Good afternoon, everyone, and thank you for waiting. Welcome to our audio conference at Eletrobras. We are going to present the results of the first quarter of 2019 [Operator Instructions]. I remind you that this presentation is available as a corporate presentation in our investor relations site [Operator Instructions]. Before we continue, we would like to clarify that anything that is said during the audio conference considering the perspective for the business, for the company, for any financial structure are just a property of Eletrobras and also any information that is available about the company. Any future considerations are not a guarantee of any kind of performance because there is risk-averse uncertainty and they depend on circumstances that are external to us. Investors must see that some economic factors and operational factors may have an impact on the results that we are presenting and the future perspectives. Now I would like to turn it over to the President, Wilson Ferreira Junior, Financial Director and CEO. Wilson, good afternoon. You have the floor.

Good afternoon, everyone. It’s a pleasure to be here today. [Technical Difficulty] [indiscernible], I have Controller, Ri Marcelo Britto Marcelo Britto [indiscernible] elected by the controllers, Marcello [indiscernible] same situation. She was working with some other private companies and also elected by [indiscernible] we have Mr. [indiscernible] who's going to be an employee representative. I'm sure he will contribute a lot with what we're doing, and we'll also have [indiscernible] doing the same. [Indiscernible] Filipe [indiscernible] elected by the preferred. He will be independent. And he's very qualified for the post. And he had 45% of the [5.40] [indiscernible] so he's considered independent by the legislation and by [5.46] [indiscernible] 45. Now let's go to next page, which show you a few business highlights. Starting with debentures here we have followed this process. We have a firm assurance of BRL4 billion and the debentures that were issued in 4 series are BRL5 billion. Now there are some other highlights for this quarter, which would be the master plan. We have 437 people apply to the PDC until June with a cost of BRL170 million an annual savings of BRL181 million. We've seen a few people leaving the company, some layoffs, but we're using the resources in a better way. We also have financial discipline. This is shown by the BRL244 million of cash flow for sales from the special purpose entities. This started in the previous quarter last year. Last year, we had BRL250 million approximately that entered. And the distributors now we've seen the net patrimony of CCEAR in BRL1.1 billion. I'm going to show you some more details about that, about the Amazonas distribution that was transferred in April last year so that's what started the reversal in the second quarter. And we've also had resources coming up…

We are having technical issues. Our CEO is in New York and apparently he is having technical issues with the phone call. Please wait a moment. Our CEO has reconnected. You have the floor, Mr. Wilson.

I was talking about Slide number 11. I mentioned the EBITDA variation, a small reduction there. I also talked about the financial results, I talked about the negative impact in the managerial table here. I talked about Eletropaulo, the Eletropaulo agreement that brought some benefits. And there was, as I said before, the fair value adjustment in RBSE. There was a reduction of BRL150 million because of the NTN-B variation. And there was, as I said before, the company to bonus holders. With all that, we've seen a result -- by the way, I also highlighted what we had with Amazonas Energia, which is going to be transferred in the second quarter. That is going to change our -- there is going to have an impact in our asset variations. And we're reporting as well the reversal of the negative PL of BRL859 million in Ceal and a profit of BRL94 million. So with all that, as I briefly mentioned before, there is a net income here of 178% increase and on the managerial side we see that it is 1.8%. So there is this impact of 15% but we're comparing here both years. This is a very positive result. And now I want to talk about revenue, EBITDA and net profit in our holdings in our companies. Well, overall the gross revenue went up 9%. I like to see this -- all of these aspects here to the left and to the right. There are some indicators that are recurring and that we can easily compare. And in the middle here and to the right we have a comparison with transmission and some other revenues as well against the previous period. Now here we have a change of 21% in generation, basically, we have three main improvements Amazonas GT…

[Operator Instructions] Our first question is from [Guilhermo] from Santander.

My question is about the rationale for the 30% in Ceron and Cepisa, and if we consider is that it's going to be the same decision for Acre and other contracts, or if you're going to assess them individually?

You see for every day, we have a value coming from loans, consolidated loans, and that could be converted. 30% is because of the business plans that are shared by the new owner, they are shared with us. So for each and every case, we're talking about a different business blend with a different value, so that has to be assessed by Eletrobras. Naturally in the case of Cepisa, since it was the first operation, it was the main one, where we started with a review tariff and there was an assessment then especially for them. So the conclusion is that, in the current circumstances, we had met our target. We submitted all that to the directors of Eletrobras for yet another assessment, and we established a few rules to continue with the business and to participate in the project. But in no case did we find a different perspective, mainly that's why we didn't convert every event into participation. One more thing about that question. Every project, if you remember, every project is a specific thing. And every company has their own behavior with increases and reductions. So everyone has to present a business plan to us then we assess the business plan. We assess the assets are worth the investment or not, but basically now we're focused on generation really, so we have to see if the perspective is positive or extraordinary especially for compensation. And it's not what we could observe in what you mentioned. So we don't convert every company, it depends really on the finance haircut.

We are having technical issues one more time. We are expecting our CEO to reconnect shortly. We have the floor again.

Just about what I was saying, I was answering [Guilherme's] question. So along with the administrative committee, we established a few rules to define if it would be worth the investment. And with the assessment of the specific case, we did the assessment of the business plan that was submitted, and naturally since there was a more important finance haircut, we couldn't find the ideal rate of return that was superior to what we had established. So in that occasion, we thought it wouldn't be interesting to continue with the process we had. Very qualified investors, in the case of Equatorial and some other private companies, we thought it would be more interesting for us to be creditors and not so much a different player in the process. So this is the rule that we established. It has to be a superior rate of return and we're going to reassess according to the timeline that we have in the privatization process.

Mr. Ferreira, I just wanted to know something about the debentures. I think it wasn't completely clear.

You want to know about the debentures? We couldn't hear the question. Elvira is telling us that she couldn't hear the question. We're just going to check if it is possible to repeat the question. Yes, he is asking about the use of these debentures.

We still haven't finalized. We haven't finalized the operation. We have to see what's going to happen after it's concluded.

Is that clear, [Andre]? Well, I think it's important to make that clear before we launch the operations in the market. I've been in the market for 30 years. And I mean the operation has been released already, so the declaration has to be public beforehand. Not after you have concluded the operations, you have to actually communicate the market beforehand. I think you can probably imagine what the result is going to be, you can see the operations that we have, the amounts that we're using.

Our next question is from Carolina Carneiro from Credit Suisse.

I have two questions. First of all, I would like you to tell us on the continuity of the investment plan of the company in terms of the minor company sales, and when we're going to resume that plan that investment plan? And also, about a partner for the development of Angra 3, for the electro-nuclear generation -- energy generation. I think I wanted to know when we're going to have that model ready, and when we're going to have that become a reality for the partners.

About the investment plan, I quickly mention that we want to submit the investment plan to our administration committee by the end of the year. And if that is approved -- by the end of the month, actually and if that is approved, the idea is for us to sell the 45 SPEs -- remaining SPEs by the second semester of this year. We want to use the Bill 9188, as I said before, which is normally what regulates the sale of minor participations or minority shareholding. Now about Angra 3, in May, we're going to share -- we're going to be sharing the results of our market sounding. And the goal is basically to select the potential partners and understand what kind of society model would attract each and every one of the potential partners of Eletrobras in Angra 3. So that's going to be shared after we have the final resolution of the governance. Our perspective, our expectation is that we're going to have this model -- this corporate model defined by the end of this year. So we'll have a new partner in 2020 and continue with the construction.

[Operator Instructions] Eletrobras informs that we have time for one more question. We conclude our Q&A session. We'll turn it over back to Wilson Ferreira Junior for a few final considerations. You have the floor.

Thank you. Before I thank, this first quarter has been good, it has shown us what Eletrobras is going to, to be now focused on power generation. Of course, there's a long way ahead of us, we still can improve our efficiency we can implement other strategies. I wanted to highlight governance here. We've seen a new Board of Directors being elected or re-elected. We have a very good situation in this regard. We're also focusing on meritocracy and we're on the right way, the right path to improve efficiency. Now we have to focus again on power generation, we have to focus on operational excellence, and we want perfection in governance and compliance, that's our commitment. We need a very good action plan to make sure that, that is implemented. And that action plan is going to be approved by the Board of Directors to be -- to start with it in 2019. The challenge is to continue gaining more productivity and efficiency and to conclude all the initiatives that we have ongoing. This is how we are going to recover to our full capacity for personnel, for capitalizing all the opportunities. I would like to thank you all for the questions and for participating. Thank you.