Daniel Travitzky

Daniel Travitzky inquired about the expected organizational changes and initial efficiency initiatives following Equatorial's entry as a reference shareholder, and also questioned how Sabesp plans to accelerate CapEx to meet its universalization goals.

Answer

Executive Caio Marcelo explained that a key focus is a new commercial contract methodology with a discount cap to retain customers, a process targeted for completion by March of next year. CFO Catia Cristina Pereira added details on the financial strategy, noting a short-term debt swap was executed to manage uncertainty during the ownership change, with plans to renew foreign currency debt in December to maintain reduced volatility.

Daniel Travitzky asked for an update on the private negotiations with the government regarding the CDE and Angra merger, and inquired about the timeline and the company's preparation for the upcoming capacity auction.

Answer

An executive stated that negotiations with the government are private and ongoing, with a 45-day extension recently granted, precluding further comment. Elio de Meirelles Wolff, VP, confirmed Eletrobrás is actively preparing for the capacity auction, awaiting final rules from the ministry, and is excited about the first-time inclusion of hydroelectric plants.

Daniel Travitzky from Banco Safra S.A. questioned Eletrobras's expectations for upcoming transmission auctions, including assumptions on CapEx and margins, and requested an update on the Angra 3 nuclear project, particularly regarding tariffs.

Answer

Executive Elio de Meirelles Wolff stated that transmission auctions are a key part of their strategy and they are actively analyzing the upcoming September auction. Executive Camila Gualdo Araújo updated on Angra 3, noting a BNDES study is due in July, which will be followed by a tariff review by EPE. She also mentioned a working group is analyzing recommendations from the Federal Accounting Court.

Daniel Travitzky of Banco Safra inquired about COPEL's capital allocation strategy, particularly the use of funds from recent divestments and the potential for extraordinary dividends. He also asked about the evolution of costs at the distribution unit, questioning if the current level is sustainable or if further reductions are anticipated.

Answer

Executive Daniel Slaviero explained that an optimal capital structure study is underway, with conclusions expected by early 2025. He affirmed the 50% dividend policy and noted that proceeds from extraordinary events, like the Compagas sale, will be considered for additional dividends, balanced against investment needs such as the upcoming capacity auction. Regarding costs, Slaviero stated that further reductions are planned, targeting a BRL 460-480 million PMSO decrease over three years, driven by the voluntary severance program and other efficiencies. An unnamed executive added that the full impact of these cost savings will be reflected in the 2025 budget, establishing a new, lower cost base.

Daniel Travitzky from Banco Safra requested an update on negotiations concerning post-employment liabilities (pension and health care) and asked about the next steps in the company's divestment plan following the Aliança and SHP sales.

Answer

CFO Leonardo Magalhães stated that managing the BRL 6 billion in post-employment liabilities is a priority, expressing optimism for a resolution this year that is both socially responsible and reduces financial exposure. Chief Participation Officer Marco Da Camino Ancona Soligo confirmed the divestment program continues, with a focus on minority stakes like Taesa and Belo Monte, though he noted the complexity and could not detail specific negotiations.

Daniel Travitzky requested an update on negotiations concerning post-employment liabilities (pension and health plans) and asked about the next steps in the divestment plan following the Aliança and SHP sales.

Answer

CFO Leonardo Magalhães addressed the BRL 6 billion in post-employment liabilities, expressing optimism for a socially responsible solution this year. Chief Participation Officer Marco Da Camino Ancona Soligo confirmed the divestment program continues to target minority stakes like Taesa, acknowledging that some assets are more complex to sell but that discussions are actively ongoing.