SBS - Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS) Q1 2024 Earnings Call Transcript

2024-05-10 22:59:08 ET

Companhia de Saneamento Básico do Estado de São Paulo - SABESP (SBS)

Q1 2024 Earnings Conference Call

May 10, 2024, 10:00 AM ET

Company Participants

Luiz Roberto Tiberio - IR Superintendent

André Salcedo - CEO

Catia Pereira - CFO and IR Officer

Conference Call Participants

Presentation

Luiz Roberto Tiberio

Hello. Good morning, everyone, and welcome to our earnings call for Q1 2024. I'm Luiz Roberto Tiberio. I'm Investor Relations Superintendent. André Salcedo is here with us, he is the CEO; Catia Pereira, the company's CFO and IR Director; and Marcelo Miyagui, who's the Accounting Superintendent.

I'll turn it over to André. But before that, I'd like to share some announcements and guidelines. There is simultaneous translation into English, and this call is being broadcast. This presentation and video will be available for download on the Investor Relations website. You can send your questions in writing using the platform's chat.

The call will last 1.5 hours and we'll have time for questions and answers from investors, analysts and journalists. Also, we'd like to mention that there might be forward-looking statements in this reference -- in this call, referring to our business outlook, operating and financial results estimates, and they're based on the management's expectations and beliefs and on available information today and do not constitute any investment recommendation. Forward-looking statements do not guarantee performance. They involve uncertainties, assumptions and risks presented in disclosed documents filed by SABESP. Therefore, they depend on future events and they might or not come true.

So investors need to take into account industry and other operating conditions that might affect future results and might lead to results that are substantially different than the ones presented here.

Now I'd like to turn it over to André Salcedo. Over to you, André.

André Salcedo

Thank you, Tiberio, and good morning, everyone.

So let's have a look at our performance of Q1 2024. We try to follow the adjustment journey of the company and to conclude some steps of the restructuring that we started last year, there are some levels of accommodation for the new shared service center and the new IT strategy. Important to point out, the performance of our engineering operations teams and regulatory team with the support of everyone on the company in defining the contribution for the regulatory model for the privatization process. So we had many debates and discussions, really management invested a lot of time to design a balanced model.

For privatization, also a subsequent event after Q1, is that there was another tariff adjustment with actual gains for the company, which is a result of a good communication with the regulatory agency. And there is technical support to our claims and we've been having very good communication with ARSESP and they understand our needs, and that's why that was reflected in the tariff adjustment that goes into effect today -- actually enters into effect this adjustment....

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