Mario Arruda Sampaio

Good morning, ladies and gentlemen. At this time, we would like to welcome everyone to SABESP Conference Call to discuss its results for the third quarter of 2013. The audio for this conference is being broadcast simultaneously through the Internet at the website www.sabesp.com.br. At that same address, you can also find a slide show presentation available for download. [Operator Instructions] Before proceeding, let me mention that forward-looking statements are being made under the Safe Harbor of the Securities Litigation Reform Act of 1996. Forward-looking statements are based on the beliefs and assumptions of SABESP management and on information currently available to the company. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions because they relate to future events and therefore, depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of SABESP and could cause results to differ materially from those expressed in such forward-looking statements. Today with us we have: Mr. Rui Affonso, Chief Financial Officer and Investor Relations Officer; Mr. Mario Arruda Sampaio, Head of Capital Market Investor relations; and Mr. Marcelo Miyagui, Head of Accounting. Now I'll turn the conference over to Mr. Arruda Sampaio. Sir, you may begin your conference.

Okay, thank you. Well, good morning, everybody. Thanks for joining us for this one more earnings conference call. We have a slide presentation and -- to discuss the main events during the period. And as usual, later, open for a question-and-answer session. Let's move then to slide, for slide, Slide 3, billed volume. This increase in billed volume in third quarter this year was due to the increase of 2.7% in water connections and 3.4% in sewage connections and to the increase of 1.9% in billed water volume and 2.1% in billed sewage volume, all this leading to a total increase of 2% in billed water and sewage volume in this quarter when compared to the same quarter last year. The lower billed water sewage volume increase is due in great part to higher rate volume lower temperatures in the period. These variables, we saw have a direct and big impact on water consumption and consequently, on sewage volume. Just for you to have an idea, the average temperature was 18.5 Celsius in July last year against 17% July this year. So for us, a cold period. The water loss ratio continues to decrease, closing in the quarter at 25%. It is also important here to mention that of the funds that we contracted with JICA at the beginning of last year, totaling about BRL 1.5 billion, around BRL 1 billion corresponds to the execution of services and the management of water loss program, which are in the final phases of contracting. The other BRL 500 million are related to the works itself and should be undertaken and accomplished by 2015. With this schedule, the relevant share of the water loss reduction initiatives will begin in the fourth quarter of this year, right now, as we go through the fourth…

[Operator Instructions] It appears that we have no questions at this time. I would like to turn the conference back to you, SABESP, for their final remarks.

Okay. Well, thank you, everybody, for participating and listening to the speech, and -- but we're always available in case you would like to cover some specific questions. Call us. Thank you and see you next quarter. Bye-bye.

Ladies and gentlemen, the conference has now concluded. We thank you for attending today's presentation. You may now disconnect your lines.