Good evening. Welcome to this conference about the asset exchange between Neoenergia and Eletrobras. This is December 16, 2022. This presentation will be held by Messrs. Eduardo Capelastegui, CEO at Neoenergia, Mr. Leonardo Gadelha, CFO at Neoenergia, Mr. Carlos Henrique Choquetta, Executive Director of Development, and Mr. Renato Rocha, CIRO. This audio conference is being transmitted simultaneously online via webcast. It can be accessed online through ri.neoenergia.com, where we also have available the presentation, the slides for this presentation. Right now, all participants are connected in listen-only mode. Soon we will have a Q&A session. At this point, we will give you further instructions. This broadcast will be held in Portuguese. There is simultaneous interpretation into English. Should you need any assistance during this call, you can press star zero to reach the operator. As a reminder, any statements that might be made during this call connected to business perspectives at Neoenergia, forecasts, operational targets and financial targets are based on beliefs and assumptions of the company's management as well as on information currently available to the company. Future considerations are not a guarantee of performance as they involve risks, uncertainties and assumptions as they refer to future events, and therefore, they depend on circumstances that may or may not occur. Investors should understand that general conditions, industry conditions, and other operational factors may have an impact in the company's future results and may lead to results that differ materially from those expressed in these forward-looking statements. I will now give the floor to Mr. Eduardo Capelastegui. Mr. Eduardo Capelastegui, you may begin. Thank you very much, operator. Good evening, everyone. First of all, I would like to thank you all for joining at this time of the evening. We are aware that it's a little bit late, in this Friday, but we wanted to have this call on Friday. We registered the relevant factor at the CVM, and we wanted to talk about this operation, how it's structured, what is the economic situation, so that you can come to your own conclusions. As the operator said, I have here with me Mr. Leonardo Gadelha, our CFO, Mr. Carlos Choquetta, Development Director, and Renato Rocha, who is our CIRO. I'm gonna do a brief presentation, and then we will have time for a Q&A session. As you know, in recent months, we had several meetings and the Neoenergia group is working in four major operations. Four major operations. These operations have the goal of optimizing our portfolio and strengthening our balance sheet and balancing our assets as well. These four operations, the first one is connected with hydro assets, where Neoenergia does not have shareholder control. We have shares but not control. The second line is connected with thermal electrical assets. The third one is connected to transmission assets. We have brought a financial partner who is supporting us in this line. The fourth one is connected to Belo Monte, to this asset. In this move we have been doing, I'm very happy to announce this evening the result of the first out of these four operations. I wanted to present to you this asset exchange operation with Eletrobras. Eletrobras is a company that has partnered with Neoenergia for many years. We've built many hydro stations together. This shows this partnership and this collaboration. As you will understand. In our opinion, this is a win-win situation, both for Neoenergia and Eletrobras. This transaction I'm about to show you is quite sophisticated for the Brazilian industry. It will raise value or create value for Neoenergia. Once again, it will have mutual benefit for both parties involved. Neoenergia will receive 49% from Eletrobras of its participation or its share in Dardanelos. We will reach 100% of ownership of the assets. We will control and then consolidate the Dardanelos project. Besides this asset, Neoenergia will also receive 0.04% that Eletrobras currently has in Neoenergia Coelba, Neoenergia Cosern, and at Afluente T. In turn, Eletrobras will receive 51% of share from Neoenergia in the Teles Pires and Baguari projects, controlling and consolidating both assets on their side. There will be no need for additional payment. This exchange of assets already takes into account a balanced participation in these transactions or in these operations. We will give you more details about the rationale behind this transaction, which once again is aligned to our strategy. First, I wanted to highlight that Neoenergia currently has no control of hydro assets because we have minority stake. After this operation, we will have 100% of ownership of Dardanelos, so we will consolidate this asset. For us, Dardanelos is really important. This is a premium asset, as you all know, in operational terms and also in terms of financial performance. It has a very low leveraging level, almost zero actually, and with a contingency level that is also very low. From a financial perspective, this operation has a balance of values between Neoenergia and Eletrobras. It's a multiple of 7.8x for EV/EBITDA, 8.8 for Baguari, and 10.3 for Teles Pires. That's the ratio for the three of them. As you will see, this will lead to a positive impact for Neoenergia in terms of EBITDA, net income, net debt, from year one, actually, after closing of this transaction. Well, having 100% of Dardanelos opens many avenues for value generation. This leads to an immediate increase in dividends and the flow of dividends, and we will capture on many synergies in terms of contracts, structuring costs, using our own capital. We have identified many improvements. From an ESG perspective, we also foresee several positive impacts. This will allow us to simplify the corporate structure and a reduction of contingencies exposures. I would also like to mention that Dardanelos is currently the plant with the best use of area in Brazil. This is a very interesting transaction. Moving on to slide number four. This is a graphic representation of the pre- and post-transaction corporate structure. As you know, in Teles Pires, we currently have three shareholders. Neoenergia has 51%. Post-transaction, Teles Pires will become a company controlled by the Eletrobras groups through Eletronorte, Furnas, and Eletrosul. With Dardanelos, it's the opposite. Now, Neoenergia will have 100% of ownership. With Baguari, Neoenergia or Baguari I will become 100% to Eletrobras. At Afluente T, Neoenergia will increase its share and reach 98.98% with Coelba, 93.09 with Cosern, and 90.17 with Afluente T. Slide five. Here you see a little bit of these three assets. Here you see many operational and financial information about these projects. One of the relevant points of this operation is that it was executed in record time, 1.5 month. We know these assets very well, and we could conduct this transaction quite swiftly. From an operational perspective, as you see, Dardanelos has high hydro use. It has a concession until 2048, and 100% of the energy sold in the regulated market at a price of BRL 255 megawatt hour. In recent years, as you see, the EBITDA for 2021 was of BRL 281 million with a net income of BRL 188 million. Dividends, BRL 88 million. Net debt is almost nonexistent. As for Teles Pires, this is the largest plant out of the three ones you see here. 65% of the energy sold in the regular market. The price is BRL 109. As for EBITDA, since debt is high. It has great results for EBITDA, but for net income, the debt, it ends up having an impact in net debt or in net income. In 2021, they had a positive result due to a rearrangement, you might remember. If we hadn't had this extraordinary event, we would have negative net income. Baguari, on the other hand, is quite close to Dardanellos. It's a smaller plant with considerable results. Positive EBITDA and net income and net debt quite very much under control. In slide six, you see a summary of the value of the generation assets. It is important to mention that the multiples are very much aligned. Just Teles Pires is a little bit above. For the valuation of participation in these distributors, we use a valuation from a recent transaction we've conducted. We've acquired percentages, as you remember. We look at what has been paid throughout the period. That's 1.3 x. It's quite competitive. That's the ratio EV/RAV. In slide seven, we see financial impacts. As I mentioned, for Neoenergia, since closing, from the moment of closing, we expect an increase in EBITDA of about BRL 130 million a year. This is basically connected to Dardanelos and to the deconsolidation of Baguari and Teles Pires. In year one, 2023, when we close, there will be an extraordinary impact of about BRL 460 million. That's positive. With a market, a markup that we will have in Dardanelos. It's an extraordinary non-cash event, and we will have a positive recurring impact of BRL 130 million a year for EBITDA. For net income, average impact will be of about BRL 30 million positive a year. In year one, we will integrate this to the company. As for net debt, that's about BRL 100 million a year. That's the cash expansion. For covenants, an average leverage reduction of about 0.05 or 0.1. In Neoenergia, we are around 3.1. We would be about 2.9 or 2.85. This is clearly a valuable operation for us with a positive impact in our balance, in our results, and in our financial position as a group. As my final remarks, I would like to mention the most important points in this transaction. The first is to highlight that this is the first operations out of the four we are working on. The other three are moving very well. When we look at 2023, we have preserved. We are very much optimistic. We expect in Q1 to have another call like this one to keep on delivering the results of these operations. Dardanelos, I highlight once again, is an excellent asset with great operational and financial performance and with a lot of cash predictability because it's regulated, fees are regulated, and quite high. It generates value for our shareholders and reinforces our good capital allocation. It also optimizes our portfolio. We are rotating from less strategic into more strategic assets where we have control. This move also reinforces Neoenergia's soundness in ESG aspects. We move from assets that had a higher volume of contingencies. We're moving away from them. This transaction also simplifies our corporate structure. It allows us to reach better results, and we will, it will bring benefits for our balance and for all companies involved. We can now move to the Q&A session. Once again, I want to say that this is a win-win operation between Neoenergia and Eletrobras. It's a complex operation that was conducted in record time, and I am sure that this will add a lot of value for both parties involved. As for Neoenergia specifically, we will have even more credibility to a plan we've mentioned before, and little by little, we are delivering on the results. That's how I finalize my presentation. Operator, we can begin the Q&A session, please. Ladies and gentlemen, we will now begin our Q&A session. If you want to ask a question, please press star one. If you want to remove your question from the line, please press star two. Our first question comes from Henrique Peretti from JP Morgan. Hello and good evening. Thank you very much for holding this call. I have many questions actually, but I will start with the most important ones. First, what explains the difference in multiples in the assets? We have a higher multiple when compared to Dardanelos. Is this leveraging? In Teles Pires, we also see that the book value is about BRL 2 billion, and valuation went to 100%. Teles Pires is below. Will that lead to a loss or a gain in P&L terms? That's my first question. Would you like to ask all your questions as one or at once? Okay. My other question is about contingencies. You mentioned that you are reducing the exposure to contingencies. I imagine that this is for Teles Pires as well. What are the contingencies that we currently have in Teles Pires, and why do you believe it is important to mitigate this risk? Thank you, Henrique, for your questions. Well, first question first. You asked about the difference in multiples in these three operations. Most of all, you mentioned Teles Pires, which has a multiple that's a little bit higher than others. Teles Pires is a large asset with a sales price that is considerably low. The EBITDA of BRL 300 million for an asset that has 539 of energy. This is based on future forecasts for energy prices. 65% is sold in the regulated market, and the remaining 35% is sold through a different structure. The question here is the debt in Teles Pires. BRL 2.6 million in debt. That's distributed BRL 500 million, it's in the holding, the umbrella holding, which is also being transferred to Eletrobras right now. Once again, that's BRL 2.6 million in debt. Considering the enterprise value, we reach this equity value. In terms of losses in 2022, well, what we're gonna do now is we will compensate this with Baguari. In Baguari, we're gonna have more value. It's gonna be above book value. This will lead an accounting loss of BRL 150 million for Neoenergia. Why? Because from an accounting perspective, we have to record this year the results of the assets we sell, and only at closing time next year, we can record or file the surplus for Dardanelos. We have BRL 460 million. It's BRL 150 million negative and BRL 460 million positive in 2023. At a global level, the accounting impact is positive. We lose a bit in Teles Pires. We win with Baguari. When you look from a global perspective, the accounting impact is quite positive. BRL 300 million, more or less. That's the accounting impact compared to the book value of these three projects. From a contingency perspective, what we have mapped is a contingency volume for Teles Pires of about BRL 400 million. About BRL 170 million are likely that will be discounted from price, and the rest are possible contingencies that are also taken into account. In these amounts, we have different types of contingencies. Machinery, these are things that both Neoenergia and Eletrobras acknowledge, and they were encompassed in the valuation process. The values take that into account. Thank you. I have another question, actually. If you have an update on Belo Monte. Is this a possibility of maybe consolidating Belo Monte as well? Is this a negotiation? Is this on the table right now? Why aren't you doing this at this time? I imagine this is a more complex negotiation. Could this happen maybe next year? With Belo Monte, are you intending on selling everything? Thank you. Thank you, Henrique. Well, Belo Monte, you might remember in 2021, we marked this asset. It was a non-binding proposal, which we still have. Our balance already reflects the market value. This operation is still active. Our forecast is that out of the four lines I mentioned, in our opinion, this will be the last one to happen because there are some variables connected to Norte Energia. This is still to be defined. We are selling this stake. It doesn't make sense for us to have 10%. This has been said already, and we are depending on the hydrogram. When it's clearer, we will be able to have a more concrete proposal. We are still on the selling side. Well, you ask about the timing. I don't think this is for 2023. I would look at 2024. The other two operations I mentioned will probably happen in 2023, but Belo Monte, 2024. I can be very transparent about this. Thank you very much. Thank you. Next question comes from Renato Pinto from Scotiabank. Good evening. I would like to know if Dardanelos has a GSF insurance. As for the other shareholder sales, do you also intend to do exchanges and assets maybe for Belo Monte? If Belo Monte will be left for 2024, then as a consequence for 2023 up until June, you would have then transmission and thermoelectric assets. Is that correct? Thank you. Dardanelos has a GSF insurance as well as Baguari. I don't remember if it's 92% or 91%. Yes, it has insurance. I can give you the exact percentage later, but it is insured. As for exchanges, let me tell you that in 2023, we are working. We have been working in these other operations for months with the thermoelectric areas and transmission. This will be for 2023. Yes, Belo Monte, we are looking at a longer horizon. This is more or less the timing aligned to our conversations since the first operations. This is the first one. We still have two to go, and they are moving very well. They are on track. As for exchanges, well, for transmission and thermoelectric, there's no exchange possibility. These are not exchange type operations. These are actually sales operations on both cases, so there's no exchange. For Belo Monte, I don't know. We still have to look at it because it's a more complex asset. We will still have to see what we can do. Of course, we would like to sell our stake and that's it, but it's more complicated. For Belo Monte, we have to create a more complex structure. For thermoelectric and transmission, this is just sales. Sales, cash, no asset exchange involved. Thank you very much. Thank you. Next question comes from the webcast platform, and it comes from Mr. Andre Sampaio from Banco Santander. He asks Good evening. I would like to understand what is the planning or the plan for the other hydro assets. Does it make sense to keep a position in this industry? Thank you for your question, Andre. We've never talked about leaving hydro. This has never been our perspective because we believe it adds value. Our proposal was to rotate, reorganize, and reprice assets. Thinking of assets where we didn't have full control. We didn't have full control in Dardanelos, and we didn't have control in Teles Pires, and in Baguari we had 51%. We also don't have control over Belo Monte. Our operations for hydro assets, they focus on these points. We have amazing assets. Now we have Dardanelos. This is premium assets with good prices that generate a lot of value. I want to make it clear that we don't want to leave hydro at all. It's just about a repositioning to add value, to reorganize our corporate structure, and to have better focus on an active control so that we can generate more value. That's our strategy. If there are no further questions, Neoenergia's call is finished. We thank you all very much for your participation, and have a good evening. Thank you very much.