Good morning, and thank you all for attending Axia's earnings conference call for the first quarter of 2026. We maintain the trajectory of consistent improvement of our results, reflecting the changes implemented by the directors after the company's privatization in 2022.

We would like to highlight the simplification of administrative and operational sides focused on governance improvement, agility, and adaptation to the new strategy; continuous reduction of expenses and costs and increase in productivity; active portfolio management focused on and customers; a reduction of relevant contingencies in different natures, highlighting the compulsory loan; expressive management and focused on the transmission assets and reinforcement and improvements of our assets; discipline in capital allocation and strong growth in the shareholder payment. I also highlight the beginning of the succession process in the company's governance with the active participation and leadership of the Board of Directors, as set forth in our bylaws.

I now turn the floor to our CFO to detail the earnings. Thank you.

Thank you, Ivan. Good morning, everyone.

Moving on to the quarter highlights on slide 7. The first is EBITDA reaching 8.6 billion BRL, up 60% year-on-year, mainly due to the generation segment, and the prices this year are higher than last year.

On the right side, along with the higher EBITDA, our investments continue to grow. We increased transmission investments in close to 50%, and global investments by 30%.

Income is basically a reflection of the operational results. We maintain an avenue of growth, winning the reserve capacity auction with 190 MW of power that was the auction, but the turbine itself that will be added is larger, it's almost 250 MW of power at the plant.

In terms of operational efficiency, our PMSO continues to go down by 3%, and we are constantly improving our operations. As for governance, the board has approved, along with the shareholders, the migration to B3's Novo Mercado, the highest level of governance at B3.

At the same time, the board also approved the delisting of the level 2 ADR at the New York Stock Exchange. Finally, at the board meeting that assessed the results of the first quarter, as already expected in our capital allocation methodology, there was an approval of an allocation of capital of 4 billion BRL, reinforcing our commitment to financial discipline for shareholder value creation and investment capacity.

It is important to note that every quarter we will be running this methodology, and this number may change over time as we deliver more results. The following slide, number 8, brings a summary of our earnings, with regulatory revenue growing by 7% in generation, and at the lower costs that we delivered, our EBITDA grew 60% compared to the previous year, and that reflected on our IFRS net income reaching 3.7 billion.

Slide number 9, getting a little bit into the investments, as we mentioned, investments grew in transmission close to 50% this quarter compared to the previous year, and overall investments at around 36%. The chart on the left shows the investments, 691 million in the quarter, including investment in transmission, reinforcements and improvements, not only small, but also large-scale.

On the right, we highlight the investments already approved for large-scale improvements and reinforcements. When we combine all the investments in previous auctions and new lines and all the large-scale investments already approved, we reached the contracted investment of 15 billion BRL that will be, once implemented, translated into an RAP of close to 2 billion.

Slide number 10, going back to our participation in the auction, we will be adding to our system almost 250 MW of installed capacity. At the auction that we participated, we offered 190 with an annual revenue of 1.4 million per megawatt.

Slide 11, in terms of portfolio optimization, we continue to optimize it, uncrossing our stake in IE Madeira and IE Garanhuns with ISA ENERGIA, receiving close to 1.2 billion in this transaction. On the other disposal, the divestment we made of four lines that are relatively small, receiving 451 million BRL with the sale of that stake, so that maintaining our focus of optimizing our minority stakes, our capital discipline, and streamlining the corporate structure.

Now on energy trading, slide number 13 is a slide that we always show in our earnings conference calls, the position that we had in the first quarter, with our own resources of approximately 16 GW on the left, upper left corner, with purchases of 1.2 GW and sales in the regulated market with quotas of 1.2 and ACR sales to distributors of 3.7. This usually will show the breakdown of submarkets where this energy is allocated.

What's important to note here with this breakdown by submarket is that when we look at the next two slides, we see the effects, all due to hydrology that impacted price and how that influenced the trading margin this quarter. Moving on to slide 14, we have here the spot price PLD that went from 160 BRL in the first quarter of last year to 300 BRL.

Since about 60% of our available energy for trading is in the north and northeast regions, this increase significantly impacted the results, unlike last year when the price was more defined. On the right side, we show two charts showcasing the seasonality expected both for GSF purposes and how it would impact if we had that same curve in our portfolio.

As you can see in the first quarter, at the bottom, we would have 12.5 average gigawatts available to allocate in the free market, but this energy, as time goes by and GSF goes down, will reach 8 GW in the third quarter, reaching as much as 10 GW starting again at the fourth quarter. All that to say that this first quarter had the perfect combination of the price increase and the PLD price with the larger amount of energy available that's the seasonal aspect.

On slide number 15, we explained a little bit about this different behavior compared to the previous year. First, on the left, is the starting point of the reservoirs.

We ended December of the previous year at 50, actually 45% at the reservoirs, and from '24 to 2025, we had 53. What happened was that the rainy season, that in the previous year had been very good in December, January, and February, which influenced not only the trajectory of the level of the reservoir, but also the price that you see on the chart in the right side.

This year, the opposite occurred. This year, we started not only from a lower level in the reservoir levels, but the rainy season started with fewer rains, and it only gained speed more recently.

Last year, it stopped raining at around mid-February, and this year it started raining heavily by mid-February in such a way that the level of the reservoirs that on the bottom left side ended at the same level in March than the previous year, but the trajectory of how we reached that same level was quite different. That's why the price trajectory that we see on the right side, in the bars where the prices in the southeast and north-northeast submarkets were very different.

What's the price expectation? That's the table on the bottom right side for the second quarter and the second half of the year, noting that we're at the same reservoir level as the previous year and the rainy season is already finished.

When we look at the end of March 31st, the market expectation for prices in the second quarter this year, 233 BRL, in the second half 299. When we look at the actual price of the previous year of 216, 259, we see that markets are behaving appropriately due to the risk perceived in the first quarter that changed compared to what it had been projected.

Once we got to the rainy season at the same level, the numbers are very similar to what we actually had in 2025. Now getting into sustainability and governance, slide 17, we show our hard, intense work to improve the safety level at Colíder HPP.

We're very pleased with the results, especially considering the time where this work was done. We would also like to highlight the social projects that we do a lot, but we don't talk about so much, such as the Lagos do São Francisco project, when we have social returns close to 20 million BRL, working in different municipalities around the São Francisco River, strengthening and supporting family farming, livestock breeding, and environmental protection and preservation.

On slide 18, we detail a little bit of what Ivan already mentioned about the beginning of the succession process. We will be creating, starting on June 1st, a vice presidency, as you can see in the flowchart on the right, that will be led by Elio Wolff.

This vice presidency will be in place until April 30th of next year, when it will be extinguished, and then all of this structure starts to report again directly to the CEO. On June 1st, with the creation of this new vice presidency, we will extinguish or dilute the Strategy and Business Development vice presidency.

With that, we reaffirm our commitment with the long-term strategy of always acting in a detailed, focused, planned way, always thinking about the long term. On slide 19, we have the streamlining of the corporate structure, as we had mentioned, the shareholders approved the migration to Novo Mercado, the highest governance level of B3.

We expect to conclude within the next month, maybe, or within the next few weeks, concluding this migration. At the same time, the board also approved the delisting of the level 2 ADRs at the New York Stock Exchange, consolidating the liquidity in the Brazilian market, the shares in the Brazilian market.

Finally, on slide number 20, I'd like to talk a little bit more about the redemptions that may occur in the PNC shares, as we said, in this quarter. As we do every quarter, we reassessed our capital allocation methodology, where the board approved a capital allocation of 4 billion BRL, and one of the ways of allocating that capital is the return to shareholders, and one of the instruments we have available is precisely the potential redemption of PNC shares.

How will this process unfold? Noting what was approved in December was that the Board of Directors is responsible for defining the amount and the timeline of the execution.

If today, for example, the board decided to redeem today PNC shares, the price we would use would be the price of the previous day, which is the second bullet. At this time, it triggers an entire timeline to allow shareholders who do not want to redeem to ask for conversion to ordinary shares, in whole or in part, so that we can continue.

Either with the conversion or the redemption for those who want to do so. Noting that the conversion timeline, there is one part that's automatic: 4 percentage points annually from 2026 to 2030 will be converted, and any remaining balance in 2030, 2031 will be converted into ON shares, the PNCs will disappear.

This conversion timeline may be accelerated by the board, or the board has the discretion of instead of letting it be converted automatically or accelerating the conversion of PNC shares into ON shares, they may approve redemptions at any time in that mechanism that I was talking about. I think with that, we conclude the presentation and we can move on to the Q&A session.

Thank you.

Hello, do you hear me now?

Good morning. Thank you for this call.

Two questions. First, about the energy trading strategy, looking at the quarter's balance compared to the fourth quarter for '26 and '27, the range that you included of the available balance for energy sale had a slight increase, which makes us feel like you became a little bit longer.

I know it's a range, but it's more trying to understand the trend, if there's a reason for this strategy to maybe include more energy purchases, just to try and understand that a little bit better. Clearly, if you can also give us some visibility of the price trend for the short term, with the possible changes of the CVaR methodology that was in public consultation recently, if there was any change in terms of the trading perspective in the market due to that.

Those would be my two questions. Finally, I know you already talked about strategy a little bit, both Ivan and Haiama, but it would be interesting to ask, the company has delivered excellent results so far, you made a revolution and that has obviously been proving great in cash generation strategy.

It's a whole different company, clearly, but the succession seems to be natural, not a focus on strategy change. If you can talk a little bit more about the company's strategy.

Obviously, Eletrobras today is completely different from Eletrobras 2 years ago, it would be interesting to put it into context, Ivan, if you could, that here maybe if you're thinking about Eletrobras being slightly different looking forward, or not, if it's more a matter of running as the company has been doing so far. Thank you.

Thank you, Carol, thanks for your question. First, and time to turn to Rodrigo Limp, and I'll answer the second one.

Good morning, Carol, thank you for your question. Actually, yes, as you said, we provide a range, a range with limits of energy available.

One of the points we have to consider, even with a bigger position available in '26, '27 when compared to previous years, is the descotização as well that we had. In 2025, we had 40% and quota energy, and '26 20%, and in 2027 onwards, we don't have quota energy of those plants which have been privatized with the change in the descotização.

That has an influence. Since we don't provide the energy available by submarket, we always have to consider what was shown on the slide, our the diversification of our portfolio per submarket in terms of the descotização energy, a lot of it in the northeast, and we had energy in the north as well, that are markets that have lower liquidity, naturally.

The southeast market, we have higher liquidity and that's where we concentrate a lot of our sales. Although we made strong efforts to increase sales and trading in the north-northeast submarkets, the team led by Ítalo, but with that said, we are advancing with the number of clients in those regions, which are more complex regions in terms of trading.

About the future price projections and CVaR discussion, the CVaR discussion is something that we monitor very closely. It's a very relevant discussion in the context of the price formation process.

Going back, what's been enhanced in many items, and even getting to 2021 with the introduction of the PLD-horário, and 2024 the approval of the hybrid model, and the change in parameters of risk aversion starting in 2025. Annually, there have been discussions, and the CMSE has been deciding, including ONS and ANEEL, who set the parameters for the next year, for the following year.

They opened a public hearing, we contributed, we have a view that the price formation process has evolved a lot. Today, we have a price formation based on the models that certainly still need to be enhanced, but today, in our view, it's a lot closer to the actual cost of the operation, which, in practice, is not The model doesn't have to define higher or lower prices; it must reflect the cost of the operation, and we have been verifying that.

It's been discussed, for example, with a lower amount of thermal power generation that brings a reduction of rates of And we have defended the main maintenance of those parameters of 50-40, and in our perception, that's what brings greater balance in terms of cost and energy security. We naturally work with other scenarios.

When we assess price projections, we consider maintenance, that's the scenario that we stand for, that we understand to be the most suitable in terms of energy security and cost to the system, but we work with price ranges. We've been seeing in recent weeks a reduction of prices for this year that is a result of the increase in the rain forecast for the south region.

We have that outlook for the coming weeks, and that forecast actually combined with the entry of the El Niño that, although there's expected more rains in the south, there's always a forecast of higher temperatures, which actually go to the other way and bringing prices up. What's uncertain is until when El Niño will act, and how intense it's going to be.

El Niño usually has higher rains, heavier rains in the south, and lower rains in the north. If it goes on to the end of the year, beginning of next year, there may be relevant impacts in prices for the next year.

Thank you, Limp. First, Carol, I would like to thank your kind observation about the work that has been done here at Axia.

This is a joint effort of the board and the executive directors, and everyone who works here. We have the pleasure of having at Axia shareholders with long-term views, board representatives reflecting that philosophy, it could not be different.

The company that we have built for 40, 50 years. The assets continue to produce, generate, transmit, and trade energy.

We are very happy. There will be no change to the strategy defined by the Board of Directors and the executive directors.

We always have the perspective, Carol, of having a company that looks at decades. We are very satisfied that the board positioned in favor of a peaceful, mature process with a timeline that allows us to make this transition very smoothly.

That's the objective. All the decisions are a result of all the support we receive from the Board of Directors.

I'd like to thank you for your remarks that have been shared by the board and the directors and all of Axia employees.

Excellent.

Thank you, Carol.

Good morning, all. Thank you for taking my questions.

I'd like to hear about Axia's perception of two things. First, how does the company see the move of some associations demanding regulatory changes in the market dynamics for energy trading, the replacement of liquidity, and how Axia understands that, if there's any legal support that could be explored by those associations that could force a change in the market dynamic.

The second point is precisely addressing the integration of thermal plants in the reserve capacity auction in the reviews that we've seen the second quarter, how Axia sees the modulation scenario in this horizon and the integration of those thermal plants. Thank you.

Thank you, Fillipe. I'll turn the floor to Rodrigo Limp.

Thank you, Fillipe. We've been monitoring the discussion about the liquidity and the market, but we have a very clear view or position.

Going back to the previous answer about the enhancement of models and the price reflecting the cost of the operation, we see some questions about the volatility of prices. There was a point in March where we had the minimum price during the day and the maximum price at the end of the day, and there's some criticism to that point.

When we look at our power generation throughout the day, a result of the change in matrix, our perception is that the model is responding well. We have a lot of supply throughout the day, basically solar power, we have more than 50 GW of installed capacity, and there's the focus of generation during the day due to a surplus of solar and wind generation.

At the end of the day, it's the opposite. We need to trigger thermal plants and hydro plants being called to supply, and sometimes exceeding 40 GW.

That's natural to see this volatility of prices. That's not an exclusive factor of Brazil.

More mature markets have even higher volatility. This perception is a reflection of the matrix.

That, bringing the aspect of liquidity that's also in the discussion of price formation and the increase in volatility, in practice, there's the risk of counterparties that the agents today are more risk-averse, considering what's been happening with a lot of traders not being able to live up to their commitments, a lot getting into in-court reorganization processes, that brings higher risk aversion to the agents. Here, we've been increasing our criterion to evaluate the economic-financial capacity of people or companies we trade with, especially looking at longer horizons.

We understand very clearly that we don't see, in fact, a crisis of liquidity, structural. Maybe conjunctural because of the risk of counterparties, but nothing structural in the sector.

The indicators that CCEE itself releases in energy volatility, we don't see any elements that confirm that perception of lower liquidity in terms of structure and the market. Going back to the arguments, we don't see any technical support or even legal basis to promote any regulatory change in that sense.

Even the price formation process is completely detached from the agents' commercial position. If the agent's long or short, it does not influence the price formation process, since our price is formed by models, and that's a variable that is not considered.

The fact that the sector being more or less liquid does not influence at all the price formation process. We don't see technical basis or legal basis for these claims to proceed.

About the LRCAP, the reserve capacity auction, we are waiting for the approval, and once it is registered, the thermal plants will actually enter the deck, and that brings some effects. The model starts to see those thermal plants, even the recent ones that were not contracted, in the new horizon up to 2030.

In 2030, 2031, it doesn't get into the deck this year. That brings more safety to the model, when it sees a higher availability or a higher generation capacity, which naturally reduces the deficit risk in the future horizon, reducing the future cost function.

The modulation will have an effect, considering that thermal plants, a lot of them have been raised. When they're called to dispatch, there may be a trend to affect the modulation.

Thank you.

I thank you all for attending. Any additional questions may be submitted to the investor relations department.

Thank you very much.