Companhia De Saneamento Basico Do Estado De Sao Paulo-Sabesp Q1 FY2021 Earnings Call

Good afternoon everyone and welcome to the SABESP Video Conference to discuss the Results for the First Quarter of 2021. My name is Mario Sampaio. I am the Head of Capital Markets and Investor Relations for SABESP. Let me start by informing all participants that this video conference is being recorded. The presentation followed by the slides is being transmitted over the Internet through the SABESP website and through the MZiQ platform. The presentation will be available for download on the same portal as well as the results for the release. We remind you that the questions will be accepted from the speakers only through the video cast platform. And before proceeding, we would like to clarify that any statements that may be made during this conference, relating to the Company's business prospects, projections, and operational and financial goals constitute the beliefs and assumptions of SABESP's management as well as information currently available for the Company. Future considerations are not guarantees of performance. They involve risks, uncertainties, and assumptions as they refer to future events; therefore, investors should understand that general economic conditions, industry conditions, and other operating factors may affect the future results of the Company and may lead to results that differ materially from those expressed in such forward-looking statements. Okay. Seems no questions so far. Checking. Any questions? Okay. Still nothing. Let's give everybody a little bit more time. Rui, I think your microphone is off. Should we wait a little bit longer, Rui, or would you already take over for it? Rui never takes the opportunity. I think Mr. Affonso has frozen. Let me see. Yes, he disconnected. I think he hit the wrong button, guys. Must be showing up. In the meantime, we wait to see if anybody wants to make some questions. Okay, I think we have one question. Let me check why Mr. Affonso has not rejoined us. I asked my colleagues, maybe call them to see if there's anything happening.

I can call him.

Okay, great. Okay, I see there is a question. Let me, there's one question, but Rui, you're back?

I'm back. I'm back.

Okay. In the meantime, we have a question. Okay.

Right.

Okay. Let me go to the question. Essentially, it's Emmanuel Griffin from Griffin Music. The question is what's the most recent growth opportunity that you find most valuable in the coming months?

Good question. In the coming month – a month is a very short time for businesses like water and sanitation. For us, short-term is seen as up to one, two years, three years. It's not really a fantastic opportunity in one month's time period. In the next few years, we divide that. So many big opportunities are ahead of us, especially in increasing our productivity related to water loss reduction, automation of our plants, and integrating into cell phones. We're using WhatsApp and other web devices to pay, to receive, to make our connection of our bills, and things like that. Basically, automation represents huge opportunities for us to grow, and we are always looking and taking a good valuation on the new concession opportunities. But this takes time, as I said, in water and sanitation, nothing is a huge growth opportunity in just one or two months.

Okay, let me see if we have another question. Guys, check. If we go for yes or no, when we see if there's any new question, a quick question.

Two questions, I cannot see the…

Okay. Look, there's a question here, seems a simple question. Let's see if we can address it maybe. The question comes from Jennings from Robinhood. The question is, has the water also been filtered and cleaned through the water lines you're using? How can we answer that?

Water is cleaned in our water treatment plants, not in our distribution systems. So we clean our wholesale water in our water treatment plants with cleaning materials, chemicals, and we distribute clean water. So you can drink potable water directly from our taps here in Sao Paulo. That's to be very straightforward in answering your question.

Okay. Good. For example, like right now. Okay. Seems there are no more questions, Mr. Affonso. The word is on you.

All right. If there are no more questions, I believe that the IR team has been doing a very good job in clarifying on time all the questions you had in the past or you may have right now. So we are ready to help you and to discuss all the questions you have with Mario, Angela, Juliana; you have our team of IR here in SABESP. Thank you very much for joining us in this first-quarter conference call results. I hope to see you all soon, hopefully in person after this pandemic crisis. Thank you very much.