despite the trajectory of regulatory losses, we see significant potential to, for value generation throughout the tariff cycle that is beginning. In Goiás, the confirmation of the net asset base, RAB, of BRL 9.4 billion, surpassing market expectations, is a primary trigger because we are properly positioned so that we can be more adherent to the required investment volume for this important concession. The following quarters will still be marked by tariff reviews for group assets. In Q4 of 2023, we'll have the reviews of both Piauí and Amapá, and Q2 2024 for Alagoas. Moving on to the next slide, please. Slide 11. We quickly demonstrate the transmission performance. In the quarter, the regulatory EBITDA for this segment had a 0.6 variation, reaching BRL 307 million, compared to BRL 305 million in Q3 of last year, with the impact of scheduled 50% reduction in the RAP original of Intesa, and offset by the adjustment of our RAPs, RAPs for both 2023 and 2024. As you can see, transmission operation recorded consolidated EBITDA margin of 91.1%. On top of that, we have recently announced, actually just last week, the divestment of Intesa, which will help us in the company's de-leveraging process. The operation is up to BRL 714 million, made up of an equity value of up to BRL 396 million as of December 31st, 2023. The rest corresponded to the asset net debt as of June 30th. We expect to finalize the operation later this year, but I would like to point out that this move does not represent the group's exit from the transmission segment. Slide 13. Let us now look at our renewable's energy operation, Echoenergia. This quarter records the impact of restrictions of the national system operator, which implemented operational changes the way we operate after the event that occurred on August 15, resulting in the partial shutdown of the National Interconnected System. These restrictions, known as Constrained Off, significantly impacted generation during the period. As a result, the volume of energy decreased by 17% in the quarter when compared to last year. Additionally, to that effect, the maintenance of two wind turbines in the Echo 2 Park contributed to the reduction affecting technical availability. Excluding the impact of Echo 2, the adjusted technical availability of the portfolio reached 97% for the period. In the quarter, EBITDA showed a decrease of 10.9%, reaching BRL 200 million for the period, affected by the above-mentioned events. Moving on to the next slide. On slide four, I'd like to give you more details about our solar project pipeline development. As you can see, we have moved along the development of Ribeirão Gonçalves and Barreiras I Park. So, in Piauí and Bahia, respectively, they're expected to start operations in 2024. We keep on advancing according to the construction schedule. For this development, the total CapEx for the quarter was BRL 1.1 billion, and accrued investment of BRL 2 billion. I highlight the contract signed in October for a line of BRL 200 million for the Ribeirão Gonçalves Solar Park with very attractive conditions. With this line, the company should not draw on sub-credit or B with the Brazilian National Development Bank. Finally, I would like to draw your attention to the progress of marketing of energy from these projects. 900 customers in the quarter, a 45% growth when compared to Q2. Continuing through the end of October, we have already reached the milestone of 1,000 customers. Another way to illustrate this progress is to show the positive results from market energy contracts to market, which had a net impact of our results of BRL 24 million. This result was driven by sales to end or final customer, book value, following the market-to-market methodology of our sold operations. On to slide 16 now. In CSA, we have concluded one year of operations in July, and for the first time, we can make an annual comparison. We conclude Q3 with about 83,000 billed water supply connections, improvements in the water coverage rates from 35% to 42%, and losses from 70% to 59%. I think it's worth noting that this asset, it's a long-term investment with a longer average duration, so we still have a long way to go in this project, which resembles a greenfield project, as shown by universalization timeline. The lessons learned in CSA will be extremely important to evaluate new investment opportunities that are expected to come to market next year. This is a significant revenue growth for the group. I'll turn the floor over to Augusto for his closing remarks. Thank you, Leo. I would like to conclude by summarizing the key messages of our call and once again, reiterating our recent achievements. Overall, the main highlight is the strong performance with a significant increase in gross margin, which grew by 41% compared to the previous year. This was made possible by the performance of the distribution segment, including the consolidation of Equatorial Goiás, combined with efficient management of operating expenses, as we saw in the expense growth in line with inflation, leading to a 33% growth in adjusted EBITDA. We continue to make progress in the construction of solar project, adding approximately 600 MW of installed capacity, and in October, we completed the financing agreement with BNB. I would also like to point out the tariff review processes we have undergone, especially in Equatorial Goiás back in October. The recognition of BRL 9.4 billion in net asset base is key to enable the necessary investments in the concession. As to the outlook for the year, we continue to focus on improving the quality and reducing losses in our distribution company, with special attention to the turnaround in Goiás. As far as capital structure is concerned, we see organic deleverage through tariff review processes and progress in turnaround processes, which will allow us to be more competitive in evaluating potential future capital allocation and opportunities to create value. I'll hand over the floor to the operator so that we can start our Q&A session. Ladies and gentlemen, we'll now have our Q&A session. Please press star one to ask a question. If your question is answered, please press star two to remove that question from the queue. Questions will be answered as they are received. Please remove the headset so that you don't use the speakerphone. Thank you. Please hold while we collect the first questions. All right, first question comes from Guilherme Lima, from Santander. You may proceed now, sir. Good morning. We have seen pressure in the legislative for tariff reduction. Can you elaborate on your strategy about these actions to reduce that pressure from tariffs? I'm going to talk about the Bill of Law 288 that has been approved in the state of Minas Gerais, allowing the use of NGR resources to offset expenses by 2025. Could you elaborate on your take on this new approval? Thank you, Guilherme, for the question. I'll turn over to Cristiano to answer part of that question. We have been working with other companies and other CEOs and even with the Congress. It has to do with the regulation, so I'll turn over to Cristiano. Good morning. Let me address the issue to mitigate tariff pressures. These issues have been discussed in several forums. ...Most often they deal with subsidies of resources allocation, especially in installment A adjustments. We keep on monitoring them to make sure that whenever they're approved, they are balanced, so that they don't generate any distortions that may put even more pressure in these issues that we know are present in the industry. As to the recent bill of law that has been approved, I've been keeping track of those discussions, but there are still many details pending, so we still have to wait to see how these negotiations evolve. That was very clear. Thank you. Daniel Travitzky from Banco Safra asks the next question. Hello, thank you for taking my question. Let me piggyback on the previous question, actually. The concessions renewal process. We would like to get some updates, if you may. We don't have a decree that has been defining renewals. This is a topic that has been discussed quite extensively in recent months. So what's your take? What's your expectation of those negotiations? If you please, could you provide us with more color as to the operational problems, such as the ones we've seen in São Paulo, the relationship between ENEL and the government? How can that impact the renewal of the concession? I've heard news about it, so I would like to hear your take on this type of event. Thank you, Daniel, for your question. This is something that has been on our radar for quite some time, but even the ministry, they clarified a couple of questions, so we remain positive about it. We have been closely monitoring it. There are these two, the accounts revenue had sent that to both the regulatory agencies and the ministry. Every now and then, there are a couple of questions, and we clarify them on an as-needed basis. But the minister has been very clear about it. The process is very normal, the way they see it. That's our take from our conversations with the ministry. That's the way we see it. The topic is a hot topic, and we know, and the problems we've seen in São Paulo will generate discussions. But there's a very political bias. People that are more privatization-prone, others are quite the opposite. Whenever there's an adverse event, that topic is discussed once again. But privatization has been positive, that's undeniable. There are problems here and there, of course, if it's a state-owned company, population is more patient, quote, unquote. So when it's privatized, they are more demanding, but it's only natural that this discussion will occur. But the benefits of privatization take energy, water treatment. Of course, the facts are very evident here. Cristiano, Leo, Tati, if you want to contribute, if you want to jump in, feel free to do so. Let me comment on the problems in São Paulo. The discussion is heated, of course, based on the perception, not only for what happened to ENEL, São Paulo, but other companies in the region. Both Enel and Sabesp will be more objectively assessing the situation before they come up with a conclusion. Of course, you're not going to take this occasional problem to determine a concession renewal that is for 30 years. Let me just say that what we've done so far, we already had a renewal session. Every new interaction, the topic becomes more and more mature, more consolidated. It hasn't been finalized, yes, but as it matures, it is evolved. There's room for adjustments, but they are going to be diminishing as time goes by. Thank you. Luiza Candiota from Itaú BBA asks the next question. Good morning. My question is more specific to OpEx. We had a relevant growth, especially in distribution, but that is driven by the construction effort in Maranhão. We've seen reductions. You have been focusing on improving quality. I would like to better understand your take on costs looking forward. Do you believe that these numbers can get back to normal values? Hi, Luiza. Thank you for your question. We have been focusing on cost, and we look at it on a daily basis. This is embedded across the board in the company. We had that event back in Maranhão during the pandemic. We had problems with some service providers, some filed for Chapter 11. That impacted some services. But let me point out, Luiza, we have worked hard, and there was some pent-up demand for some of those services, but we have been reducing that by 12.9 hours. This is a record. Some services had some pent-up demand, of course, but when you look at the track record of Equatorial, numbers on a consolidated basis are below inflation. Léo can give you further details about... Yes, that's right. That's a very good question. The quality reduction in Maranhão is substantial. It has to do with that plan, a plan that has been thought out very carefully, and there's some ramp-up going on for that more robust growth to take place. But this is going to happen in the time of the fashion. When you improve quality, resources are being properly allocated, so results are showing. And as the plan evolves, we'll be able to see smaller growth rates. There will be CapEx impact to fight that quality issue, especially as frequency is concerned. We're now close to a term review, which is in two years. We'll keep on investing more CapEx there. And after a year, during the budget discussion, we're always challenging those numbers so that we have everything in place. And this point in time, that reinforcement in cost will - is affecting our positive, our otherwise very positive results. Let me remind you that please press star one to ask a question. Please hold. Please press star one to ask a question. If your question has been answered, please press star two to remove your question from the queue. Please hold. Please hold. We have a question from the webcast. Good morning, this is Luciano Costa from TC Investments. Can you explain the opportunities of water treatment for 2024? Are you looking at specific assets, even if you can't announce what they are? Are you considering any opportunities in this industry? Thank you, Luciano, for your question. We have been looking at water treatment with the CSA in Amapá as a testing ground, and we've been looking at opportunities. We've seen the new legal framework. I'll turn over to Leo to talk about these new business opportunities. Leo? Thank you, Augusto. Well, we have learned our lessons in this industry, so the opportunities are huge. The investments gap to make that service universal is huge. We need private capital. We were discussing past potential changes, but for next year, we see a very busy pipeline. So we are present in this industry, of course. We are considering business opportunities, and we are considering opportunities to participate in that segment. Maybe individual or separate deals or auctions. We've seen something happening in Sergipe, Paraíba, Rondônia, something in Piauí, Pará, maybe further down the road in Minas, Espírito Santo. We are considering some possibilities. So this pipeline is again on the move, which is very interesting, and we would like to position ourselves in that segment, aiming at an expansion in this industry, always maintaining our capital allocation discipline to generate value, but it's a very attractive pipeline, undoubtedly. Well, since there are no further questions, I'll turn the floor over to Mr. Augusto Miranda for his closing remarks. Mr. Miranda, you may proceed. Thank you. I would like to once again emphasize our commitment to the continuous value generation agenda, that we look for our investors by delivering consistent results in the various segments in which we operate, always maintaining financial discipline. Our IR team is available to answer any questions you may have. Once again, thank you for taking part in our earnings call. Have a great afternoon. Thank you.