Good afternoon, ladies and gentlemen. At this time, we would like to welcome everyone to SABESP’s Conference Call to discuss its results for year 2018. The audio for this conference is being broadcast simultaneously through the Internet on the website, www.sabesp.com.br, where you can also find a slideshow presentation available for download. We inform that this conference is being recorded and all participants will only be able to listen to the conference during the company's presentation. After the company's remarks are over there will be a Q&A period. [Operator Instructions] Before proceeding, let me mention that forward-looking statements are being made under the safe harbor of the Securities Litigation Reform Act of 1996. Forward-looking statements are based on the beliefs and assumptions of SABESP's management and on information currently available to the company. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions because they relate to future events, and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of SABESP and could cause results to differ materially from those expressed in such forward-looking statements. Today, on the call today, we have Rui Affonso, Chief Financial Officer and Investor Relations Officer; Mario Arruda Sampaio, Head of Capital Market and Investor Relations and Sílvio Xavier, Head of Costs and Tariffs. Now I'd like turn the conference over to Mario Sampaio. Sir, you may begin your conference.

Hello, everybody. Good afternoon and on behalf of SABESP I thank everybody to participate in this conference call. Today we will discuss the full year results for 2018 as well as provide some updates on several important topics for the company. Presentation contains seven slides, after that as usual we'll go through a Q&A session. Let's start on Slide 3. Here we can see a company's billed water and sewage volume which increased by 1.5% in 2018. The greatest growth occurred in the residential category this is quite the changes in consumption habits therefore incorporated by the population doing and giving the water crisis that we went through in the years of 14 and 15. Now move to Slide 4. Here we provide you very quickly some financial highlights. Our gross operating revenue in 2018 increased by 16.6% when compared to 2017, which is going from then in 2017 from BRL12.2 billion BRL14.3 billion in 2018. This increase season mainly explained by the new agreement signed with the city of Guarulhos late in 2018. Leading to a BRL800 million increase in operating revenue during the year when compared to 2017. What also explains, the revenue growth is a tariff repositioning established by the regulator of 7.9% apply since November 2017 and 3.5% since June 2018. Added to this previously and already mentioned, we have also the increase in water and sewage billed volume of 1.5%. As for costs, in 2018 there was an increase of 2.8%, when considering all costs plus administrative and commercial expenses and construction costs. As a consequence of the highlighted variations, adjusted EBITDA reach BRL6.54 billion, which represents a growth of 24.1% compared to the BRL5.26 billion presented in 2017. As for the adjusted EBITDA margin in 2018 we reach 40.7% versus 36.1% in 2017. When…

Thank you. [Operator Instructions] There is a question from Santiago Jariton with EV. Please go ahead.

I'm just wondering if you could share your expectations on MP 868, that's going to be discussed in the senate in a few minutes?

Santiago, just to make sure we understood, you want our comments on the provisional measure 868, correct?

Correct.

Okay, just give me a second here. The provisional measure has in fact several different points with some of them that could be considered very welcome in the sector and some others are not clearly final, and finally some others not in our point of view good for the improvement of the sanitation sector, that is for the first point. Generally speaking, to support those states or municipalities that cannot count with solid and sound regulatory agencies and regulatory bodies, these provisional measure addresses from our standpoint correctly and the points in a sense that they establish that there would be in ANA, a quite important anchor to define the general parameters for states or municipalities to deal with the regulation that's not possible due to the scale or lack of capabilities or lack of financials. So, from our point of view this is good. In spite of - it'll take time, several years probably that to be something concrete. This is from our point of view a well address. Second point, but we imply huge and important change for ANA that now a days all it deals is hydrological issues rather than regulatory issues related to water and sanitation. So it would be very important to change their technical quality to gain capability and it'll take time, but it's in the right direction from our standpoint. Second important thing is that to reiterate that from SABESP standpoint, competition and attract more private capital and more competition for the sector is not a bad thing, it's a good thing. SABESP welcomes competition, SABESP is ready to compete. But our only comment on that is that that competition should be fair. Fair in a sense that all the assets that are not fully depreciated to the moment that municipalities are - even state municipalities open new bidding process for new competitors. They will have to be paid by those new comers, that's the only point that we would like to point out to reiterate it. Otherwise it'd be expropriated attitude against not only public sector or the mixed capital sector like us, but against even with the private sector. So from our standpoint, private capital is very welcome and water sanitation sector. SABESP itself is a very well succeed joint venture called PPP, Public Private Partnership in a sense that we have in our capital structure with almost half of participation of the private capital. So, we are comfortable with that, very welcome. That's our general comment on that. Of course we can talk a lot of it, but to be very restrictive to the main issues, I'll finish with that.

[Operator Instructions] Since there appears to be no further questions, I'd like to turn the conference back over to SABESP Management, for any closing remarks.

Okay. Thank you for your time. We are always available here at the Company for any questions with the IR team, and see you soon for the first quarter release, bye-bye.

This conference is now concluded. Thank you for attending today's presentation.