Good morning. At this time, we would like to welcome you to the ENGIE Brasil Energia conference call, where we will discuss the Transportadora Associada de Gás acquisition process. All participants will be in listen-only mode, and to do this, we will open the question-and-answer session, with further instructions given for participation. Should any participant require the help of an operator during the conference call, please press star zero. We would like to remind you that this conference call is being recorded. This presentation, followed by slides, will be simultaneously transmitted to the internet at www.engie.com.br/investores. A slide presentation is also available on that website, which has been filed at the Securities and Exchange Commission of Brazil, the CVM.
Before proceeding, we would like to clarify that forward-looking statements made during this conference call regarding the business outlook of the company should be treated as forecasts that depend on the country's macroeconomic conditions, on the performance and regulation of the electrical sector, besides other variables. Therefore, they are subject to changes. With us today, we have Messrs Maurício Bähr, Chairman of ENGIE Brasil Energia Board, Gustavo Labanca, Chief Business Development Officer of ENGIE Brasil Energia, Emanuela Delfos, Chief Infrastructure and Gas Value Chain Officer at ENGIE, Rafael Baró, Head of Acquisition, Investment and Financial Advisory, and Rafael Bósio, the Investor Relations Manager. They will speak about the acquisition of the Transportadora Associada de Gás. Right after this, we will have a question-and-answer session. We would like to remind journalists who wish to post questions that they can do so by email, sending them to the company's press office.
It is now my pleasure to turn the call over to Mr. Rafael Bósio. You may proceed, Mr. Bósio.
Good morning, and it is with great pleasure that we meet today to speak about the acquisition of TAG. Before beginning the call, I would like to mention that Eduardo Sáamini, our CEO, is not with us today as he is traveling abroad, but we do have a large part of the team that was heading the acquisition, which represents an enormous step for ENGIE. Among these people, we have the Chairman, Messrs Maurício Bähr, to whom I would like to give the floor now. You have the floor, Mr. Bähr.
Thank you very much, Rafael. A good morning to all of you.
We do not have Eduardo Sattamini with us, but without a doubt, he is sharing the joy of being here today to share this excellent piece of news with you. The acquisition of TAG represents the entry into the natural gas segment in the country, and this is fully aligned with our global strategy. This demands a sophisticated energy infrastructure in great scale, and TAG will contribute to our diversification in our mix in Brazil. This is also part of our goal of obtaining revenue through other areas. We have transmission lines. We recently entered this sector one year ago with the line in Paraná and gas pipelines. All of these contractors with long-term revenues. This will enable us to further diversify our work in Brazil, reinforcing our confidence in the market in Brazil.
Recently, we announced this strategy with a goal of entering the transmission of energy throughout the world, focusing on specific business lines, such as renewable energy infrastructure and solutions for customers, all present expressively in Brazil at present. Our focus will continue to be linked to the opportunities in renewable energy. We are the greatest private generator in the country, solutions for customers, and new innovations in gas. Thus, enabling for the creation of a more sustainable economy. We had already obtained success with the transmission of electricity in Paraná, as mentioned, and with the success of the acquisition of TAG, we're consolidating an important role in the field of infrastructure in Brazil. This process began in September of 2017, and Gustavo will refer to the details of this and all of the steps. It was not a rapid transaction.
It was a very complex, lengthy transaction that was crowned with impressive success. The investors in TAG will allow us longevity and foreseeable revenues in the long term. We will be a local and industrial partner for gas. We have done this in partnership with Caisse de dépôt et placement du Québec in Quebec. This is the first investment of Caisse de dépôt et placement du Québec in Brazil, and they have confidence in us as their local partner. We now go on to hearing more details on this transaction, and I would like to ask Gustavo Labanca to continue on with the presentation.
A good morning to all of you. It is with great pleasure that I am part of this team and to speak about such an important asset for the field of energy and for the country as well. We're going to speak about the characteristics of this asset.
I'm now on slide number three, the importance of this for ENGIE Brasil Energia and the main characteristics and next steps. I go on to slide number five, and we can see that TAG represents the largest natural gas transmission company in the country, connecting several states and allowing the opportunity to use a very important fuel in the hydroelectric sector. It enables us to further explore the abundant renewable energy in Brazil, and this also guarantees stability to our energy model and our transmission system. Therefore, some of the characteristics of the asset: there are 64 million cubic meters contracted for natural gas in the coast of the Northeast, 3,700 km, and 800 km in the Amazon Region as well.
We have 12 compression stations in this transmission company, and there are several interconnection points, eight gas distributors, 91 delivery points, refineries, fertilizers, and thermoelectric plant supplies, and 12 gas entry points and two natural liquid gas terminals. Now, during three years, the entire contract for operation and maintenance has already been contracted with Transpetro, which is an arm of Petrobras, and ENGIE will render its expertise to the operations of this transmission line, and we will be operating this line. We all have activities in Europe, in Mexico, as well as in other countries in this sector. We now go on to slide number six, where we would like to refer to some characteristics of main financial indicators. We refer to the performance of 2017. You can see the magnitude of this: BRL 4.6 billion, BRL 4.250 billion EBITDA, and BRL 2.342 billion as net profit in 2017.
Now, the figures for EBITDA will remain constant, with a restatement in terms of inflation, part of the Brazilian inflation, and part referring to the foreign exchange. Given the structure of this transmission system, we will have greater financial expenses, and of course, perhaps the net profit will be reduced. We have four ship or pay agreements. One is already underway, and you can see that the first contract will be overdue in 2025, and the average term is 12 years for the contract. We would like to reinforce that we have to go through the regulatory issues, begin operation, and everything included in the contract can be seen in the table below.
Now, the strategy of ENGIE Brasil Energia, once again, is to focus on renewable sources to come closer, have greater proximity to clients, the use of digitization, and the creation of investment platforms in energy infrastructure, as mentioned by Maurício. We have a line of 1,000 kilometers in Paraná, and now, with the participation of ENGIE Brasil Energia, we have acquired TAG to further expand our assets. On slide number nine, we refer to the transaction, and I would like to mention that this was a rather lengthy timeline of transaction, two and a half years approximately. It began in September of 2017, and the binding offer and proposal was presented by ENGIE in April of 2018. We were then selected as a preferential bidder. This is an M&A transaction that is somewhat away from the standard.
We presented the proposal, and we played an important role with Petrobras to present the documents for this transaction, but this did not represent the final stage. After the negotiations of the ENGIE team with the Petrobras team, this was made available to the other two consortiums that were part of this auction, and the final readout that happened on April 2nd took place, and this ended up with ENGIE being awarded this bid on Friday. Now, in the midst of all of this process, we did have some problems. We had injunctions that led the process to a standstill, and of course, this process came to a standstill for several months.
I would also like to mention the creation of a committee in March of 2018, and although the decision to make the investment was taken jointly in a conservative way, the board of ENGIE decided to create this committee. The committee analyzed all of the documents and issued a favorable opinion in March. Once again, before we went on to the final stage of this transaction, on slide number 11, we have some of the characteristics of the structure of this transaction. You can observe that we created a consortium that we call the Alianza Transportadora de Gás, and ENGIE Brasil Energia gave 32.5%. The holding company in Europe came in with 32.5%, and the Caisse de dépôt et placement du Québec, another 35%. With this, we were able to acquire 90% of the shares of TAG, and 10% will remain under the control of Petrobras.
In TAG, we will have a percentage of 29.7%, CDPQ 31%, and Petrobras 10%. The amount of the transaction represents approximately BRL 35.1 billion for 100% of the assets. This was based on December 2017. Once again, this process began in 2017. We were expecting to close this in 2018. Therefore, we maintained the base date. Evidently, the values that were decided upon are the ones that we will be disbursing. This is estimated for the end of May, which will be the end of the closing of this transaction. This is a win-win transaction for ENGIE Brasil Energia, as well as for Petrobras. Alianza Transportadora de Gás will offer the resources to leverage the acquisition. This is a leverage of BRL 7.0 billion, and this asset will already be contributing earnings for ENGIE Brasil Energia the month after the final closing.
Once again, the operation contract is with three years with Transpetro, which is a subsidiary of Petrobras. The next step, evidently, we need to wait for the internal approvals of the regulatory agency, the FADE. The approvals that are still underway for Petrobras, they should be ratified in the assembly of ENGIE. Now, at Petrobras, there will be a shareholders' assembly at the end of the month of April, and we require the approval of the board to be able to sign the contract for this transaction. The intention is to hold the assembly at Petrobras before the 25th, and we're estimating that in mid-May or end of May, we will be able to go on to the final closing of this transaction. Once again, I would like to thank you very much for your participation, and we would now like to open the floor for questions and answers.
Ladies and gentlemen, we will now go on to the question and answer session. Should you wish to poll the question, please press star one. To withdraw your question from the queue, please press star two. Our first question is from Mr. Luis Lima from Credit Suisse. You may proceed, Mr. Lima.
Good morning. This is Carolina Caron, and we have two questions. The first refers to the tariff revision process, how it will appear in the final contract. If you could give us more color and greater visibility of how this tariff revision process operates and to give us an idea of the asset base and which will be the present-day tariff, and if you have expectations in terms of which will be the new tariff. Therefore, if you could give us greater visibility of this entire process. This is my first question.
The second question, there were some news on the weekend remarking that ENGIE could work with a leveraging of up to 70% for this asset. We would like to gain a better understanding. Is this 70% leveraged through ENGIE Brasil or other entities, and is this 70% of leveraging has been guaranteed? Thank you very much.
Carolina, thank you for your questions. Before we go into detailed responses, I think this merits a first remark, and I will give the floor to Gustavo Labanca. The first comment refers to your concern and our concern as well, the concern of all of those who invest when we think about future revenues. These contracts are contracts that have already been guaranteed with Petrobras for the use of the transmission lines, and we will have a very interesting average term in which the contract is in effect.
The value is based on efficient contracts. I can state that 80% of the value of this transaction is based on existing contracts. Therefore, the parcel that you have referred to, how we're going to renew this contract in the future, represents 18%-20% of the transaction. With this short introduction, I would like to give the floor to Gustavo to give you more details.
Now, the issue of the tariff review. As we had already mentioned during the transaction, we have four contracts. The first will be due in 2025 and so on. Until the end of these contracts, the value has been guaranteed, which means that we're in a very sound position. After these contracts, this will become a regulated asset.
There will, of course, be a tariff review, which will have to be approved by the regulators, and it is then that we will discuss the details on the contracting of the transmission lines. There will be a certain rate of return that will be aligned to the market rate. The contracts for the volume for each part of the network. Now, we, of course, have considered this in our initial plan, and we're planning on a reduction of the values in the present-day contracts. We considered a reduction in revenues once these contracts are due, and all of the contracts after 2030.
When it comes to our leveraging, which was your second question, based on the news of this weekend, the issue is that at present, we're not going to negotiate anything further. Everything has been negotiated, and the investments are guaranteed, more than guaranteed in truth.
They're non-recourse financing, 100% based on the revenues of the contract with Petrobras. This has already been guaranteed through the commitment of several banks. We now go on to the stage of execution. I don't know if you wish to add something, Gustavo.
We have some limitations in terms of disclosure of information at present, but we're thinking of a non-recourse financing of BRL 22 billion. A part is pegged to dollars, and the rest in reais. We do have some banks participating in the local financing, local banks and seven international banks. Once again, all of this financing has been fully guaranteed. Unfortunately, we cannot disclose this information and financial issues because of confidentiality issues with the banks. An important point when it comes to the tariff review is that we truly have confidence in these regulatory issues in Brazil.
We're participating in discussions on the transmission of gas in the country, and there will be a tariff review that is basic for the future. We're following up on the profits of some of the gas transmission lines that were sold recently.
Your comment regarding the question that part of the financing is in local currency and partly tied to the dollar, the part abroad is 100% linked to our receivables and once again pegged to the same currency. There is no problem regarding this.
Thank you very much.
Our next question is from Mr. Marcelo Sá from UBS. You may proceed, Mr. Sá.
Thank you for this opportunity. We do have some questions, but I would like to continue on with a question made by Carol.
I understand that you have a partnership, and as SAGI is an asset with little debt, there could be an idea of buyout or something of the sort. Can you comment on this?
Let us explain this further. The goal is that this vehicle be incorporated into TAG and become part of our project, and that is why we have contracted a debt with the banks for this purpose.
Is that clear, Marcelo?
We'll go on to the next question of Gabriel Francisco from XP Investimentos. You may proceed.
Good morning to all of you. Thank you for the call and congratulations for the acquisition. To continue on with the questions that were made, one on the tariff review, to have an idea of the price in the future, I would like to know.
I haven't seen this, but if you already have an estimate of how this will operate in the future. The second question is on the financing. This is my second question. The third question is if there are any forecasts of changes in the practice, changes in the distribution of dividends in the company. That is all. Thank you very much.
We are going to answer the first question. What happened was that in this period of the bilateral contracts, we did this for a certain amount to amortize the investments made by Petrobras. This was approved by the regulatory agency. Now, the tariff review will take place as of the moment in which the contracts are in place. Of course, there will be the new possibility that other clients will use this network of gas.
Now, the tax shield, we are thinking of a tax shield in the investments as part of our business plan. I'm not sure this remains clear. This will be incorporated into what we call the reverse incorporation of TAG and all of the debts that are in existence at TAG. Now, when it comes to dividends, we do not plan to make any short-term changes, and we continue to base ourselves on the company policy in periods where we make investments, we distribute all of our results, and when we have higher investments in the company, TAG, of course, will represent an important stage.
Thank you very much for your response.
Should you wish to poll the question, please press star one. The next question is from Mr. Marcelo Sá from UBS. You may proceed, Mr. Sá.
Thank you. My line fell. Now, I would like to poll another question.
I would like to know if you have considered an expansion of capacity, if you will be able to sell more than the volume that you have considered in the acquisition. I do not know if I understood this correctly. You speak about the right to withdraw. Why do you think that this issue should be further analyzed? Thank you very much.
When it comes to the expansion, we have not considered this in our business plan. Now, during the time in effect of the present-day contracts, evidently, we will analyze this. If there is any type of idle capacity in the transmission lines or an impact on EPICO, first of all, we will come to an agreement with Petrobras. Should this happen, we cannot return the asset. This is a regulated asset.
If we have additional revenues in the contracts, I will have to pay 95% of this to Petrobras. The revenues are guaranteed during the period, but we cannot have additional revenues linked to this asset. You are correct when you speak about the expansion. We have not considered this in our basic business case, but should this happen, the regulatory agency would have to approve this, and we would have additional grades for this expansion. This was not considered in our basic case. When it comes to the withdrawal, the right to withdraw, I believe that we would have to carry out a new evaluation, have this approved at our assembly, and if any shareholder is not satisfied with the transaction, they do, of course, have the right to sell off.
What is the assessment of the banks, of ENGIE?
Our next question. It's from Mr. Pedro Manfredini of Banco Itaú BBA. Please Proceed, Sir.
Good morning to all of you, and congratulations for the acquisition. I would like to ask a question. I don't know if you will be able to remark on this one that refers to the structure of shareholders. First, the 10% that Petrobras will control, is there a policy included in the contract referring to this? The second question refers to the structure of the partnership in the near future, and I don't know if this has been discussed. What will happen to the participation of the ENGIE Group and the ENGIE Holding if you're planning on consolidating this partnership? Is it interesting for both parties to do this?
In other cases of M&A, if you would be able to consolidate this in Brazil, if this possibility exists or not, or is the intention to maintain the term that you have originally planned?
Pedro, thank you for your question. I'm going to begin by answering the second question. Our model, and you're referring to the older model of hydroelectric power plants and others, and deep down, ENGIE Brasil Energia has acquired such a size that investments in expansion in the field of energy are 100% carried out by the company itself. In this case, we're diversifying to another activity, and the magnitude of the deal forced us to enter into a partnership. It would have been impossible for ENGIE Brasil Energia to have participated 100% in this case.
If we had the monetary backing, of course, we would have used our own funds, but we're bringing in the expertise of the group. We operate 2,000 km of lines abroad, and once again, this partnership is an equal one. The rights are identical for ENGIE SA and ENGIE Brasil Energia. There are no privileges for one or another company. We were very conservative, and we were sure to ensure that all agreements and steps were carried out on an equal footing. Now, in the future, I do hope that the company will continue to grow. Our vision is that what is happening at present happened 21 years ago when we acquired Gerasul that had 3,700 megawatts. We now have 10,000. In 20 years, I hope I will not be here, but I hope that somebody will announce that we no longer have 4,500 km; instead, that we have 15,000.
This is the idea to continue exploring this and to hope that the outlook will lead to a growth in Brazil. Now, I give the floor to speak about the 10%.
Since the beginning, Petrobras made it very clear that it would not accept a full share sell of this transaction. We know that based on the new gas act that will be approved, Petrobras will have to sell off this 10% share in the short term. Obviously, there is a stake of 10%, and the other shareholders will have the preferred rights in this case.
Okay, thank you very much for your responses. Simply a follow-up on the first answer. I fully understand the model that was used in this transaction, and I understand why it was used in this specific case. ENGIE Brasil Energia has excellent cash generation and continues to grow.
Now, would it be possible to imagine any other type of transaction and consolidate everything under ENGIE Brasil Energia or not? This is a previous model used in the acquisition of other assets. Simply to know something about your next steps.
No, we do not have a roadmap of carrying out any transfers at present. We are going to remain as is and ensure that this business prospers. With the opportunities that come about in Brazil, distributed energy and others, new events will take place and ensure that we are always looking upon them in a very dynamic way. The goal is for the present-day shareholders of ENGIE Brasil Energia to share all of these benefits and the correctness of our strategy.
Thank you very much. You spoke about growth, and what is it that you can do in terms of extending the concession area?
Which are other possible M&As or something that would allow ENGIE Brasil Energia to grow further? If you could simply remark on some of the opportunities therefore. You're on a very good platform of growth, and I would simply like to understand the potential of all of this.
Our vision is that the gas sector will be very similar to what we observed in electrical energy some years ago. It has now allowed for the entry of the private sector, and what we foresee is another event, the fact that the pre-sold begins to be explored and linked to this. There will be a great need for gas and production of gas, and of course, this gas will have to be channeled, something that we cannot do initially and for which we will require an expansion in the future.
Gas will become a fuel enabling us to further explore the intermittent energy in Brazil. We have the solar energy, wind energy appearing strongly, and we can offset this with some type of security at the base. This is simply a vision that we have, and we need to see the evolution of the regulatory framework, but everything is moving so that we can have a greater number of agencies, a greater number of companies with interest in gas. There is an additional component in the future, which is that beside the gas associated to pre-salt, the potential of biogas in the country. When we look at the continental side of Brazil and the share of this in the GDP of the country, there is not a normal possibility of doing this transmission.
One day, when we run out of gas, there is that possibility that biogas will come in to occupy its place. There are several opportunities when you speak about gas distribution. We still have a very small number of players, and everything is associated to our strategy of ever more improving the environmental footprint of our clients, of working closer with them. I can't speak about the opportunities of the future, but we do have our radar fully connected.
Thank you for your excellent responses. Thank you very much.
Our next question is from Mr. Víctor Oliveira from Banco Bradesco .
A good morning to all of you, and we have some questions here at Bradesco. Maurício, I have a question in terms of transmission. You spoke about the reverse system for this vehicle.
Now, in this context of reversing corporations, will there be the payment of goodwill for this asset? I would like to know what would happen at the Securities and Exchange Commission if all of your.
If you could please repeat your last question. I'm afraid I was not able to fully understand it.
The last question refers to the fiscal benefit in some of the stretches of this asset.
If you can apply the VAT, I believe, in terms of the reverse incorporation, when you do this, you have to account for it and the potential of goodwill in this acquisition. In terms of the fiscal part, we're going to assess this after the closing along with Petrobras and the Caisse de dépôt et placement du Québec.
Now, our intention, of course, is to continue to streamline the asset going forward, and we can extend the benefit of the value-added tax that we have at present in some of the stretches of this transmission line.
Thank you very much.
Our next question is from Luiz Lima from Credit Suisse. You may proceed, sir.
Once again, it is Carolina. Simply an additional question. Our line dropped here, and when it comes to the transmission lines in Manaus, the ANEL and the board of auditors of the union were focusing on the volumes produced in the Amazon, and there was a difference between what was truly consumed and the contract of the company. I would like to know if this issue has been resolved for you. Obviously, we know that the contract cannot be altered, but if you could work with some sort of contingency requiring this issue.
A second question, if you could simply speak further about your strategy when you decided to work on this with a very good rate of return in the case of acquisition of gas transmission lines, I believe that your returns will be somewhat lesser, and which would be a reasonable return. With this acquisition in gas transmission, will you continue to think about the acquisition of transmission lines? Which would be your forecast in terms of transmission compared to this new business?
Carolina, thank you for your question. I think, yes, we're just beginning in terms of transition. Transmission, and we continue to go forward. 10,000 km is very little for us. We continue to look for new opportunities.
Carolina, we're not going to make any type of proposal or bid in a tender if this will not add value to our shareholders.
We deem ourselves to be a prudent investor. We're concerned with return on the value of assets, so we do have an adequate balance. This, of course, will vary according to the situation of the country, the capacity of the company, and the rates of return, of course, may vary per project, per asset. We were very competitive in this bid. This was a very interesting asset to enter this market. Unfortunately, we were not successful in other options, although we made aggressive bids. We continue to work on this to be ready and to take part in the auction that will be held either in November or December in the country. Now, simply to clarify, what happened was to work with an initial contract for the gas transmission lines, and this is connected to the maturity of the contract that exists with Petrobras.
There will be no change in this bilateral contract until the end of the contract. What you have mentioned will have an impact on the tariff review going forward. This, of course, is something that we did consider, as well as a reduction in the revenues of this gas transmission line beginning in 2031, I believe.
Thank you very much.
Our next question is from Mr. Marcelo Sá from UBS. You may proceed, sir.
I do have an additional question in terms of what was disseminated by ENGIE Europe on page five. It is said that there will be the investment of BRL 100 million or BRL 110 million per year, and then it says that there will be additional investment until the closing of the deal with TAG.
Now, you will have the amortization of TED during the period, and I would like to understand what this growth refers to that you would have at the end.
When it comes to the asset, there is no growth during the period. We're speaking about contracts that are pegged to inflation. There are contracts with different PSAs, and of course, this growth refers to inflation and not to the investments in this network. What could be happening, as you mentioned, is that initially we will have a high leverage, a very high debt in the company, and in the last line item of our balance, there will be a growth in the debt amortization. This is all. There is no other type of growth unless the one I mentioned.
Thank you very much. I did think it was that. I just wanted to make sure.
As you mentioned this, from the strategic viewpoint for the company in France, the goal was to diversify the activities in terms of infrastructure and geographies. At present, the group is highly concentrated in regulated activities in infrastructure in Europe, and our objective as a global company is to further diversify these assets. We began something in Mexico, now in Brazil, and this is to balance out our infrastructure portfolio. Thank you. Thank you very much. It is wonderful that Brazil is one of the countries participating in this diversification process. Should you wish to pose a question, please press star one. Please wait while we pull our question. Once again, please wait while we pull our question. Our next question is from Mr. Gabriel Francisco from XP Investimentos. You may proceed. Sorry to extend your time with the last question.
In truth, what I wanted to do as part of your business plan in this is you're also going to invest in energy based on natural gas because line number four in Amazon is working with other companies like ANEL, and if you're thinking of developing assets in that field with the production of natural gas. Will this be done within the group itself or with third parties? And if this was part of your bid or not?
Thank you.
Thank you for your question, Gabriel. This was not part of the bid specifically, but of course, we're looking at opportunities in the generation market and the generation of natural gas. This is our focus. As you know, we're investing in coal plants, and natural gas is the fuel for a transition.
We have a plant in the south of Brazil in Joinville, and we're attempting to see if we can have a gas terminal and then hold an auction. The terminal in the south is underway, and we do think it will be able to take part in the auction at the end of the year. This is part of our plan. Now, we don't know if we will be competitive or not. We're working in that direction, and we're awaiting further news in terms of the auction. We do know that gas will participate in the auction, and we have to think about the regional characteristics; this could increase or decrease our competitiveness. Now, the project is always under development for the company.
Very good. Thank you very much.
At this point, we would like to end the question and answer session. We'll return the floor to Mr.
Thank you very much. Once again, I would like to thank all of you for your interest in our company, and I underscore how important the capital market is for us. The transparency with which we carry on with our business, our victory in this acquisition process of TAG represents a very important step for ENGIE Brasil Energia. It is our step of entry into the gas market, something we have pursued for many years. This crowns the joint work of the ENGIE teams in Brazil, in France, and our partner in Canada that have been active in this process since September 2017. With TAG, we further diversify our activities. We are the first generator of energy, of solar energy and distributed energy, as I mentioned before.
We're beginning a new cycle after the 21 years of activity in the country. We worked with electrical energy. We grew to having more than 10,000 megawatts now in 2019. I believe that now what we will witness is a similar opening, the opening of the gas market. Of course, we will count upon our 20-year experience working on these topics and with the experience of our young talents that we have developed during the 21 years of existence. The acquisition of TAG is a very important landmark for ENGIE in Brazil. This will allow for the rapid growth of the company, new sources of revenue, the sustainability of our presence, and this reinforces our commitment with the evolution of energy. Brazil is a country with excellent opportunities, so we implement our strategy, large projects, and we now have mature and very respected institutions in this country.
Thank you very much, and until our next conversation. The conference call for ENGIE Brasil Energia, and here, we would like to thank all of you for your participation. Have a good day, and thank you for using VoiceTel.