Ladies and gentlemen, thank you very much for waiting. Welcome to the teleconference of Eletrobras. Well, to talk about the results we head into Third Quarter of 2018.

We inform you that everybody will be just listening to the teleconference throughout the presentation, thereafter, we will start the Q&A session and more instructions will be made available. We remind you that this presentation is available in PPT in the website at Investors Relations in our Eletrobras [Operator Instructions].

Before we continue, we would like to highlight that anything that might be said during the conference call regarding the perspective of business of the company's projections, operational goals, and financial goals are beliefs and premises of the Directorship of Eletrobras, as well as information available currently available or based on information currently available for the company, by the company.

And there is risks and uncertainties and therefore we depend on circumstances that might or might not occur. Investors have to understand the economic general conditions and other factors, operational factors might influence end results for the future outcomes. Now, I'd like to give the word to Mr.Wilson Ferreira Junior, President of Eletrobras.

The floor is yours?.

Ceron, Cepisa, Acre, Boa Vista; these are 3600 employees were are transferring, they enroll to their new private operator. We are transferring R$700 million in payroll and when we look at this, where we were before the prioritization of Amazonas. While looking at the company of -- the start of the company, we already decreased 18,000, 82% less.

Now in payroll, we removed from R$6.549 billion, we removed with this transfer R$2.156 billion or 33%.

There is still free bricks here, the privatization of Amazonas estimated for 2018, 1,700 employees; the privatization of Ceal with 1,200 employees, 1,266; and we still are going to do for the PDC the second part but we have a potential of reduction of another 2,281 with a personnel R$3,660 in payroll, we are getting close to the goal we went over the half and we went to get to 12,359 with a payroll that is less than half of where we head.

Same thing on Page 25; what have we done with Material, Supplies and Others.

So, we have for example, rent, the company Eletrobras is going on the 23rd to unveil a building, we're going with the last people, we basically have 700 people there and this -- what we have in Rio de Janeiro, this building -- with one building we have a reduction of R$2 million per month.

So with the rent, insurance, traveling, safety, drivers, we removed CELG with R$650 million, management initiatives R$376 million. The privatization of the 4 companies gives the new private operator, R$863 million.

Every semester, we have the three bricks that we have to continue, R$750 million per month, Amazonas; Ceal, R$160 million; and another management initiatives of R$109 million. We started in 2016 with MSO, 5,086, and we're getting to 2,969, a reduction of 49%. Good, as you can see. Page 26. We are reporting the leveraging, we -- the net debt.

We're getting to 3.3. We will see that we increase the net debt, and this is something that we are going to give to the new owner of the distributors. Remember that we have to increase in debt and some credits.

The bottom line is -- you can see here below the EBITDA, over the last 12 months, without the distributing company, just removing the distributing company, our EBITDA increases because there is EBITDA of the distributors. In a recurring way, it's negative because it had losses. And that they had a PMSO that was higher.

So we increased the debts strategically. I'm concluding this quarter with a net debt that is a little bit below R$20 billion, R$19,975 billion. On Page 27, I can show you the investments of PDNG. We can see here we did, in the third quarter, basically, R$1 billion. We are -- have done more in the second semester than in the third.

We got to R$2,830 billion in the year in accomplishments and over the 9 months. Without compromising our financial discipline, all the works are being concluded. Well, the last two pages, just to show the effects of the privatization of the distributing companies. I want to highlight the data of -- the date that we're going to transfer the control.

So Amazonas, the 27th, and it was suspended by the federal government. Well, this is, what I have to mention, I want -- I remain in your service with my colleagues as well in New York and the U.K. And well, that's it. Thank you very much. I remain available for Q&A..

[Operator Instructions] First question is from Andre Sampaio from Santander..

I wanted to ask a question about the process of Amazonas Energia. We had the news about -- well, a presentational video of resolving this issue. And you might do the liquidation process.

Should the bid might not be successful, could you talk about the -- what the government might do? And the second question about the issue, if Ceal would be approached by this provisional measures from the government..

Well, Andre, we know that we have -- we are the interested party in this provisional measure. However, we share with the government the impact of the provisional measure or the PL77. Understand that there is set. First you get to this point with the privatization of distributing companies.

There is an important agreement that we will have Petrobras, a great deal, a part of the debt. We'll decrease once we have the privatization. So obviously, this is a very dear team to Eletrobas government as well and to consumers.

Of the 6 states, the 4 states we already had privatized and the two that are remaining, they're going to benefit from the investment, the reduction of tariffs and the debts. This is positive and the government from -- with which -- with whom I have interacted, it's fundamental that we conclude this process with Amazonas and Ceal.

I understand that there's an effort from the company with this provisional measure. I don't know how to say this in a correct way, but we need to restore some of things that were there. And I understand that this is being treated in an adequate way by the government.

I imagine that this is an agreement that we are doing with the government and the public interest. So the expectation is that we -- once you have provisioning -- the provisional measures for the privatization. The Ceal, well -- and Cepisa as well, there was no element in these two companies that were in the senate being discussed..

So Ceal, do you have the ruling of the issue presented by Lewandowski, the minister, that it might be privatized? It has legal investments to be privatized..

The legal issue for it to be privatized, Ceal -- this is being hindered, such as discussion that is happening between the federal government and the State of Alagoas. The company has nothing to do with it. Actually, when it was federalized and when there was an authorization for privatized, there is a difference that is allocated.

And in the decision, they requested the privatization of the company. The same issue we see in Cepisa and Ceal, and we see that there was in the concession and the company was privatized. The discussion between the state and the federal government continues.

The privatization that we're doing in Ceal reduces the tariffs, the reduction of debt by RGR of the company, an investment of that was over R$700 million. Everything is good. And we expect that in the case of Ceal that the Superior Court of Justice will allow the privatization of the company.

I'm very optimistic in regards to that perspective and in the conclusion of this issue..

My concern is not having this solved this year and the provisional measure might be to delay this for the next year but that is what I needed..

We are on November 13. The year still has 47 days. I think we will get this done..

Our next question comes from Mr. Vitor [ph] from Brasil Plural..

My question is for Wilson. If the question is personal, so feel free not to answer it. But I want to understand how are the talks of the president? With the new elected government, we have a better visibility in Petrobras and Banco do Brasil.

But we still have not had any news from the media in regards to -- what are the plans in regards to Eletrobras? I want to understand if there is a dialogue, if Wilson will remain in the job? Well, I wanted to you to talk about this, but feel free to say that this is not the right moment to answer this, I understand. That's my question..

Well, it's a good question. At some point in time, we can try and answer it in an organized way. By our calculation, in Petrobras, we've done work that we are sharing with the representatives of the candidates, the situation of the electric sector and the impacts of the electric sector in Eletrobras.

In the case of electric sector, the representatives of the government, Bolsonaro, it was two people that we've -- they've interacted with us. The main one is Luciano de Castro that is part of the team, the transition team. With Luciano de Castro, we've maintained a relationship.

So he has followed up the material that was shared, our challenges to him and all the other candidates. But obviously, now he has a mission, he's analyzing this for the transition group, and he has interacted with us. He talks to me frequently, and I maintain him informed..

Well, if I may, you've seen the formation of the government of President Bolsonaro, the nominated ministers. And from then on, you confirm or not the structures of subordination to that ministry. So the people that are confirmed, ministers, are getting invitations through their internal teams or the companies related with the ministry.

So formally, you know the minister of area will be..

No, I do not know. I do understand that the minister will have the prerogative of having access to the information that we are sharing and to finalize or not the invitation. So precisely, there isn't a formalization of the invitation.

And in regards to what was done with the team of President Bolsonaro, it was positive by maintaining him informed of our challenges and our problems, our concerns, and we've been supported with everything that we've told him. And now taking a look at it from a personal standpoint, you know that we are here to restructure the company.

I think that we are advancing in this process. In the next two months, it will be very important. And if there is an interest in continuing with this work, even with the capitalization process of Eletrobras, of course, I'm interested in continuing my work..

Next question is for -- from Marcelo Sá from UBS..

Two questions. About Amazonas, first. Well, it was an immediate, the provisional measure that will address the issue. Here, we are talking about that Eletrobras would assume more debt from Amazonas to make privatization more viable. To assume more debt from Amazonas is a possibility because I understand that this might change the crisis at the PNDF.

So is that a possible scenario? That's the first question..

So actually, all these companies they were evaluated in June of 2017, updated the evaluation until December of '17. So these are the numbers that we have. The companies had variations. In the specific case of Amazonas, there are two things that impact Amazonas.

Amazonas, there is a need of a specific treatment in terms of cutoff factors that impact the company. And here is the specificity. It had, throughout this period, the process of deverticalization of Amazonas distribution, creating Amazonas distribution and generation. And it has actions that predicted what we have done with Eletrobras.

So that these are processes that we can conclude. What we have here, we're concluding this process. We have debt that has been allocated in Amazonas. And the correspond, they're not owned by Amazonas GT, this is the work that we are concluding.

And we've received questions about this in the data room, and it's important that we take a look at the company. It would be very difficult to sell, but there are things that are not from there, from that company and there are things that are a product of our agreement done with Eletrobras that are now being materialized and determine movements.

We don't have the authorization. There is no implementation of the debt, whether if it's around the assembly that determine the process or whether CPPI 20 and 28, we have to reflect the limits that were established. And now considering the agreements that we've done with Petrobras and the process -- and the company, these debts will be dealt with.

So that's a possibility that we can lead Amazonas with a debt position that is better than what it is right now. And the other actions are the product of what Petrobras has done predicted with the CPPI. We will have this clear until next Monday..

And the second question is, understanding a little bit about the issue of Eletrobras buying the distributors. Well, you've done the evaluation report, and it was a higher value than the report that was published in the case of Cepisa. And so it was close to R$600 million.

So given this evaluation, Eletrobras should have decreased the debt to a stake of 50% in this company. Cepisa, we estimated R$600 million and R$700 million to R$30 billion so you can have 3% stake in the company.

Have you done an evaluation, if Eletrobras wants to be a part of these companies? Or is it too early to say?.

Marcelo, I know Cepisa -- we have a deadline of until 180 days. Cepisa, we had a talk -- last talk -- last week. So now these -- they're being analyzed, these reports and these working papers. Well, briefly, we have to work with a board.

We have a commission with a management board that is connected with strategy, investment and -- the investment and privatization. We will do this evaluation quickly. Now we can only work with Cepisa. In Ceron, we haven't received because we want to transfer the company on these areas.

But until then, it will be an object of our analysis and reminding you that there was an important initiative that we had in the past with Cemar, and we have to see this business plan of the company to evaluate if it's worth maintaining the capitalization perspective or maintaining the debt and not really having the rear perspective of receiving.

But now we have a deadline, and we are working with these new deadlines..

[Operator Instructions] We close the Q&A session. We return the floor to Mr. President, Wilson Ferreira Junior, for the final consideration. Mr.

Wilson?.

Well, I would like to thank you, all of you, that participated in this conference. And I was -- it's difficult to work with a company that had results that I consider bad.

But the important side is the reinforcement that we have in the activities of compliance, they are very tempestuous -- which seems to be very tempestuous with the negative -- and I have -- the unions, I think that this demonstrates the care that the company has given the issues that we've gone through, and we want to provide information for all the markets, especially with the investor, capital investors, this is positive.

Second thing is the perspective. We went through a bad quarter, but we are starting to reap what we sow, a great deal of the work that we've done thus far. We have the perspective of restarting the works in Angra.

And actually, as an engineer, the impact potential of this restart of the work that we are going to have an Eletrobras that something that is making us very optimistic. In the same way, looking at the glass half full, we look here the transfer for the first time of 25th SPE. As I told you, we are in processes of incorporating some.

We have some positive privatizations. To consolidate this result with Chesf and Eletro -- Furnas, Eletronorte and we became the controller, and we are going to create a fit company, and we are going to incorporate that directly for some of these companies. And we have here a positive effect in the next quarter.

And it's important -- well, it's R$1 billion that we have a perspective more. Then, of course, looking at the distributors of CELG D, we sold 5, and we are optimistic that we are going to work in this year. And we have another story. Conclusion of projects. As I told you, we got a lot of work. I remember that it was 29 with Chesf with delayed work.

Chesf, this year, delivered the most finished work in Brazil. Basically, 30% of all the transmission system of Brazil is due to Chesf, and we are very happy that the company is working this way, and we are overcoming our promise. Of course, we have our issues, but we have to take a look at the perspective of the company as a company.

And this is a company that has a capacity to generate results in a consistent way. And our -- in regards to our plan that we have over the next two months, the main elements that will allow us to be more productive, which is the conclusion of RP and the shared services. This company is another one.

The holding is an important agent, and I am very optimistic that Eletrobras will be able to support work that we're doing, that we're delivering and the final stages. And we are here getting to the closure of 18 machines of Belo Monte. We are going to finish Belo Monte next month. And we have good agenda, and you can count on Eletrobras for this.

Once again, thank you, all the investors. And our meeting -- thank you very much for participating in this conference call..

At this moment, the teleconference of Eletrobras is closed. Thank you very much, and we thank you for your participation. Have a good afternoon..