Transmissora Alianca de Energia Eletrica SA

BOVESPA:TAEE3

Earnings Call Transcript 2023-Q1

[Operator]

Everyone, you're very welcome to the results of the first semester of the first quarter. [Operator Instructions]. This is being recorded, and this will be available on the website of the company where you have everything about the results. You can also download the presentation in English. [Operator Instructions]

The information in this presentation and other declarations that might be made during the video conference about the business perspectives, projections and goals of Taesa are only premises of the company management as well as information that is currently available. These are not a guarantee of performance. They involve risks and premises because they relate to future events and depend on circumstances that might or not happen. Investors must understand that economic general conditions, operational conditions can affect the performance of Taesa and can result in consequences that are different to those that we mentioned here.

Now I'm going to give the floor to Cristiano Grangeiro to start the presentation.

[Cristiano Prado Grangeiro, executive]

Good morning, everyone. Welcome to the presentation of the results of the first quarter of 2023 of Taesa. It's a pleasure to talk about the results and achievements of this quarter. You can all ask questions during the presentation using the Q&A button of the platform. At the end of this presentation, we will open for questions and answers. When your questions will be clarified by the directors who are here, I hope you enjoy it. Let's then start.

Okay. Let's start with the results by the Slide 3. It's always important to make this connection. That means the results of the company with our forecast because there's a direct connection. We have to remember that our mission, our vision, our values are the way with which the company understands itself. It is what it wants for the future based on important values, and it also defines the way that we work and our routine of the day-to-day of the company. Making a rapid introduction, our mission is to connect Brazil with safe and trustworthy energy. We want to be the highest value energy transmitter and our values to take care of people, to act with integrity, have trustworthy relationships, excellency in everything that we do. And Taesa is us.

Now let's move forward. Let's go to Slide 4. We highlight here, as we always do, an important step in our program of sustainability, which is the report of sustainability. Let's talk about 2022 when we publicized this week our sustainability report, the 15th report of sustainability. It's an annual report of Taesa. There, we enhanced several actions that the company has been doing within the uptakes of environmental ESG, social and governance. Some of them, we also publicized in our calls of results.

All of them we mentioned in several different calls that we've done during the last years showing the evolution of the work of this topic within the company. And I'm going to tell you a bit the report that is available in our site. So if you go into the site of Investor Relations of Taesa and you go into Sustainability and you click on General Vision, you will access the sustainability session of the site. Going down here at the end of the session, you will find all our reports and the ones that we publicized this week, 2022. And when you go into this report, you'll see everything that we've done in 2022 related to this topic.

Remember that the report has some dimensions, and it was done in the initiative global methodology, the IRG, which gives an international standard of methodology reporting about this topic. And we go in each one of these fronts, for example, the general dimension, we're also going to talk about administration message, all the actions related to this topic, how the company works, who we are, going into the strategic direction that has been approved in the year last year, our values, we talk a lot about this.

Corporate governance, we also talk here about this governance and all the actions that we've been carrying out in relation to this topic, a little bit about the company. The matrix that we've always mentioned last year, the economical financial part, we talk a little bit our results, our actions related to this topic, financial indicators also standardized within this vision.

In the social and sectorial part, we talk a bit about people management, how the discussion of talent attraction, diversity and inclusion, whether it'd be gender, race, sexual orientation among other topics that we discussed. The safety, health, labor safety, which is very important, and we discuss this a lot internally. We have norms and rules for this concern.

And finally, the environmental side, we discuss here the environmental licensing, the safe system of the company, the integrated management, the gas emissions. We've done a new inventory here and how we work and how we are evolving in this discussion is very important. Other goals are our own fleet, the usage of ethanol instead of fossil fuels. All this discussion has been dealt with within the report.

So I think it's important to mention that this is a rich source of information so that the investors can consult and get to know a bit more about the company, especially the sustainability optics, which is a fundamental pillar within our strategic planning. This is a document that has also been translated to English. It can be consulted by investors that speak Portuguese and also the foreign investors.

Now let's go effectively to the presentation of results of the first quarter of 2023. We are now on Slide #5, and we enhance the regulatory results, which is the result that reflects directly the cash generation of the company. That is the projects that we delivered during the last years and the efficiency generated. All this impacts directly the regulatory results, which reflects the cash of the company.

When we look at the net revenue, we've had a growth of almost 14% in the annual comparison reaching a revenue in the quarter of almost BRL 600 million. And this has been a reflex of the projects that we have done during the last year. Comparing 1 year with another, this has a direct relationship with the operational entry of the projects that were ongoing.

Looking at the EBITDA, specifically we have grown around 15% in the annual comparison going from BRL 454 million in the first quarter of '22 to almost BRL 522 million in the first quarter of 2023. And when we look at the EBITDA margin, we have gone from 86.4% to reach 87% in the first quarter of this year. As I said, the projects that have come into the company and that we've put in operation, they have had a higher efficiency, generating a higher EBITDA than when they're consolidated in our business and this has a direct impact for the operational results of the company.

Now looking at the operational performance, we maintain operational indexes very well. When we look at the availability of our lines, we continue with a number very close to 100%. We closed the first quarter '23 with 99.88%. When we look at the variable parts, we've had nonrecurring effects in the first quarter of '22 and the first quarter of '23. In this quarter, we had mentioned that we would have a reversion effect in the first quarter due to that sabotage event that we publicized in the last quarter of '22 that ended up influencing the results of that quarter.

But we already had a reversion perspective with a positive result with ANEEL because this sabotage was just one occasion. So with this reversion, the VP results in the quarter, that means the accounting VP ended up by turning. But if we don't have this effect, we have a VP -- technical VP of BRL 1. 2 million of the allowed annual revenue, which is very much in line with our historic levels.

Finally, when we look at the regulatory revenue of Taesa, we've had a performance which is important to almost 50%. That means a bit over 47% in the comparison coming from a profit in the first quarter of '22 of BRL 146 million for a result. This year of over BRL 215 million result is a very important result for the company, as I explained. It's a consequence of all these movements that we've had in '22, putting important projects in the last year with more and higher efficiency.

Now let's move on to Slide 6. We've broken a bit more the impact in the net revenue, the profit that we've just mentioned in the slide where we show the positive effect of our projects. That means all these consolidated projects in the company, the projects have come in through participations and that have had a positive effect in the annual comparison because they started going into operation and generating cash for the company and, of course, to finance its growth that we've seen in the company in the last years.

We've had an impact also in the service of our debt in the annual comparison. So we've closed with a profit in the year 47% better or almost BRL 70 million better in the comparison between the 2 quarters.

Now let's go over to Slide #7. We're going to talk about the societary net profit. It's IFRS. You can see that it dropped 31%, reaching BRL 387 million in the quarter. It's important to mention here that we're talking about accounting net profit, that mean it doesn't have an effect on the cash. The discussion is here in the contractual asset. There's a whole methodology of the IFRS and this does not reflect effectively the cash. So this drop is just accounting-wise due to some effects.

The main effect is the effect related to the monetary connection of -- correction of the contractual asset, which is a societary revenue. So the impact -- the macro economical impact is revenue, which has affected the net profit of the quarter. What was this impact? The macroeconomic has an effect on the monetary correction, whether it'd be in the IGPM or the IPCA.

And in this quarter, we've had a reduction in the comparison between the quarters of inflation, especially the IGPM. The IGPM in the first quarter '22 had closed in the accumulated 4.6 positive. In the first quarter of 2023, it closed in only 0.6 positive. And due to this reduction, it has a relevant effect in the revenue of the monetary correction in the 2 revenues, about BRL 200 million. This is the main effect. That is responsible for this drop of about BRL 173 million in the societary net profit between the 2 quarters.

Now let's move on to Slide #8. Here, we comment here about the indebtedness -- the debts of Taesa. We see on the left-hand side of the slide the net debt, the historical debt of the company and also the leverage level, which is the debt and the regulatory EBITDA in the proportional consolidation. As we had showed you in every quarter, our leverage level is about 3.8, reducing here to 3.7. And now in the first quarter, we've had an increase to 3.9 as the net debt is about BRL 10.3 billion.

This increase is due to an indemnity that we've paid in Lot 5. Lot 5, I'm going to talk a bit further forward, but Lot 5 is a lot that we got in the last auction where there was a condition of paying an indemnity of BRL 870 million. We did this at the end of the quarter. We signed the concession contract of the Lot 5, which is a Saíra concession. And we have received an allowed annual revenue of over BRL 120 million. So we got this operational lot where once more, this was conditioned to this indemnity and we will then receive an annual revenue the day after signing the contract. So this has a very positive effort for the cash flow short term.

Now let's look at the right side of the slide where we showed a little bit of the amortization of the debt where we closed the quarter with about BRL 1.4 billion cash and the amortization profile with an average time frame of 4.7 years and the average cost of 4.5% post tax. That means we have an adequate profile to amortize the debt with an average debt of almost about 5 years to be amortized in short term.

Looking at 2023, we have around BRL 600 million to amortize. So the profile is quite adequate to our business. And looking a bit in terms of the indexing of our debts, we have a concentration of the IPCA of about a bit less than 2/3 and 1/3 here relative to the CDI. There was also a recent increase in relation to the issuing that we did in the first quarter this year. It was a third issuing of debentures and we captured a volume of BRL 1 billion, CDI plus BRL 1.5 billion.

The corporate rating of the company at national scale, which is followed by Moody's and by Fitch is the AAA. That means the best risk classification company that a company can have here in Brazil, and this is something that makes us different for new funding that will be done this year. Remembering that the third was the mission that we carried out recently, and we were able to do this very well even when the market -- the credit market is more challenging.

Well, going now to Slide 9. We talk here about the project status that we've gotten the auction recently. But before we talk about these projects, in the last days, we've had 2 important events about company, which took place now. One was the energizing of Sant'Ana. This was a 100% Taesa project, which is the transmission line between Livramento 3 and Santa Maria 3 and the substation of Santa Maria 3. We're talking about energization, which corresponds a bit over the 27% total RAP of this.

So this is more or less BRL 21 million. And given the other partial deliveries that we did last year, we've reached a RAP of almost 83% in the total of this job. This is the first energizing. So now we have to wait the release by the national operational system to then effectively receive the retroactive revenue of this date. This is also for the next event that I'm going to highlight now.

Another important event that has to do with our other Ivaí. This is done in partnership with CTEEP and we also energized the substation Guaíra. The substation it represents about 8.5% on of the RAP of Ivaí. That means about BRL 34 million.

And with this delivery, we practically delivered the project. That means this project, we start receiving 98% of the total RAP together with the last partial energization, which were carried out in this job. There were 2 important events that took place in the last days. These advances -- other important advances of the company and the journey of delivering our projects, obviously, in line with our strategic planning, which is to keep our rhythm of growth and increase our revenue.

Now let's go back to the slide. I think we have to reinforce here that we got 4 lots in the last auctions. So we're talking about these -- that we got between '21 and '22 and the reinforcement of Novatrans, which is that we have the authorization with 2 REAs with ANEEL, which represents about BRL 45 million of RAP for project that was more or less BRL 263 million. So we're talking about the big delivery of this quarter was the first phase of Saíra. Saíra is a Lot 5 of the last auction that was auction of December '22 and it represents a lot with more than BRL 1 billion of CapEx, and we signed the contract conditioned to this.

There was the payment of the indemnity of a bit over BRL 870 million. That was conditioning the signature of this contract, and this would give us the right of over 72% of the RAP of this project. So an addition of BRL 120 million as of the 31st of May of 2023. Now we have the total control of the operation from the contract signature. And this confirms the premises, so that means that we -- what we did when we bid in line with the efficiency that we put on the bid on the day of the auction in 2003.

So now what's left over with this project is to deliver the second phase, which is a revitalization of the project, of the operational asset. And this gives us an additional of about BRL 46 million for a project of around BRL 200 million of investments to be carried out up to March 2028.

Besides Saíra, we have Ananaí, which is a project from December '21 with a PAR of BRL 159 million. And BRL 160 million Tangará, which is project together -- we got together with Saíra, which is Lot 3 with a PAR of about -- a little over BRL 100 million and a CapEx of BRL 1,117 million.

And last Pitiguari, which is a smaller project, but still we got this in June '22 with a PAR of BRL 20 million and a CapEx of BRL 243 million.

It's important to say, again, reinforcing the work that the company is being done on recomposing our revenue, sustainable growth, value generation for our shareholders as part of the pillars of our strategic planning, we are adding here a PAR of almost BRL 500 million. So the volume really is relevant besides the projects that we have taken in the last quarter of '22.

We have now ended our presentation of the results. And now we go to the Q&A for those who are present here with us. Thank you very much.

[Unknown Executive]

Thank you, Cristiano. [Operator Instructions] Good morning to everyone. Thank you for your presence. We have here almost 600 people that are present in our call. So we thank you all for the presentation. So we've already received several questions here. I'm going to start with a question of the investor, [ Chiago Wushu ] . He asked the following thing.

BRL 0.07 of dividends, won't we have anything else this year, why? And you're giving the BRL 0.07 the last day of the year.

I'm going to give this to our Financial Director, Leonardo, to respond.

[Leonardo Bonorino Goncalves, executive]

Well, good morning to everyone. Thank you for the question, [ Chiago ]. I think that this question is excellent for us to clarify some important points of the company. First of all, in relation to 2022 or the results of 2022, the company paid BRL 1.2 billion in dividends. So in relation to the results of 2022, this is a residual value of BRL 22 million, BRL 23 million, which will be paid up to December. You have to remember that the company has already paid BRL 5 billion. So recurring, we've been paying dividends along these last 3 years.

This is important. Why? Because the company is always looking at growth, leverage and dividend payment. We're always observing not only in the past, but the future to have a balance of this tripod. Another important point that we have to remember here is that according to the statutes of the company, we should pay at least 50% of the net societary profit. So we're always observing these opportunities of growth, M&A or auctions and the leverage of the company.

Another important point, which I think is something that we'll probably mention here again is the leveraging, what happens. This leveraging of current is the fruit of the investments that we carried out in the last years, the operation in the next years and the increase of the EBITDA about 15% and the regulatory net profit, which generates cash over 40%. So this leveraging due to these investments is natural, but it also deleverages when these jobs are ready.

So the perspective of the company today is of leveraging because we are investing in new projects. We need to invest in new projects. We need to grow to be able to maintain this flow, this constant flow of investments and this perpetuity of dividends payment. This payment will continue, and we continue to balance all of this. Thank you very much.

[Unknown Executive]

Thank you, Cristiano. The next question comes from [ Ricardo Matus ] , just so he is an investor. He talks about greenfield projects where you receive the RAP way forward. So he wants to know if it wouldn't be better to invest in brownfield.

I'm going to give this question to Fabio. Can you please answer this question and also explain the difference between the 2 investments?

[Fabio Fernandes, executive]

Hello, everyone. Well, the company, as Leonardo said, so that we can keep this relevant in the market and also have the capacity to keep the levels of results and the payments of dividends, we are growing. We have 3 ways to grow the reinforcements and invests that are asked by the regulating agency. We carry out this investment according to the PAR, the access to the secondary market, which is the market where the company acquires assets that is being sold by other agents that are doing an investment process.

It's a competitive process where we pay and we receive this immediately. It's called the brownfield. And the third, which is the greenfield growth, which are the auctions, where the company makes an investment and receives a PAR by the operation and the construction of this investment. These 3 are possible. They're very much analyzed with a lot of care by the company before a decision is taken.

So what makes the company execute the investments? We make the choice based on the best capital allocation of the company. That investment that, given the conditions of the job and the project, makes the profit more profitable for the shareholders. So this goes through the strategy, how this asset talks with the other assets that we have at home and also the question of profitability, how this is going to generate value to our shareholders.

So based on this choice and on these detailed studies that we carried out, that is when the decision is taken, how the company is going to grow and allocate capital. And last but not least, we should remember that this last auction, we got Saíra. This is a special investment because it has a greenfield condition where you are going to have a period to build a part of the business that went to the auction and another part where you come in as an M&A as it was a primary market.

You pay a value and you receive a value. As we said, it's BRL 120 million that represent 73% of Saíra that Taesa is already receiving ever since March. So this is the third or a new modality that ANEEL has and that Taesa has had the privilege of closing this auction and being very successful with this transaction and with receiving of the prior agent. So this is I hope that I answered your question, and we are available to clarify anything else you might have.

[Unknown Executive]

Thank you, Fabio and Juliana. And the third question that I think is interesting. We have several questions here. The third question comes from an investor. And I commented about the status of the projects, how they're moving on. But he asked for a bit more clarification of Sant'Ana. So I'm going to pass to my colleague to talk a bit about how these projects are moving on.

[Luis Alves, executive]

Good morning to everyone. We announced this week an important announcement, one more part of the line of Sant'Ana, 247 kilometers, the Livramento to Santa Maria part. And so we've finalized 580 kilometers total. As we've already mentioned, we add to the revenue 27% of the PAR. With the entry of this transmission line and also for the next few days, we're doing tests of an equipment, which is the synchronal which will contribute with another 9%.

So for the next few days, we have a forecast of another growth of the PAR, and we're reaching the end of the conclusion. And Ivaí also, as mentioned, we concluded Ivaí with a substation of Guaíra, representing 8% of the PAR. This is a very important job for the region of Paraná and São Paulo, interlinking in the South and Southeast. And with the entry of Guaíra, we have another BRL 34 million revenue of PAR of this business.

As a whole, in the last 18 months with Janaúba, [indiscernible], Aimorés, Paraguaçu, Ivaí, so with the first phase of Saíra that I just mentioned and Fabio mentioned, we've added to Taesa BRL 840 million PAR that shows how the growth is important for the maintenance of the payment of dividends, adding, as Cristiano said, the addition of our profit with these new projects.

The other projects, recent in the last 2 years, are in the phases of projects, environmental licensing and everything in according to plan.

[Unknown Executive]

The next question is for Andre, our President. The question that the investor asks: What are the expectations about the renovation of the concession contracts that will expire as of 2030?

Andre, can you comment, please?

[Andre Augusto Moreira, executive]

Well, good morning. Good morning, Juliana. Thank you for your question. This is a recurring topic here in the company. We've discussed this a lot in terms of concession, renovation. We have contributed in the public hearing. We've contributed and discussed this with the regulatory agency and other agents of the sector and this starts affecting us as of 2030. So up to 2030, we have no impact in our results.

And from then on, especially, ETEO, STE, it's important to notice that remembering what Luis just mentioned, we've already put in the last 18 months a recomposition we've added over BRL 843 million to the company. And this, of course, has to do with the renewal of the concessions, and we're trying to grow more and more. This is part of our strategic plan. We have a clear growth plan also discussed with the Administration Board, and we have a pipeline of almost BRL 400 million for the next years coming into operation.

So we're talking about BRL 1.2 billion of PAR during the last 18 months and during the next 2 or 3 years. This gives us space to breathe. And when we renew the concessions and then Taesa will maintain its relevance in the transmission sector in Brazil. I thank you very much for the question. And I wish you a wonderful day.

[Unknown Executive]

Okay. From my side, the question is to talk a bit about -- I'm reading some of the questions that we have. We have a lot of questions. We've received -- cited a lot of questions about auctions in 2023, about the competition. I'm going to put everything together, a question of Andre Sampaio, an analyst.

He says: What about the competition of the auctions? What about the financial crisis? How does this interfere? Could you talk a bit about this, please?

[Unknown Executive]

Thank you. Thank you, Andre, for the question. Thank you, Cristiano. Well, this next auction in June, we will have investments of about BRL 16 billion with PAR divided in 9 lots, a total of BRL 2.5 billion, which will be auctioned. This is an auction that has different characteristics from the others due to the size of the lots. These are lots that are larger than the ones that we've seen in the prior auctions in a market that is a bit more stressed than it was in the last year.

However, within this situation, we understand that the competition will be present with agents and investors long term in the sector. We hope and for this, Taesa is preparing itself in a very careful way so that, we can the same as the other auctions and the same period that Andre has just mentioned here that we won in the last 18 months, that we are able to bring good projects to the company and that will bring us adequate remuneration according to the risk.

So the company is preparing itself. The issue of the suppliers that are being evaluated, being followed by the company. And the way to mitigate this is always to work with partners -- long-term partners, so that when we join the auction, we already know that this partner will be available to move the job forward. So this is how we're seeing this. Taesa is preparing itself. We will participate in a competitive way, always observing our pillars of sustainable growth, operational excellence and financial excellence with a good participation of this auction that's going to take place in June.

[Unknown Executive]

Thank you, Andre, for your question. We have a question about Saíra, the Lot 5 of the last auction, that talks a bit and the question is the following. Taesa was the first company to win an auction of operational. I would like to know how this process of transition panned out and also how to take this over in a short term.

So I'm going to give this question to Marco Faria, our Technical Director. Could you please comment?

[Marco Faria, executive]

Good morning, everyone. Saíra has been mentioned by Cristiano in his presentation and by Fabio, was a big challenge for us. And it was exactly this challenge that made a difference in the bid from the day of the auction up to the signature of the contract. We only had 3 months to implement all this process. And we internalized, we contracted 40 operational maintenance engineering people. And according to the auction, we could utilize the operation.

But with cost efficiency, we took over the next day. It was worked with a lot of competency of the team and good partnership. Relevant factor is the absorption of new technologies due to the retrofit of the compressors and also a huge opportunity of bringing technology to Taesa. All of this is part of our growth plan, and we're always prepared for these new challenges.

[Unknown Executive]

Thank you, Marco. I'm putting all the questions here together. Let me look, we have some repeated questions, but I'm going to give the questions now.

Several investors have talked about capitalizing the company. This is something that has been communicated to the market, but I'm going to ask Andre to say what can we respond about this topic. So Andre, please, if you could elaborate a bit more?

[Andre Augusto Moreira, executive]

Well, thank you for the question and the concern of Taesa. I think this has already been mentioned by Cristiano, by Luis, by Leo, by Marco, by Fabio. We are totally focused in participating in the auctions and studying the alternatives of funding. And we evaluate constantly all the opportunities and the financing alternatives and the capital, the strategic and growth plan and the pillars that we have, the operational excellence and the generation of value to the shareholders. We had clarified this recently. But just remembering, we don't have any formal decision of any offer of shares or debentures or any other thing via the capital distribution.

This decision is subject to our governance, so approval of our governance, the Board, the Administration Board, et cetera. So if this happens, of course, this will be carried out within the current laws and the applicable regulation. So being very objective. There has -- nothing has been decided and nothing planned at this moment for this in the company. So we will continue studying deeply the opportunities of growth, whether it'd be via auctions, via M&A, brownfield, et cetera. Thank you for the question.

[Unknown Executive]

Thank you, Andre. I'm going to also answer a direct question, which I think I can respond. I think it's [ Rosaire Nato ]. He said the value, the cash value, is it pre or post?

We've already announced in the call that we called this and -- we closed this with BRL 1.4 billion. And this number is already discounted in the payment of Saíra, which we paid on the 30th of March, around BRL 870 million of the indemnity and, consequently, when we closed this quarter, this value has been settled, and this is important. And the next day, we're already counting the PAR of BRL 120 million as of the 31st March. So clarifying your questions, [ Rosaire Nato ], thank you very much.

We've received a question here from the analyst of the Safra Bank, Daniel.

I'm going to ask Leo, please, to answer this question. Leo is from our financial sector. He says thinking of the auctions this year and the leverage of the company and since there's no covenants for the debts, what's the leverage that you consider comfortable for continuing to grow? Does it make sense to reduce the payout temporarily to reach this? What are the other alternatives that you consider?

[Leonardo Bonorino Goncalves, executive]

Daniel, thank you for you question. Well, in relation to the covenant of the level of leveraging, none of debt covenant, but it's an indicator that we always observe. We make projections almost daily. Any movement, it is whether it'd be M&A or participation or auction or payment of dividends, we observe these projections. We discuss internally which would be the best way to generate value for the shareholders. So we're always looking at these projections.

The reduction of dividends is a way to go, but there are other alternatives, debt or even the equity. So the company is always observing and studying the strategic planning, the goal of continuing to grow and having the leverage level on a satisfactory level. There's no ideal number. I think we're very close to the rating agencies, and this makes us discuss all our movements and each scenario. Each case is evaluated in a different way. And M&As, emerging acquisition is evaluated one way, the auction another way, it always depends on what is ideal for the company.

[Unknown Executive]

Thank you very much, Leonardo, for your clarification. We have another question here, comes from [ Mocayo Ispiso ]. How does this PAR work and the different steps of the project?

[ Mocayo ], thank you for the question. For each project, you have in the description the way that it's going to be received. So it depends on the time frame. You have some projects [indiscernible], you have some projects that depend on the production. And then you have -- in the end, you receive this -- in a total way, you receive the PAR when the job is totally implemented. So this varies from case to case, from project to project. But normally, this is defined when this is published by ANEEL for each of the lots that's going to be part of the auction. So it's ANEEL's notification.

I think a lot of the questions have been replied. We have some similar questions. I think we're reaching the end of our presentation. So I think most of the questions have been answered. Let me see if there's anything else that we have to reply, but I believe not. I think all the questions have been answered. And we have a lot of people participation. I'm going to give the floor to Andre to make his final considerations and to thank everyone for their participation. Andre?

[Andre Augusto Moreira, executive]

Well, first of all, I'd like to thank everyone for your participation. It's very important for us to have the maximum number of people possible. And I want to tell you that Taesa is very well positioned. The results are very consistent, very much aligned to our plans. We have followed our strategic planning. We have a plan for 10 years, which we've managed to follow and improve the results of the plan. So you can be sure that we will continue to be healthy, investing, participating in auctions, evaluating M&A.

So especially here, Leonardo, I would like to thank him. He took over the challenge 4 months ago to be with us. And Leo, as we announced yesterday, we are bringing a CFO from the market [indiscernible] will come to Taesa, and we're going to continue counting with Leo. I hope to count a lot on him. I thank you and thanks for the amazing work that he's done in these challenges of funding, evaluating scenarios, a lot of activities that are extra.

So Leo, in the name of the company, in the name of the directors, thank you so much for your contribution. You've already left an important legacy for us, and we have an important challenge for [ Reynaldo ] who is coming. So thank you, all of you. Have a wonderful day, and you can always count on us.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]