My name is Luiz Roberto Tibério. I'm responsible for investor relations. I am responsible for investor relations, and I welcome you to Sabesp's results conference for 2022. Today we have with us Mr. André Salcedo, Ms. Catia Pereira, Finance Director and Investor Relations Director, and Mr. Marcelo Miyagui, Accounting Manager. Before I turn over to André Salcedo, I would like to share some information and instructions. This video conference is being recorded and has simultaneous translation into English. The presentation and recording will be available at the IR website of Sabesp. I would also remind you that questions will only be taken in writing in the chat of this platform. Our conference shall last about 1 hour and 30 minutes, we're going to save 45 minutes for Q&A of analysts and then journalists.
To conclude, I would like to clarify that any statements made during this conference regarding the company's businesses and projections for the future are only projections based on the assumptions of the company, as well as information currently available to the company and do not constitute any results, and they involve risks, uncertainties, and premises because they refer to future events. Therefore, these circumstances may happen or not. Investors should take into account general operational factors in the industry, take into account that they may change the results which will be materially different in future projections. Now, I would like to turn over to Mr. André Salcedo, who will start the conference.
Good morning. Thank you very much. I thank everyone who is been with us in these early months of our new management. I thank investors, journalists and analysts for their presence, as well as the general public. For those who do not know me personally, I am André Salcedo. I have been assigned as a president director last year, and I officially took over on January 13th. Since then, we have been learning about the company's performance, getting to know the team of managers of the company so that we can have a more extensive view of what is in fact the aspirations for Sabesp. I was given free charge to take care of the company to turn the company into a more modern one, into an innovating and inclusive company. This is the mission that we're going to implement throughout this management.
To give you an idea of the work we're going to perform, we have already defined the new composition of the board so that we can align Sabesp's management with this strategic view. A view of modernity, better relationship with regulators, with our clients, and also in terms of the end users. With a more integrated view, a company that thinks together, that uses its resources, human resources, finance resources rationally. A management which is closer to people internally and externally, and a management which will pursue a full opening, including all stakeholders, regulators, shareholders, investors, to understand what can be improved and how we can improve. Whenever possible, we will be as transparent as possible. I'm very happy to be here in the company right now. We are at a moment where we're turning a page. We will pursue new businesses.
We want to grow, and we also want to provide better service to the population according to what we consider to be adequate in terms of investment. In this, we're going to start planning the next four years focusing on an organizational transformation and working in clusters, very autonomous units which could be more integrated in terms of processes. We're going to review our methods both for the board of directors and the company so that it reflects what we understand to be more adequate for the company and also to guarantee more efficiency in the decision-making process. As I commented, we're going to focus on generating value to all stakeholders. We understand the importance of the environment and the ESG agenda. This is going to have a priority in our management. Also, we will separate clients into two tiers.
First, the owner of the sanitation service that authorizes us to work, and a second tier, which is actually the end user. For this transformation and this new vision, we will look carefully at our employees by training and developing their knowledge based on the demands we have in terms of investments. We want to have a more competitive company that can grow, compete for new markets. We see opportunities in optimizing our employees and in special for the development of activities that we do not develop today. Later on, we'll allocate activities to different activities that can generate more value. Also, a cost reduction is one of our targets, and also demanding our managers to meet our targets. To do that, we are proposing new packages for the involvement of our employees, so that we can reach our goals in the company.
Before moving on to the next slide, I wanted to highlight that last year was very challenging. Despite the challenges, we were able to have a net profit that was recorded in the history of the company. We're going to continue pursuing more growth. It's important to highlight that in the growth last year, it has not yet been acknowledged. The tariff gap that we had in December. So we hope that in the next cycles, this is incorporated in the annual review we're going to have. Therefore, turning our revenue a more adequate one in terms of operations. Now, talking more specifically about the new challenge of the company, then I move on to the next slide. What is Sabesp going to be like in the next cycle?
It is going to have a clear vision of what it has to pursue. As you have noticed, our proposal for this year includes a change in our bylaws to make the company a more modern one. We have specific attributions, but we want to be flexible in allocating roles as the company changes. With a new view for each member of the board of directors. We are going to have communication. We're going to focus on the legal department's strategic biddings. Sabrina has a lot of experience in management. She has been in the company since February and has been doing wonderful work. Therefore, we are hoping to deliver a lot in this regard. As the CFO, we have Catia. She's been in the company for two months, and she's already working with investors.
In addition to the typical activities of the financial and investor relations department, she's also working with shared service centers. In the company that she used to work, she had this experience, and we are counting on her expertise to work with corporate shared centers, and therefore being able to work with water production, distribution, and treatment of sewage, and leading all of this integrated view to the corporate management. To guarantee that the company will have adequate resources in due time. With this, regulation and new businesses is no longer in the financial and investor relations. This will be the responsibility of Bruno D'Abadia , who will lead the relationship with the regulating agencies or the different municipalities, and the combination of opportunities for new businesses, whether they are a concession or not to the company. There is a regulatory demand.
It's important to have this integration to generate value. The other board of directors, typically engineering, which are separated in a regional area, will be divided into two. We'll have one that will take care of CapEx and the long and mid-term investment, as well as environmental management. This will be led by Paula Violante. The idea is that the whole CapEx of the company goes through Paula and will be prioritized according to the demands we're having, which are initially environmental investments that we have to meet, the guarantee of safety for our employees, and also to meet our contract requirements. To complement this change, we will also adapt our metropolitan and regional department into a new one, which is already led by Roberval, who has a lot of experience with the company.
He's been here for many years, and he's already integrating the two departments so that we have a single view of the management of the company, so that the best practices are all taken to the company as a whole. With that, we expect to have improvement in operational costs. A novelty that is being proposed is the creation of a new department, a new board of director called clients, so that we can have a relationship close with the clients, guaranteeing that the cycle will receive all required attention, so that we can adjust everything to Sabesp's needs. In addition, in strategic terms, we have communication, and they will report directly to me. I think this is very important for the exchange of information with the market, providing access to mayors, regulating agencies, directly on our website. We want to be totally transparent.
Also, digital transformation. All of the data collected from our operations and the data on our client base, when combined, they can generate a lot of value for the company. We're going to create a digital transformation unit to guarantee that data management and decision-making based on data is a decision of the company. The strategic view remains a responsibility of the CEO, analyzing opportunities for improvement in the company, also providing adequate information and the ESG agenda. Now will be extremely important to the company, so that we can define our goals and that everybody follows this corporate vision. We hope that within a few months, we will be able to fulfill ESG targets and share it with the market. We're very happy, and the whole board of directors are happy.
We consider ourselves to be very lucky to have the right people to face the challenges we're going to have in the company. It's going to be a very good cycle with the transformation of the company, improving in all of the operational flows, client perception. Above all, I'm going to conclude now. I count on your support. Sabesp has open doors for comments, criticism. Our objective is to turn the best company possible. To do this, we count on you, and I thank you for your attention. Tiberio, I turn back to you.
Well, thank you, André. Actually, I think. It is Catia's turn to present the results.
Good morning, everyone. Thank you, André, for the introduction and a very inspiring introduction. First of all, I am Catia Pereira. I started working in the company in early March. I am very new in the company, but it's a pleasure to be part of this team and help in this construction in the finance area, playing a role of turning the company into an efficient company with integrated processes, so that the finance department permeate all the other areas of the company and as André mentioned, providing focus on the delivery of the operation, turning processes more integrated, faster, and more efficient. This is the objective and is aligned with the introduction. This is going to be our journey for 2023. Now moving on to the next slide. I will start talking a little bit about volume.
In 2022, we saw an increase of 0.2% in terms of volume of water. Basically, we see a decrease in the residential, but on the other hand, an increase in the commercial and industrial. This all indicates life going back to normal after the pandemic, so we can understand that we are resuming our normal lives, moving from residential into life, into commercial and industrial. We see the same trend in sewers. We had an increase of 1.7%. Also an increase in commercial and industrial areas, and this was a little bit higher in sewers because all the focus we've given on sewage, and with that, we can see the results. When we look at the whole, we're talking about a growth in order of 0.9% in terms of volume.
The good thing about this is that when I have this migration and this change in the mix from residential to other categories, I can have a differentiated mean tariff, which is better for the company, and this is a very important factor when we look at volume and the consequences of volume on our revenue. Next slide, please. Looking at the financial highlights, we can see a growth in the order of 30.7%. As André mentioned, part of it results from the tariff readjustment we had in 2022 in the order of 12.9%. We also have the result of this, the volume mix. We also see the current mix in the changes of this consumption profile. This leads to a growth in 2022. I would like to remind you that this is related to sanitation and separate from construction.
When we look at the EBITDA, we see an increase of 11.2%. We went from BRL 6.6 billion to almost BRL 7 billion, the net income increased 35.4%. We went from BRL 2.3 billion to BRL 3.1 billion in 2022. Later, I will talk a little bit more about our performance. Now in the next page, when we look at our financial performance, we started with a net profit of BRL 2.3 billion. We had an increment revenue of BRL 2 billion, and we combined this to make the effect of the revenue with construction, with a differential of 2.3% in those metrics. We really had an impact of costs and expenses in the order of BRL 1.6 billion.
Other revenues, we have about BRL 180 million, nothing really significant in terms of net revenue, making it see the result of a monetary adjustment that we just mentioned, and this was entered in the third quarter, and is seen here with an increase of BRL 555 million, as well as other positive effects of the exchange rate variations and a percentage of our debt, which is linked to foreign currency, and therefore we had evaluation of the real when compared to the yen, and that generated a positive variation, which contributed with our net financial results. Later on, I will get into the details of each one of these items. Income tax and social contribution increase because of the results obtained throughout 2022. Por favor.
Aqui na parte de custos e despesas, que é uma parte que a gente tem que dar um pouco mais de destaque, né, olhando os crescimentos que a gente tem nessas contas. A conta de pessoal, a gente viu um crescimento da ordem de 12.8. Basicamente esse crescimento de pessoal vem de uma reposição inflacionária em maio de 2022, da ordem de 12.9. A gente vê também um aumento de 23%. A parte de cargos e salários, a gente vê uma redução no número médio de funcionários da ordem de 1.8. A gente termina o ano de 2022 com 12,300 funcionários, né? Então o resultado praticamente dessa conta de pessoal é reposição inflacionária, né?
A parte de materiais gerais, né, e até materiais de tratamento, né, se pegamos o material geral, a gente tem um crescimento aí de 42%. Basicamente, fala de materiais voltados à manutenção de sistema de tratamento e ligações, né? E também a parte de combustíveis lubrificantes, voltando um pouco ao mundo pós-pandemia, né, 2022 complexo. A gente vê aí uma mudança olhando para 2021, que traz aí alguns efeitos relacionados ao comportamento, né, e as limitações relacionadas à pandemia. Materiais de tratamento é realmente o principal impacto na nossa conta, né? Basicamente, teve crescimento de volume, mas o que mais onerou, vamos dizer assim, ou mais impactou a conta de materiais de tratamento foi preço, né? Preço no mercado externo, né? Grande parte dos materiais que a gente trabalha, né, são de origem de commodity.
O mercado está precificado, o mercado externo e a guerra da Ucrânia com a Rússia trouxe muita volatilidade de preço e impactou diretamente essa conta de materiais de tratamento, tá? A parte de serviços teve um aumento de 13.6%. Esse aumento de serviços a gente destaca a parte de TI, né? A gente teve foi implementado nas melhorias do sistema né, o nosso sistema de faturamento, né? Só lembrando aqui que ele foi implementado em outubro de 2021. Ao longo de 2022, né, tivemos a necessidade de trazer melhorias no sistema pra ajudar nas na organização e com foco na redução, né, do nosso PCLD. Também tivemos aqui nessa rubrica também serviços também associados à manutenção de sistema de tratamento, né, nas nossas ETS e as nossas ETAs. Tá?
A gente teve também serviço alocado aqui, que está associado aos próprios materiais que são consumidos aí, como materiais gerais. Tá? Esses principais pontos aí de serviço. Em serviços também a gente veio investimento, né, pela companhia em canais de comunicação com o cliente, trazendo essa proximidade, esse entendimento, pra buscar a recuperação e voltar aos patamares de inadimplência ou de PCLD que a gente tinha antes da pandemia. Todos esses foram atividades ou foram foco dado pela companhia nesse sentido, em relação à service, focado aí na garantia da nossa receita. Na parte de energia elétrica, a gente tem um aumento aí de 2.4%. Basicamente, a gente tem uma relação entre o mercado regulado e o mercado livre.
Mercado regulado na ordem de 47.7, né, e nosso mercado livre 92.7. Basicamente, a gente vê uma queda de consumo, é, no mercado regulado em 2022, quando a gente compara com 2021. Basicamente, em função do nosso nível de abastecimento, né, nosso nível, é, de reservas nos nossos reservatórios, nos nossos ribeirões. A gente vê uma redução de consumo de energia por conta disso, dessa condição, menor custo pra bombear água. Enfim, a gente consegue ver esse efeito positivo. Ao mesmo tempo, a gente vê um efeito também na bandeira, na tarifa.
Embora a gente tenha um aumento na ordem de 10% no mercado regulado, e 6% no mercado livre, a gente vê um também beneficiado por menor pressão, preço de tarifa de energia, por conta de maior nível de reservatório das geradoras. Fim da bandeira em dezembro, ajuste na base da, do preço da tarifa, com o IPCA. Tudo isso contribuiu positivamente pra gente ter um aumento na ordem de 2.4%. As despesas gerais, a gente tem um aumento aqui importante, de 22%, a gente tá falando de BRL 0.70 million aqui de aumento nas despesas gerais.
Aqui, basicamente, a gente teve dois grandes eventos, um que foi o conhecimento de uma provisão de processo judicial que faz parte do nosso acompanhamento de todas as contingências, né, pela nossa área jurídica. A gente reconheceu BRL 190 million em, no final de dezembro. Além disso, a gente também teve um aumento do repasse pros fundos municipais, que tá muito associado ao crescimento da receita, né? Aumento de receita, eu tenho realmente uma maior despesa, porque tem uma relação direta com a receita. Basicamente, despesas gerais seria por essas razões que a gente faz motivadores. Depreciação e amortização são basicamente o crescimento, porque a gente está aumentando, né, o nosso ativo, né, o nosso intangível. A gente vem mobilizando e essa mobilização vai gerar depreciação e também amortização.
Esse crescimento vem da entrega do nosso plano de investimento, né, da gente entregar o plano e ativar esse plano. Tá? Com o efeito da depreciação e amortização. O PCLD, né, a gente teve realmente um aumento de 20.5%. Comparativamente, quando a gente olha pra quanto isso representa da receita, né, líquida, que a gente teve de 4.3% pra 4.5%, é, a gente vê ainda um aumento, mesmo que pequeno. A gente vê que todas as ações que a gente tá fazendo é pra voltar pra margens mais, é, pra margens menores.
Eu acho que quando o Celso falou, quando fala do nosso presidente, quando traz aí o foco no cliente, da gente estar perto do cliente, pra gente entender o cliente, pra gente poder trazer as necessidades da companhia, pra garantir que a gente retome o nível de inadimplência que nós tivemos no passado. A gente também segue na nova gestão, o trabalho que começou na gestão passada, com a implementação dos sistemas de faturamento com grupos multifuncionais, olhando pra cadeia de valor. Como é que a gente olha pra isso e traz ações que sejam efetivas pra redução da inadimplência. Recuperação daquilo que a gente já tem no nosso histórico de recuperação de passado.
Garantias, né, garantir que a gente consiga ter uma arrecadação mais com prontidão, né? O maior nível de arrecadação no seu vencimento. A gente tá trabalhando nesse sentido multidisciplinar. Essa foi a primeira missão que eu tomei aqui à sub-unidade financeira, dado a criticidade do tema, né, a importância disso pra nossa operação, né, como garantidor de receita. Em despesas, a gente mostra basicamente o que a gente explorou no momento de consenso, basicamente em linha do que a gente viu ao longo do 2021, sem grandes variações. Próximo, por favor. Olhando pro resultado financeiro, né, como eu tinha comentado, a gente tem uma melhora de 2022 pra 2021, né?
22 muito impactado aí pela variação monetária e cambial, variação monetária, basicamente a gente fala de BRL 314 million do reconhecimento desse acordo do GESP, uma decisão judicial que a gente reconheceu a correção desse ativo. É uma operação recorrente, fatos. A gente também tem ganho de uma variação cambial. A gente tem uma valorização do real frente ao dollar, como eu tinha comentado. Frente ao yen. Lembrando que é one third da nossa dívida exposta à variação cambial denominada em dollar e outros two thirds em yen. Quando a gente olha pra despesa financeira líquida, a gente vê realmente um incremento, basicamente por duas razões.
Uma razão é pelo aumento também, novas captações realizadas ao longo de 2022, né, a 29ª, a 20ª emissão de debêntures, como também é o impacto do DI, né? O DI sai de uma média de 5 para 12.5 em 2022, e isso a gente captura, né, no nosso custo, no nosso serviço da dívida, tá? Parte disso foi mitigado ou foi offsetado pela receita financeira, mas, considerando, né, o tamanho da nossa dívida, o impacto ele aparece aqui. Tá? A gente tem esse aumento de despesas financeiras pelo DI, por uma dívida maior também, um saldo maior de dívida, e foi de alguma maneira compensado pelo efeito de variação cambial e correção monetária nesse evento não recorrente, né?
Quando a gente olha pra composição de dívida, a gente sai de uma composição em 2019, em 2021. 11.19% termina 2021 com 8.5%. Basicamente, a gente fala do Blue Loan. A gente conseguiu captar recursos longos da IDB e do BNDES em BRL, em BRL denominados, e com isso a gente diminui também a nossa exposição cambial, dá 11.19 pra 15%. No canto esquerdo inferior, a gente vê o aumento da dívida. A gente sai de uma dívida de BRL 17.7 e vai pra uma dívida de quase BRL 19 billion. Essas dívidas elas estão associadas ao plano de investimento.
O aumento da dívida, ela vem pra financiar os projetos, né, de universalização que tá no PPE. Ao lado a gente vê um pouco da distribuição como carta de, né, como a gente tem dívida. 16% da dívida tá em RCA, 8 em TJLP, TR 9, fixo, é, internacional 10 e SOFR 25%. Grande parte da nossa dívida, ela tá de alguma maneira relacionada à taxa DI, né? À estruturação da dívida. Por isso, é, o efeito que a gente tem quando a gente olha pra despesas financeiras, tá? Tem efeitos diretos, tá? Mesmo nos casos em que a gente traduz ou quando transforma uma dívida em dólar numa dívida em reais, a referência dela vai sempre estar associada ao DI. É, próximo, por favor.
Next one, please.
Eu agradeço. Terminei aqui a parte, né, de exposição financeira.
I have concluded the finance presentation.
Passo a palavra aqui pro Tiberio, pra gente continuar.
I turn over to Tiberio so that we can have our Q&A session.
O Q&A. Obrigada.
Obrigado, Catia.
Thank you, Catia.
Bom, vamo agora então iniciar a sessão de perguntas e respostas, né?
We're now going to start the Q&A session. Before that, I would like to inform that the first part of the session is going to be for investors, and then later we will open to answer the questions of journalists.
Antes eu quero te informar que a primeira parte da sessão será para a comunidade de jornalistas e investidores, e na sequência a gente vai deixar aberto para responder as perguntas dos jornalistas. Nesse momento, nós temos 5 perguntas prontas, né, na plataforma Q&A da plataforma. Eu vou começar pela primeira para Carolina Carneiro.
Right now, we already have five questions ready that have been placed in the Q&A box of our platform, and I'm going to ask the first question by Carolina Carneiro. Good morning. Our question is about costs. Another quarter where the company had a relevant increase in manageable costs, which was above expectations, especially in PDD. Number one, with the new management, do you have a mapped plan to reduce these inefficiencies? Number two, when do you plan to announce this detailed plan? Question three, how long do you think it will take to reach more adequate cost levels?
Bom dia, Carolina. Nossa pergunta é sobre custos. Mais um trimestre que a empresa apresentou aumento relevante de custos, em especial MSO, mas acima do previsto pelo mercado e das expectativas. Por isso, aumento de operacionais. Todo o método que você tem um plano mapeado para reduzir as ineficiências. Quando eu não vejo, você tem um plano mapeado para reduzir as ineficiências.
Two. When you have it mapped, this plan is mapped. Three. When you package it and take it to the daily routine. André or Catia, who is going to answer?
Well, I can answer this question. This question by Carolina was asked before Catia's presentation. I don't know whether it's possible to go back to Catia's presentation in the bar called when she talked about individual costs. With that, we can help answer what she mentioned. So Carolina and those who are watching this presentation. We have done a lot in two and a half months. We have a new strategy for the company, a new board of directors with new proposals, with strategies that are already ongoing. We hope to have our assembly to implement everything.
Based on what you can see here on the screen, the change in the management, review of processes, review of the strategic plan will have an impact in the allocation of people and the activities we have today. We have submitted a plan which is being analyzed, and this is something that we will share with you. We expect to have relevant reductions throughout the process.
Eu posso falar, essa pergunta também entrou um pouco antes da fala da Cátia. Eu acho que a Cátia respondeu de forma, mas eu não sei se é possível voltar na apresentação pra falar da, do bar, de, que fala do custo dos individuais. Eu acho que tem que dar algum tipo de resposta na linha que tá sendo pensada. Carolina e demais, né, pessoas que tão nos assistindo. A gente tá obviamente, chegando aos 100 dias de gestão, a gente conseguiu fazer bastante coisa. Temos um plano estratégico novo pra companhia, uma nova estrutura, uma nova proposta, que mudou bastante de perfil de acesso. Já em curso, obviamente, de aprovação da assembleia, pra que a gente possa implementar plenamente.
Dentro de cada uma dessas alavancas aqui pontuadas, pessoal, a reestruturação de PC, as mudanças na gestão de recursos da companhia, revisão de processos, revisão do plano estratégico de TI, vai ter impacto na alocação de pessoas e nas atividades que existem. Nós submetemos um plano de reestruturação da companhia, que tá sendo analisado, e a gente tem uma resposta, a gente consegue dividir com vocês. Em relação à carga de despesas, o pessoal já sa be bem, despesas operacionais são relevantes na segurança do nosso processo.
We will share with you once everything is concluded. The general supplies, treatment supplies and services in general are being treated within the context of process review. We have created two centers. One is the CST, which will take care of the contracts, hiring and things that are used on a continuous basis. Also, the bidding model for large processes. The demanding area will submit the investment demand, maintenance, operation of the specific system, and that's going to go through CapEx modeling, and then it will go to the bidding process and hiring process. With that, we guarantee the standardization of hiring processes, also unified contract pursuant so that we can negotiate with scale and reduce costs with hiring. We expect to have a reduction in these four items. For electricity, we already have a very varying process ongoing for distributed generation.
We also hope to create an electricity nós temos já em curso um projeto bastante avançado de instalação de painéis fotovoltaicos nas nossas unidades para geração distribuída, e esperamos ter resultado também no item energia elétrica nesse sentido. Estamos iniciando estudos pra outras opções de investidas que também devem ter impacto nesse item. A questão de autoprodução, a modelagem deve ficar pronta no próximo trimestre, e a gente deve ir ao mercado pra contratação desse projeto ainda esse ano.
A PCP é um problema que nós compartilhamos essa preocupação e não à toa, tá sendo trabalhada de forma específica pra cuidar da situação dos clientes e atacar essa frente. Não conseguimos estimar o P100 adverso hoje, justo, mas já previmos uma pessoa pra tocar essa área, essa frente. É com essa insistência que a aprovação dessa frente e a ação da diretoria de ter uma pessoa dedicada a isso, a gente consegue ganhar tempo. Em paralelo, nós tamo contratando suporte externo pra analisar todas as oportunidades que existem em termos de eficiência no uso dos recursos e na utilização de receita interna da companhia. Temos alguns projetos nesse sentido. Já 2 itens de consultoria, que são mais de 1, são várias frentes.
In two or three months, we'll be able to share with you our vision for value capture in all of these areas. Today, we don't have it yet.
Okay.
Okay.
Obrigado, André.
Thank you, André.
Vamos pra próxima pergunta então.
Now we move on to the next question.
O Marcelo Gonçalves.
Marcelo Gonçalves
Ele pergunta.
He asks.
Como está o processo de andamento da revisão dos tarifes extraordinários de Alvorada? O aumento resultante dessa revisão vai ser dado junto com o ajuste anual? A Sabesp tem uma estimativa de aumento total de tarifa para o ano de 2023? Obrigado.
What is the review process of the tariff? Will the resulting increase of this review be given along with the annual adjustments? Does Sabesp have an estimate of the total increase of the tariff for 2023?
Tiberio, tem como você responder essa pergunta?
Tiberio, can you answer this one?
Na prática, o regulador publicou pra consulta pública 70% e já respondeu as contribuições referentes à parte circunstancial. É esperar, embora não tenha definido o percentual. É esperar que isso seja publicado, esse documento regulatório, não sei até hoje, se já saiu. Junto com o reajuste extraordinário, vai estar o aumento correspondente ao extraordinário e essas faixas, e essas novas tarifas devem ser aplicadas a partir de 10 de maio, mas elas vão ser públicas por 30 dias antes de sua aplicação, né. Obviamente, a gente espera aí, o índice de reajuste de 10%-12%, mais ou menos, é o que tem circulado.
Of course, we expect to have something at around 10% or 12%, more or less.
Bom, próxima pergunta.
Next question.
Voltando à pergunta da Carolina Carneiro: "Pode também comentar sobre o modelo regulatório? Qual é a expectativa para a revisão extraordinária? Tem discussões para mudar o modelo base e custo some to a fixed tariff, aproveitando uma possível negociação de privatização?" Acho que a primeira parte você respondeu, André, a gente já respondeu. Essa segunda parte não sei se você tem interesse.
I think we have already answered part of this question.
Posso começar sim, Carolina.
André can comment about it. Yeah. Carolina.
Como é público, né, o Estado anteriormente, né, o Secretário já comentou. O que houve em termos de acontecimento é a contratação, tá? A impulsagem da contratação do Banco Mundial, a IFC, pra iniciar os estudos com relação ao modelagem da privatização. É, até onde eu tenho conhecimento, é a revisão do modelo regulatório, como vai ficar após a privatização. É o melhor possível estudo que vai sair dessa, desse grupo que é o BNDES e a IFC. Hoje nós não temos nenhuma informação com relação à, ao desejo ou à ação a ser seguida. Eu entendo, tem uma forma técnico-regulatória que é possível, mas não sei se vai ser o modelo que o Estado vai perseguir.
It will be published by April 8, along with the extraordinary adjustment because of the inflation. These new tariffs will probably be in force after May 10.
Ok.
Okay.
Temos agora uma pergunta do Henrique Peretti.
We now have a question by Henrique Peretti.
He says the following: "Hello. Thank you for the call. I have two questions. Could you give us some guidance on the default projections? Do you believe that PDD has reached its peak? Could you explain why there was a significant increase of expenses with the legal deposits? Would it be possible to estimate the normalized provision level?
Eu posso responder essa pergunta. Quando a gente olha pra vamo começar pela parte do depósito judicial. Eu acho que a gente teve um evento aí desse que acabou trazendo um impacto diferente da gente compara com os outros anos. A gente não vê que seja algo recorrente. Obviamente, a gente tem uma lista de contingências que nosso jurídico acompanha de uma forma muito proativa, olhando pra essas probabilidades de virar realmente algo concreto. A gente viu aí basicamente um evento que a gente espera que realmente não seja recorrente, que tá acontecendo esse final do ano no processo trabalhista, tá? Quando a gente olha pra PCLD, é difícil saber se chegou no topo.
Olhando pro período que a gente passou, por um período de pandemia e de uma implementação de um sistema de faturamento, a gente pode imaginar que a gente chegou teoricamente no nosso ponto máximo. Olhando pra essas, pra essas duas variáveis. Primeiro uma pandemia, que de fato, first of all, we had the pandemic, which in fact reduces the power of consumption.
Also a change in the invoicing system. We can see some signs in 2022, of improvement in unemployment rate in the state. We see with good eyes the possibility of recovery throughout 2023. It's too early to say where we're going to get. This is also associated to having somebody focusing on client relationship. This is the comment I have about your question.
Okay. Obrigado, Catia.
Okay. Thank you, Catia.
Temos a pergunta do Gustavo Fabrício.
Now we have a question by Gustavo Fabrício.
He asked the following: The results show us that there is a cost pressure when compared to other companies in the sector, as well as a PDD which is higher than the average. Furthermore, in the fourth quarter of 2022, we saw that the mean tariff was below what was expected in the volume mix. Thinking about this new management, what can we expect in terms of operational cost, better management of the tariff mix and a better profitability of the capital used? Do you intend to present a strategic plan to investors?
I think this question was asked before an explanation we gave. After the question was asked, we do have a new strategic view. This will have an impact on costs. It will be quantified once the competencies and the internal work of the company can change this impact, both in terms of personnel, also expenses with electricity, services, materials, and so on and so forth. Our expectation is to have a relevant cost, but we still do not have any numbers to share with you.
André mencionou, André, que faltou apenas comentar sobre o mix, né, a tarifa e o mix. André, perhaps we could comment about the mix and the tariff. In fact, all of the other questions you had already answered.
Tá bom. A questão do mix tarifário. Well, Ela tem um componente exógeno relevante. Has a non-relevant component. A gente tem trabalhado sim, na regularização de ligações de ligações populares. Isso impacta em perdas de energia elétrica não atendida pela população. Em forma de não usual. Eu entendo o que você falou antes. Temos, sim, o nosso programa com grandes clientes, que visa estreitar esse relacionamento. A gente acredita que a criação dessa unidade, dessa diretoria de relacionamento com clientes, as oportunidades de negócio que a gente tem no mercado tarifário olhando pra frente. Existe, não sei se é o caso da tua pergunta, um debate com o regulador sobre uma mudança da estrutura tarifária. Nós iniciamos um processo também com o regulador pra entender se parte, então, desse impacto da companhia se seguir nesse caminho.
Thank you, André. I think that part of what you mentioned is also being questioned by Gabriel Caruso. He asked the following: André and team, I wish you success in the new management. I would like to know if Sabesp is considering reviewing the company's pricing. As an end client of Sabesp, do you think of reducing or do you consider reducing consumption cost, price, aiming at expanding Sabesp's performance and the mean consumption? Well, André, thank you very much.
We're really excited about the challenges and the opportunities we've identified this far. Our objective is to turn Sabesp into as efficient of a company as possible. We will try everything that is possible to make our costs and human resources management more efficient. We have also started reprioritizing the company's CapEx, aiming at also compliance, environmental compliance. We operate based on the rules and all the demands, also complying with the program contract and concessions that we have, and also generating value. This is our goal, combined with this management stock that we intend to put into place, so that we can have more efficient hiring processes and reduce inefficiencies. The issue of tariff cost reflects the company's structure. If we maintain the current structure, we have an annual review and investment every four years.
The next one will be in 2025. Of course, what we do will be analyzed by the regulator. We will implement the new tariff base, which will be valid for the next four years. This is related to capture by the regulator and can also be turned into investments. I understand your question. I don't know whether I missed anything, this is our vision.
Não, eu acho que você abordou os pontos dele. Well, I think that you have answered all of his questions. Yes. A gente tem uma pergunta do Antonio Rizo aqui. We have a question by Antonio Rizo here. It says the following: An important aspect in the case of privatization and the agreement of the model with the municipalities. Could you approach this aspect a little bit? Thank you very much.
Antonio, thank you for your question. I think we can only answer this once the ISC ends its analysis. The regulatory framework does include something on contract changes. We already have pre-established deadlines, notification to the municipalities. They have 60 days to get back. This is an important debate. I understand everybody's interest, because of the effect it will have on the value of the company. Unfortunately, before the studies are concluded by the state government, which are performed by ISC, it is very difficult to know what the result is going to be. We are interested in contributing and guaranteeing that the process will follow all of the rules as transparent as possible, which is good for the company, the shareholders, and in special for the society and government. It is a journey where we're trying to align all interests.
The governor has already said, and this was repeated by the secretary in terms of investment, environment and logistics, that privatization only makes sense if it generates benefits for the society. We have to wait, see what model the state is going to choose so that we can generate more value. Once this is established, the company will collaborate to carry this out the best way possible.
Well, thank you, André. Antonio has another question. He asks if the company can talk a little bit about the investment plan for the next years. Will there be any major change?
Antonio, we will probably have changes. Today, we have already published a plan. It was published last year, totaling BRL 27 billion in five years. According to the logic I commented, environmental compliance, regulatory compliance, this is something that we are already doing. We have not concluded the reprioritization of investments plan, but we will do that.
Thank you, André. Well, right now, all of the questions we received have been answered. I will wait a little bit, and if nobody has another question, we will stop with investors and start the interview with the journalists. Very well. We do not have any new questions, André. Then I will ask journalists to ask their questions using the Q&A button that can be seen on the platform. Taís Hirata has asked a question.
Hello, Taís Hirata from Valor Econômico. I have two questions. The first one is about the investment plan. According to the report, the plan for 2023 is investing BRL 5 billion, BRL 5.18 billion. In 2022, this amount was BRL 5.39 billion. What explains this deceleration? Is this going to be reviewed by the new management? What will be the focus of the investments for this year? The second question is about the ongoing discussion on the new federal decree for sanitation. How does Sabesp see the changes that are being discussed? What are the possible effects for the sector, for the company?
Thank you for the questions. Regarding the investment plan, we have not reviewed yet. It's ongoing. The investment capacity, volume. Once again, we expect to have this soon. We would like to make decisions based on this plan. This number was defined by the prior management, and we are reviewing it to determine whether it is aligned to our priorities. Regarding your second question, I have not read the minutes of the decree. I read a report about it today and what they're saying. I have already commented here that the regulatory framework always has an opportunity to improve. Governments try to have a different view, trying to improve something. Along these lines, I think that the decree has some gaps. We are monitoring. We are very interested in this vision.
If it is good for the society to reduce some gaps, existing gaps in municipalities whose contracts are not good enough, if we can do something via a new contract, this can be reviewed by the sector, and I think that this transition of the system in the regulatory context will help better organize the new context. The debates we're having, the change of the regulatory framework has been accepted as something that is already established. The adjustment of the decree comes along the lines of trying to fill in these gaps which were left by the previous management. In this regard, this tends to be very positive.
Okay, André. Obrigado. Okay, André, thank you very much. Once again, if you have any other questions, please ask using the Q&A button in the platform. Let's wait a few more moments. We have a new question by Alberto Alerigi Jr.. He asks the following: "Does Sabesp intend to reopen any plan of voluntary resignation in this context of cost reduction?"
Well, if after the structuring we're submitting to this stage, we have an opportunity to reduce costs. Yes, I think this is an option that the company can consider, to encourage those who can resign, and if it makes sense for them to adhere to a voluntary resignation plan. This is something I have received from the unions and the different associations with a new plan for voluntary resignation. This is being evaluated. Actually, we have not decided anything yet, but there are ongoing conversations about this.
Okay. Okay. Gabriel Caruso asks if there is anything you'd like to share with us that worry you in the new management.
Gabriel, actually, no. The transition process from the prior management to this one was very harmonious. We did not identify anything that should be highlighted in the company's controls. As far as we could, question and talk to the external and internal auditors, the auditing committee, accounting, and also the management of the main systems of the company, there was really nothing that was raised by any of them. The company was managed very responsibly, regardless of the parent or the prior administration. We do not have any concerns. We do have a concern, and, we are worried about delivering results. I think there is an urgency in implementing the value triggers as soon as possible. We work at a company whose decision-making process goes beyond the company itself. We have to go through different decision-making levels in the state government.
It's not a concern. It's a willingness, a legitimate willingness to deliver results as soon as possible. Otherwise, I think that Catia has already mentioned this. The company is well managed. We do have relevant opportunities that we will pursue.
Very well, André. Next question is by Thiago Patrício, he asks the following: "Good afternoon. Thiago Patr í cio from the [Duratio] company. In the ESG context directly applies to the operations, I think that Sabesp could improve the losses in the networks. We use recycled water, composting, production of biomass and so on and so forth. Based on these technologies and techniques for optimization, which ones will have a priority for Sabesp in the upcoming years?"
Thank you, Thiago, for your question. I understand that sanitation companies, not only Sabesp, but the companies that work with sanitation are perhaps the highest ESG trigger that a company can have. Today, we already have a clear view of circular economy. In our treatment stations, we have pilot projects that are being trained for the production of biogas, biofertilizers, and also producing ceramic products for civil construction using sludge. We are not the largest. Actually, we are one of the largest recycled water providers in South America.
We want to leverage a value. Our commitment with the environment is very important for us, so that we have renewable sources to supply our units efficiently. Manage the watersheds. We could have a specific day for ESG, because today we don't have a lot of time for that. I would like to talk a little bit about the leverage that we want to use. Thiago, I thank you for your question.
Okay, André. We have a question by Juliana Rocha from REDD. When will the strategic plan be concluded and implemented? Her other question is about more funding for investments this year. Does Sabesp intend to go to the market, issue debts using debentures or bilaterals?
The strategic view the company has already been defined in the structure that we have assembled. We are going to be more efficient. We are going to align everything with the regulator, prioritize clients at a residential level and the end consumer. Also, having an integrated ESG view to guarantee that our activities will promote environmental improvements with more sustainable activities, helping cities to better interact with the environment with a lower impact.
Our strategic view reflects the new composition and attribution of this new board of directors. Regarding the funding of investments, Sabesp is very competent. We've seen the market capital with a lot of intensity in the last few years because it was favorable. At the same time, we have a very close relationship with multi-lateral funding institutions. There is a Japanese institution that promotes investments. We have the IDB, the World Bank. We also have a public line with the BRICS and the Development Bank. Therefore, the company has always worked in different fronts to guarantee that the funding of its investment plans will be well-provisioned. For this year, we have a very good opportunity that we'll be able to access efficiently to guarantee the resources we need to have for the investments to be made this year and next year.
Okay. Okay. Thank you. The situation assessments that have already been made and that will be made, the prior management said that the activities were ahead, we've read recent news on the high level of pollution. When will the river be returned to population?
Regarding the volume of investments and everything that has been made, I do not have the updated numbers here. The most part of what has been done in terms of water recovery has already been made. There was a huge impact on the quality of the water of the river. This process is does not end on its own. There is a combination of factors that involves the participation of Sabesp, but not only Sabesp. It involves the municipality, the DAE that manage all of the different rivers, and the Pinheiros River has a decreased water flow from its origin. Part of it has to do with the bi llings reservoir, which has been harmed, and that reduces the flow of water of the Pinheiros River when compared to the past. We continue investing.
There are different fronts of activities. We've been doing everything that we can, but it's an effort made by the society, so that we can move on with this agenda. We have used the example of the Pinheiros River, but we also have the Tietê River using the same models and the learning experiences we had in the Pinheiros River to the Tietê River. We are coordinating it with the different municipalities that will be involved in the... This is done, on means of the Environment Secretariat of this administration.
Okay, André.
Okay, Andr é .
There is another question by Taís Hirata. She asks if you could de
tail what the activity in the Tietê River is going to be like. Well, Taís, if you give me a couple of days, I will. We are planning something along with the environment secretariat to launch it on Friday. Today is Tuesday. We will disseminate it on Friday in an integrated and structured way. We will inform what we're going to do in this first cycle of this government aiming at the Tietê River.
Taís thanks us. I think this was the last question. André, we are reaching our last 15 minutes. André, perhaps you'd like to make a final comment.
Yes, I would, Tiberio. Thank you very much. I wanted to thank all of you for being present here today and also for trusting us. We are really dedicated to transforming the company into a reference of efficiency, management and modernity. I would like to reinforce the message that we have an open door to receive criticism, suggestions. I focus on communication and the cooperation so that we can evolve as a society and as a company. I would like to reinforce the request for investors to participate in our assembly. It would be very important to count on your presence so that we can implement this change in the bylaws in the very first assembly. So that we're all in agreement with this vision and modernity. Therefore, I wholeheartedly thank you for your presence to enable us to make this change in the assembly.
Finally, I have a message that the whole company is very enthusiastic with the new management, with the perspective of having a modern management at all levels. We are inaugurating a new phase in the company. It's a promising phase, relationship with the society and the whole Board of Directors, myself, Catia, Bruno, Paulo, and Sabrina and Roberval are dedicated to delivering a new company to the society and to the state. I also wanted to mention that for the first time in the history of Sabesp, we have three women at the Board of Directors. They are extremely well-trained for the positions, they occupy. We wanted to more and more reinforce our commitment with inclusion in our company so that we can have a more robust decision-making process.
Once again, thank you all for your attention. Tiberio, I think that from our side, we can end. We're actually very happy to be here right now, and we are very enthusiastic.
Perfect, André. We see you all again in the next result conference call.