Good afternoon, ladies and gentlemen. Welcome to the telecom trends concerning the results of the 4th quarter of 2018 of Energies, we informed that the participants will be listeners only during the presentation of the company. I mean, we're informed that this teleconference will be in Portuguese, and it will be by the management of the company and the teleconference will be in English with simultaneous interpreting. This event will be transmitted simultaneously via Internet via webcast. Before we go on, I would like to clarify that declarations during this presentation that may include projections of operational goals and other information that are in that order are of the confidential.
We have to make clear that these are projections, so we have basis on premises and studies. And future results depend upon the variations and circumstances that may not occur. Investors may understand that general
Alexandre Nogueira, Vice President of Regulation Claudio Brandao, Director of Corporate Finances and the whole team of relationship with investors. I would like to start with some considerations, opening considerations. We are very proud of the achievements of the Energizer Group. We have overcome challenges and we are incessantly looking for excellence and growth. We acquired 2 new distributors through auction realized in August, Serum and Eletrath.
And after consistent work and very detailed work, we have achieved great results. We have 11 distributors in our portfolio over 5 regions of the country, and we are serving 24% of the national territory, 7,700,000 clients. We are going to use our expertise to realize a turnaround of assets for distribution according to our well successful history with the group ready. And we are going to take energy further with quality to clients of this region. So we keep on growing with the acquisition of a lot in Para in June in Tocantins and by year in December last year.
We have now 4 concessions with 1.343 kilometers outlines of transmission capacity of transformation of 4.294 MVA and the revenue of $184,000,000 We continue focused on the client as a result of our commitment with quality and the provision of energy. We have been awarded 9 prizes ever in 2018 and 4 of our distributors are among the best in the country. The index of annual and of the satisfaction of clients, we are in the leadership in the center, Southeast and in the North in the category. In the last Friday, we have seen the ranking of continuity assessing 47 concessionaires, looking at the best performance in the services provided. Energiza through Southeast Energiza is leading the ranking with 7 distributors among the 10 best in companies of great and midsize.
It makes major difference in the life of our clients. We want to provide more price and we want to take to become better and better and that's what we work for. In 2018, the Great Place to Work service survey of services defined the distributor as the best develop in the development and performance and continuity of the services provided. As in other occasions, we are referencing health and labor health. Last year, we revised and mapped our way of dealing with risk and labor health, and we improved even further in order to advance and bring innovation to the business.
We invested in a major project of innovation and contribution. The new efforts will lessen bureaucracy. Receivables loss will be improved, losses will be lessened and will deal with failures that will be diminished majorly. The client will account with new possibilities of the payments of their energy bills and will create more and more channels aiming for improving the experience. We want a company that is simpler and simpler, more digital and more efficient.
We have contented results that will start being presented now by our VP. Please floor yours. Good afternoon, ladies and gentlemen. I'll start presenting results and in the sequence we'll open a session of Q and A. Before starting, I would like to point out that this is the 1st trimester that we consolidate the companies acquired, Cerani and Elektra.
And for the operational part, the numbers presented are based upon data that these companies carry within from 2017, 2018 and the financial part carries within pro form a values. Therefore, bear in mind Slide 4, financial results. EBITDA, dollars 1,892,000,000 in the trimester, dollars 4,000,000,000 and $82,000,000 in the year. Accountancy numbers, BRL 675,000,000 in the trimester and BRL 1,179,000,000 in the year. That has to do with the acquisition of Seron and Electro Acre, dollars 1,000,000 dollars 140,000,000 that's what it represents.
It's a business combination according to SAS 3. Investments have been made in the controller And as per other operational revenue, we have other results in the exercise. Further details of the accountancy, you can find out on the 17. EBITDA Liquids Debt 2.7, that's on a double fold and more. And the 4th trimester, according to Erezio Acre, We had discussions that were well discussed.
We discussed the provenance of the company. And we currently have the realization of an assembly to be held in the near future. We have some events that are subsequent after the closing of the trimester On February 28, Sabafarm provided the option of sales with a participation of 3.29 percent in the participation of the grid of energy. And we have realized the value of the Fakkut, dollars 14,000,000 now we have 45.9 percent of the company. VEGASPOR has a contract that has been acquired and has been successful, thanks to the relationship with other companies that have been acquired.
In 2004, we acquired stocks with yield in the 94.95.4% in yields. We paid the reminiscent of the debt. Eletrobras includes $182,000,000 $3,360,000,000 respectively. The respective and remaining partnerships RGE, EUR 621,000,000 dollars $5,000,000 in electroactively. And this contract is managed by CICE.
On the other hand, we recorded the assets and after what was mentioned in the auction, we have $673,000,000 combined in the 2 companies. And dividend, we have an addition of BRL0.15 of Brazilian real, 65% of gain. Let's go to Slide 5. We have the growth rates. It has to do with classification per distributor, 2.57% in growth.
Brazil as a whole grew 1%. And Argentina Mato Grosso at 5.6%, 123 VWA with a great number of gigabytes hour with this segment in the industrial and market growth plus 29. The food industry has brought major gain, Energia de Paraiba 2.7 percent, 49.6 gigawatts hour plus and Energiza 39.5% in terms of this growth. Yearly, we have the consumption of the following distributions: distributors, Mapo Grosso, more than 39 gigabytes hour. So Sudez C was 100 and 23 gigabytes hour, 1.1 percent was the growth of Brazil.
Once again, Energiza is growing ahead of that number. In Slide 6, the graph to your left hand side, we have losses of the group in the electrical area, 13.7%, as you can see here, 0.27 percentage points according to the new concession contracts, from an electric had their losses flexibilized and to be regained over the period of the next 5 years. And certainly, they will be an object of focus of planning and efforts towards stabilizing. Among the companies acquired, Electro Acre had total losses lower than regulatory numbers without serum and electroactory in the accounting, 11.6% was the level of energy injected, almost constant compared to September last year and below the regulatory Energia Mato Grosso with a drop of 0.7 percental points considering December 2017 and 0.38% compared to 2018. This concession is slightly above the goals of overseas.
We are taking measures And due to the recurrence and the change in teams and we have the departments of state that also have had an influence on that. In Mato Grosso from 2017 to 2018, we have had results. Token trends are still below the regulatory goal. Slide 7, defaults concerning PDG and the revenue, 0.5% aside, Serum and Electric Acre, 0.66% you see here in the graph. To diminish and to lessen defaults, we used algorithms for artificial intelligence considering each and every client customization of the measures applied that are more and more efficient in terms of that collection.
We have SMS messages. We have black listing of names in terms of the market at large among other activities. And all our companies will use the same tools. We'll unify that. Slide number 8, we are going to use the indicators of quality.
We see that except for serum and the indicator deck, all distributors are with a good level of quality. We have gone beyond our record numbers, namely Mato Grosso do Sul with an exceptional performance for Energies Topanjes, BAC and Non BAC. As mentioned initially by Ricardo here, we classified 7 of our distributors. Energiza South and Southeast had great results with relationship to the acquisitions. We've regained investments and we've regained strength in terms of the deployments of the plants that have been in the drawer.
Slide number 9 as highlights financially speaking, considering this year, we have the legacy distributed this year, lesser and 1 month is black. We had the reduction of 5 point 2% in the trimester and a gain of 3.8% in the year, in line with the inflation rates of the period. A good share of that has to do with personnel participation for the results of the group given the improvement of performance of the group. It's only understandable and internationalization of the teams. The reduction of services was impacted by the anticipation during the drought in Mato Grosso do Sul, we had impacts of that.
We have regulatory adaptations that have effect numbers as well. Slide number 10, we have the evolution of the EBITDA consolidated pro form a without Serum and Acre, BRL 683,000,000 in the 4th quarter and BRL 2,884,000 in the year, a Aside, moratorium increases of the adjusted EBITDA that we have, a drop of 5.8 in the trimester and an increase of 27.7 in the year. I point out the EBITDA of the year that was affected by effects nonrecurrence. In the end of 2017, we had Venera. We had Mato Grosso, Sergipe and to continue and if we discard those and other effects that are mentioned here, the EBITDA would have grown around 25.6% and respectively.
The trimester, we point out the improvement of 94.4 percent $94,400,000 a decoupled and installment B. The distributors, we had BRL 666,000,000. In the trimester, again, we have top 10 teams influenced by the reversion in the happening of 4th quarter, BRL 200,000,000 for top 10 teams and dollars 13,000,000 for Energiza Southeast. The year as a whole, you can see that there is no compromising of the whole. In Slide 11, we have here the consolidation of the results of the group.
We see the numbers here, an incremental 66% compared to 2017. Pro form a revenue and profits, the results have 72.9% decrease and 0.8% in the year. However, there are many effects that are nonrecurring. The main of them is the bonus of subscription, the departure of Energiza that has a relation to that. It's noncash flow, BRL 107,000,000 in the first quarter and BRL 165,000,000 in the 4th quarter.
Therefore, there has been adjustments for the effect for that effect, nonrecurrent. And the net profit pro form a would be 49% superior to prior year. Debt wise, we include Serum and Elektrok, BRL 10,800,000,000 dollars total in 2018. And the adjustment had a drop of 3 folds in December 2017, 2.7x in December 2018, EUR 2,700,000,000 has to do with the recognition of EUR 1.1 $1,000,000,000 $100,000,000 business combination with Acre and Ambone. Without that whole scenario, it would be a whole different number.
To your left hand side, we see the cost of the debt, 65% of our debt is indexed to the CDI. And we are benefiting from the rates interest rates for Brazil. Our credit bills have been reassured. So that's important. I would like to point out some issuances, dollars 4,700,000 dollars We had some important aspects here.
We had the issuance of Syren debentures $1,800,000 with maturity for the next 3 years, in 3 years. That had to do with paying a debt for Serum with another company. We have BRL 250,000,000 dollars average cost, dollars 4,600,000 in CDI and with maturity in 252028. Investments wise, we wrapped up the year with 1 0.981 1,000,000, including BRL 53,600,000 invested during the management of Energiza. Transmission wise, we had BRL173,000,000 in the year.
I would like to point out the acquisition of the 2 Energiza Parajon and the other in September October 2018, 2 projects that are being installed. We are obtaining a license for 24 months and we obtained 13 months. In the fundiary front, negotiations with the proprietary is affected and the lines of transmission are majorly concluded. We have less than 5% to deal with Energies at Paradois, a lot that was acquired in an auction in June 2018. The contract was executed in September last year.
We have topographic work and regularization according to standards are being dealt with. The common entryway is being also dealt with. We have agreements in the front yard front. 50% of the affected areas are already undergoing clearance for liberation. We point out the fiscal benefit of rating of the project obtained in January 2019.
And Ergiza to continues from December 2018, the acquisition. We have studies. We have the project, the base projects. The concession contract is to be executed next week on the 25th March. These four lots add up to RMB184 1,000,000 with a CapEx of estimated in the order of RMB 1 point 5,000,000,000 CapEx and guidance wise, we are estimating investments in the order of 2.8%.
87% of that value is focused on the distribution group, Serum and Acrylon will receive together 699,000,000 dollars in investment this year, Seron will be the 2nd distributor in the ranking of the group, but they will have investments. The distributors acquire the requested along with annual the processing of the revision of the tariffs, the extraordinary ones to be realized in December of 2019. In substitution of the process of the tariff annual adjustments as per foreseen in official documents. EBITDA consolidated, we are at 29.3%, as you can see per the graph here, BRL 400,000,000 in growth in this period. Here by I end my presentation, numbers wise, I'd like to open Thank you.
We start now the Q and A session. There should be a question please press 1. If your question is respondents, you can leave the queue pressing the number 0. We'll be dealing with the questions according to the order. Please take the phone off the hook when you ask a question to improve the quality of the sounds.
Please hold on while we collect the questions. Thank you. Mr. Marcel Lussard from Oppenheimer Bank would like to ask a question. Good afternoon.
I have a few questions starting with the regulatory patient anneal for transmission and generation, we had a positive outcome even above the forecast. I would like to understand what was your perspective if you see room for the distribution to have a different EBITDA cost. We are not clear whether Anil is open for that kind of change or others and whether they consider distributing companies. I would like to know whether you see as possible differences in terms of the orders of distribution? Alexandre Noguera has been disconnected.
On March 12, Marcelo, we had a discussion aiming to prepare the discussion in the block of generation. It's well seen and with a positive outlook, We are still in the phase of contribution. It started in it is on March 22 and is trending June. We are keeping up. We are analyzing the development of that.
And we'll see the differentiation that is to take place between distribution and the other segment. These segments are similar, it's never similar, I beg your pardon, nevertheless not the same. So they will be dealt with differently. Distribution, we understand that will have the elements. And the distribution orders will be reopened in the 2nd semester of this year.
And around 2020 that should happen. The Mario investors and analysts that are here with us are to share and confirm what I share here with you. Thank you, Ricardo. Another question that I would like to ask is whether you have the assessment of the assets of the bank. We have started and I would like to understand the basis of work of yourselves, of the company.
And I would like to understand if the report on the assets may be greater than expected. I'm Alejandra. I'm here. We see that our planning on the and we proposed at the moment of our discussion is going according to plan. Thank you.
Mr. Andres Santiago, Santander. Good afternoon. I would like to ask a question with regards to Eletrobras and the participation. How do you see this possibility?
And if you have had any sort of studies or look into that? And funding wise, how do you see that? I find it hard at this point to comment on 3rd parties. The payments on a first moment didn't happen because it didn't happen. It wasn't up to speed in terms of the regulation.
They are requiring public information, and we are gathering that. We have some planning for that. In other costs wise, Seron Electronically. Is there anything we should watch for and be more careful? Is rather busy or polluted, if you will.
It's very diverse. Right after the privatization, even before we had severe, As if there weren't an actual knowledge of what was to come. The auction happened right after that. If we look individually to the current state of that, we'll find situations like that, the analysis of our result here. And you can see in the report, and I have mentioned that we are going to focus on the companies that we have elicited here.
It's difficult to have a comparison at this point, honestly. I thank you for your response. And I would like to thank Bruno for opening this information. 5th cyclo cycle wise, you have expectations in terms of discussions that have to do with the regulators or things that you may add in that sense? Can you please repeat your question?
You're really low. I can barely hear you. The 5th cycle of revision, the expectations that you have on that? On the 4th cycle, have you discussed anything that concerns that? And what you have in terms of expectations towards that?
The 5th cycle, we expect the evolution with regards to the previous cycle in the points that with incentive will improve a new open for public bidding. And this concept has been clearly stated and these times are being accomplished. We are expecting a clear discussion. We are working based upon the 4th cycle. And certainly, we are aiming for major improvements.
Camila Cabalconci from Citibank. Good afternoon. I would like to understand a little bit more. RRGE in the sense as to whether it would be of immediate impact or whether we have to consider a longer time frame And the tariffs concerning RGE, how are they going to occur over the last next years concerning Seron and El Etracry? RGE Designated.
It's under the intervention of the state management once it's been privatized. So we have to consider that public funding is no longer an option here. What happened in the notice that was open to the public. We have 30 years of maturity. It will have amortization within 25 years in average in the tariff will have the tariff minus the amount from the auction serum and the tariff amount will be 25% lower than the outstanding balance of the loan.
And that will be reviewed yearly. RG that has been, of course, dealt with according to the period of the confession is going to be dealt with CVA. Well, you see, it's already on CVA. There is an outstanding balance. It updates the loan.
And you were saying that the outstanding balance covers all that RG has needed so far. Whatever Serum needs will be will suffer amortization. The differential here concerning the tariff depends upon what the loan is and what we are charging. Thank you. I think that clarifies my question.
Gustavo Niele, Itau BBA would like to ask a question. Good afternoon. Thank you for the presentation. Operational wise, one of the variations that drew our attention is the non billed net profits, even excluding Electroacry and Huron, it affects the future. This variation has to do with the volume that you have acquired.
I understand all that you have brought to the table, including Mato Grosso and so on. $140,000,000 will be recurring in the next trimesters. Can I take that as a consideration? No. That shouldn't be used as a proxy or a basis for the forecast of the next semesters, trimesters at bigger volumes or quarters, will depend on the variations of 1 year to the other and the different variations.
We have to take into consideration that already in the last quarter, we had some variations that were affected by the temperature that we had forecast as such and didn't achieve that level. We have a growth or an increase that has to do with temperature. Mapucroso, Mapucroso do Sul, those states have results that are come from that. Thank you. I would like to pass the floor to Mr.
Ricardo for his last remarks. Mr. Ricardo, please, the floor is yours for your last remarks. Over the next year, we aim to integrate the companies. This is what we all want.
That's why we want a major portfolio of diversification, and we want to elevate all companies to the same level of excellence of all the other companies of the group and our clients are taking into consideration. Will assess opportunities in these segments, transmission and generation of energy. CapEx will be considered. We'll leverage a number of internal competencies in order to change and continue to be relevant and grow further because demands are more and more strict. We have confidence that with what we have planned and for entrepreneurship, good planning will carry on with the legacy, successful legacy of our founders.
We thank our shareholders, clients and service providers and providers in general. And thank you and a good afternoon. Thank you. The teleconference of the results of Energiesa Q4 is over. Please disconnect your lines now.