AXIA Energia S.A. Q4 FY2024 earnings call

• Privatization of Eletrobras approved after a year of discussion, marking a new transformation phase. • Focus on client trust, discipline, and outperforming competitors to meet stakeholder expectations. • Growth in generation and transmission, active in auctions, utilizing AI and IoT for asset management. • Reduction in liabilities, implementation of new governance policies, and improved cash flow via conciliation process. • Paid a BRL4 billion dividend, hired 2,100 new professionals. • ESG agenda with net zero 2030 goals, first human rights policy, and green hydrogen projects. • Energy market transformation, addressing volatility from reservoir shrinkage and intermittent renewables.

No specific product segment financial performance with revenue contribution % provided in the transcript.

• Proposed a BRL4 billion dividend, expecting continued cost reduction and better cash flow management. • Investment plans for generation and transmission, with a focus on midterm capital allocation. • Anticipation of continued improvement in financial performance and asset optimization.

• Energy market volatility due to reservoir shrinkage and intermittent renewables. • Geopolitical factors impacting financial costs and liquidity. • Mismatches in energy markets between regions, posing challenges for portfolio management.

Q: Referring to agreement with federal government and energy trading liquidity.

A: Discussion on conciliation agreement drafting, with intention to conclude in coming fortnight; market liquidity good at year end, active in regulated market auction.

Q: Investments and PMSO seasonality.

A: Expect investment growth with better technology; PMSO seasonality expected to reduce this year.

Q: Price of 2025, hedging, and protection from traders.

A: Portfolio management to handle market volatility, no exposure to defaults; robust risk analysis in operations.

Q: Cost seasonality reduction and thermal plant operations.

A: Efforts to reduce cost seasonality; ongoing thermal plant transaction with progress on antitrust conditions.

Q: Dividend methodology and leverage.

A: Discussion on dividend remuneration, cautious approach to leverage and cash management.

Q: Transmission assets and compulsory loan negotiation.

A: Focus on transmission auctions and simplification; cautious approach to compulsory loan negotiations