Centrais Electricas Brasileiras S A American Depositary Shares (Each representing one) (NYSE:EBR) Q3 2022 Earnings Call Transcript

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Marcelo Sá: I have a question regarding commercialization. Jatoba commented that you couldn’t give some guidance of prices. But when you get the balance sheet of the second or the third quarter, you have this average price about BRL 200 million. It flattened the curve, but it might, if I’m right, indicate that the price of sale is next to BRL 200 million. But as we look, the market before in July, this price looks a little too high, and I’d like to understand that better. So if you look at the balance sheet, you had sales happening from ’23 to ’25, and in ’26, you had decommissioning. So my question is, did you have any kind of swap and maybe that’s why the price was better in the short term? And why you have this investment? And my second question regarding commercialization is to — are you planning to buy a commercializing company or just hire new personnel?

Camila Gualdo Araújo: So I’ll answer your last question. We consider this possibility to buy commercializer, but we have to understand that we have 4 areas of commercialization. And we have qualified personnel. We have always been big, and now we’re just getting bigger. So that was thinking about opportunities because that kind of business became expensive. We will consider that. But the natural strategy would be to establish an effective process of coordination at the holding to establish a strategy of product and markets and clients and bring in people from the market to strengthen this area, attracting talent alongside qualified personnel that are already working in our group coming from the 4 companies that we have worked with.

So we do not eliminate the possibility to have a commercializer, but we prefer the idea of building an internal team senior and expert team at the holding to coordinate the commercialization process in all the companies. Regarding the key observations that you made, they are correct. We had some swaps that allowed us, among other operations — allowed us to increase the price for the ’23, ’24, ’25. In ’26, we had a reduction of investments. Regarding some special consumers that are covered by law — the special law, and they have the right to do that in ’26? So since 2026 is the longest deadline. It impacts a little more in 2026. But it’s within normality of commercialization.

Marcelo Sá: Regarding the price for ’23, ’24, ’25, to assume that the price is close to . And how was that possible if in July, the price was like far from that?

Camila Gualdo Araújo: That’s what I tried to explain. Our strategy is to diversify the products and have different terms — contracts of different terms. And that’s the strategy that we have been using. So the projected price reflects the current price that are in the baseline. So we have long-term clients and we try to aggregate value since the trust, the reliability, the fact that it’s clean certified energy. So the strategy aggregate values and that’s what we seek because we want to increase our portfolio and this is like we have new opportunities in this market. And obviously, this aggregated value will impact the price. This is our strategy.

Operator: So we end at this moment the Q&A session. And we return the floor to the CEO, Mr. Wilson Ferreira for his final comments. Mr. Ferreira, please.

Wilson Ferreira Jr.: I’d like to thank you, all the analysts and investors once again. We’re glad to be back to the company and lead this excellent team and to thank your trust, the shareholders, the investors and the directors here because the most important role here is to formulate this strategy. And we will try to be more transparent because we have this commitment. And we have the commitment to share the strategy that generates value with the market, with investors. We’re very optimistic. We have a big journey full of activities, but I believe that for the next months, we will be able to share and feed you guys with — you all with new — and we have moved forward and I think we have room to grow even more. And that’s what we have been discussing with the Board of Directors for us to be able to implement those initiatives and deliver very quickly those values.

And I think we will be able to surprise you with the perspectives in course. And I thank my whole team, and I invite them to keep fighting this big battle, but we are going to prevail. Thank you very much. Have a good day.

Operator: At this moment, I declare this conference call closed. We thank you all for your participation and wish you a good day.

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