Let me get started. We've been here for 18 months. It's looked like a lot. The company was privatized in July 2024. It took us 70 days to take over because that was a privatization through the stock exchange. On the very first day, we made changes in the board. Right after that, we were surprised by ARSESP's decision or deliberation to change the [pressure] that was an important move for our operations. At year's end, we started our first voluntary program. This is something we've been telling people. If you want to be here, you have to want to be here. If you want to leave, fine too. There were two of those programs, the first back in December, ending in January. About 2,000. We had about 11,000 employees.
2,000 decided to take that program, and we had that phased- out plan, depending on how critical their positions were. We're now adapting the same procedure up until now. We kept on hiring new people. Back in February, we had the major change brought about by the social tariff . It was a decision that impacted our results, and we decided to support BRL 150 million out of our own pockets. We believed it was positive at the time. We're privatizing. There was a policy change, and by talking to the government, and then the government adapted State of São Paulo social tariff. That was published a little later on. In late December, I failed to mention it, we collected BRL 15 billion, and the main construction started. Having access to credit is one thing. To make that work for you is something else. We changed processes.
It was to be turnkey. We improved the company's working capital, performance-based incentives, everything in production as of May. We're still discussing the system back in 2023 and 2024, but then in August, we had that crisis. I think you are way more adept at understanding meteorology, but we had that shortage last year. Last year was the third year of very bad rainfall. The resilience of the system was enough for three years, but it started to suffer after the third year. Cantareira was [20.2%], almost at the limit. Below [20%], the federal government will be interfering, and then management will be both federal and state. Very complex composition, especially in an election year. In November, we reached our goals at the year's end. Let me just say this.
When the company was privatized, we talked about BRL 70 billion , but the company had only projects for 15 months there was no predictability all the way to the universal access mark. We geo-referenced all connections that were needed to get to that goal by 2029. We came up with a new investment plan, and we're still negotiating that with ARSESP to communicate to the market. We are very confident. We're more confident, let me put it that way, than we had to be than it used to be. There are some variations between the concept and the executive projects, but we are more confident today than we were. Late last year, we had to match the revenues.
It's very important to your analysis, and it was very clear when we had that first amendment to the contract that removed some of the risk. We defined climate goals. We did a lot of things. Earlier this year, we issued more than $1.5 billion, the largest in history. We started with that collection. I'm not going to provide any privileged information, but we've already collected almost 75% for the year. Amidst all that, we had the [DMI] . There is hydrological risk in the metropolitan area of São Paulo , way above the public's perception. UN says that we have 1,500 cu m , and São Paulo has 200 [cu m] a year. We are under stress because the city was developed very quickly. That transaction with [DMI] give us some more freedom, hydrologically speaking. As construction works advance, André will be addressing that later on today.
Anyway, we've invested BRL 15 billion at year's end. Earlier this year, the reservoirs were recovered. February was a very good month. That alleviated that pressure. But still, we have a lot of things to do. In these 18 months, for six months of that period, we conducted surveys. We talked to the shareholders, to the board, to define what is this new SABESP all about? Where and how we want to get there. Where do we want to go? This is somewhat subtle, more subtle than what you're used to seeing in companies, but we had to align our execution plan. Josué led that effort for six months. We developed our new culture, our purpose, where we want to go, the top activities we should focus on to get to that objective, and then we break that down into annual goals and monthly routines.
This is what we have been doing. We've been looking at companies around the world. We went to Europe, to the U.S., and we came up with this one-page culture map. This is what we're all about. This is what we have to do in the coming years. We are a utilities company. Our purpose is to connect people to a better future. Our country has many inequalities. We still have people not served by water utility companies in the richest state in the country. We want to provide excellent services, focusing on health and the environment. Our first multi-year objective is we want to be the largest company in the world. We look at Brazil, we look at LATAM, but we're already the third largest in the world. American Water Works is number one. Veolia is the second, a somewhat different animal, so to speak.
The company had a market cap of 40% of those two companies, so two other companies. I think we shouldn't be second to none. There are companies in China with smaller value cap, with more consumers, and we came to realize that there's no point in being smaller than these companies because of all the opportunities we have. The way we see it, very few companies, especially those listed companies, have achieved. We have to do two things at the same time. We want to have a positive impact and generating shareholder value. You don't usually combine the two things. If you generate positive social impact, it's not that easy to generate shareholder value. We have people that worked from every area. We're combining these two worlds. We want to both generate a shareholder value and, of course, promoting good things to society. That's our goal.
Let me give you some perspective. Just last year, we had a TSR inflation of +49% above the stock exchange index . There was COPASA. That was different. Anyway, we monitor those indicators. We provided service to an additional 6 million people and reduced pollution by 22% of the untreated sewer system. We had 63 million liters a month that was untreated. We brought that down by 22% last year. We keep moving in that direction. Looking at other international companies, these are 10 activities that we have to be better than the competition to get to where we want to be. That's the next pillar. Well, the first thing we have to do is to provide universal access. It's aspirational to many people, but we are going to meet that goal by 2029 or in 2029. Customer satisfaction.
A natural monopoly, in practical terms, well, since you don't have competition, the competition is the regulation. Companies don't treat customers as well as in competitive environments. I had the chance to work in more competitive markets. Still, we have a huge opportunity to improve our services. Despite the short-term challenges to adapt those price policies to a private company, we are changing some of those flexibilities. That was excessive regulation to customers. Still, we have that ambition to be regarded by the service level we provide to customers. That's our long-term goal. There's something that is even more subtle, and I'm referring to dealing with stakeholders across the board. In a complex world, the narrative that we see in social media is something else. We're dealing with the federal government.
You have to provide good service, and you have to be perceived as such. We have an institutional relations department run by Samanta. We invest in communications to communicate with stakeholders, politicians, and the federal government.
There's also the quality of our products. If we're doing well in our core, if the other things aren't doing well, at some point things will go south. We're currently providing water and sewage services, and we mapped out to understand that over 35 years of our concessions, about 40% of the cities we serve will need some sort of intervention in terms of water treatment or abstraction. We have 39 cities, and 30 of them will need some sort of work. In the Santos area, all the other cities will need that intervention as well. Led by Roberval, supervised by André and Débora, we have a plan to address all of these issues over time so as to provide resilience, considering the water stress that we're facing.
When it comes to environmental and social involvement, even Aegea, when it was trying to have its IPO, looked back at what SABESP was doing. SABESP enjoys a tradition in dealing with its nearby communities via community leaders wherever it operates. This was an initiative that was sort of left by the wayside. Our purpose now is to strengthen that and to have that in focus. What we want is to have a social license to operate and to add value to the communities where we operate. We have a plan to do that in 40 different communities, over the next few years in a distinguished way, and that's part of another project that we'll be showing you a little bit later. When it comes to innovation and digital transformation, well, the world is changing.
For those of you who don't know, I studied IT back in the day. The world is changing. 10 years from now, it will look a lot different than it does now. I think that whenever we think about our goals, we need that digitalization pillar very much in place. We made a weird decision. We combined all different aspects in a single department, just as what American Water Works does, and all with our customer [in mind]. When it comes to efficiency, what we want is to do more, more quickly, and better in every single term. Daniel will be talking a little bit more about this, but our regulatory model involves a little bit of CapEx, so this is one of our mantras here. Now, when it comes to regulation, this was a plan the company had.
We are a regulated company, but regulation was not in our everyday agenda. We're changing that now, and we must be excellent when it comes to the regulatory debate, whether we're talking about people, processes, or understanding. We have an entire work stream to develop that part of the business. We can't do any of that without the people. We need to bring them in, train them, develop them, and offer our talents new opportunities. Our motto is to mix and match people who are just coming in to people who are or have been with us for a while. We have a very rich strategy in this sense, and Josué is spearheading that initiative. Last but not least, over time, to reach our goals, considering the regulatory model that we're in, the possibility of growing inorganically will increase.
Understanding our business and our capital allocation will be very important in that sense. Another thing that's a bit more subtle when we're speaking to the market, we have set our goal, we have established our path, but it's also about how we'll be doing things. We could be throwing punches left and right, and we've worked in places where our goals are not collaborative. It's also about the behavior that you want your company to have. We also established the six main values we want to foster within the company. First of all, this values- and- purpose twosome has to be very well-founded. If anything we're doing is having some impact, it has to be sustainable. We do not want to start things and then move backwards the next day. We will not be sinking our OpEx to then try to come back.
We want to be sustainable in everything that we do, whether it's internally or whether that has an impact on third parties. It's also about ownership, whether we're talking about our own company or other cultures. I think when people feel like they own the business, they have that sense of ownership, the work becomes a lot easier. We have a lot of initiatives in that sense. Right. In our first assembly meeting, we approved with our shareholders a long-term incentives program. We have the initial allocation to our board for 11 people, myself included. At the end of last year, we also allocated for 53 more people, so we have 63 members that have that long-term incentive program.
The purpose now is every year after we disclose our goals to the regulator, before it has an impact on our result, we will be proposing to the people's committee another share of that to another group of people. The third one, collaborating with clarity. This is very common in engineering companies. It's about command and control, where sometimes it's a lot harder to talk about your problems moving up the ladder. Whenever you have an issue, you can't really solve that. I usually say that in life, in school, for example, you'll be given a test, and you have to be able to solve that. In real life, you have to understand what is the problem you're dealing with. In order to know what the problem is, you have to know what you're talking about. People have to be confident in speaking about them.
Back when I worked in BTG Pactual, we usually said that people knew too little, too late. Leaders knew very little about things and too late, and that's very risky because once you're aware of what's going on, you can't do anything about it. The idea of having an environment of trust where people can talk about their issues and we can address all of what's important, it's critical, and we have several initiatives in that sense as well. One of the things that we are escalating now is what we call the great reveal. One of our coordinators just came up with that, and we are scaling that up to every region to offer people the opportunity to talk about their issues. Then we can assign those issues and decide how we'll address them. There's also meritocracy.
This is something that's new for people who came from the state-owned world. In the first year, we paid year-end bonuses, and I think it was transformational for the company. A lot of people had never been awarded that sort of thing, and we usually say that there will be times when that will not be possible. I think that was very important last year. We have a plan that will be taken to our shareholders in April, which is we want to have a double bonus for what we call N0 , and then N1s , board members, N2 , and so on and so forth, where we'll be doubling the bonuses for N3s and N4s . The idea is to provide that for one and a half to three years to those high performers so that we can increase our shareholder base as well.
That's something we're proposing for this year. Last but not least, ethics. I usually say that we will be relentless moving forward in how we run things. We'll do that in a safe manner. There's a huge challenge for SABESP when it comes to developing new projects. We have about 40,000 people working for us. Unfortunately, we've already recorded four deaths this year, and that's because we are dealing with people who have never worked with SABESP before and at breakneck speed. We have to be very rigid when it comes to safety, because regardless of our results, regardless of finances, we're not here to kill people. This is something I usually tell my team. We need to be highly focused on preserving lives.
Considering the sheer amount of construction works we're dealing with, the probability of such events are very high, which is why we have to double our vigilance when it comes to safety. We've already certified companies and increased our efforts and safety protocols in order to do that. We have this multi-year plan. We know of the initiatives and KPIs that we have for every year, but that's broken down into targets every year. We have a PDCA routine management by objectives. This is older than me. This comes from Peter Drucker , and these are the company's current goals, which are my targets. Last year, 40% of my personal target was to meet the universal access target to have over 1.2 million connections. We have 2 million connections last year, then reduce the regulatory gap. You probably know that better than me.
We have a target of reducing that. We had two pillars of that. One was the firm demand, which were the contracts with large companies, and then remodeling and closures. We were able to address most of that. This will be a target that will be extended to this year as well. Where's Lu, by the way? All right. Efficiency, I will talk about where this is at with our EBITDA. This is the cash flow that you monitor via our disclosures. Then there's the Q factor, I think you're all aware of this. These are six indices with the same weights. We also had the pavement quality that was not met last year. This year we have that, and we've met that as well.
We had our NPS, and even though this is a year of major transformation, we set out to achieve a higher NPS than what we had last year or in 2024. What we have here on the right-hand side is how we measure all of that. Taking a step back, when you do not have a culture of monitoring results, what happens is the hardest target is that for the company at large, and the ones that trickle down are a lot easier because our ability to have granularity of that is lower. We have a company-wide target a lot heavier. How does it work when we look at our company target? If we look at the EBITDA, it multiplies as if it were the size of the pie. If we do more, it increases the potential and vice versa.
40% for these targets I just mentioned, and then 60% of individual targets. Now, if your EBITDA ranges from 90%-110%, if it's under 90%, we have no bonus, and if it's over 110%, that's the cap. If we get over 110%, we mismeasured. 80%-120%, that's what we would have. There's a leverage when we look up and when we look down as well. In addition to those targets, we also have projects that are not necessarily targets, meaning they're not connected to variable compensation. This framework, which we introduced last year, and we still have to re-discuss this for Q1, where we split our units in new challenges, new standards, and new foundation. We had all of these projects that were required, and we have a routine with a PMO that we monitor constantly.
Here we have a monitor of how we performed in each one of these projects last year. Let's look at a few ones that have more to do with you. Looking at our real estate properties, we came in thinking that we would get rid of many of them. What happened was many of them are still in our base, so the cost of opportunity of selling is slightly different than what we imagined initially. Also, there are still a lot of properties that need to be regulated. In 50 years of SABESP, we have different registration numbers and so on and so forth. We now have three different cohorts of properties for which we have different strategies. That's what we have for real estate. We have sort of status levels for each one of these projects.
Nine, we were above what we planned for, three below, and 29 that we were pretty much where we thought we would be. Without giving you any spoilers now or any insider information, again, the universal access is our main pillar. 30% of the company's targets depend on us meeting the universal access target. If we meet this, we will meet what we have in the contract easily. Second is our operations. We're moving up to 50%. This is connected to the Q factor and also the water source levels. We're moving into a more complex year, and the idea is to work to prevent water stress. Of course, we are less efficient in this case because we can't control the weather, but there are initiatives we can adopt to mitigate that, and the idea is to focus on that as well.
Third, we want to continue to move forward in our customer service. Last year, we measured that via NPS. This year, we'll be measuring with another index because of our maturity, but we have 15 points allocated to that. Number four, if you remember, last year, we were dealing with operational free cash flow. Now, we're dealing with free cash flow to the firm, considering that the indicator we used was higher than expected. That's essentially it. If we meet the target by spending more, this is where we're penalized, and that's the idea. Now, second to last, what we call unitization. What we're talking about, that's basically looking at the investment that was made and have an accounting and document-based framework that we can record the operator. Early in October, we had BRL 7 million that were not being used.
We have a unitization strategy that's slightly different from what the energy industry does. Our ability to break down investments is a bit different. I think this will be clearer when Roberval speaks, but we're still working to unitize more quickly. We are striving to unitize our CapEx. We also have another target, an extra target compared to last year, which is safety. Again, this will not bring our targets to zero, and we will not be meeting that fully because of what happened between January and March. Now, here we have our most important projects for the year and how they're moving forward. We monitor our PMO in parallel with our results-driven targets. Last year we were mixing that first year of our privatization and other important things. This year we have cross-cutting projects.
We have projects for the company that crisscross different departments. The purpose of this framework is for initiatives that have these multi-department impacts , we will monitor and oversee in a unified manner. Now, looking back at that plan I mentioned earlier with the 10 different paths, those 10 were split into four different areas: quality, profitability, growth, and society. We have 29 different projects. We'll have one extra in practice because the board asked that of us, so we'll be also monitoring another one. We have 30 projects, five of which, until last year, were slightly behind schedule. A few important things I could mention here. On the client front, we will be redesigning the entire customer journey from someone who asks for a new connection until them being disconnected. We'll be outlining that process, identifying points of friction, and establishing KPIs for that.
Another important thing, the operations center is very [analogical]. We currently have about 50 operations centers. You'll be seeing one of them inside later. What we'll do is we'll be centralizing all of them in a single place with redundancy, but also sensors and smart devices to no longer rely so much on the technical experts. We want to bring all of that to the digital world over the course of this year, so that at the beginning of next year, we have that for the entire metropolitan area, and two years from now, we will have that for the entire state of São Paulo , all 375 cities.
Well, what else? We have macro processes. It's only natural that when you join a company, you have to redesign all the major projects. There are so many processes that will be redesigned. When you don't get results, usually the culprit is the process. 4,000 people changed positions. We want to redesign macro processes. I believe that's it. Here are the major challenges, and then we can address them in Q&A. TRC, one of the major challenges, our VNR in the water industry. The methodology will be defined this year. There will be public hearings conducted by ARSESP, but we've been investing very quickly, and our concern is that the methodology won't be fast enough to accommodate these new investments. We want the methodology to impact what we already have. Sometimes you have to hit the brakes to wait for the contracts to catch up.
We're still making contributions. There will be a proposal now shortly. Again, this is a challenge for this year. Next year, the tax reform, CBS. I think it's CBS, right? That's for the PIS and COFINS taxes. We have to make everything work, change systems and all that. Next year, the goal is by city. Today, our goals are combined, and as of next year, we'll have separate goals by city, all 375 of them. We're auditing before the agency. We want to be robust enough to be able to achieve those individual goals. Next year, we'll be integrating the plan with [MI]. We're not executing that in 2027, but we want to explore all opportunities to maximize that opportunity with the integration of [MI] and SABESP. Because of that, water stresses and water conditions I mentioned. 2028, the test year for the revision of 2030.
It's a very important snapshot, if you will. In 2029, we'll have to meet that goal of providing universal access. This is our take on the situation. As we move along in operations, we'll gain some freedom to take a look at inorganic. Are we purchasing something? Of course not. It's not a certainty, but we'll be freer. We'll have more freedom to look elsewhere, and we are going to do that in three principles: geography, product, and industry. We are today in the middle. We service part of São Paulo with water and sewage. We can grow in São Paulo . We can grow in Brazil. There's COPASA. We can grow abroad. These involve risks, and the decision-making process is different as well. We only provide this service today. We can do water collection and water treatment. We can service supplementary revenue sources.
We can do that, but they will only grow as the size of that industry allows you to. We can also move on to other industry. Drainage, for example. We can do it at a micro level in our contract. We could even start providing those services because it's part of the contract. Full drainage, we cannot provide the service yet. This is up for cities to provide. Maceió, for example, there's an invitation for bid. They are bidding that service in the city of Maceió. We can address solid residue. I'm not saying we're doing it. I'm just saying there is that opportunity, and there are other industries as well. Equatorial is a sanitation company. Energisa is now operating in gas. There are those possibilities. As we grow and we address the previous objectives I stated, we can move on to other larger goals.
Last year, we started working with energy because of in mind, we do not want to be an energy company. There was a very interesting solution to add reservoirs with some yield. I'm not competing with AXIA. I want to make that very clear. Again, this is our take on the model. In conclusion, 18 months, it looks like 18 years, but things are moving along just fine. The difference between American Water Works and Veolia, we're 40% market cap, we are 80% of that. We're just $3 billion shy of being the largest. We are $23 billion, American Water Works is $26 billion. Veolia is about EUR 24.5 billion. Given all the circumstances in the regulatory model, we're going to get there. I don't know what they're up to, but again, the goal is not to generate erratic returns.
We want to provide returns above our cost of capital for a long time. That's our challenge. We did great last year. We're still faced with that challenge this year. We removed 6 million people that were not serviced, 2 million in São Paulo alone. It's just amazing, right? São Paulo is the richest state in the country. Four million people that were not serviced by water treatment. We reduced that DBO, that's the organic rate of sewage, dramatically. That's it. I'll hand it over to Daniel. Oh, there's the QR code. You can submit your questions, and then we'll have a Q&A session to address all of them at once. Thank you, folks.
Morning, everyone. Thank you for being here. I'm Daniel Szlak . I'm SABESP's CFO. I come from the sanitation world, and my boss trusts me because he said, "Money's no problem.
All you have to do is use it wisely." I think we're okay. At the end of the day, what's our ultimate goal? We want to keep on growing with discipline, with sustainability. It has to be sustainable to the company and to all stakeholders. Let me give you a before-and-after picture. These are the three dimensions, people, management systems, and operations. Before, we had about 11,000 employees. We are at 9,000 today. We've given opportunity for those that were here. They took a test to be a civil servant way back when, and then we asked them, "Do you want to keep on working here? Or would you like to do something different?" 3,600 people joined that severance program, 2,000 new hires in the same time frame. Then we brought in new blood to our staff.
We want to encourage people that have been working here for longer. They were about to retirement age, and we want to bring in that new blood as well. 22 years, now it's 14, the average time of workers. Meritocracy. Everyone had fixed salary. There was no room for those high performers to get more. Now we have tools in place to pay more to those that have better performance. Fixed pay, short-term and long-term incentives. Onto management systems. The company was government-owned. It was a cash-based company, and so was the company. We changed that to the competence. We implemented the OBZ to look everything bottom-up, not top-down. As a state-owned company, just like governments, it was funded on a short-term basis, and this is what I did.
Liability management to reduce our leverage, extending the maturity, and adopting hedging to reduce exposure to foreign exchange and other indicators that didn't make sense to us. On top of that, we had a budget to invest more, but we're competing, or the company was competing for funds that could be allocated in hospitals, in education, security, and the company did not invest as much in technology because of that. Digital transformation and our goals and our values and all that. Now we are heavily investing in infrastructure, cybersecurity, and tomorrow we'll be going live with [S/4HANA]. We are replacing our SAP tomorrow. SABESP was founded 52 years ago. It was a combination of a couple of companies, smaller companies with a lot of autonomy. There was no central command. Today, we have someone here that is in charge of water, André. He will be speaking to you shortly.
He's now in charge of water at SABESP as a whole. It was not like that. We wanted to come up with that integration. It will take a lot of time. This is our goal, and we'll be adapting and implementing this new culture. Our investment capacity was limited, maybe 3 [ billion] , 4 [ billion] , 5 billion a year. In 2025, we managed to invest BRL 15 billion. We had a limitation in the number of suppliers. The company had to be subjected to the law of bidding, [8,666] . Companies did not want to be involved, so it required larger suppliers in that bidding process, and we changed that to the market standard. We're now able to raise funds, BRL 39 billion, after the execution of BRL 22 billion. The company was not digitized. It was a physical company, per se.
Now we have digital channels in place, but I'm not going to steal Denis' thunder because he'll be addressing that shortly. Results in numbers now. We reached 60% EBITDA margin in the first year on the rise, and CapEx also on the rise. As universal access speeds up or gains traction, that will mean more people, more connections. We have to compare ourselves with competitors. We compare to domestic and international competitors. We are the third largest in market cap, but we're the first water company, public water company, in the number of consumers. We compare ourselves with ourselves as we prove the quality and the visibility of our internal indicators. We compare, again, to domestic and international competitors. We want to extract those good lessons. Before I talk about comparisons, the product of CapEx, this is healthy and sustainable growth. We grew about 8 million.
We have one connection. A connection could be a building. It may be 12 units and 12 economies, as we put it. It's usually 2.7 people by economy. We're growing and improving our quality indicators. We are at 99.9% for treated water and 98.8% in distributed water. This is above the Q factor. Internally, we talk about U factor. The U factor is gaining traction. This is a very common factor we discuss internally. I hear a lot from you the issue of affordability. SABESP has one of the cheapest residential rates. We compare to local and international peers. We have one of the lowest residential tariffs than any other large metropolitan areas. When we compare that to the family's budget in terms of utilities, energy, water accounts for about 1/3 , 2/3 energy. When you look at the purchasing power of the population, this is very positive.
Still, we have economies and people that cannot afford. We have been providing subsidized tariffs. We have some social programs that are part of that. They are [Reuby], BPC, Legal Water, and the Paulista Social Tariff created in mid 2025. About 20% of our customer base will have that subsidized tariffs. Discounts can go from 70%-50%. Of course, this is captured in the tariff reviews. These are discounts that are given based on the regulation, and we're going to be compensated for that cross-subsidy. We closed the regulatory gaps, too. SABESP gave discounts to large customers. There was a tariff gap, about 500 contracts in that category, entitled to that discount. Discounts ranged from 45%-60%, about BRL 600 million in the year. We have still 15 injunctions that are still pending. Contractual exposure is reduced to only two customers.
Very relevant work done by the customer, regulatory, and people's departments. At the same time, we started the measurement or intelligent metering system, 4.4 million meters. This is a contract demand. We have 10 million meters in total. We'll be replacing 4.4 million. There will be smart meters, especially in São Paulo and São José dos Campos . It's a requirement in our contract. ROI is much better than that in concession. We can be way more efficient. We reduce losses, and customers can see their consumption on an hourly basis so they can detect leaks more quickly. That's one of the things we used as a guarantee for the first blue bond we issued. That was based on the IFC, because that was a project that aimed at reducing losses. Let me now address operational efficiency and cost reduction. This is something we talk about all the time.
Why do we have to be excellent in operations? Number one, we have to invest heavily. Of course, no one is going to invest BRL 70 billion on day one. We had to raise that money to generate that cash because the more efficient we are, the more money we have for investments. We don't have to pay all that interest. We don't have to raise all that money.
Another point is we have to be more efficient because we also need more affordable tariffs for the population. The first five years of that, we will be retaining that compensation, but after that, we also have to return that to the population, which is why we need to be more efficient. Now, on what we're looking at, we have a few comparisons here on this slide. What does our OpEx look like, both in [reais] per cubic meter , as well as in absolute terms, and also adjusted for inflation? We were able to adjust our OpEx very well over the course of 2025, with a little bit of carryover to 2026 with issues such as the energy production, and we'll be addressing that a little bit later. We're also looking at how we're doing versus our local peers.
It's hard to look at the international peers, but SABESP was dealing with much higher costs than what we needed to, and we were able to excel versus our peers. This is something we were able to improve. We were able to improve our position significantly over time. Now, I'll talk a little bit about people and then energy. We talk a little bit about our labor force. There's been a decline. We're bringing on new blood and sort of renewing our labor base. Even before privatization, we had already had those programs for voluntary dismissal. A little bit of what we've done that's interesting. We opened about 3,600 vacancies, and we had over 150,000 applications. We have 122 interns and 220 trainees here at the company.
We're trying to bring in new blood and sort of change the profile of our personnel, and both making better use of people who are inside and bringing new people as well. Another important thing, in terms of energy, when we look at our efficiency in terms of cubic meter or kilowatt per cubic meter of treated water, we have improved our efficiency regardless of the challenges we've faced last year in terms of renewal, which also consumes energy. We consume energy in two main points. Of course, in treatment, but mostly when it comes to distribution. We consume energy in water distribution because our networks are pressurized, which is very energy intensive, but also consumption when it comes to transposing water sources.
We're still able to improve our efficiency with new equipment and more efficient operation, and we also have help in managing the portfolio of equipment that we have. In addition to that, we move forward in migrating from the regulated market to the free market. These are yearly averages. Just to give you an idea, in Q4, about 85% of the electricity we consumed came from the free market. Now in 2026, as we mentioned before, we have two new incentivized consumption contracts, which will help us to lower our energy consumption. We believe there are two major headwinds when it comes to energy consumption in 2026. Adjustment in distributors' fees, which will help us a lot. It's important to have that in mind.
The second is, even though we have a better hydrological profile now, there's also an increase in consumption with the new water source use. You have to think about how you'll be modeling for energy. Now, looking at our next initiatives, this is something Piani brushed on when he was talking about the master plan. Even though this is very profitable for the company, this is also very important for our management. I'm talking here about COI, our integrated operations center. Ultimately, this will be the largest integrated operations center in the world. We went all around the world to see what was most modern and interesting in that sense. We're investing over BRL 3 billion. BRL 2 billion is just from our side. BRL 1 billion is to meet regulatory requirements.
We're looking at a return on investment of about 25%, and we expect that to be even higher. Also, chemicals. We spent about BRL 600 million a year on that, and there was no standardization before. We're bringing that in now. There's a lot of interesting things to monitor. There's also monitoring how we consume that so that we can work with that in a smarter way and monitor that in real time. Logistics optimization as well. We've already mentioned that we are looking into our entire network of storage units with eyes to lowering our costs and streamlining our operations. Now, a little bit on budget or balance. Our cost debt is very advantageous, even though the nominal cost for the country is very high.
This gap sort of closed a little bit last year, especially because we've been issuing debt overseas, which is more expensive but brings in more money. We've raised about BRL 36 billion, BRL 14 billion of which in 2026 alone. We ended the month of February, and by mid-March, we had already raised BRL 36 billion. Looking at that debt, 86% is in CDI. We were able to extend its maturity by about a year and a half. We were also able to improve our debt profile. We did some very interesting things here alongside a great team that joined our treasury department. We issued the first blue bond in Latin America and then the biggest blue bond in the world. We were awarded by A/B loan because of initiatives we had with IFC last year. We were issuing overseas again. Really diversifying our funding sources.
When we look at our debt profile, it's very different from the average for Brazilian companies. About 1/3 of that is in DFIs, and that goes to our purpose when it comes to sustainability. One- third in international capital markets and 40% in the local market. We are diversifying because of how much of funds we have to raise. Most of those are connected to sustainability initiatives as well. When we look at investment, ultimately, we raise those funds for the purpose of moving our investment plan forward. We'll be hearing more about that, but we've been growing that plan because as much as we can move forward our universal access plan , that's what we will do. About 25% of what we raise goes directly to the Universal Access Fund, and 7% goes to water resilience, and 28% goes to anything else.
We talked, for example, about COI, that's within those 28%. All of that allowed us to improve our return on invested capital. We've been expanding that, growing about 200 basis points versus 2023, and that's ultimately a product of everything I've just mentioned. Also improving our profit per share for our shareholders, and also looking at EV over RAB. When we think about what all of that means, we had a 93% TSR, 82% from asset prices, and [5.9 billion] in our shareholders vesting shares, all of which we were able to do during this period since we took over. Now, looking ahead, we have over 2 billion connections for sewage until 2026, 70% of that has already been delivered. We have an important systems journey this year. We have S/4HANA, Salesforce, and many other systems. We're introducing the Engineering Excellence Center. We are also looking over our billing system.
There's also the tax reform, which is very significant for how we work, since this was a company that was not issuing local invoices or having that looked at. Also energy, as I mentioned, we have two significant contracts which will improve our price per megawatt over the course of the year. COI and [EMAE], which will improve our metering systems. We want to go 100% smart meter. Also, the integrated reservoir management with MI. We want to improve our CapEx plan via that trend, and also the development and attraction of talent, which goes back to everything I just said. We want to bring in good people and also develop those that we already have in-house.
A few days ago, we were looking at the structure of our staff inside, and we asked, "How many people do we have when it comes to attraction and talent development?" It made perfect sense because we used to be government-owned. People were taking a government applied test to be able to come join us. It makes perfect sense. This is something that we have in our minds as leadership to improve the company. On that note, I will finish my part and turn it over to André. Please.
Good morning, everyone. My name is [André Góis]. I am the Director for water operations. Our management now responds for the entire state, from water sources to the management of even water wells. I'd like to show you or to give you an overview about our entire water management system.
There's a milestone for us at SABESP, which was the water crisis in 2014. This was a trauma for all of society, and we learned a lot from that. We would like to show you what happened during that time and afterwards. We are much better prepared in terms of infrastructure, and have been since then. We are showing you how much of gross transfer between water sources since then. When you have a wider flow, there's more resilience to mitigate climate impacts. We've improved from 1.816 cms to 1.945 cms , and also improved the system or created a new system. We have this system of 5 cms that's now operating in a very significant way. Also, the transfer of treated water between systems. We increased the capacity to transfer treated water between systems or across systems.
That gives you a lot of leeway to increase or decrease your systems in the metropolitan area. We can, for example, decrease the Cantareira system and increase the Guarapiranga system to keep the population supplied according to which water source is doing better. Here you have, in general terms, the size of each system. We have Guarapiranga 23% and Guarau 14%. We also have São Lourenço with about 10%, and that's how we can move the water from one system to another, both treated and untreated water. We had a very interesting snapshot of last year. This is the water [fall] level year by year since 2013, and if you notice, 2014 was the year of crisis, and all of society felt that. After our works had been done in São Lourenço, in [Jacareí] as well, connecting that to Cantareira.
In 2018 and 2021, we also had challenges, but we went through those without society feeling it. Last year, we had a very similar snapshot to what we had in 2021. If you look at the dry period, the bar in light blue is the dry season, and it was much longer than in previous years. How did we manage to overcome that? Looking at the infrastructure that we already have in place, we also continued to work on bringing more resilience to the system, and also we lowered the pressure by the middle of the year, and that allowed us to optimize the surface throughout the year. Here, we look at the water uptake throughout the year, and you can see how it fell throughout the year.
All of that was for reserves for our water reservoirs or water sources, and this all goes to how the operations were being managed. Again, looking at GDN, our reservoirs started going up in January. Other than that, you see a continued drop in our levels last year. We came to the very limit by December, and after January, it began going up again. We're still managing that, and we're being able to make better use of this period of higher rainfall. These charts show what the rainfall levels are going down or moving closer to the historical average this year, unlike what happened last year. We also run our projections. How are we projecting for this year, considering what happened last year? Will we go through another crisis or not?
Our thinking is, if the rainfall levels fall in line with the historical average, we will come to about 10% of the integrated metropolitan system. It won't go to zero, but we'll be able to make it. This works as if there was no one working, but we have people working on this, so as it goes down, we'll be able to manage it. What happens is we are at 70% of the historical average, which is the green line. If that's the picture we have this year, things will be a bit easier. The thing is, we haven't seen the historical average in the last 10 years, so that's not something we're counting on. Here, we show you some of the structural investments we'll have through 2030. Roberval will talk about that as well. SABESP never stops. We need more and more water resilience.
That's something we are always discussing and always focusing on. Whenever you're investing, your focus is bringing more resilience to the system, more water resilience. We'll be hearing more about that in our initiatives for more resilience to the Tietê system. We've also increased the resilience of the Cantareira and other systems in the metropolitan area. Here you have a list of the most important investments we'll have on both untreated and treated water as well. This is to show you that we can't stop investing in water resilience. Otherwise, we'll be swallowed by climate uncertainty. Climate uncertainty is a certainty, in fact, and we're always trying to mitigate that. Now, I'll hand it over to Luciane.
Good morning, folks. I'm Luciane. I am the Regulatory Department Director. I couldn't be here earlier because I was meeting with the regulator. We had to come up with a policy by [12 :00 P.M.] today, so I was working on that. Just like André said, we have been investing in water resilience. We are now implementing this new asset allocation. As far as costs are concerned, if we are faced with a crisis, we'll have to maybe reduce that supply. We're still protected by the contract. URAE 1, that's the risk allocation. There are some triggers and objectives. They are all mandatory. An extreme weather-related event, we need official statement from SP-Águas because they'll have to declare that shortage. We have that declaration for both Cantareira and also Tietê water sources.
We have to have a technical report that the ISH, Water Safety Index, it has to be below the parameters set forth by ARSESP and SP-Águas. We have to be compliant. We have to come up with a long-term plan. This is the long term to provide water security, as well as a contingency plan. We've already presented those plans to ARSESP, so we are compliant with those requirements, and we are now executing our contingency plan as of August last year. We're now executing that plan. As far as economic protection is concerned, we have some rebalancing through tariff revisions that are regular or extraordinary, depending on the level of impact in the company's financial reports. Everything set forth by the contract, that is Clause 37, Article N. We also have mitigation and governance. We have a structured contingency plan. There are three contingency plans, actually.
Started from the strategic index all the way to the tactical and institutional coordination. We are part of a committee that is made up of SP- Águas, ARSESP, and SABESP is always invited. [audio distortion]. Anyway, it's up to them. They'll demand that confirmation. We have weekly meetings on Mondays with all these agencies to work together, so it's a very coordinated effort. That's it. I'll hand it over to Roberval now. Roberval is a great engineer, and he's a great beach tennis player. You should invite him to your doubles tournament. Well, if I say, I should say that I play beach tennis. We have many players in the audience.
Good morning, folks. I'm Roberval Tavares, Head of Engineering. I have 33 years of experience. Now, I'm also a sanitation expert.
I'm almost a financial investor because to come up with that CapEx, allocate all that CapEx, he had to teach me a lot of things. Anyway, it's great to be here today. It's great to be part of that effort to provide universal access. All right, let's go. These are major challenges. Number one is undoubtedly universal access. In 2025, we met our goals in the concession contract in water, above 44%. This is formally in urban areas, informal, and rural areas. We more than doubled the plan for 2025. Sewage collection, 43% above informal and rural areas. We are meeting the contract numbers. The number one challenge is treatment, water treatment. We're up 33% above goal. In late December, we had already achieved 33% of our goal for 2026. We had already reached that back in 2025.
As to CapEx, Tânia, and Piani, we allocated BRL 15 billion, historical levels, back in 2025. Just to give you some context on the chart on your right, four companies in terms of investments, Petrobras at BRL 108 billion, Localiza BRL 26 billion, Vale BRL 25 billion, SABESP at BRL 15 billion. In terms of infrastructure, we are ranked third in terms of investments. These are the major projects in 2025. Expansion of our treatment facility at the Parque Novo Mundo from 2 cu m to 6.2 cms . We're now implementing a system in Perus, a new water treatment plant, the only district in São Paulo that had no treatment facilities whatsoever. We're now opening a new treatment facility. Many mains, this is an example, over 200,000 economies. In the coastal area of São Paulo, that's the water treatment facility, Melvi.
In informal areas, my dear friend Débora and her team are in charge of providing universal access in informal areas. Over 279,000 new connections in informal areas, most of them in the Metropolitan São Paulo area, but also in the São Paulo state coastal region. We're not operating that up until 2025. The pace is very good indeed. Looking ahead, as Piani said, we have many contracts underway, BRL 39 billion underway in 2026. Metering is still for the entire state as of 2027. That will be broken down by city. We're at the third line. That's the planning. That's our goal. The planning has a larger number than the second line, which is actually a part of the contract, not concession contract. We expect to reach 26, and with 238,000 economies above the number in the contract.
That means we're already bringing in savings of 2027 to 2026, especially in smaller cities. Our strategy for the year is as follows. Waves of hiring. The supply teams run by Gustavo could have some more predictability. The state of São Paulo is broken down by two waves, wave one and two. We're now at wave two, the metropolitan region, São Paulo, the coastal area, and at the same time, the largest depollution system in Brazil. That's the Integra Tietê program. We'll be addressing that shortly. All these construction projects in São Paulo is for providing treatment access for sewage. That involves a lot of hard work around the clock and are going to provide universal access by 2028, actually. We will have 325 cities serviced by SABESP with universal access.
Metropolitan region of São Paulo, the coastal area of São Paulo, because these are more complex projects that will take more time. In the rest of the state, we have a different approach. It's a value-based engineering process. There's a partnership of SABESP and other companies to develop projects that can benefit our CapEx even more, which is to do more with less. That, of course, will boost the work we're doing in the rest of the state. Let me address Integra Tietê, the largest project in metropolitan regions. We now have under contract BRL 17 billion. BRL 9 billion for water treatment plants, another BRL 7 billion for linear projects. We broke that region in 42 lots, and they are being operated at the same time. Over 1,400 construction of linear projects. These are main ducts implemented next to rivers.
There are many water treatment plants, and we're still delivering some in 2026. Phase two, we're now ahead of schedule. We've reached 229 km of construction projects already finalized. It's a major construction site across the board. I'll give you an example of the city called Guarulhos. That's the largest investment per resident in the metropolitan area of São Paulo. These are the water treatment facilities and the sewage treatment facilities. We're now expanding the four major plants, the ABC region, Parque Novo Mundo, Barueri, and São Miguel, and we're implementing others. Perus, Caieiras, Água Vermelha, São João, Bom Sucesso, Várzea do Palácio. These are new plants now being implemented as we speak. Major collectors, major ducts that are being implemented. Let me say that treatment is not connecting every unit. You have a major collector alongside rivers, and you can collect all these economies at the same time.
That's a major collector from the Córrego da Onça. We connected 10,000 economies at the same time, and so on and so forth. These major sewage systems can improve the conditions of all rivers and all the creeks or the streams alongside those major rivers. All effluents of the Tietê River were measured with organic matter content smaller than the numbers in 2024. Again, proof that we're removing sewage from rivers. We're now redirecting it to treatment plants. This is according to CETESB numbers. As far as capacity is concerned, it's going from 23 cms to 42 cms , 80% increase. At 42 [cms], we can reach universal access. All treatment plants are part of our technological route, prioritizing circular economy, going through every step of the way.
Not all plants follow the same route, but all plants will be prioritizing a route that is more suited to that facility and to the company. Focus is in reducing OpEx. Now on to informal economies. A lot of work in the western region of the state. Over 59,000 connections between water and sewage. The state is playing an important part. The metropolitan areas in the north and the south, and also on the coast, many projects being conducted as we speak as well. The goal is to address informal homes. Water security, this is very important as well. We want to anticipate BRL 7.8 billion of investments that were scheduled for the cycle starting in 2030. We are prioritizing those that can generate more impact to the system. These are the most important projects for 2026, 2027, and then 2028, 2030. Let me point out to this.
When we prepare all the planning for the year, before 2025, we did not consider EMAE as a partner. Now being part of SABESP, once we have that partnership, we are reviewing those plans because it will definitely benefit our water resilience program. Some of these items may be impacted, may change. They'll be better, actually. It will generate even more efficiency to our company, as well as ensuring more water security to the entire metropolitan region of São Paulo. Baixo Cotia expansion of the water treatment plant after the São Lourenço inclusion that was put in the back burner, we're recovering it now. We are renovating it so that it can be operational again. Yet another cubic meter for the population. The largest project, financially speaking, is the water transference from Billings to Taiaçupeba, a 38 km duct. The diameter is between 15 [mm] and 1,800 mm.
We'll be bringing water from Billings to the Taiaçupeba Reservoir, going through those cities, São Bernardo, Santo André, Ribeirão Pires, Rio Grande da Serra, Suzano, all the way to Mogi das Cruzes. Along the same lines, we're now carrying out a very different project in São Paulo. We had to go to Barcelona for a benchmark. They had to recharge those water sources, and we're implementing something similar, so we can recharge or refill the water sources in Suzano. That's a pilot unit, and that can be transferred to Taiaçupeba, pending approval, of course, from regulatory agencies. This will be a very important project for 2026, 2027.
Now on to CapEx management. In the company, we work on that considering five different investment fronts. The most important, as Daniel said, is universal access or the expansion of our system. 65% of everything we invest goes to expanding access. We have another important route, which is safety and water resilience, asset renewal, operational efficiency, and then indirect investments, which will support us in moving all other operations within the company. Within that context, we started the project back in 2024 with investments of as much as $24 million. Since then, we have been working on a few different aspects, such as moving forward the 2030 cycle, which goes to our resiliency project.
There were also important things that took place in 2024 and 2025, and we are now at the stage of discussing with our regulator, ARSESP, the approval of the figures involved in our investment plan. Another thing I would like to highlight before we move from this slide, as Piani said, we have the conception of the project for all those 371 cities. We have the detailed map of everything we need to do for each one of these municipalities, which goes back to our universal access plan. In every front of our CapEx, as detailed in our portfolio, when it comes to expansion, this is everything we have in terms of expansion, operational efficiency, which involve the water meters, smart metering, water safety, and the renewal of assets, which is another very important item we need to look at very closely.
We have a specific methodology of monitoring everything we have in terms of potential issues with our assets and staying ahead of that, moving projects that will keep the company in good state. Expansion, as I said, is our main focus. Again, 64.8% or 65%, as Daniel said, of our CapEx is what's planned for us by the end of 2029. As you see, the blue part of the chart goes as long as 2029, and then we have the vegetative growth of cities that we also have to manage. Here I'd like to show you the case of Guarulhos, just to give you an idea by showing you one city and how things have been changing. SABESP took over water and sewage management in the city back in 2018, and now 40% of the water in the city goes to our treatment plants.
In just a couple of years, it went from 18% to 40% of the water treated. Collection rates also went from 91% to 96%, to the benefit of over 300,000 residents of that city. Between 2023 and 2025, we've invested BRL 1.8 billion in that city alone. This is a great example of what we need to do in terms of sanitation. If you've been to Guarulhos, you know this is a city with a population of over 2 million. Here the maps show the green part is where we had water treatment access, and you see what it looks like in 2023 and what it looks like now in 2025. That's what's important, right, Rafael? Also, on the informal side, we are now serving 50,000 residents. Again, informal areas are another highlight for that area.
Important projects we have delivered: the treatment plants of Fortaleza and Cabuçu, very important ones. This is on the fringes of those cities. Part of that now goes to the plant that we just opened, and others go to other plants that we opened this year. Other plants whose projects are underway: Bom Sucesso, Várzea do Palácio, and São João. These were existing plants that we are expanding so that we can treat more water and serve more people. We'll have over 23 million connections. That's what I had. Thank you so much for your attention, and I just wanted to say how proud I am to be part of the greatest universal access plan in Brazil, perhaps even the world. Thank you. I'd like to invite and turn over to my friend, Denis Maia, now.
Thank you, Roberval. Well, the first thing I'd like to say is to suggest the green stain to blue stain because that's the best color, and not my rival team's color. Good morning, everyone. Well, my name is Denis Maia. I'm the Executive Director for Technology. As Piani said, we've combined two different departments to one executive department. We later understood, or later learned, that American Water Works has the same structure inside. We'll be talking about clients and technology at the same time. First, as was said, our smart metering system is very interesting, and I'd like to show you a quick video. Well, as was said earlier, when we came in, this regulatory requirement was given to us. We needed to install smart metering across the board by 2029. Every city or every household that we serve would have to have the meter replaced.
The first question we asked was, well, what is the greatest metering renewal in the world? We found out that in Barcelona, there was 1.4 million, and in Beijing, they had 1.8 million. By 2029, our mandate was to develop a project that was 4x larger than the largest smart metering projects in the world. What we did since then was we ran around the world to study everything that there was in terms of experience and technology. We went to different places, England, France, Spain. In France, we looked at another industry. We looked at EDF. Now in France, every household has a smart energy meter. We also looked at the experience in the gas industry in Italy. We looked beyond water and sanitation. We went even to China, visiting major players precisely so that we could understand what was out there.
This was a benchmarking and analysis time so that we could really understand the scope of the project. We issued an RFI. We went to different consultants until early August when we signed the agreement. I'll talk a little bit about our strategy. Just in terms of timeframe, we had the first smart meter here on campus. It's now in operation, but we can also look at it right here if you want to look at it up close. This is what the smart meter looks like, the one we have working here on-site. On directory number two, you will also be able to see it in action. We'll show you what it looks like and how it works. This is the timeframe and what we did to launch our new smart meter.
These are a few things we learned from all of these visits and the best practices we looked at in each one of them. Well, first of all, we wanted to ensure the highest effectiveness rate and the highest RCA. We realized it was very important for us to have embedded modules. Whether we're talking about the communication module or any other required module, it had to be embedded into the meter. There's a lot of technology of external modules, but that leads to a lot of failure. The second was we had to decide what type of technology we would be relying on. Would it be a radio frequency or a public network such as the cell phone network? If we were to use radio, we would have to build our own frequency.
This is something that in previous years, especially in the electricity industry, they invested in a lot of radio frequency networks. That's an investment in a network that only you will use. It felt like it wouldn't make sense when you already have an IoT, the narrowband IoT, where you have a frequency of a public mobile phone network that was available. You wouldn't need to invest on a new network because it's already there, and it works as it would with a smartphone. It uses a smartphone chip. We decided for NB-IoT to lower the initial investment, relying on a public investment with a standard, which is 3GPP. Every mobile operator uses it. There's also interoperability. We would not be hostage to a single supplier. We worked with a meter that would rely on an eSIM, much like your smartphones nowadays.
If you want to change vendors, if you want to change operators, you can do that remotely. That's what we decided to go with NFB. It's very important to remember that we supply water. Unlike the electricity industry that already has a meter, we needed electricity. We have one or two batteries per meter, but that battery has to last as long as the meter itself, so at least 10 years. We ran a number of tests, stress tests in labs, because we had to make sure that over the course of those 10 years, that battery would not need to be replaced. All of that was outlined. This is the meter that you saw here.
As a result of all of that design is this will be, at the same time, the largest IoT project and the largest NB-IoT project in the world. The largest NB-IoT supplier in the world has over 50 million points of access in the world, considering every industry, from vehicles to the agribusiness industry. We will now have 4.4 million-50 million today. What was our strategy in terms of our contract? All of you are aware of that, and we thought long and hard about how we would go about this. One of the things we looked at is there are many components. We have measuring, we have the communication platform, we have software to communicate with the billing system and MDM. You need people to install it, to commission it.
The highest risk in a contract this size is points of failure where one vendor will be pointing to another to who was to blame. Ultimately, what we want is to get the information from our clients and bill them accordingly. We built this project where we have a single vendor who will provide us all of these guarantees. Vivo won this bidding, and it is now responsible for supplying all 4.4 million m and offer us the guarantee until the end of the contract, which goes all through 2039. It offers 99% connectivity. They need to meet that target if we do not have that SLA. This was the strategy we had for the contract in this project. Now, another very important point.
Because of the sheer scope, first of all, we did not have the production of a meter such as the one we needed. We had to design one from scratch, combining different elements as we showed you before. Whatever supplier we would choose, they would have to prepare for that and sanction one such meter. We also had a roadshow for international vendors so that they could participate as well. As a result, we now have three international suppliers now opening their doors in Brazil, among which is Sagemcom, one of the largest ones in the world, which provided 20 million to France, but also Axioma and Kaifa. We have players from France, Lithuania, China, all of which are opening their doors in Brazil to supply our demand.
Another important thing, the technology we'll be using for this smart [meter] is the ultrasound metering technology, which is a lot more accurate. Now, when we started, the price of one such meter was about BRL 1,300. Now, because of the number of items we're asking the market, the cost has now gone down to BRL 380. This is something that came with the system to provide the ultrasound and electronic metering units. As we've shared before, this was an investment of about BRL 3.9 billion, 40% of return on investment, many benefits, remote reading, and so on and so forth. When it comes to revenue protection, which is very important, fraud detection, just as on the operational side, it helps us to detect leaks as well, which is a very significant source of losses.
Now, this is something we saw quickly in that video, and it's something I myself consider very important. From the customer standpoint, via the app that we will offer, this is already operating for those clients that already have the smart meter. They'll be able to monitor their daily consumption day by day and hour by hour. They can monitor their use and begin to use their water more consciously. There was recently a story on TV where they interviewed one of our customers, and there was actually a joke when the customer mentioned that she can now monitor the length of her daughters' showers. I have two daughters, so I know exactly what she was talking about.
It's very interesting because when you look at your consumption levels, you know when you took a shower, when you washed your dishes, or when you ran a cycle in your washing machine, so you become more aware, you can lower your consumption. It's good for your budget, it's good for the environment, and most importantly, we can also notify you when there's any abnormality in your consumption rate. Say you have a fixed level of consumption, especially throughout the night, that's probably a leak. That's a huge problem for our customers. They will get their bill for one month and say, "Well, this has gone up significantly," so there's probably a leak unless there's any change in your behavior.
Now, as opposed to being surprised by the bill at the end of the month, they will be able to monitor that and address that before it becomes an expense. In Madrid, where they've had a smart metering program for seven years, they've mentioned that about 10% of their customers are notified for leaks, and they're able to address that in time. It also adds a huge benefit to society at large. Now, let me talk a little bit about revenue protection. When we came in, this was a department that I created myself. Renato is ahead of revenue protection now, and this was a combination of billing, losses, and metering departments. Not to mention, losses by leakage, which is under Débora's operations department. We have these loss categories. Another important source of loss is the loss for wrong metering or mismetering.
Because as meters age, over time, they will also measure less effectively. When we talk about a speed-based metering, after 10 years, we have losses of over 10%. When we talk about a volume-based meter, after six years, you have over 10%. Now, with a smart one, after 10 years, it has losses of under 1%, which is why it's important to adopt them. What we did was from about 800,000 to about 1.5 million, so that's about 85% increase in replacements, which brought to the company about BRL 220 million in revenues precisely because of that replacement.
On to fraud detection now. This has been in the press. The operation is called [i-Radio connection] . Is there fraud in water distribution systems? Well, let's see. We detected over 55,000 fraudsters, including large corporations, restaurants, construction companies, hotels, 177 police reports and 27 arrests. That brought BRL 86 million in additional revenue to the company. On to billing. This is the highlight in terms of results. Our billing rate, everything we bill, everything but revenue of 98.1% in 2024. In 2025 was 101.7%, BRL 800 million of additional cash to the company. Of course, institutional relations department was very important in that effort. We managed to collect that payment made to the judicial system. Additionally, every billing activity, and I'll be addressing each one of them, including digital payments. We reduced the number of disconnections. We disconnected almost 760,000 customers a year in 2024.
That was brought down to BRL 1.75 million, over 126%. Disconnections is a tough measure, but it's necessary. When you are depleted of any other alternative, you have to disconnect the customer, period. We've increased that collection of that payment. We're over 2 percentage points in terms of billing on top of disconnections. Digital payment was the main driver. We have through the app, the virtual branch, and over WhatsApp. We established a partnership with Meta. We were the first team to implement payment through WhatsApp. You can pay your bill either with the Pix system, you can pay cash, you can pay using your credit card, installments. We are now at BRL 1.5 billion in first quarter. Through our digital channels, the app, the website, and WhatsApp, the number is at BRL 250 billion. The run rate is about BRL 3 billion.
We're almost at 15% of our revenue coming through our own digital channels. This is also something new. We have that large number of disconnections. Let's give them POS for all the disconnecting teams, because that customer can prevent that disconnection from happening. That's the main benefit of the POS. You don't disconnect it. It's bad for the customer. They'll not be serviced. They have to pay a fee. They have to wait for a couple of days to reconnect the service. Every disconnection person will have that POS to prevent that disconnection from happening. We prevented over 250,000 disconnections by using this tool. Let me address the customer experience. Much has been talked about AI, especially generative AI, and SABESP can be a great example. I remember Rafael sent a message to the directors group, a report from MIT.
95% of companies that try to use AI projects failed. Tell them that we are in the minority that was successful. Anyway, we had Sunny. Sunny is our agent, our virtual agent. Sunny at WhatsApp. We also have Sunny at URA. We use two different technologies, OpenAI, in other words, ChatGPT, WhatsApp, and we use Watson from IBM at URA. You can use voice using WhatsApp or text messages. More than 50% of all the service we provide is through generative AI, either through WhatsApp or URA, and these are the numbers. Customer satisfaction, CSAT, that's a company's KPI, 4.4 out of five through WhatsApp and 4.1 at URA. This is a great example of how much we have come along since 2025 by providing digital service using the state-of-the-art technology. Anyway, o n top of that, our app that was introduced back in July, URA in November.
In August, we launched the new SABESP app. It's a native app, a new outlook with digital payment, and that exceeded our expectations. We have almost 1.2 million active users, over 2 million downloads. Almost 100,000 scores or assessments for both iOS and Apple Store 4.8 and 4.9. Play Store and the Apple Store, that's the best ranking app. That's our number one digital payment, more than WhatsApp, in terms of volume. When you combine the old virtual agency, the app, the new virtual agency, 84% of our service calls are through the digital channel. In conclusion, Daniel, Piani, everyone talked about our integrated operation center. This is a major project with the operations, a lot of embedded technology. It's BRL [2.8 billion] worth of investments. Expected TIR is above 25%. Three main drivers. Number one, people, energy, and then treatment or chemicals.
By optimizing and everything that will be integrated by COI, we'll have gains in all these areas. This is the benchmark we adopt. Here are the benefits. When we consider centralizing the entire operation, we can consider operational excellence, standardized procedures and rules, because when you have almost 50 distribution centers, each will have their own processes, different technologies. Now, efficiency gains are substantial. That includes quality, being right in investments, the correct allocation of investments. We'll be able to identify losses. You can more easily manage the entire operation, and that will define investments. We'll allocate investments more specifically. When we talk about COI, the I stands for integrated. From river to the river, we look all the way to the catchment, all the way to the sewage, with that integrated view. You can simply monitor, analyze, decide, or operate, either automatically or remotely.
These are the steps along the way, either for water and sewage. Automation is total, or it can be partial, given the specific conditions of each step of the way. We expect major gains once this entire project is concluded. We're starting with the metropolitan region of São Paulo, then the coast, and then the rest of the state. In two years, we'll gain a lot of benefit from this operation. Finally, just like any control center, these are the aisles. We expect to have about 100 people, almost 200 in total, considering all the shifts. This is the COI. You'll have the chance to take a look at it after lunch. The center is right here. Once the project is concluded, it's going to be way bigger. That's it, folks. Thank you.
Are you still awake? Now, Q&A, right? We have way too many directors.
Where should I stand? Come on over. I shouldn't be standing right next to you. You're way too tall.
That's it. 80% [audio distortion]
Who's going to be selecting the questions?
Yeah, I'll be doing it.
All right. Very quickly, introduce yourselves, those of you that did not present.
Gustavo Fehlberg. I'm in charge of Corporate Services.
I'm Débora, Operations and Maintenance.
Good morning. Samanta Souza, Institutional Relations and Sustainability Director.
Good morning. Josué Bressane. I'm in charge of People and Management.
Rafael Strauch, Strategy, New Business, and Transformation Director.
Maria could not make it. She's the Legal Director. She couldn't be here today. This is the entire board. Lu is also addressing some problems. [Juliana Jess] from UBS is about universal access goals. Concession contract has daring goals by 2029. What are the major bottlenecks? Environmental license, suppliers, and how is the company addressing each one of these problems? Okay, onto the bottlenecks. We've mapped them out starting in 2024, and we have mitigating activities for each one of those bottlenecks.
Today, the number one concern is project suppliers. This is something that was on our radar from the get-go. We're doing 4x more than what we used to. We had to adapt, and we couldn't find that many suppliers. With that mitigating or the mitigation plan, we changed the methodology. We started from the conception all the way to the execution of the construction of the project, and that is part of our contract with that added value engineering department. We could overcome that problem to deliver those projects in time.
The other matter of concern, maybe Gustavo could help me out here. As far as labor is concerned, we are subject to the supply and demand. Prices are above inflation because we're doing 4x more than what we used to. Labor will migrate, civil construction. There are other alternatives. Many people coming from other parts, other regions, trying to work in the residual market. We managed to accommodate. All the mitigation activities were successful. Would you like to say something, Gustavo?
Yeah, let me give you my two cents. 140 categories we mapped. Eight were more troublesome. We've mitigated seven, except for the one, that project. We are sharing the responsibility using that integrated contract from these outsourced companies. We were very successful in that interaction from private company to another private company to bring in companies that did not operate in the sanitation industry outside of the state of São Paulo. They had some restrictions to work with state-owned companies. There has been an important movement of expansion and some of a renewal of our new business partners. As far as environmental licenses, we have been working directly with CETESB, the regulatory agency, and we've received some approvals. Maybe Samanta could address some structural change.
That's the licensing legislation, right?
Yes.
Let me address the licensing governance. We put together a strategy to monitor on a weekly basis with regulatory agencies. We are compliant with everything they demand. Everything's running according to plan. We have a lot of volume to be carried out in the coming months in the rest of the state because of that waves of licenses in the rest of the state. We are very optimistic as to the new environmental legal framework that is effective as of last February. They set forth licensing rules. They're about to be approved in the coming months. We have to wait for the adoption of the state regulation phase. It was approved at the federal government, and it's going to be implemented at the state level. The outlook for licensees is positive and also for the near future. Thank you.
We also have to have the authorizations of the granting public cities. They're being proactive. We have an internal committee to address that. We have the URAE, U-R-A-E, and the local governments, the municipalities, have been granting the licenses so that we can carry on with the projects.
Next question. The second was about CapEx inflation. We've already addressed it. Let me address the first and the third questions. Number one, micro drainage, what's the status in São Paulo? The third question, what are the quick wins to provide the universalization project? Can you give us some examples?
Well, there are two comments I would like to make about drainage. We've been talking with the infrastructure secretariat to come up with a model. Starting early last year, we've been talking to the secretary, Natalia, to address these issues. We'll come up with a proposal to have a regulatory sandbox. This is one front. The other one is Universaliza. That is going to be presented now. There will be a drainage component, maybe linked to the PPP.
We're still not very familiar with the entirety of that effort. In a nutshell, there's not a model in place. We'll have to test a couple of proposals, some things that we may discuss with the granting power, and yet validated by ARSESP. They have to validate everything. We're trying to come up with a pilot project so that we can test with controlled risk, and then we can scale up. That's what we have been trying to do.
These were two. The third we had answered already, right? Oh, right. Unitization. Yeah, you can take it over and then talk about the engineering project as well.
Yes. All right, on unitization. Because the larger share of CapEx is being executed, engineering followed by operations with Débora here, we have a full plan that we've outlined, including several improvements we've made over the course of 2025. We have actually changed the structure of the company, and this has been strengthened by the regulatory agenda as well. We want unitization to move in tandem with the start of operations of our construction projects. Now, on the operations side, because what we're doing is too granular, unitization is pretty much automatic. For example, when we change a water channel, you do that on one day. On the second day, the material goes up for unitization. With construction, it takes some time until it's in operation. A lot of the projects we started in 2024 and 2025 will start operating now in 2026.
Going back to examples I showed, we are starting operations with several treatment plants, and long-term projects, two, three -year-long projects only start operating at the end when you conclude your works and sewage starts being pumped into the plant. Now, with others, we are working with partial operations, with collection or catchment. If you have anything to add.
Yeah. I just wanted to add something to what Roberval said. We are now setting up a large engineering excellence center, whose main concept will be to create working packets, unitization packets. Across the digital engineering center, the project concept will be devised, and then you'll have a BIM. All of that will come from the unitization project, and then it will be tracked throughout its lifetime via a management platform by Oracle.
Lastly, when it comes time for commissioning for the installation of equipment, we'll have even the geographical coordinates with geo-referenced units so that we have the entire visibility for unitization from the project's conception until its rightful commissioning. In fact, the components will be the unitization components. Our entire investment will be based on unitization units. Until we get to that wonderful world, we are centralizing now at the beginning because we're investing highly on that. That's under Luciane's purview to make sure that we are making the regulatory requirements. This is something that we, as a group, are learning, and we are working very closely with engineering and operations under Débora.
All right. Our next question comes from Guilherme Lima with Santander.
Could you talk a little bit about the tax impacts of the tax reform, CBS and IBS, and if you can see any tax pressure coming from that?
Great question. Well, first of all, we do not have the entire regulation for the tax reform yet. Yes, we do expect some tax impact once it's fully in effect. We've been talking a lot with [URAE] about that. We expect an impact in the high single digits on our tariff because of that reform. There's also some discussion around IBS, because nowadays, the PIS/Cofins tax is levied on a different item. It will depend on what our ARSESP decides.
Okay, now we have two very similar questions. I'm going to combine those. One from Guilherme with Santander and the other from Jessica about new business. Could you talk about the possibility of part of the bidding for the Buenos Aires treatment facility? And the other question, along the same lines, was about how management thinks about the trade-off between inorganic growth and capital requirements to fulfill the obligations in your contract.
Well, about the cases that you mentioned, we do not have the contract relative to the project in Argentina, but we are looking into that, just as we're looking into several other opportunities that are popping up in the industry, both in Brazil and around the world, as Piani mentioned. With COPASA, what we have is the contract from Belo Horizonte. They operate in a similar way to us, with a few differences, many of which are positive. But we have no guidance as to how the other cities will work. We do not know how it will work or timing.
All we have access to is what the entire market has access to, but we do not know at this point if we will be taking part or how. We are paying attention to that, and we're looking into the details. Well, as to the trade-off between organic and inorganic growth, I think there's an objective side to it and a subjective side. I remember when I was in the electricity industry, when we would manage irregular jerry rigs with other concessions. At the time, we ran the numbers that it was equivalent to buying a company of 3x the EBITDA that we had at the time. The discussion about internal returns and outside returns, of course, we'll also have to look at the demand, and all of that will be considered.
When we think about investments, first, we have to convince ourselves, then convince the higher-ups, and then everyone else. It's a natural process. Of course, we're looking into everything, but it doesn't mean we'll be involved in every project. Some people like these things. Other people like those other things. It's controversial. Even for the sake of learning and understanding the process, we're looking into every opportunity. M&As are critical, but over the course of your lifetime, you'll do one or two that work, but we're looking at it on a case-by-case basis.
Well, we have a few questions from [Safra]. I'll ask the second one first because it's related to what we just answered. In the model that you've just presented, is it clear to you what variable you're most mature in? Then it goes back to operation. When we talk about new efficiency operations with logistics, can you give us more granularity in terms of introduction and the time horizon for these initiatives?
Well, I think that the riskiest is when it comes to product, but it's the one that brings the highest returns. Generating alpha over BRL 100 billion in market cap is a huge challenge. Spending money is easy, but generating returns is harder. Of course, we're talking about things that are closer to us in this case. I think geography comes second, and moving to a different industry is highly complex. Again, I provided a framework. I'm not saying that we're moving to any other side right now, but these really are the drivers. As we explore, we ultimately develop and meet our goals, and so we allow ourselves to look to our side.
I think there's a very similar go-to-market when it comes to water, electricity, or gas. We have a lot in common. This is one thing that brings us together, but theoretically, it could happen, but it's a case-by-case basis. Again, product geography, industry, operational efficiencies. Well, from the logistics standpoint, when we think about an infrastructure industry to transport the product, water, sewage, we're talking about the transportation projects that we've heard about. Our mindset is there are several materials and accessories, chemicals, and so on and so forth, that also need to be available at the right time in the right place. Obviously, we've revisited from one year ago to now, the consumption goods mindset. If you do not have the inputs at the right time, you've lost your sale. That's what we're understanding now.
We're looking at the [TI] of each product to make sure that each team is supplied with the right material at the right time. This can be seen in our balance sheet. You've seen things going down substantially, and we believe more opportunities will come up soon. Now, when it comes to the transportation of mud and water, as Danny mentioned earlier, we have the outbound of these products in our operations. There are more efficient technological routes, as well as some not as efficient. We've been seizing the opportunity of dehydrating mud so that there's a smaller volume to carry, and other initiatives such as optimizing our routes and bringing the mindset of a streamlined operation. Well, as to the COI, this is a project that's already being introduced.
By the end of the year, we will already have the metropolitan area of São Paulo with the metering and the operations being monitored. By next year, we will start part of upstate and the coastal region, and as of 2028, we'll have all 175 municipalities operated by São Paulo being monitored by the smart meter.
Great. I have two questions here about CapEx. One by Vladimir with Bloomberg and one by Bruno, who's right beside him. The first one is, could we talk about what areas or municipalities where the change in [verifying], meaning the target is seen? And considering your CapEx for 2026, is that a good frame of reference for the next few years, and could you explain the delta for the initial plan for privatization?
The second question, could you repeat that?
The $20 billion in CapEx, give or take, for 2026, is that a good frame of reference for the next few years? If so, could you explain the initial delta since the privatization?
All right, let me take the first one. As for the 371 municipalities, what we planned was as follows. In the first half, we have what we are calling the universalization or universal access compass. With that compass, we identify the further municipalities thinking about 2027, which is our first finish line when it comes to the indexes by municipality, and we are already prioritizing those, thinking about what we need to start doing now to deliver by 2027. Highlights. Metropolitan São Paulo with what relates to sewage. These 38 cities in the metropolitan area are our major challenge because we have complex projects with a high impact in an urban area.
We're talking, for example, about a collector in a street called Vinte e Cinco de Março, and if you've been there, you understand how big the challenge we have is. This is a challenge that's multiplied by the millions of collectors we need to build. Metropolitan area of São Paulo, this is our challenge, which goes all the way through 2029. There's no escape. That's technically what we're facing. The other cities upstate, that's the opposite. We are confident that we'll be delivering them earlier than expected. Of course, they will not be all by December 2028. We will be, little by little, delivering these municipalities, which will continue to grow organically. Each municipality that we provide universal access to, I will hand the keys over to her, and she'll have to move forward with them. That said, the highlight is metropolitan area of São Paulo. Daniel, please.
Thank you. Well, we should keep things as they're going until the end of our universal access project. When we think about the differences, I think that a lot of that will come from inflation. I think we've talked about inflation a lot here today. What we did not mention is that in addition to inflation, our demand is being multiplied. We have several other projects in the state, and we're talking about the biggest, most thriving state in the country. That obviously leads to competition. The biggest impact comes from inflation, and there are also other projects that we've been discussing with the agency, such as water safety and everything else we've discussed. They were, in general terms, provided for in the contract for our next cycle. We've been discussing what we should and should not do.
Now we're looking at the metropolitan area vis-à-vis the acquisition of EMAE, which might provide some respite within that realm, and a few investments, such as the replacement of meters, which is being concluded earlier than expected. Our contract provided for seven cycles of metering replacements over this period. We are replacing the old ones by meters that last 10 years. Thinking about the next cycle from an efficiency standpoint, it is very positive. There's also the operations center.
We are actually building on something ARSESP has asked us in terms of having more points of access across the network, and we took the opportunity to build the center. Because of the requirement, we decided to do that, thinking also about the efficiency for following future cycles as well. These are the most important factors. Changes in regulatory requirements, such as pavements, new networks being acquired upstate, and other requirements that came up that also pressure our execution costs.
Let me just make a couple of comments. We have two major projects, the expansion of Barueri, São Miguel. We retrofitted. Of all that capacity, we retrofitted part of it. We'll have to expand it. That involves billions of reals. If you look at Roberval presentations in detail, you've seen that CapEx curve. There's a peak in 2027. It will come down substantially, especially of these sewage treatment plants that will use up cash for about two years. Onto resilience, we had to anticipate that because of the crisis. That's a conversation we have been having with the government as to the pace of those projects. That five-year horizon can help us, but it has to be negotiated next year. Finally, that evolution in targets to have more freedom to deal with the coverage by city. We have time to readjust our priorities.
Maybe 50%-60% of the entire project will give us some leeway to look at Roberval's barometer to better calibrate what we have to do, adjust what we have to do. There's a question from the webcast. It's about the cultural transformation journey from a state-owned to a private company now. It's not over yet. It's a long journey. 3,800 people left the company, decided to do it voluntarily. We hired 2,000 people because we are very attractive. We have a hard time hiring people, especially at this point in time. The second issue is internal. We have to work with the leadership. It used to be a command and control company. Now, it's a more collaborative approach. Employees will be directly benefiting from the company's results. This first year was outstanding when we paid all the bonuses way above what they received in the past.
That's the proof of what we were going to say or what we said on October 1st. It's now part of our culture. It's not a simple journey, but it is transformational. 7,000 people that have been here, and now they are adopting a new mental model of a company that is growing exponentially.
We have two more questions.
From Goldman Sachs. My question is about the reduction of regulatory gap. What's the expected level of reduction for commercial discounts, mixed discount, among others?
Go ahead. There were two big gaps and a couple of other smaller things. The number one was discounts for large customers. We have two customers that have a contract with discount. All the others have been terminated. There's some pending injunctions. Some customers try to reduce volumes, and we can have better prices. We may lose some volumes.
The net effect is positive to us. We're not expecting other major changes, and the track record, as far as injunctions go, is very positive. This is the first gap. The second gap was for renovations and cancellations. The first tariff revision we had in the new contract, this issue has been addressed. The number will come down substantially, and as our revenue grows, if we do not improve that cancellation percentage points, that would still be a gap, but a smaller one. We'll keep on trying to improve it. There's still a minor gap in there, nonetheless. For the rest, there are some temporal effects on billed revenue. There are some temporary gaps in revenue. As far as regulatory gaps, it's part of the past. It's becoming more and more part of the past. We still have costs.
There are some legal related issues, but we still keep working to try to turn that page. That's it. In reality, we'll never be able to eliminate that completely. It's almost impossible. There will always have something there, but it's going to be residual at year's end. That's our expectation.
We have an additional question. Still two to go.
Victor from JPMorgan. In the smart metering, how do you write off existing assets?
Accounting based on the accounting approach and the financial approach, and the regulatory one. Over 2 million were over 10 years of age, and we're starting replacing the oldest to mitigate that impact. Based on our track record, the regulatory life use is 10 years. We have 2 m, mechanical, volume and speed, and the ultrasound. Those that are mechanic will not last 10 years, physically speaking. They're not metering or measuring properly.
The ultrasound and ultrasonic meters can last 10 years. Of course, we're choosing the ultrasonic. Given our scale, we can bring purchasing price by more than 70%, so it's a very large business. Some of our suppliers are putting together assembly plans to bring the cost down even further. This is the meter we're now experimenting with. We want to build it in plastic instead of having that metal cabinet, so that we can bring that to the favelas. The first prototype will be operational in the second half of this year. We have over 2 million above 10 years of use.
When we look to the coming years, we have at least 1.5 million, 1.7 million that will be reaching that 10-year mark. In terms of accounting write-offs, we can speed up that modernization program now, taking all that asset that has already been depreciated. Okay, the final question.
Fillipe from Itaú. Are you considering acquiring private competitors that are under pressure or leverage pressure?
Well, there are two types of private players. One is the financial investor that raised funds with customers. They'll have to return capital. They'll find a way out. Those that are private, that are families and groups, that capital is everlasting. It's easier to buy than sell things. Humans are like that. Those that are financial in nature, they'll be sellers in due time. Depending on the circumstances, whether it's appropriate or not, we're considering. Given our size and our footprint, we'll be looking at everything. Of course, it will all come down to the price. The private market is expecting larger multiples than what the market can provide. To buy something with a multiple, if it's bigger than what we're negotiating, there should be something else behind it.
Again, we'll have to be careful in considering these opportunities. These opportunities will arise, and then we'll make a decision if it's right or not. Well, let me address a couple of opportunities. We acquired some of those cities in the state of São Paulo from the private companies. We are now integrating them. It's a different incentive from the cities that are part of [URAE 1]. They do not have that universal access target. It's a contract unlike what you've seen so far today. Of course, we are considering everything, analyzing it. It has to be efficient capital allocation with appropriate returns. We make all the calculations for all these opportunities. If it does not make financial sense, we're not taking it. We're not doing it. All right. That's it.
Thank you. That concludes the Q&A session and the morning portion of our conference. The finance department will be buying lunch for everyone. All right. Lunch will be served just outside. In about 45 minutes, the first group, about 40 people, will take the tour to the Integra. They'll be back after 45 minutes, and the second group starts, and then we'll have the Q&A session in the separate rooms, and they will be done. We are concluding the online transmission. Thank you for attending through the webcast. Have a great day.