Liliani Yang

Liliani Yang from HSBC asked about the potential impact of current regulatory changes on the distribution business's profitability ahead of the 2028 tariff review, and also inquired about the expected timeline for expense reductions related to the company's pension plan.

Answer

CEO Reynaldo Pasanesi Filho stated that while it's too early to discuss specifics of future tariff models, Cemig's focus is on improving service quality and efficiency, which are key mantras for the company. Regarding the pension plan, he explained that negotiations with beneficiaries are ongoing to ensure the sustainability of the plans and achieve efficiencies, but it is too premature to provide a specific timeline for any resulting expense reductions.

Liliani Yang from HSBC posed two questions: first, how current regulatory changes might affect the distribution business's profitability before its next tariff review in 2028, and second, when the company expects to see expense reductions related to its pension plan fund.

Answer

CEO Reynaldo Pasanesi Filho responded that while it's too early to comment on the 2028 tariff review specifics, the company's core mantras are improving service quality and increasing efficiency, which prepares them for any regulatory changes. Regarding the pension fund, he stated that negotiations on post-employment benefits are ongoing and it is premature to provide a timeline for potential expense reductions until an agreement is reached.

Liliani Yang from HSBC asked about the potential impact of current regulatory changes on the distribution business's profitability ahead of the 2028 tariff review. She also inquired about the expected timeline for a reduction in pension plan expenses.

Answer

CEO Reynaldo Pasanesi Filho addressed both points. Regarding regulation, he stated that Cemig is focused on continuous efficiency improvements and that tariff adjustments are a normal part of the five-year cycle, noting recent tariff hikes were driven more by charges and subsidies than the distribution parcel. On the pension plan, he explained that negotiations are ongoing to ensure plan sustainability and achieve efficiencies, but it is too early to provide a specific timeline for expense reduction.

Lilian Yang from HSBC asked about the likelihood of CapEx exceeding the $18.5 billion guidance due to supplier pressure and whether Petrobras might invest in Braskem as a strategic consumer for its gas.

Answer

An executive responded that all contracts for the 2025 plan and part of 2026 have already been signed, eliminating the possibility of exceeding the established CapEx guidance. They affirmed a strong commitment to meeting the set targets without surprises. The question regarding a potential investment in Braskem was not directly addressed.