Good afternoon everybody.
Welcome to the SABESP's Video Conference to Discuss the Results for the 2020 Results.
My name is Mario Sampaio.
I am Head of Capital Market and Investor Relations.
Let's start by informing all participants that this video conference is being recorded.
slides www.sabesp.com.br transmitted platform. and by through the accompanied website, the through presentation is over being Internet The the MZiQ
presentation results for as available will the The portal same download well release. all the as be
We the video only to be speakers that remind through the you platform. will accepted questions cast the
approximately hour XX potential from and investors. minutes, and conference questions we will Our answers X will and take minutes and reserve XX analysts
conference they may would industry financial events we that understand to to They be expressed prospects, operating Investors and made occur. business like results depend assumptions Future and in risks, this beliefs may may goals lead from and and may conditions, that statements. refer proceeding, Before should factors such that that assumptions management any projections the affect and during future performance. currently future information differ involve to uncertainties considerations of economic those therefore, conditions or materially the clarify as general to available relating the results operational Company. circumstances Company's not the on of the Company are not SABESP's of statement and well and may forward-looking for as other that constitute the as guarantees
Accounting; Let have Officer; and Costs. Relations also me our with Agnaldo and Chief of Louis Tariffs start we Head Officer by Accounting, Tiberio, Pacheco, and and Investor Mr. Mr. of presenting colleagues. us Head Affonso, Today, Mr. our of speakers Head Miyagui, Financial Mr. Controller; Rui Marcelo
making some considerations Let the on by me slide. start
get So let's started.
great. Okay,
economy last in for sector like marked sector of below The in economy. as measures a confidence lower agents. condition volatility for one rates, a distancing as led tax of an sanitation reversed crisis number the particular scenario, increasing of condition lower the Company retention COVID-XX to in and of early domestic extended in the marked Company uncertainty, The the and Health any a to recovery water availability were a expenses. outline of prospects that the perceived brief a several arising global contamination delinquency the health began the in make marked inactive the the and double by to analyze collection, by event XXXX that in a regular the economic World a as faced rates number fronts. role credit The on to unemployment generic of invention and not from from results the in XXXX fight for one COVID-XX is recession financial of pressures. supply overlooking crisis empowerment. debt higher reductions these the and SABESP of of go private This essential these supplier on Sebastiana and from an was the we virus against of resulted the virus spread we its in let's by an in the particular will productions before which the -- each saying in external me began hospitals crisis in but here Under situation takes introduction. to the any presented this company of are sharp to Organization's social would with the played country populations We widespread rise to be the revenues start impacted demands, and public pandemic, let a decline double and that scenario year. to high facing results business low essential economic service understand drop events as region were public Company's which structures economic GDP order pump Combined all highly radically uncertain So, created reduce to highlight and the efforts in rates and effects adapt demand quarter another to began by public second according steep which the of to Brazil slides,
asset put First, categories the occur for in most which Company service in overdue And exempted, water people readjustments, attempt Company and residence scheduled the debts the implemented first to and in by famous the also also bills was the situation. social the commercial half installments. million originally furthermore, who in more than pay live half. The to customers of second the category year, their benefited directed Company allows interpreter the social X vulnerable of
of category second as XXXX that are the XX% Well, increase, average but lower residential revenues among but The category. of revenues second categories. quarter non-residential and not water is for Second, saw reinforce mix the households in without to regions. roughly, hospitals the basins voted X.X% we different use boosted enough water mitigate supply these taps as in the operation to wash categories well in distributed affected the quarter the Company tanks for and capacity financial the mentioned, volumes brought lower emergency and public of slightly also infrastructure, surrounding effects the in sanitizing volumes water in the water drop the locations. cleaning to distribution on availability reservation food volume to by the reduced to areas as solid of tanks, and the crisis SABESP areas due which to nations as and build term promoted builds volumes, on drinking residential rose in The assembly. and Company consumption small tariffs change its produced of that the The in the food lacking average
in budgets did that depreciation not then doubtful excluding highly of credit time cost comfort resulted effort to and XXX uncertain to by in be the program was adjustment, impact X% were we and IDB maintain. prescription free the best staff reduce can management and after with markets, issuing estimated the selected debentures and This administrative embedded reduction selling requirements costs, that that to a implemented, the from million So with amortization take loss R$ reductions but added position in with the in to million Simultaneously hesitate accounts. costs, during managed raise expenses, expense, that's expenses and measures actions took billion new scenario, R$X.X X% over This the company's period. to by amount funding its XXX the Company billion R$X.X preserve Invest. a highly and
to in foreign with outflow servicing in At and the of guaranteed XXXX aimed due find in in than Along a and the same overcoming favorable operation million decrease year, XX% by of In conditions the Company's in XX% crisis amount of its our the it volatility. agency, of staff addition, obstacles million XXXX, working out impacts for extent, currency on protocols. population service In Eurobond effect Company a rate we ensure debt with side, on as in remaining BNDES to of strategic on from they also the of on we amount approximately survives XXX $XXX use in debt of year. resulting the we of avoid in amortizations million strict May on exchange XX, September, cash X,XXX and to no delivery health the that terms to debt a frontline engagement mark as result security from for in There customer currency these employees the in was instrument 'XX this more a proceedings. December operational dollar of the insurance supplies. exchange accessing for summary, was legal resilient of XX, standstill directed reduced And payment capital some postpone our in billion last time, XXX financial real R$X.X IDB December the the initiated as were different of was This prepaid of 'XX. last of the that side economy, exchanged to carried actions mature December debt billion. to XXXX, with XXXX, quite markets. an prices an proved home was as possible well where 'XX, exposure with adopting the We FY to the We to be the In at R$XXX million principal debt. terms great because denominated exchange debt. $XXX for in reducing mapped and view denominated the are employees regular interruption on the
of with with restructuring the agreement proposal profitability, approximately let's participate level to technically that, start after see and employee resume the term with the teams advantage robust efforts go also the levels a with the maintenance third they work XXX,XXX. At to of of traffic asses. detailed expectation to We discussion and the an dividend reorganized as Company significantly end investment this supply and guarantee the enter said its time. buy term 'XX. distribution engagement, supply water Management's Also that feature will intensified at increasing for XX, at maintain the population and quarter to process water so contributions Having first municipality projected to results below. Maua City any result, allow and the necessary along to service we on review our low a into crucial burden of take
and year social volume increase Moving sewage, for the X.X% category, see back the the excluding Santo a and to X.X%. increase water X.X% Slide X. develop of Andre X.X% builds We part and which to for giving can exemption in of they was total Maua, for
next Moving slide. the to
overview Let net X, reduction revenue me and XXXX, we in starting X% took Slide let's in On with financials, of here. a back highlights revenue gross some reduction had in revenue. financials X.X%
million, revenue. mitigated see in net XXXX, can one-off million, the the variation R$X.XXX drop the the from in the in distributed XXXX on in was is explained by in this amount comparison, of Maua 'XX, debt amount graph, you which the City R$XXX executive largely revenue million being with in significantly with negative revenue in higher in agreements As construction in effects of of to The gross impacts in revenue. of the X,XXX results compared
which XX we tariff Company's revenues arising is X.X, in mentioned. reduction inflation. average line adjustment the in applied in in in from including the August In expenses. If drop already increased increase X.X%, the in and the exclude offset with the by expenses change the profile If in XX.X% doubtful we amortization also not tariff was XXX% enough from accounts construction the non-recurring for estimated the as loss costs, depreciation in increase and exclude the consumption rate addition, to selling of events, elicited
to non-recurring expenses other variations these includes to be but For the revenue or a retired in with and tax the effects Maua with if EBITDA all grew XX.X%, the million disregard efforts as the Guarulhos reduce just period. X.X%. of expenses costs R$XXX agreements result the events by Due 'XX, decreased the agreements X% the this of the that provision and by by XX we during non-recurring with of and variation reversal actually of which Andre Santo positive in decreased
was profit presented net Finally, of the period lower in the for net XXX the XX% profit the than million previous.
profit with months quarter-by-quarter, against means the the almost last that the dollar. billion year nine a in of generated Next slide year. which five starting quarter on the all the of of in the million ratio the we first XXXX in We we end -- those Company loss that billion from note ended XX% maybe X debt with year XXX X.X that profit, the analyzing of
is obtain, the to brought value given the crisis. in adverse impacts obtained the profit the about are XXXX, good XX% in below profits very economic Although, XX%
to In difference debt and basis the that Mauá. Andre of of Santo one-off high we agreements comparison, the in to the addition, effects XXXX represents related also specifically mentioned due
X.X, losses to increases or million, XXX losses slide, move costs framework XXX for of Let's details relevant rose The other the us. X.X% XX.X%, we the X.X on Depreciation in analysis and of in our of expenses on with XX.X%, and finally X.X%. X.X% in already by or a increase were expenses described sorry tax or increased the million expenses million Well, in million million general variations X.X other XX of related by or can the services release. products them you where electricity of amortization and XX your expenses expenses. or The had personnel reductions, of to or most -- amount of earnings sure XX.X and an discussions, -- value X% also million. and by million loan increased materials six, X.X of XXX% many show XXX for of hand find materials were slide I'm general next million, and estimated XX
Let's slide. next go to slide, now
performance, X.X which the was Net a million in and financial due to after XXX one-off in costs, our XXXX, pre operating the summarizes has the construction explained summarized, central Here revenue impacted and greatly decreased expenses, effects 'XX, far. We construction all by revenue drop billion have of we plus through so with partly and by which was effects show pandemic context. that we the director increased which other agreements, non-recurring average started by economic XXX costs including X.X was costs 'XX the positive revenues by in X.X, including result expenses, operating by million. offset equity billion tariff from
in the XXXX. billion mainly of income due to finally income the lower increased And due Our totaled losses to partly depreciation financial results by taxable results. tax by XXX income the fell X.X net offset million which in contribution R$XXX million
for data relevant all the quarter maintain index. The expenses, and accrued to the per you events That series see. with for briefly indexes would indicators quarterly build as the period slide, we EBITDA hem of by is meter. disclosed financial cubic indicators the and inflation order indicators the IPCA the follow On presented the 'XX and price performance operating the following non-recurrent resulting in comment In show management by first were performance same comparison. basically distort on XXXX. can values our calculated also XXXX quarter base, fourth of since revenue, that next historical average excluding will the adjusted Company The
has fourth the level revenue returning and to previous the quarters terms in stable was below story meter ratio in of tragic fourth cubic build reinforces So per of growth XXXX was of long-term. in cubic in the relation in year 'XX. Operating although per this previous once gradually, average 'XX, to to The meter lower in period. over first increasing also bills the quarter the it relation quarter still gross in per XXXX expenses XXXX. the the index again, same the it's than quarters improved have cubic quarter case, been the meter XXXX. been Last is quarter in EBITDA decrease of for previous that In
the slide. volatility of Talk despite XXXX, able year CapEx, Let's were the that uncertainties and in so maintain value was we expected now move investments level we to to about next the the experienced practically still for extraordinary If value of of from X.X the XXXX, the XXXX. billion. to this In with disregard that total and exceed book of agreement reduces Maua, the of billion. X.X investments effect we value,
billion indeed with on book the can adverse with very commented investments this XXXX, quite value also CapEx of X.X forecasted CapEx billion. X.X increase disregard were even agreement amounts in of XXXX X.X value relation to basis was year in Andre, comparing disbursements with Now of that XXXX in to billion. value billion see last for XXXX If year value X.X we that the We comparing the We X.X we consistent. see XXXX this an drops that Santo cash a the of actual billion billion. just conditions invested such value with value actually X.X can
during period the looking of more crisis. that the to cutbacks Now XXXX, for XX the or in adds water or billion billion the security XX.X 'XX 'XX, at of billion specifically which forecasted water and expression considering disbursement water, forecasted of X.X XX% the XX% investments for XXXX to with
the starts and will more remains which of treatment this that approval and this sewage with than Our with in on only higher currently of year, means and the the 'XX sewage river included be water, already of reversal year in collection investments investing mix XX%. is we collection this completed water,
which first technical not proposed difficult. tariff the held when XX, process, We process On was congratulate build addressing the the tariff comparable cubic measured taxes our like also on been report the technical it public with for the comment the over maximum normally valid, which these other we and a calculated other previous number the what Xth, the structure and were work technical to volume discuss net the to volume, regulatory and or average these by was strong we'd tariffs, the prompts. and After were topics. disclosed results more is in technical performed amount Let's for of X.XXXX of proceeds tax transparency, proposal the on released, the factor, and were addressing hearings the the that per the meter preliminary slides all, us review. and addressing based believe little comparison the that it's February results notes is predictability results, with the released with two way notes the calculations agency now making highlight has conducted makes and
this the here the the the important structure, of tariffs new in everyone the of point draw the in which until shows gradual term aware is Although implementation another for to to beginning cycle. proposal attention of end with wrap-up XXXX,
We understand cover have on Q&A we can in them But hopefully both again, session. that read also later contributions topics. our already you our
emphasize that note studies complete final we final by numbers expected this is Finally, the technical and to our publishes year. April with Xth set
be follow supply distributed situation when have follow interconnection in to to strong the and reduction then would The stress water still of São to the is systems the 'XX, water precisely the analyzing specifically, of some very of to overall, through mining by the Next the continuity go control. system the remembered with series give now, of Rainfall investments increased call opportunity bring storage draw much in from our you water by average. the the relevance these not didn't we would which the weight, we expected, that situation, lower quarter must historical observe water also has to But than reserve. But in technical Slide the for the that Despite last being level the point of the indexes conference remain like in have a an regarding that the systems, metro to sources right at and Paulo the the construction the of reach water system metro idea water the would to region. rainfall we there's water that security July 'XX. comments total below each water can for events region happen. more and progression that candidate to under take availability supply regions third in water we made the metro region
'XX Before of investments while If the made increase responsible more the than of alone for the was was XX% the on security both 'XX, water and average system added XX% weights to to crises Cantareira work region of system the Alto Tiete the demand. included, covered XX% supply.
like you to to to distribution Today comments to this last new and would region, law the approved of well can accelerated March in itself X.XXXX, highlight the to has reorganize is it before brings saw for Congress a we as see It the mode. last sanitation and them The the the law. this and more framework with vetoes as changed. slides, as water sanitation the in compared the no sector that provide grow is With in As concentrated it Q&A stands to to XXth, substantially we makes consecutive today the scenario periods face one an the the should on security more of for go water the we clear much that maintenance session. dry the system year. flexible as would Cantareira less slide, possible
prevent the representing impact for risk total low several mentioned the we only X.XX% at XX-year an renewed contracts Today As that for 'XX. São were the contracts hold removal are a have contract municipality revenue. additional have the of we years that XX valid was insured other average course. been we actual permanent of have our period All vetoes an for of the one renewal August eight approval of is the we contracts times Paulo has XX law the approved until with largest program and before the being secured with
the Well, and actively must public we for various installed a concludes arise For from law. formations to example several uncertainties and other be transition are to the decrees of on result presentation. regulations discussion definition of for approval have continue and that issues regional of this the rules identification arrived monitor must you definition and reason, among and carefully the contracts the our that conditions this Pending that assets the of the rule bloc as discussion.
session. go the Let's for question-and-answer
