Financial Data and Key Metrics Changes - The company reduced its compulsory debts from BRL 20 billion to under BRL 12 billion, showcasing effective liability management [4] - Reported a loss of BRL 1.3 billion due to regulatory remeasurement of transmission contracts, but adjusted net income would have reached BRL 1.4 billion, approximately 40% higher than last year [10][11] - EBITDA was impacted by nearly EUR 800 million in equity income, leading to a year-on-year reduction [10] Business Line Data and Key Metrics Changes - Generation margins increased by 21% compared to Q1 and 16% compared to Q2 2024, despite a drop in transmission revenue [8] - Investments grew by 116% compared to Q1 2025, focusing on reinforcements and improvements [8][24] - The company concluded its first post-privatization transmission auction, the Caladinho project, and financial rebalancing for Transnorte Energia [9] Market Data and Key Metrics Changes - The company reported a significant increase in contribution margins from energy trading, rising from BRL 1 billion in Q1 to BRL 1.6 billion in Q2 [14] - The energy available for trading decreased from 12 gigawatts in Q1 to 9 gigawatts in Q2 due to seasonal patterns [15] - The company anticipates a more constructive price scenario for 2026 and 2027, despite some volatility [17] Company Strategy and Development Direction - The company aims to improve predictability in results, increase investments, reduce costs, and manage liabilities, transitioning from a turnaround phase to a stable growth phase [6][52] - Future growth opportunities will focus on M&A and auctions, with a strategy to provide more predictable dividends [52] - The company is modernizing its infrastructure and integrating new technologies, including AI, to enhance operational efficiency [54] Management's Comments on Operating Environment and Future Outlook - Management highlighted improved risk profiles and reduced uncertainties for shareholders, with a focus on capital allocation and predictable dividends [21][52] - The company is optimistic about future investments, projecting significant growth in capital expenditures for 2025 and beyond [37] - Management acknowledged the challenges posed by GSF but emphasized a strategic approach to energy trading and client engagement [56][60] Other Important Information - The company is nearing completion of the Transnorte Energia line, which will interconnect the last isolated state in Brazil, creating jobs and reducing carbon emissions [25] - The company has streamlined its corporate structure post-privatization, enhancing operational efficiency [22] Q&A Session Summary Question: Details on trading strategy for Q2 and expected recurring CapEx - Management explained that trading strategies involve distributed teams focusing on client value and portfolio analysis [30][31] Question: Status of internal efforts to accelerate investments - Management confirmed that the internal processes for investment acceleration are well aligned and ongoing [39][41] Question: Expected returns on investments with current interest rates - Management indicated that returns on regulated investments are expected to converge over time, with a robust methodology in place [46] Question: Company's focus on risk reduction and capital allocation - Management stated the focus is on consolidating initiatives and providing predictable dividends, with growth opportunities through M&A and auctions [52] Question: Impact of GSF on potential gains and trading decisions - Management acknowledged the challenges posed by GSF but emphasized a strategic approach to energy trading and client engagement [56][60]

Financial Data and Key Metrics Changes - The company reduced its compulsory debts from BRL 20 billion to under BRL 12 billion, showcasing effective liability management [6] - Reported a loss of BRL 1.3 billion due to regulatory remeasurement of transmission contracts, but adjusted net income would have reached BRL 1.4 billion, approximately 40% higher than the previous year [13][14] - EBITDA was impacted by nearly EUR 800 million in equity income, leading to a year-on-year reduction [13] Business Line Data and Key Metrics Changes - Generation margins increased by 21% compared to Q1 and 16% compared to Q2 2024, despite a drop in transmission revenue [10] - Investments grew by 116% compared to Q1 2025, focusing on reinforcements and improvements [11][27] - The company concluded its first post-privatization transmission auction, the Caladinho project, and financial rebalancing for Transnorte Energia [12] Market Data and Key Metrics Changes - The company highlighted a seasonal pattern in energy production, with a decrease in available energy for trading in the dry season [18] - Contribution margins from energy available for trading increased from BRL 1 billion in Q1 to BRL 1.6 billion in Q2 [17] - The company anticipates a more constructive price scenario for 2026 and 2027, despite some volatility [20] Company Strategy and Development Direction - The company aims to improve predictability of results, increase investments, reduce costs, and manage liabilities, transitioning from a turnaround phase to a stable growth phase [8][56] - Future growth opportunities will focus on M&A and auctions, with a strategy to provide more predictable dividends [56] - The company is modernizing its infrastructure and integrating new technologies, aiming to enhance operational efficiency and value generation [58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's improved risk profile and operational outlook, citing significant reductions in compulsory loans and successful project completions [25][26] - The company is focused on creating resilience in its transmission assets and maintaining a robust investment strategy [39] - Management emphasized the importance of aligning capital allocation with long-term growth and shareholder returns [56] Other Important Information - The company announced a BRL 4 billion dividend payout, reflecting its improved financial position and commitment to shareholder returns [9][27] - The Transnorte Energia project is expected to create 3,500 jobs and reduce carbon emissions significantly [28] Q&A Session Summary Question: Details on trading strategy for Q2 and expected recurring CapEx - Management explained that trading strategies are region-specific, focusing on client value addition and portfolio analysis [32][34] - Recurring CapEx for improvements is expected to be significant, with ongoing investments in assets [38] Question: Internal efforts to accelerate investments and differences in IFRS - Management confirmed that internal processes for investment acceleration are robust and ongoing, with a focus on regulatory alignment [42][44] Question: Expected returns on reinforcements and improvements - Management indicated that returns on regulated investments are expected to converge over time, with a focus on maintaining robust methodologies [50] Question: Liquidity in the energy market and trading decisions - Management noted that liquidity is improving, with a focus on strategic energy allocation based on market conditions [52][64] Question: Company's future focus and dividend strategy - Management outlined a vision for consolidating initiatives and providing predictable dividends, with a focus on growth opportunities [56][58]