Transmissora Alianca de Energia Eletrica SA
BOVESPA:TAEE3
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Transmissora Alianca de Energia Eletrica SA
Earnings Call Analysis
Q4-2023 Analysis
Transmissora Alianca de Energia Eletrica SA
Taesa's Q4 and full-year 2023 earnings call highlighted not just the financial results but also the company's strategic drivers. Management expressed how their mission is closely linked to connecting Brazil with safe and reliable energy and their vision to be the electricity transmitter of greatest value to society with a strong emphasis on caring for people, acting with integrity, striving for excellence, and making Taesa a valued entity. These core values align with their operational strategies and underline a comprehensive commitment to quality, safety, and environmental standards, as demonstrated by Taesa's efforts towards obtaining various ISO certifications.
During 2023, Taesa achieved historic financial milestones, securing BRL 3.3 billion in net revenues (a year-over-year increase of 9%) and BRL 2.8 billion in consolidated regulatory EBITDA (an 8.5% increase compared to the previous year). This was driven by factors such as lower debt costs and high operational efficiency. The company successfully lowered their variable portion, leading to significant investments of BRL 2 billion. Furthermore, they plan to propose additional dividends of BRL 390 million based on IFRS net income for 2023, raising the total dividend distribution to BRL 1.1 billion, equating to 104% of their regulatory net income for the fiscal year.
Taesa's key regulatory results directly reflect its ability to generate cash. The company reported a 6.1% increase in consolidated net revenues for the quarter to BRL 592 million and a more substantial 9% year-on-year growth, amounting to BRL 2.4 billion. This growth can be attributed to new operating projects such as Saira and Sant'Ana, and positive adjustments in Category 3 concessions. Nevertheless, there were challenges such as a negative IGP-M adjustment and a 50% drop in RAP for the H3 concession, impacting EBITDA margins slightly. If one excludes these two external factors, EBITDA margins would have been notably higher. The company is actively engaged in efficiency and cost control initiatives to counterbalance these exogenous effects. Despite the variable portion technically being lower than the previous year, regulatory net income saw a decrease of 22.2% quarter versus quarter but still showed an overall annual increase of 4.3% compared to 2022.
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Good morning, everyone, and thank you for joining Taesa's Q4 and 2023 Earnings Release Video Conference. [Operator Instructions] We would like to inform you that this video conference is being recorded and will be made available on the company's IR website, where you will also find the earnings release. It is possible to download the presentation in English using the chat icon. [Operator Instructions] Please note that questions can be submitted during the presentation and will be read out live by the IR Officer, Cristiano Grangeiro; and Juliana Castelli and then answered by the Board of Directors during our Q&A session.
We emphasize that the information in this presentation and any statements that may be made during the video conference regarding Taesa's business prospects, projections and operational and financial targets are the beliefs and assumptions of the company management, in addition to information currently available. Forward-looking statements are not guarantees of performance since they involve risks, uncertainties and assumptions as they refer to future events and therefore, depend on circumstances that may or may not occur. Investors should understand that general economic conditions, market conditions and other operating factors may affect the future performance of Taesa and lead to results that materially differ from those expressed in such forward-looking statements.
Now I'll turn it over to Cristiano Grangeiro so that he can start the presentation.
Good morning, everyone, and welcome to Taesa's Q4 2023 and of the 2023 presentation. I would like to remind you that you may ask questions through the presentation using the Q&A session. At the end of the presentation, we will open up the Q&A session where your questions will be answered by our officers. We hope you enjoy this video conference.
Before we start, we'd like to go through our strategic drivers that are connected with everything we will see over the next slides. Our mission is to connect Brazil with safe and reliable energy. Our vision is to be the electricity transmitter of greatest value to society and our values are based on relevant and fundamental issues. We generally care for people. We act with integrity building relationships of trust. We strive for excellence in everything we do, and we make Taesa.
On Slide 4, we highlight an important achievement, very much in line with the sustainability pillar. That is a key part of our strategic planning. At the end of last year, ABS issued a letter of recommendation for certification to ISO 9001 (Quality Management), 14001 (Environmental Management), 45001 (Occupational Health and Safety Management) and 55001 (Asset Management). The official certification with 4 standards came shortly afterwards, a very important milestone for Taesa.
The entire company engaged in this project, which began in 2021 when we decided through the implementation of Taesa's integrated management system, SGIT, that it would be key to mature our process and engage with values effectively for us to remain sustainable and for our stakeholders to remain happy. Over 200,000 legal requirements have been assessed, over 22,000 training sessions provided, over 12,000 equipment inspections, about 750 normative instrument reviewed, in addition to many initiatives to address the points raised in the other. We saw a wide range of benefits such as process optimization, concern for people, meeting the expectations of our stakeholders, risk mitigation and asset performance maximization. Of course, this work is not done, and we will continue to strive to maintain its certifications.
In Slide 5, we see another key front, which is safety. We are safety first. This is a key pillar that is nonnegotiable for us. In 2023, the company reinforced its commitment to safety by carrying out different initiatives. In addition to ISO 45001, Taesa increased the number of representatives in CIPA+A, the Internal Commission for Accident Prevention and Harassment, providing greater capillarity and representativeness of occupation and healthy in the company. We carry out awareness-raising initiatives, including the weekly safety dialogue, an important forum for discussing safety in our day-to-day work, open to any and all employees of Taesa.
In addition, raising awareness of safety among the entire community of partners and suppliers is key. Thus, we have been working to ensure our partners' firm commitment to safety, including strict occupational safety criteria, with bonus and penalty clauses in the agreement signed. This being the case, 2023 was the best year for safety at Taesa, which reported 0 accidents with serious injuries.
Moving on to Slide 6. We have the key highlights of the results of the year. We'll go into more details about each of them over the next slides. First of all, our net revenues and EBITDA reached historic milestones, BRL 3.3 billion and BRL 2.8 billion in 2023. The consolidated revenue -- net revenues was up 9% in 2023 year-over-year and 6.1% quarter versus quarter. Our consolidated regulatory EBITDA was up 8.5% in 2023 year-over-year and 4.2% in quarter versus quarter. We had a lower cost of debt and kept the leverage level at 3.7. We also maintained a high level of operational efficiency, with a significant drop in our variable portion, VP, in 2023, which totaled BRL 2 billion in investments in 2023, in addition to obtain environmental licenses for Tangara and Pitiguari, allowing construction to begin early. Obviously, this project -- this does not guarantee the early completion of works due to their complexity. And lastly, we have a management proposal of BRL 390 million in additional dividends based on IFRS net income for 2023 to be submitted for deliberation at the meeting to be held on April 29. With that, we totaled BRL 1.1 billion distributed for the fiscal year or 104% of regulatory net income.
On Slide 7, we have our key regulatory results, which directly reflect the company's cash generation. Our consolidated net revenues in the quarter was BRL 592 million, up 6.1% quarter versus quarter. And in the year-to-date, we totaled BRL 2.4 billion, having an even greater performance of 9%. The year-on-year growth in revenue reflects the start of operations at Saira, first phase, under Taesa's management that started at the end of March 2023; the start-up of new phases of Sant'Ana; the IPCA inflationary adjustments in the 2023, 2024 RAP cycle for Category 3 concessions; and a lower variable portion. Those positive effects offset the negative IGP-M adjustment of minus 4.5% in the same cycle for Category 2 concessions and remaining 50% drop in the RAP for the H3 concession. It's worth remembering that over 60% of operating RAP is adjusted according to the IGP-M.
Due to the same reasons, consolidated regulatory EBITDA was up 4.2% in the quarter and 8.5% in the 12-month cumulative results, surpassing the 2 billion mark in 2023. Our EBITDA margin dropped in both comparison due to 3 main reasons: negative readjustment by the IGP-M in Category 2 contracts; a drop -- a 50% drop in the RAP of the A3 concession, amounting to approximately BRL 65 million; and the start-up operation of the first phase of Saira and partial operation of Sant'Ana, for which the RAPs have not been fully received. It's worth mentioning the first effect, macroeconomic, and the second effect, regulatory, together had an impact on our EBITDA margin by about 0.2 percentage points in the first quarter and 0.5 percentage points in 2023. In other words, excluding these 2 exogenous effects, the EBITDA margin would be 83% instead of 81.8% in Q4 and 84.6% instead of 84.1% in 2023, which is much more in line with the other results we had in the fourth quarter of 2022 and the whole year. It's important to mention that the company has identified its efficiency and cost control initiatives as part of its strategy to soften the effects of the IGP-M in this RAP cycle.
In terms of operating performance, we're still at very high levels. And speaking of variable portion, it's important to separate the technical VP that actually occurred in the year from the provisions and reversals of events from previous periods, which contribute to the accounting VP. This year's VP was lower than last year's and amounted to 0.89% of the 2023 RAP. Looking at the VP from an accounting standpoint, which also considers event from previous years, it was very close to 0 due to the reversal of the variable portion of the sabotage event that occurred in other terms at the beginning of the year in the reversal of provision by injunction that suspend the collection of the VP, referring to the fall of towers in the ATE III concession, a result of severe weather events.
I'd like to emphasize that this exceptional performance of VP was affected by reversal events from previous years that are being treated as fortuitous events. However, given the length and complexity of our transmission networks, we cannot guarantee this performance in the future. Our regulatory net income dropped 22.2% quarter versus quarter, totaling BRL 301.1 million in the quarter. In 2023, our net income was BRL 1.1 billion, up 4.3% versus our 2022 income.
We will see some details over the next slide. We will see both for the quarter and both for the year-to-date results. As we have talked about in our video conference, the projects that have been coming on stream have had a positive effect both on our EBITDA, which has been offset to some extent by the deflation by the IGP-M and the remaining 50% drop in the RAP of some concessions. We refer to Saira and Sant'Ana in the consolidated view, and Aimorés, Paraguaçu and [ Assai ] in the equity method. This effect is more noticeable in the results of the year, as you can see in the chart below. To fund this project, the company raised funds via infrastructure debentures, which resulted in an increase in net financial expenses when comparing the periods.
On Slide 9, where we present the performance of corporate or IFRS net income. It's worth remembering that this is an accounting net debt, which does not reflect Taesa's real cash generation. IFRS net income was up [ BRL 460 million ], quarter versus quarter, influenced by the increase in inflation indexes, especially the IGP-M, which rose from minus 2.4% in Q4 2022 to plus 1.4% in Q4 2023. Other positive effects were the start-up of Saira, Ivai and Sant'Ana; higher investments in projects under construction; and a lower variable portion. In the 12-month cumulative view, net income dropped 5.6% versus 2022, also due to macroeconomic reasons. In this case, the opposite. In the year-to-date deflation indexes fell, especially the IGP-M, which fell from 5.9% in 2023 to minus 3.4% in 2023, negatively affecting monetary corrections. In addition, we had negative effects that was higher -- negative higher financial expenses. These effects were partially offset by the start-up of new projects and lower VP.
Moving on to Slide 10, we present Taesa's debt profile. On the left, we see the net debt for the last 12 months and the leverage level, which is calculated by net debt over regulatory EBITDA in the proportion of consolidated view. At the end of 2023, our total net debt was BRL 10.6 billion, considering our holdings. This has been the case, Taesa has managed to maintain its leverage level at 3.7x, even though it has invested over BRL 2 million in 2023, in addition to having paid BRL 1 billion in dividends last year.
Our debt amortization profile remains adequate, with an average debt term of 4.5 years and an average real cost of debt of 4.9%, which has been decreasing over the last quarters. Our cash position in the year was BRL 1.6 billion, 2/3 of our debt are invested by IPCA and 1/3 by CDI. The company's ratings at a national scale, which is monitored by Moody's and Fitch as AAA, the highest recognized by the agencies. Fitch confirmed this rating at the end of last year.
On Slide 11, we present the progress of projects under construction. The most recent progress has been in obtaining all the prior environmental licenses; and 2, installation licenses in Tangará, allowing work to begin, and obtain also the installation license for Pitiguari, which also allowed work to begin. In terms of physical progress, we have -- the project has progressed as expected. And looking at the level of investment statement at Taesa, we highlight the end of a cycle in 2022 and a new cycle starting 2023. We point out the volume of CapEx of BRL 2.1 billion, the highest level in the company's history.
On Slide 12, we would like to highlight the management's proposal on the allocation of the 2023 proceeds, which will be cited at the Annual Shareholders Meeting on April 29, 2024. The Board of Directors proposing the distribution of BRL 390 million as additional dividend, which is equivalent to BRL 1.13 per unit, the base date for that is May 3 and the payment should take place on May 16, if approved at the meeting. Considering this announcement, the company would be distributing BRL 1.1 billion in proceeds, including dividends and interest and equity versus the 2023 fiscal year, which is equivalent to BRL 3.30 per unit, a payout of 100% of the net profit excluding the effects of CPC 47 and 104% over regulatory net income. Well, that's what we had to present today.
Now let's move on to our Q&A session. Thank you all.
Thank you, Cristiano. Right now, we will start our Q&A session that will be a live session, and that will have the participation of the officers of the company. [Operator Instructions]
Well, we just would like to say that this presentation was really well prepared. I think we highlighted the key highlights of the year, we pointed out to what was most important. And to start, I would like really to thank our management, we had Andre Moreira that left the company because of his personal plans. But I think that he has really left a legacy that is really important. We are really well positioned when it comes to discussing what's best with our stakeholders, our shareholders, so we would like to officially thank him for his great work.
In addition, I'd like to go to some of the results that Cris Grangeiro mentioned, but we are talking about a record high in revenue of BRL 3.3 billion, investments totaling BRL 2 billion, which is also a record high in the fiscal year. The results that we have produced have been really positive that had, had an impact on macroeconomic reasons. So we saw that inflation coming up was positive and the cycles where it dropped, then we suffered a negative impact. We do not expect that to happen over the next years.
I would also like to go through a great achievement regarding the certifications, the ISOs and the standards that we have achieved. I think that we were able to get all the standards at the same time. So thank you very much for all of your great work and everyone who geared efforts into making that happen. When it comes to safety, I think it was probably the best year we had with 0 serious injuries. So 100% safe as our model. And I would really, really like to thank everyone for your great work, and that remains one of the guiding principles of the company, and we have to continue pursuing 0 accidents.
When it comes to our indebtedness of 3.7. I know that there are some questions, so we're going to address that. But when it comes to that, we are talking about a stable debt. And when it comes to dividends, BRL 390 million that we announced, we are talking about BRL 3.3 per unit regarding the fiscal year of 2023 and 104% of the regulatory net income. Payment will take place on May 16, if everything is approved at the shareholders' meeting. So these were my opening remarks. I know that we have a few questions ahead. We have our other officers here, and I would like to start this conversation right now. Let's start the Q&A session.
We have some questions here. I'm just checking these questions out so that we can get into our Q&A session. Just a second, I'm going to check this. I do have a question about leverage. When it comes to the leverage level, we are talking about 3.7, but some investors have asked about the net debt that it has been growing. If you could give us your take on that and what we can expect from now on.
Thank you for questions, Cristiano. When it comes to debt, this is something we pay attention to. This is a key topic for us. Of course, that our growth is really linked to our debt level, right? It's impossible to grow as we have been growing over the last years with no funding through the market, right? So -- on the upside, we have growth, which is very positive. This is something we're going to keep doing really. But on the other hand, we have higher debt to deal with. In 2019, our debt level was 2.2. And now we're talking about a level of 3.7.
From our standpoint, considering our growth perspective, we consider that 3.5 -- ranging from 3.5 to 4. This is really a comfortable level for us to continue growing as we have and growing as expected and also providing a financial compensation for any and all shareholders. We saw, yes, an increase in our debt level. We have just highlighted the BRL 3 billion in construction works. This requires funding, new projects do require funding, and it will have an impact on our debt level, but we also generate great cash. So we do have the ability to deleverage somehow and some when it comes to our debt. So when we come about reinforces improvement, we have the ability to raise about BRL 400 million. And our message for everyone, I think, is that we have the ability to keep growing and controlling our debt level, and we will keep gearing efforts into controlling our debt level over the next quarters and years.
Thank you, [ Pecc ]. We have the next question from [ Roger Yvaque ]. He congratulates everyone for our great business results. And he has the questions regarding the IGP-M. If we expect it to remain stable over the next quarters or if we expect it to increase, considering what happened over the last quarters.
Well, thank you, [ Roger ]. Thank you, Juliana. When it comes to IGP-M, we benefited from it in the recent quarters. Our RAP was up over 50% in the cumulative view. But it is a more unstable index, right? We do have an impact also with the FX rate. So looking forward, what do we expect? We expect some stability and convergency among indexes, but of course, that there will be moments when this can be a bit different from what we see happening with other indexes, right? when it comes to our debt level and what it's linked to.
Well, knowing what will actually happen, we have our projections, but we feel really comfortable using the IGP-M from a projection standpoint in the medium and long term. We do not expect a great fluctuation. Maybe in the short term, we can suffer somewhat a minor impact, but it is really part of the game, it really happens. So we've been using IGP-M, and we feel really comfortable.
Thank you, [ Pecc ]. We do have a few questions left about dividends. I will try to ask the question, consolidating the different questions not only regarding what we announced in dividends, well, actually not an announcement. It is a proposal that needs -- will be deliberated on the April 29 meeting. So the proposal is BRL 290 million. And the question was can you really deal with that? And what can we expect in dividends for the future? So some investors are really worried about that. And how can we consider that in the future levels of leverage and debt that we expect for the rest of the year or over the next years?
Well, thank you so much for the question. Well, I'll have to be as explanatory as possible. The company has been using the corporate net income to distribute dividends. And when we use that, this is going to consider what we are also building in terms of assets. So when the company grew, we had some monetary correction in our results that do have an impact in the overall net income that was the basis for the calculation of dividends. This does explain somewhat this difference. But from a regulatory standpoint, you don't have this correction, so if we consider the entire concession, it is not lower throughout the entire time. There is some inflection points.
We are also going to present some of that in our channel, sharing some information on this topic, which we think is of key importance. But the trend is to start using the regulatory net income as a basis for dividend, especially because it is much closer to the cash generation of the company, then it would be using under method. I mentioned 104% when it comes to regulatory net income. So we are really discussing using regulatory net income over the next years as a basis for calculation.
We'd just like to remind you that the end of the concession, there was a difference in the curves of what is higher than what when it comes to net income. And we are going to share some information with you with -- through our channels to explain how we're going to calculate that from now on.
Thank you, [ Pecc ]. The next question I'm also going to ask you, this is related to what you're saying, so while you're at it, it comes from [ Luis Garcia Madeiras ]. He congratulates the company on the great results produced in the presentation. In fact, he has a question. Why will the company distribute BRL 390 million in proceeds if the net income of Q4 was BRL 301 million?
[ Luis ], exactly because of this difference that I mentioned between the difference of the net income -- the corporate income from an accounting standpoint and the regulatory net income. So we talk about BRL 301 million that is lower than we are proposing to distribute in dividends just because this higher level reflects this monetary correction. It's worth mentioning, this is really compatible with what the company has been doing in the other quarters. So we are closing the year using the same basis over the corporate net income. This is one of the reasons why we are considering changing to the regulatory net income because it is greatly related to our cash generation.
So the next question is for our new Business Officer, Fabio Antunes. [ Roger Yvaque ] is asking, with regards to the upcoming bids, are you going to be more aggressive when you're bidding considering that you probably have more competition ahead. What do you expect from the RAP's over 2030 and so on? Do you think it's going to be interesting.
Thank you, Juliana. Thank you, everyone. Well, regarding the bids specifically, what we talked about here, and [ Pecc ] mentioned, we are not going to take part. And there's bid and this auction taking place in March. But on the second half of the year, the company will keep evaluating good business opportunities and what we can do to present even greater results for our shareholders.
When it comes to RAP investment and remaining highly competitive. We here, at Taesa, we are focused always on growth, but on profitable growth that will create value for our shareholders. So any offers made by the company are based on that. We would not take part right now and auction and this for speed. But as [ Pecc ] mentioned, we will always keep looking into growing. We will tap into new opportunities in the primary market in auctions, but also with the secondary market and M&A opportunities.
Thank you, Fabio. So while we're at it, I think Juliana just asked the question, I am going to ask [ Pecc ] about the renovation here. So what to expect from 2030 and so on. So [ Pecc ], if you can share with us your take as of 2030. What do we have in the pipeline when it comes to renovation?
Thanks, Cristiano. We have always been talking about Taesa's good track record when it comes to growth. This is something that we are going to keep doing. We are a very important transmitter in the business, and we are fully qualified to create synergies with the projects we have in our pipeline. So yes, growth is part of our DNA, and it's something that we will always seek.
When it comes to dropping revenues in 2030. We have already started working in the pipeline. We have already considered some new projects. We have about BRL 430 million, considering this new projects that we're bringing on board and also the undertakings under constructions. And of course, that we have some years ahead to tap into new opportunities. So for me, what we can say about the strategy is what we have been doing and what -- how we have been running the business. There are moments when we see that we are going to be accelerating and participating in more bids and in other moments that we are going to just step back a little bit. But of course that we should participate in future auctions and bids to just replace these new sources of revenue, and we will also consider new M&A opportunities that might be interesting.
Thank you, [ Pecc ]. So I'll ask Luis Alves, the next question. It comes from [ Eric Hamus ]. Talking about value creation for shareholders and the CapEx, what can you do to ensure good margin in the forward-looking undertaking?
Well, thank you so much for your question. Just like Fabio mentioned, one of our key concerns when we invest in a business is creating value for our shareholders. We have seen an RAP CapEx tighter that has been tightening over time. But on the other hand, on the upside, we have been greatly prepared for any different event. So an auction or an M&A opportunity. And when it comes to RAP CapEx, we are looking to efficient project, which means lower cost. So we use our position within the market in Brazil, we are present in over 19 states.
The synergies that we have created that have allowed us to be increasingly more efficient with all our network and our operations, and we also seek to reduce deadlines. If we add all these factors up and consider that we have our own teams that do evaluate the auctions and what is needed to launch these new projects, we always look to optimize all our resources and our SKUs, even considering the RAP CapEx ratio more tight. But this allows this RAP, that when you consider the profitability index, it's still attractive for our shareholders. So thank you, [ Eric ], for your question.
Thank you, Luis. So okay, we have more questions, but one is about some reinforcement. So what can you tell us about Taesa and future reinforcements?
Well, Cristiano, so much for your question. But what about reinforcements? We have some regulatory ruling that will govern any improvements when we talk about transmission. And this is related to really the asset transmissions that we have. This is related to the increase of transmission or an improvement in reliability. So we have 4 great reinforcements, as you mentioned ahead and considering our distribution throughout Brazil and the volume of installation that we have, we aim at getting new enforcements like that over the next cycles. This specifically following the guidelines. So we have internal teams that do assess these possibilities with the Brazilian energy agency and different bodies considering all these opportunities. But when we talk about reinforcement, we are talking about increasing the ability of transmission according to the guidelines of the bodies that govern the market and also increasing reliability.
We studied each and all of our installations, our facilities and premises. And together with our regulatory bodies in Brazil, we understand what we can do or not. We had an increase in energy consumption, and we also have the use of our assets. So these reinforcements will be increasingly needed.
Thank you, Luis. So the next question I'm going to ask [ Pecc ]. We do have a few questions about cash. So [ Luis Caposo ] asks, what are you using the cash proceeds for? When we talk about 1.6, do you need to raise funds from the market?
Well, thank you [ Luis. ] One thing that is a feature of our company is that all the projects and undertakings. So I'll go back to the figures of investments that we have been making, we're talking about figures that are remarkable. The company needs to be prepared for those investments. So for me, there are 2 things that we need to focus on the projects and then we raise funds for these projects and also we have the cash use for running our day-to-day business activities.
In this sense, we have been together -- working together with our finance teams, treasury to revisit the level of cash that we need to have to be as efficient as possible. This, because we don't want to just keep excess cash position if we can spend that efficiently considering what we have in our pipeline.
On the other hand, we also have all these other commitments, and we must be comfortable knowing that we are going to pay for any and all future spendings that we have in our pipeline. But when you mentioned our cash position and our cash generation, this is one of the things we have been focusing on. How to focus on greater emissions or issuances and with lower costs? And what is the greatest balance to find it? We are considering this issue for 2025 and from now on. In 2024, we don't think we really will need to raise funds from the market. But unfortunately, I can't say that we have enough cash generation not to raise funds from the market, especially due to these huge investments in our pipeline always.
Thank you, [ Pecc ]. I think that we have a question from [ Azziz Oliveira. ] He congratulated us on the results. How do you see the outlook for brownfield acquisitions in 2024 and over the next years?
Well, good morning, [ Azziz ]. When we talk about our market, we are talking about long-term operators, for example, at Taesa. In addition to operators, that do you have concessions that are not long-term operators. So we're talking about companies that entered into this market and tried to recycle some capital tend to leave the market at some point. So these players that have been in the market with some of our concessions, we imagine that in the short term, they will be in the market and Taesa will be observing to see the opportunities to acquire the best RAPs considering the brownfield operations. In addition, we have other diverse players that have been applying the capture recycling policy. So they do sell some assets in mature segments to invest in brownfield segments. This is also a growth opportunity for Taesa, and we will be observing whatever is interesting for us on the market.
In the past, we have used that together with a Spanish group. We had, had in the past a Spanish representation here. And at some point, due to our M&A operations, that changed. But this happened in the past. And we also had some other players that joined the market on brownfield and then we bought an asset for really attractive rates. So I do believe this model will continue in the short -- in maybe medium term, but we will consider any opportunities and acquisition opportunities like you mentioned.
Thank you, Fabio. We have a question from [ Robinson Rosetti ]. Congratulations on the results and on the management. I think that you should show us an example from the accounting net income from the regulatory net income just for us to understand the difference.
Well, very good question, or actually, a comment. I think it's really important for everyone to understand this difference because like we said here, one of the challenge for us is to identify what is considered cash and what isn't. So just to explain what we have as a corporate net income according to the IFRS, it is a future result when you have the present value of something that comes from the future. So when it comes -- when you consider the accounting standpoint, you are going to receive in the future something that you need to register right now.
So this is not a cash because it has not been generated yet. So you need really to bring to present value and just estimate on present value, how much you could produce. But like many of you know, what we have is -- a good reference is the RAPs. But thank you so much for your suggestion, and we'll try to give you more disclosure and information for you to properly understand the difference between these 2 net income. So thank you.
I think that we have answered most of the questions. We had, had some repeated questions, but I think that overall, we have answered and addressed all questions. We have total about 600 people in our call. So before we finish, I'll turn over to [ Pecc ] for his closing remarks.
I'm actually sure that we have all been considering everything that we can do to improve our presentation and we will consider your feedback for our next presentations for everyone on the market to further understand our calculations and the figures that we produce and we present to you. I would just like also to thank any employees that did a great job over last years and that really have kept the safety-first motto and helped us to achieve the great results we have. We will continue gearing efforts into producing positive results and exceeding expectations. And we will also be together with you over the next quarter and over the next events we have planned in our agenda. We have our Investor Relations team always ready for you. And I would like to thank you for your presence. And I'm looking forward to it.