Good afternoon, everyone. I am Carolina Sena, CEMIG's IR Superintendent.

Welcome to CEMIG's third quarter 2025 earnings video conference call. This video conference is being recorded, and it will be available on the company's IR website at ri.cemig.com.br, where you also find the full package on our earnings call.

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After that, we will start the Q&A session. We will now start CEMIG's video conference call with: Reynaldo Passanezi Filho, CEO; Andrea Marques de Almeida, CFO and IR Officer; Luís Cláudio Corrêa Villani, Chief Information Officer; Sergio Lopes Cabral, Chief Commercialization Officer; Sergio Pessoa de Paula Castro, Chief Legal Officer; Carlos Ivan Camargo de Colon, Gasmig's CEO; Yuri Araújo de Mendonça, CEMIG SIM's CEO.

For the initial remarks, I turn the floor over to our CEO, Reynaldo Passanezi Filho. Good afternoon, everyone.

Hello. Welcome to our earnings call for the third quarter.

It's always an opportunity and a pleasure to be able to bring to you our results and our efforts in another quarter. This is a quarter in which we have more difficult news.

Of course, I would like to highlight some important topics that show the strength and the recurrence of CEMIG's earnings. About specific news on the quarter, we had on distribution results that were affected by large clients that left the network, they migrated to the basic network.

About trading, we tried to decrease some positions, also that involves the submarket prices that have affected the results. It's important and you know that when we look our net position, it is very favorable in a scenario that we have for pricing today.

The same thing happened with generation because of the difference in the GSF and the need to offset that with the spot price. This is what I would like to highlight, and despite of these topics, we move on with a recurring EBITDA proving the company's resilience.

We have confirmed the AAA rating by Moody's. We have two agencies now guaranteeing us a AAA rating showing our resilience capacity to any type of scenario.

We also had an award by a magazine called Veja Negócios as the best energy company in Brazil in the top 30 award. We also had the approval of our healthcare plan for retired employees.

We finalized a collective agreement with the union, and that allows us to look for a positive structural solution that will preserve a positive transition to all of us. Therefore, they can keep their healthcare plan and also we will be able to guarantee the company's sustainability.

The final topic, and Andrea is going to go over the details, which is our investment program. We are, once again, making the largest investment program in the company.

For this quarter, we have R$4.7 billion, significant increase when compared to last year. I believe we have a very positive message here, and we are maintaining our investment plan.

That means very positive results for the tariff review situation when that comes. Here we have R$3.6 billion in distribution by itself.

If we multiply that by the WACC, we know that the results bring additional revenue of a little over R$500 million just for that nine months. These are very cautious investments in regulated areas that when they get mature and the agency recognizes that, we are going to have very positive results for the company.

This is what allows us to have resilience today, and this is what allows us to have very positive results in the future, whether by these investments or by a very favorable position in the trading business in the near future. These are my initial remarks.

Obviously, we are here to take your questions after the company's presentation. I'll turn the floor to Andrea, but I'd like to stress the strength of this company and that we are very confident that we are going to move on with this investment plan and maintain the company's debt levels and the covenants, and therefore, to keep on investing, keep on generating value, and this is going to get more mature according to the regulations and tariff regulations as expected.

Thank you very much. Good afternoon, everyone.

It's also a pleasure to be here with all of you today, going over our third quarter earnings. Moving on, talking about our investments, as Reynaldo mentioned, we invested in the nine months of 2025 R$4.7 billion.

This is how they break down: R$3.6 billion in distribution, focus obviously in substations. This is a milestone.

We have some pictures to show you the substations that we had in the quarter, but also 5,349 kilometers of low and medium voltage networks, which are very important to bring good service to Minas Gerais. For generation, we also mentioned our participation in the GSF credit auction with R$199 million.

That's very nice. It guaranteed the extension of our concession in some of our plants.

Also we had investments of R$149 million in expansion and maintenance. For transmission, we have our Verona Project around R$30 million, and we are still investing in reinforcements and improvements, and we are going to mention some of those and how the allowed annual revenue is performing in transmission.

For Gasmig, the Centro-Oeste Project is the most representative one, around R$180 million being invested in the project. For CEMIG SIM, the delivery of 10 new photovoltaic plants and 31 megawatts of installed capacity.

Moving forward, we have the pictures of the five new substations, the ones of this quarter: Andrelândia, Coronel Xavier Chaves, João Pinheiro, São Tiago, Fronteira 2. These are our highlights of new substations for distribution.

Now turning to transmission, we see where in our operation we had improvements: Taquaril, Três Marias, São Simão, Itajubá, Volta Grande, Lafayette. We were able to add over the year R$32 million of allowed annual revenue in our transmission business, and of course, this brings great results as well.

Moving over to the figures, as Reynaldo mentioned, we have R$1.5 billion of EBITDA, and we see a drop in our EBITDA in around 16.3% when we analyze the recurring EBITDA. I will talk about the recurring numbers, and then I'll talk about the non-recurring events of last year, which were significant, we can talk about them as well.

In generation, we already mentioned, we had the effects of a lower GSF. We had to buy energy to cover for the GSF, we had an impact of R$54 million.

In the trading business, we already had a reduction in margin in the trading comparing '24 to 2025, and we ended positions. We closed positions that of course came from our exposure and other positions that were also open.

The closing of these positions and the purchasing of energy in the spot prices that we have seen ended up having this impact of R$136 million. For distribution, in '24 we had a change in the methodology, which was a reversal of our ADA, and that reverted how we provisioned our ADA.

We didn't have that in 2025. Therefore, there is a negative delta effect in distribution.

You will see that the market also has reduced it. As Reynaldo mentioned, some clients left and went to the basic network.

Therefore, this impacted distribution. Now turning to our net profit, the major investment that we are making has a greater depreciation impact and the funding, the increase of the interest rates, and of course, the increase of leverage of the debt also affects our net profit, the recurring net profit, and we realized that there was this drop of around 30.2%.

For non-recurring facts of last year, just let me remind you, they were very relevant. We had R$1.6 billion of the disposal of Aliança last year.

Of course, this is not happening this year. The tariff review for the transmission business of R$1.5 billion, and these do not show in 2025.

That's why we have also this relevant delta here. Let's move on.

Here zooming in in GSF, when we compare GSF of 2024, we see the performance of July and September and GSF for 2024 going from 0.8 up to 0.7. We did have to purchase to deal with the hydrological risk, and also the energy price that we see this year, of course higher levels than what we have seen last year.

Just September of last year we had higher prices than this year, as you can check in the charts. This is the impact.

Now operating costs and expenses, we are growing below the inflation rate, and outsourced services, which is what draws our attention, we have an increase in areas where distribution has to invest more efforts to guarantee the improvement of services, whether maintaining installations or in technology, and we still are working in the improvement with smart meters. We have to invest in that, and we have to fund technology.

We have to prune trees and also clear the pathway. That's where we have a higher increase in other expenses.

Also we had the sale of a plot. For personnel, we see a good performance here, but here we have insourcing of employees.

We are bringing in our own teams so that we can cater to our clients faster in specific regions, and we really want to be more efficient in our service in regions. We know that Minas Gerais is a large state, we want to be quicker serving further away areas.

We have an increase here in personnel in our headcount. Moving on, in line with our capital structure, we, yes, need the debt to fund our investments, but our leverage is at very safe levels.

We are at 1.76 our net debt over recurring EBITDA. That's why we have our best rating in history, as Reynaldo mentioned, two AAA's and one AA+, and we are structuring our debt in a way to increase the average tenure.

We reached 5.7 as average term. The cost performance, we see the fact of the high cost of the interest rates, which affect all of us in the market and as well as CEMIG, of course.

Now for our cash flow, this is how we have been financing our activity, our investments. We start with cash, this is for nine months, okay, we start with cash of 2024 at R$2.3 billion, and we have cash from operations of R$3.4 billion.

We have the debentures issuance in May of R$5.1 billion, the debentures payments, of course, obviously, these are prior debentures of R$2.4 billion, dividends and IOC R$1.7 billion, our activities for investments R$4.5 billion, earmarked funds here R$187 million, we have to have this amount aside, we come to our final cash of R$2.3 billion. For CEMIG D, everything is more or less explained already, but effectively we show a drop in EBITDA of 4.7%, especially because of the market reduction, whether it is by economic activity once it's not that positive, and also the temperature that was mild and the market dropped.

Once again, the client that has migrated in the second quarter to the basic network, and of course, now in the third quarter we see the full impact of this migration. In addition to that, we have the reversal of the constitution that I said of the ADA, as I mentioned before.

Of course, in the net profit for CEMIG D, we see the effect of our fundings and also the interest rates affecting that result. Talking a little bit now about the energy market, we had a drop of 4.4%, and we see the full effect in all the different markets in our distributing company coming from the rural, commercial, industrial, all the effects coming from all the markets.

In fact here we see this drop being caused by this client that has migrated for the basic network. Our operating indicators show that our collection is still very strong, focusing in the digital channels.

Pix, our instant payment method, is the cheapest, and now we are going to have the auto Pix as well, and we will be able to have campaigns so that people choose this payment mode, which helps us all and also reduces our costs. This is growing as a good option of payment.

Our DISA, the receivables collection index, is at good stable levels, and our regulatory OPEX and EBITDA show that we are within the regulatory standards. In terms of regulatory losses, we are also within the standards.

There was a change in the criteria, which already happened. We are now integrating the effects of micro and mini generation that are distributed, we are continuing to work.

We have always to keep working on losses. We have to install the armored meeting panels, we have to install the smart meters and all the actions that we have to keep on taking so that this indicator is within the regulatory limits.

For CEMIG GT, once again we talked about it. GSF was the main impact.

We had to purchase energy to tackle the hydrological risk, and the recurring net profit, here you can see the results as well. CEMIG GT was the one that had the main non-recurring facts from 2024, the major impacts are there represented last year.

Therefore, we had higher EBITDA in 2024, effects that are not replicated in 2025. Gasmig that also had an impact for EBITDA reduction because there was a drop of 6% in the market and also clients that migrated to the free market.

That's, once again, the effect on Gasmig. On this page, we have CEMIG's recognitions.

Reynaldo already mentioned that we are very proud to be recognized as the best energy company in Brazil by Veja Negócios. There are other recognitions: we are also recognized as the best financial team in the infrastructure energy sector by FILASA; we also got the transparency award from ANEFAC, we have always room to improve, but it's already great to be recognized by the 19th time by ANEFAC; and there is a new one, the ESG award, CEMIG has thousands of awards in sustainability, and we are very proud, and it's always great to have another one, ESG from ANEFAC in this category, transformative internship category.

Therefore, I end my presentation, and I turn the floor back to Carol to open the Q&A session and take your questions. We will now start our Q&A session.

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Our first question is from Vítor Sousa, Genial Investimentos. Hello?

Can you hear me? Yes, we can hear you, Vítor.

Go ahead. My question is about technical note 53 that changes how you post losses in the distribution sector.

I would like to understand if there is a possibility of republishing the level of losses that CEMIG had. Now looking backwards here, I would like to understand if this change can end up generating any accounting retroactive effect regarding the application of this technical note.

If you are concerned about receivables, provisions, and other adjustments, or is this just a prospective impact, just an accounting impact? Another question, still on this note, how would have been the level of losses for distribution if this technical note did not exist?

In the same comparison base, what would have been the performance of CEMIG losses? Would they have increased, decreased, would they have been the same?

I think this is important to understand for the process of assessing the distributing companies. Thank you.

Thank you, Vítor, for your question. Denis Mollica, our Strategy, Innovation, and Sustainability Officer.

Please, Denis. Thank you for your question, Vítor.

About the method used for calculation of losses, the method, even having it being reviewed, it's not applied to past calculations. Even if we were to simulate that in the older losses, we would still be within the limits.

For practical accounting effects, adjustments have done from now on. As it was said already, we are still within the regulatory losses both before and after this technical note.

We have major actions to manage and to fight our losses, and they are within the limits with no effects that might affect accounting at all. Of course, yes, we also have here a positive effect on the tariff once we have the recognition of the impacts of the DG in the method of calculating losses.

Thank you, Denis, for your answer. If you have any questions, please add your name to the chat so that we can call you and you can ask your question live.

Our next question is from Luisa Candiota from Banco Itaú. Please, Luisa, go ahead.

Good afternoon, everyone, and thank you very much for taking my question. It is about your trading strategy, analyzing the changes in the energy balance in this quarter compared to the prior one.

I would like to go over the details of the rationale regarding the short exposure when we look at '25, '26, and '28, what could be explaining this change that we see? Thank you.

Thank you, Luisa. I'll turn the floor to our Chief Trading Officer, Sergio Lopez.

Hello, Luisa. Good afternoon.

First, thank you for your question. We have been doing great effort to close our positions.

Of course, we have some marginal sales that we are executing with clients that are strategic, but our position is not to open more positions. We want to close, as Andrea has mentioned.

For this quarter, we could close positions in these past months, and also we have the impact of GSF, making us go to the market to buy energy, but we are not opening positions. We are rather than that closing them.

As there are no further questions, we thank you all very much for your participation. The superintendence of IR is available to take any other questions you might have.

Therefore, we end CEMIG's third call video conference call. Have a nice afternoon and thank you very much.