Companhia de Saneamento Básico do Estado de São Paulo - SABESP

and volume expansion with partial offsets from FAUSP and MIX. Volume growth contributed 3.5%, supported by 1.5% from new connections for the aggregate of water and sewage. Additionally, we saw 2% in increased consumption in the quarter, despite slightly lower temperatures in Sao Paulo State in the period versus last year. As a reference, historical consumption increase in the past three years for Q2 has been 3.2%. Breaking down the revenue dynamics, average prices rose by 5%, largely due to tariff carryover in April and May from May's 2024 tariff cycle. While in June, we saw a tariff decline driven by July 2024 1% tariff decrease. In addition to that, we also continue to benefit from the removal of these comes to the first cohort of large clients with prices rising an average 47% versus Q4 2024. As mentioned in Q125 call, we have also terminated more contracts and we'll start seeing the benefit of them throughout H2. On the mixed topic, it was impacted by the growth in the number of subsidized residential units. notably with the expansion of clients eligible for discounts. In July 2025, we saw the approval by the concession of the extension for 18 months of subsidies to current clients that do not fit the CAGI-ÚNICO rules and the introduction of a new intermediary discount class called Tarifa Paulista, which will further help consumers in vulnerable situations. EBITDA growth was driven by price and discipline in cost control, On the cost front, we have been communicating that we would be changing the conduction in legal claims, outsourcing an important part to specialized external counsel and implementing settlements. This has contributed about 200 million in EBITDA year-on-year for this quarter. Deep diving into personnel, expenses fell 10.3% year-on-year despite a 5.5% increase derived from the collective bargain with our unions. This was mostly driven by an 11% reduction in headcount from 2023 and 2024 voluntary dismissal plans, which have been substantially captured in June. These measures are part of our broader efficiency strategy. Net income rose 77% year on year, reaching 2.1 billion. The key drivers include the financial asset bifurcation, lower amortization from the extended concession agreement, and the interest and monetary correction driven by the reversal of legal accruals I mentioned before. This was partially offset by lapping a prior year lower effective tax rate. Going to one of our most important commitments and a fundamental pillar for our next five-year strategy, CAPEX totaled $3.6 billion in Q2 2025, a 178% increase year-on-year and a 26% acceleration versus Q1 figures. We're ahead of schedule on our 24 and 25 view factor targets with water units target already met and 86% of sewage collection and 51% of sewage treatment delivered. To bring more color to the financial figures, our main programs include Integra Tietê, Coastal Works, and São Paulo Metro Region, among others. As an example, we're increasing treatment capacity by 68%, adding 17 cubic meters per second across our top five sewer treatment plants, like Barueri. Our leverage continues to be under control, with no effective exposure to currency, given our foreign-denominated debt is fully swapped. We close July with four years of debt amortization in cash on hand, which we expect to deploy throughout the next months as we advance the CapEx agenda. 53% of our debt now matures from 2030 onwards, improving our long-term profile. Key financial ratios continue to improve. ROIC reached 13% and ROE 15%, while net debt to adjusted EBITDA remains conservative at 1.9 times, reflecting the strength of our balance sheet and operating model. Finally, a quick update on the tariff cycle as we had many inbound questions. We have submitted to our SASP the data for our 2024 RAB and expect to hear back by end of September, after which we will have the final tariff adjustment by December 1st. This will become public information and be effective by January 1st, 2026. The main topics of that iteration will be the net additions to the RAB 2024's pass-through expenses, compensation adjustments from the last 2019-2023 forward-looking cycle on non-executed CAPEX, adjusted 2024 histogram, and the contractual amendment signed in December 2024. I will now pass the floor to our CEO, Mr. Carlos Piani. Piani, the floor is yours.

Thanks again, Daniel. Let's now move to the next session of our presentation and review the highlights of our focus areas. Starting with slide 18, our strategy remains focused on three priorities, meeting new concession agreement challenges through faster universalization and regulatory compliance, raising operating standards in quality, reliability, and customer service, and boosting financial efficiency while strengthening people, technology, and processes for long-term success. Now, turning to slide 19 and our latest operational updates. CapEx execution continues to accelerate. In the second quarter, we invested 3.6 billion Hais, bringing our last 12-month total to 10.6 billion Hais. Our backlog now stands at 35 billion Hais across 542 projects, which are scheduled to be executed until the end of 2029. On the regulatory side, we've maintained our positive track record. Around 70% of injections from large clients related to legacy discounts have been overruled in our favor. This remains one of our main initiatives to close the revenue gap. Operationally, we've seen significant improvements in the client service front, quarter over quarter. 18% reduction in complaints about water shortages, 23% reduction in water leaks reported by the population, and 42% reduction in the average time for pavement restoration. On the energy efficiency front, we commissioned 32 photovoltaic plants with 44 megawatt peak of installed capacity, which we expect to generate annual savings of 44 million has per year. By the end of 2026, we expect to increase the total number to 44 plants with 60 megawatt peak of installed capacity. On the commercial front, our metering upgrade program is starting to gain traction with 225,000 new units installed in the quarter, 10% more than in Q1. In addition, SatVestia recently signed a 3.8 billion hash turnkey contract that will cover the replacement of 4.4 million meters with smart IoT enabled units by 2029. A landmark move in leveraging data, accuracy, and advanced infrastructure capabilities. One of our most important goals on the commercial front is to protect and secure our revenues. In this regard, we became the first utility in Brazil to operate with automatic PIX payments, that is, recurring PIX transactions. We also began operating with smart POS machines in the field, and in May, launched our customer service channel for WhatsApp. This new channel is already delivering promising results, which I will detail on the next page. And in the cost management front, ZBB initiatives deliver concrete results, centralization of global maintenance contracts, craft of a legal settlement strategy to streamline legal processes, optimization of chemical use, improvement of meter reading processes, and prioritization of pump replacements. This leads us to slide 20, which focuses on our technology-driven customer service initiatives. Our recently created customer service WhatsApp channel has now handled over 3 million conversations and collected 96 million highs, with an average satisfaction rating of 4.52. We're proud to be the first utility in the world to process payments through WhatsApp using Meta's proprietary technology. We've also expanded digital service, adding second copies of invoices, facial authentication, pics and credit card payments, and conversational AI, bringing faster, more personalized, more accessible customer interactions. All these results were achieved in just the past 60 days. Our new smart POS enables payments directly at the customer's location through PIX or credit card in up to 24 installments, helping avoid immediate disconnections, providing convenience, and ensuring secure, fast, and inclusive transactions. Finally, on slide 21, let's reflect on our first year post-provenzation. As mentioned by Daniel, our universalization targets are progressing at an accelerated pace. In total, over 1.3 million people gain access to water, 1.4 million people gain access to sewage treatment in this first cycle. Now more than 5 million people benefit from affordable tariffs, including the new Tarifa Social Paulista. And our CAPEX program has induced the creation of more than 7.5 thousand direct jobs in our construction sites alone. In summary, the second quarter demonstrates that our transformation is on track. We're scaling infrastructure, improving service quality, enhancing customer experience, strengthening our financial position, and delivering tangible social and environmental benefits. That is all for now, but before we move to the Q&A session, there will be a one-minute video that we would like to share with you. Thank you.

It's been about nine to ten years since I moved here, and the situation here wasn't very good. It was mud, it was... There was no basic sanitation, we passed some tests here. We already started with the social rate, so for us it was very good, right? Because of our monthly earnings, which is a minimum wage for a family of seven people, it's very complicated. If you don't know how to distribute your income, you'll go through a loss. So having the social rate for us is important, it's interesting. We save on the social tariff, we complement the food, we complement the other monthly expenses we have. It's a benefit that brings us comfort.

Thank you. We will now begin our Q&A session for investors and analysts. To ask a question, please submit it via the Zoom Q&A, informing your name and company. Our first question comes from Luisa Candiota with Itaú BBA.

Good morning and thank you for the opportunity. So could you give us more details on the OPEX performance this quarter? We saw basically all cost lines showing a significant reduction on both yearly and quarterly basis. So I'd like to understand what we can expect going forward in terms of recurring level, not only looking at the personal expenses, but also third parties, materials, and mainly in general expenses. That's my first question. And secondly, if you could also provide more details on what you mentioned in the beginning of the presentation regarding the evolution of the social tariff and its potential impact in the coming quarters. That's it from our side. Thank you.

Thank you, Luisa. Daniel here. Thank you for your questions. Talking about the OPEX, right, first. Look, we have a mission to invest 70 billion reais in the next five years, which is more than the company. And if you think about that on a yearly basis, thinking about 14, it's more than what the company generates in terms of profit up until 2024. So the efficiency program that we're putting in place is an important part of how we source that money to invest. So looking at all the lines, and no line is not subject to questioning here as we do that job. So when we think about all these lines, right, so the first one being personnel, this one is a reflection of the voluntary dismissal plan that we've executed in the late 2024, early 2025. As we mentioned in the last quarter call, we saw a lever's curve throughout the first half. So we saw a positive effect from that, almost 70 million reais, give or take. In the remaining lines, like we've been communicating to the market right there is no one silver bullet there are many many many initiatives that we're pursuing um and when we think about them uh we're starting to see a combination of them coming to fruit uh and and we'll see that those initiatives ramping up or ramping down depending on how they progress. So we'll see impacts on all lines. On power, we've been increasing our percentage on the free market. For example, we're above 70% on the free market today on our consumption as of June. So we're really making progress on all fronts. There's one specific item that we've highlighted as well, which is the reversal of legal accruals. As we've been communicating proactively to the market, as a company that is no longer an SOE, We have more degrees of freedom to operate inside this line, so we are able to make settlements proactively, we're able to outsource the conduction of legal claims, and so on and so forth. And these are starting to bear fruit, as we saw in Q2, and we expect that to continue helping in the future. So when we think about the expenses, we try to avoid giving guidance, right? But in the end, the sense of urgency is here in terms of how we materialize the cost savings and initiatives that aim to improve the efficiency of the company. When we think about the mix, right, which is the Cadastro Único, right, let's rewind the movie a little bit. When we think about the company last year had a mechanism whereby it gave discounts to about 900,000 economies and in October, the company adopted the Cadastro Único eligibility criteria, and we had an overlap of the two mechanisms up until the end of November. So when we did that, we reached almost 1.4, 1.5 million economies in discounts. And then when we turned off the old mechanism for discounts, we saw that dropped to about a million and change. So we saw that there were a lot of people that still needed those discounts that were no longer legible to them with the new Cadastro Mônico rule. So what we did at our own expense, at your expense, at the shareholders' expense, was to give these discounts and to communicate to the concession that need. And throughout the first half, we saw about 1.5 million people economies that were eligible for discounts when we kept both criterias in Q1 and almost 1.8 million economies in Q2 as we communicated in the release. So when we look at those two figures and what happened later on, which was the approval of Tarifa Paulista, and the extension of 18 months for discounts for the clients that are eligible to vulnerable and social tariffs, we saw in Q1 a 40 million mixed impact incremental to the CAGIU Unifu criteria, and we saw 130 million in Q2 incremental to the CAGI UNIQLO criteria. So in total, the company invested 170 million in the population for the first six months that are now from July onwards going to be compensated in the tariff cycle. This is going to happen, just to make sure that timing is right, this is going to happen in January 2027. when we issue the tariff cycle with the market of 2025, which is going to be in 2026. So just to keep in mind. That said, when we look at the financials of the company in the second half, we'll continue to see that impact, but this impact is going to be compensated in the tariff that's going to be effective January 1st, 2027.

Very clear. Thank you.

Our next question comes from Juliano Ajegi with UBS.

Hello, guys. Good morning. So my question is about the universalization CAPEX. So Subasp has a target of over 1 million new sewage connections for the cycle 24 and 25. However, by the second quarter, only about half of the target has been delivered, implying that the company would need to complete 5,000 new connections in the second half, which is three times the pace achieved so far. So we understand that the sewage treatment connections might be delivered in large blocks as a treatment capacity is expanded. So two questions here. Number one, so first, if this explanation is correct, and second, which projects still need to be completed in 2025? What percentage of completion has they reached? And when are they expected to be delivered? Also, guys, if I also could do another question, I would like to have more information about the the materials reduction of the effects. Okay, so two questions, materials, and the first one about the Catholics of universalization.

Thanks for your question. I'll take the first one. Daniel, I'll take the second one. So we have basically three types of goals, water coverage, sewage collection coverage, and the sewage treatment coverage. The treatment, the last one, is the most challenging one because we need to expand our treatment capacity to treat units already connected to the sewage collection network. We're more advanced than what we imagined for this time of the year. So we're not concerned about this challenge about the 1 million. We're roughly 18 months on because our target started beginning of 2024. Our goal is measured by the end of 2025. We still have roughly, based on the data that we have provided for the end of the quarter, 500,000 units to be connected. And we're above pace. We're going to probably reach this only on the fourth quarter because, as you mentioned, we're going to connect by bulks. So give me a little bit more detail. This is going to be concentrated connecting units in the northern part of the metropolitan region of Sao Paulo, namely Guarulhos. We have 15 projects that concentrate most of these units that are going to be connected by year end. you're gonna see this evolution based on the transparency agreements that we have signed commitment with the concession contract. So we're gonna publish this through time. But I will tell you, I'm not concerned of this, but it's gonna be at the very end. So we have 15 projects located in the North, north region of the metropolitan region they're going to provide us these 500 000 connections and take into account as well that we we're facing even better on the water and the sewage collection targets these connections will also provide material to to this other target so every new connection of sewage collection in an area where sewage is already treated becomes an additional unit for sewage treatment. So we're advancing on the two fronts even if we reach the target we're going to go over and above because this will help the treatment sewage go as well. Daniel, the second part.

Sure. Thank you, Juliano. In the materials line, specifically for that and for chemicals, what we've been doing, right, Sabesp was formed 52 years ago as a union of many companies. And for many, many years, we still had, and Deborah says that we still had the Sabespinhas, which was The units had a lot of operational difference and freedom, and there was little standardization as an operation. So what we've been doing, right, we've named two different roles here. We have a head for water, a head for sewage. And we've started standardizing how we work across the network in terms of how we apply materials and how we do things. and we're starting to see the fruit of that. In parallel, we've also enhanced our procurement team and we have less constraints as no longer me and SOE, also to operate differently in how we do the procurement and so on and so forth. So I think it's a combination of the two things that is starting to show results and to help us drive better savings.

Okay, excellent. Piano, just one question here. Yes, so the company will keep the capex space of 3.5 billion reais per quarter?

Juliano, I think... Probably yes. Probably the profile of the CAPEX will change through time and we're going to see minor differences on the level of CAPEX. We started, the first thing that we did was the expansion of the big, the largest sewage treatment plants to deal exactly with the treatment goal that you mentioned. Through time, we're gonna finish those expansions, and we're gonna have shorter cycles of CAPEX, usually making smaller connections in the countryside of Sao Paulo. So we're probably gonna see a change of the profile of the CAPEX, and probably maintaining the same level. That's my educated guess today.

But I think just to present, I think the law of the average is a good application of how you think about our complex for the next five years of law of the average of the bike water. So I think it's a good way to think.

Okay, excellent. Thank you very much.

Our next question comes from Guilherme Lima with Santander.

Good morning, guys. Just a follow-up in the OPEX question. Just in the general and administrative line in the sheet, you have a negative $50 million expense. We assume this line was impacted by a reversal of provision of $200 million. Is that correct? can we expect this line to come above 200 million negative 200 million from now on in the first quarter 25 it was close to negative 216 million uh it is just to help us to have an idea what could be a recurring level for this general and administrative line in the sheet and the the second the second question is in the bigger consumer startup discounts, you reported 111 million gains in the quarter with few discounts. In the first quarter, 25, it was 100 million gain. Closing first half, 25, with a 211 million gain. Can we expect the second half, 25, to have a similar gain with the first half, 25? we should see this gain accelerating from now on and what could be this gain in the second half of 2025.

Good question, Guilherme. Thank you very much. Look, talking about the expenses first. On the expense front, yes, you have 200 million reais reversal of legal accruals. And on top of that, when you compare year on year, you also have lower municipal funds. for about 100 million reais, which are driven from the fact that we've anticipated the municipal funds last year. So we will see less of that. If you look at Q1, you see the exact same number when you think about year-on-year effect. So that's point number one on the expense. On the revenue, we've... We've removed the discounts from our first cohort, which was at the end of last year, and we're seeing the benefit of that in Q2, and we saw some of that in Q1. We're at the running rate here. We have some injunctions that were filed that we're still fighting in court, but this is a small amount. What we've done, and we've communicated that also at our Q1 call, we've also removed discounts from more clients, from the majority of the clients. But these also had a cure period of how long it will take the discounts to actually be removed. So 60 days, 90 days, 120 days. So as we go and as we have the measurement cycle, the metering cycles from our readers, we'll also start seeing the capture of the second cycle of this country moving until the end of the year. So we'll see a ramp up of that in the second half. That's our expectation as of today.

Thank you, guys.

Our next question comes from Daniel Travitsky with Safra.

Hello, guys. For the opportunity, so I have two questions. First, can you give us more information on the reasons why we had an increase on delinquency rates in this quarter, just to understand a little bit more? And secondly, if you could give us more details on the initiative of smart metering agreement you have closed this quarter, it would be very nice. Thank you.

Great, so maybe I'll take the first, you want to take the second? So with regards to allowance for doubtful accounts, last year, we had about 60 million reais in terms of deals or settlements that we made with delinquent customers. So year on year, you have that effect that's explaining more or less half of the year on year difference. On top of that, we've also had the tariff increase that also helped increase a little bit the delinquency. But more than that, remember that I mentioned about the CAD Unico that we removed the discounts in December and January from a lot of the customers. So we're actually seeing that effect now. So these customers were rebuilt and re-invoiced later on. So potentially we'll see a change in the profile in Q3 due to that. But this is just the lagging effect of that. Okay, so those are the main three drivers for that impact.

Regarding your second question, first, let's set the stage. We have the obligation, according to the new concession agreement, to provide smart meters in the city of São Paulo and São José dos Campos. At least on these two municipalities, this is an obligation, and we have the degrees of freedom if we choose to do so in the other municipalities. So after we got here, we're in Sylvester for 11 months now, we went out on a journey to understand what type of experience existed around the world regarding smart meters. So we went to Europe, we went to We went to Asia. And based on this investigation, we chose a technology based in NBOT. It's a type of technology using some of the spectrum of the wireless companies. We also took the decision to go to meet this obligation through a turnkey project, because usually there is a... there was a discussion about the responsibility when you have problems about the carrier, the telecom carrier and the manufacturer of the meters. So we took the decision to have only one point, major point of contact, that's going to be the telecom communication company. So that's what we did. So we're very excited with the deal that we struck with Vivo, Telefónica from Spain. They already rendered this similar type of service in Spain for the water industry. They rendered this type of service in the UK for the electricity sector. So they have experience providing smart meter technology to other utilities. They're going to be responsible for the rollout of this obligation. We have pre-negotiated with some meter companies to provide the meters, and they are going to be built directly to SABESP, so they're going to be incorporated to our regulatory asset base. But all the interaction is going to be done through Vivo, and they're going to be responsible for rolling out this. We're probably going to bring other metering companies from around the world to help us meet this target. So we have a couple of... foreign companies interested in this contract as well to help us meet the 4.4 million unit targets that we communicated to the market. So basically this is the relationship. Part of the amount of the 3.8 billion that we mentioned, most of that amount is related to the meters, but there's also a fee to be paid for the communication, the setup, the software, all the connection that's gonna be set up by Vivo. And they're going to guarantee the lifespan of the meters that remain around 10 years. Okay, that's the regulatory lifecycle of the meters.

Thank you very much. Okay.

Our next question comes from Artur Pereira with JP Morgan. You can open your microphone, sir.

Hey, good morning, guys. So, two questions on the tariff review process. First, on the timeline, I think that it differed a little bit from the expectations that we had and also that investors had regarding the public disclosure, right? You mentioned that the only public disclosure would be the final review by early December. We were expecting something at least in September or October. And the main question about this is why not a public hearing process, right? This is usual for any regulated utility, especially in a process in which we will discuss a new methodology about the financial compensation for the CAPEX that were included in the contract amendment from December. And wouldn't this be a risk of friction from consumer associations, et cetera? And the second, as Daniel mentioned, out of the three main drivers for this tariff review process, one of it would be the initial compensation for the capex not executed right in the previous tariff cycle. Could you provide any kind of details or expectations about how much capex you didn't execute or at least what could be the best way to look at it. We know that there could be some differences between the capex reported and also how the regulator assesses these capex in the tariff review. Thank you.

Thank you, Artur. I think what we tried to do here was just to give visibility of what's already embedded in the contracts. A lot of investors question us, what's the roadmap, what's gonna happen? So what we provided today is the roadmap that's agreed and it's described in the conference. What's described regarding the RAB is that we're gonna have, we submitted already the 2024 RAB by the end of May. And the regulator has until the end of September to provide a final number to us. We still don't know if it's going to be confidential or not. But my personal opinion here, and we're going to live this first cycle. If this is the definitive, probably I'll make the case here to make it public because I'm not going to hold a final private information statement. probably it's easier to disclose this information. So this we're going to see how this is going to play out in September. In October we're going to receive the number that's going to be embedded on the tariff increase next year so we can apply appropriately in the first of January of the following year. So this is the mechanics. There's a couple of things that we are going to learn together with SASB, okay? I think the second question that you mentioned is regarding the change of the methodology regarding how the RAB is evaluated. We're going to have a public hearing. I think this is a little bit behind schedule, but my understanding is that we're going to have a public hearing regarding this issue as well. where every stakeholder will have an opportunity to make a voice and express their opinions about the proposal that the regulators are gonna make. So even us, we're gonna make comments and see how we see the proposal of these changes. So I don't think this is... I think this is part of the process, and it's still going to happen in the due time. That's my two cents. Do you want to take the second one, or do you want me to take it?

No, no, that's fine. I think with regards to the adjustment based on the CAPEX not executed on the last cycle, or the old methodology, if you want to say, the forward-looking methodology, yes, this is one of the items in the tariff review. We're not disclosing publicly what we think the number will be, Because this review is not a full-sum review, it's just an incorporation of RAB, right? But we'll see that together with the result of the tariff review. There should be no big interpretation here. That's at least our expectation, to be very technical.

so usually on these technical items just one final comment uh there's the regulator gives a preliminary number where we have the the opportunity to question and challenge some of the positions so even us we we have an estimate but this is not final okay so that's that put us in a position that it's it doesn't make sense for us to disclose this number but for sure there's a gap on that number that's going to be considered on the repositioning of the tariffs uh for next year and when we have definitive numbers i i think we'll work to make these numbers public as soon as they're final okay

Perfect. No, this would be super important. Okay. And just one final question about this financial compensation for the previous cycle. Besides the CAPEX, is there any line in the previous financial compensations? There were also some adjustments for other revenues and concession fees or the CAPEX should be the bulk of it.

I think the CapEx is a large bulk of it. Yeah, but since we're new here, we're looking at everything that happened in the past. There's positives, there are negatives. We're trying to make an inventory of everything that's on the table. And probably we're going to make a proposal considering 100% of this, okay? That's usually the case. And it's also usually the case that you don't get everything, right? So, but we're trying to raise everything that makes sense for Sub-S to make a plea with the regulator. And we're going to do in the due process before the November final position of assessment.

Got it. Thank you very much.

Our next question comes from Bruno Amorim with Goldman Sachs. You can open your microphone, sir.

Hi, good morning. Thank you for taking my question. So maybe for Piani, you know, now that you have been running the company for roughly one year, you know, what's your assessment of the opportunity at Subesp? You know, where did you find even more opportunities to create value? And what are the areas where the challenge is bigger than what was initially expected one year ago?

Thank you, Bruno. I think the opportunity, it's very, I think Sabesp is one of the largest companies in the world. So it's an opportunity for me, for Daniel, for Tiago, for everyone who's being part of this transformation. I think we have evidence that every day that we have many opportunities. I think the opportunity What we didn't imagine is how heated was gonna be the economy of Sao Paulo, right? I think the governor has promoted many, many investments in the state. So there's, it's a heated demand for services, for people, for the workforce. I think this we didn't envision. Our challenge has been to balance the efficiency gains that the market always tries to get a commitment from us where we want to get to with the annual targets. Remember, we have annual goals, specific numbers that we we need to get to independently of the savings and so forth. So we need to balance these two things. And I think we have done so far a great job. Still early days, but I think I'm very excited what we have done so far with very little friction and negative impact. So I think we're good in that front.

Thank you. Have a good day. Okay. Thank you, Bruno.

The Q&A session is now over. We wish to give the floor back to Mr. Carlos Piani for the company's closing remarks.

So I'd like to thank you all for the questions, for joining our call today. We understand that Sylvester is delivering on its commitments. I think we gave very robust strides towards the universalization. A big pent-up demand here in the state of Sao Paulo. We're improving service quality. We're strengthening the financial and operating performance at the same time. I think we're very excited what happened so far and optimistic with the future. Thank you for your ongoing support and see you all on the call for the third quarter results. Have all a nice day. Bye-bye. Thank you.

Sabesp, Ernie's presentation is now closed. Thank you very much for your participation and we wish you all a very good day.