Centrais Eletricas Brasileiras SA - Eletrobras (AXIA) 2018 Q4 法說會逐字稿

Ladies and gentlemen, good afternoon, everyone, and thank you for waiting. Welcome to the teleconference of Eletrobras for the income statements regarding the fourth quarter of 2018. (Operator Instructions) We'd like to remind you that this presentation is available at the Investors Relations page at Eletrobras website. (Operator Instructions)

Before we continue, we'd like to let you know that any kind of statements made in this teleconference regarding perspective of businesses, operating goals and financial goals are beliefs and assumptions of the board of Eletrobras as well as information currently available for the company. Forward-looking statements are not an assurance of development because they involve risks and uncertainties, and therefore, they may or may not take place. Investors have to understand that overall economic conditions and other operating factors may influence in these results expressed in such forward-looking statements.

Now I'd like to hand the mic to Mr. Chairman, Wilson Ferreira Junior. Thank you very much, thank you for the opportunity. You have the floor.

Dear investors and analysts, all of you who are accompanying Eletrobras, we thank you for your attention and we are going to start the presentation.

From Slide #3, we have the main highlights of 2018. It's essential for the restructuring of the company and we have as the main highlight, the privatization of 6 distributors, 5 of them have already been duly transferred. And with the reversion of the profit and loss of 4, we had a reversal, an amount close to BRL 3 million.

We also had a reversal of impairment of Angra III due to the decision that we made and we had the implementation of this project. That's why we had a reduction of a large amount of money. We highlight as well this slide the final entry of the electro plant of Mauá 3 of 590 megawatts and also São Manoel with 700 megawatts. We continue the operations with turbines of Belo Monte plant. It was also important, we had 26 SPEs sold for the amount of BRL 1.3 billion, and it's important to mention that we have an amount which exceeds [BRL 5 million], and we have an agreement of -- with Eletropaulo in amount of BRL 1.1 billion. That's why we reduced BRL 1.1 billion.

In terms of cost management of the company, specifically in terms of personnel, material and so on, we have an improvement of 156%. We are going to provide you more details.

And then, we go to Slide #4, when we continue the highlights of 2018. We talked about the end of the investigation. We had an agreement, a settlement with SEC of USD 2.5 million. And finally, at the end of last year, we had a lenience settlement led by the transparency minister with CGU and Odebrecht of the car wash operation where we got back BRL 161.8 million.

I'd like to emphasize that the statement is impacted by the adoption of IFRS 9 and 15 in terms of infrastructure of transmission with a positive result of BRL 2.8 billion in profit and loss -- I'm sorry, in the equity of the company. This was a positive year.

And now I go to Slide 6, talking a little bit about the evolution of the company in terms of generation. Last year, we have the incorporation of 1.667 megawatts in our installed capacity and we reached 49,801 megawatts, 30.5% of the Brazilian generation. It's important to emphasize the fact of operations of the company. And given everything that's been said, we are a company which has this representation of the generation of the company and the direct and indirect generations.

We also need an exercise in terms of regulated market and also in operations with ACL, in operations of OEM (sic) [O&M]. And the volumes, they are smaller, but [they opted of] operations, especially in the short and spot market. We see from '17 to '18 a small reduction in the volume. And we see an important growth in the market, which is already our main operation, which is higher than 6%. In terms of OEM (sic) O&M , we have an increase of 23% of BRL 2.8 million, and also a smaller number of BRL 1.7 million, reaching 107% regarding the capital.

Now we go to Slide 7 in terms of transmission. We had a small reduction of 616 kilometers in our operation and this is due basically to the sales operations of the investments of the company, of the assets which were sold, and we kept an increase of 189 kilometers. These investments added annual allowed revenue, which reached above BRL 103 million per year. We had an important representation of 47.3%, more or less 230 kV.

And now, on Page 8, we talk about our financial highlights. The first column are the fourth quarter; the second is related to the year. I think it's easier to start talking about the gross revenue, which was directly affected by the new accounting of transmission. On the third quarter, we had a negative impact in the format of consolidation. But on the fourth of 2017 and '18, there was a reduction comparing 2018 and '17, a number of BRL 7.5 million.

Last year, the fourth quarter was negative BRL 1.0 billion, and this, we had BRL 3 billion. Specifically regarding this, we are going to mention more in a minute, but we have a reversal of provisions. Out from this BRL 13 billion, we appoint from the fourth quarter, we had a reduction last year. And I think it's reasonable to say there was a drop of 11% of the gross revenue of -- it was a bit above BRL 30 million 2018 -- the translation apologize because the sound is not getting perfect to me. I'm doing my best what I'm able to listen. And the net profit of 2018 was of BRL 13.348 million.

And we can kind of see how the company is being restructured. Now on Page 9, this is a result of privatization from our 6 distributors, which have already been transferred in yellow. The privatization was complete from the equatorial part, Energisa and Boa Vista in Amazonas D from Consórcio Oliveira Energia. In the second Amazonas Distribution, we are going to have the transfer in the beginning of April, and the results are going to be reflected in the second quarter.

Page 10, we have the results of this program. One essential thing for Eletrobras is what is to the right. We auctioned 6 distributors of Eletrobras, which had loss of BRL 4.1 million in 2017. The loss was of BRL 1.879 million in 2018. We didn't have enough capacity to operate. As a result of this privatization, we have also mobilization of employees, 3.688. And in the total, with the both -- with all companies, we have 6.636 employees less than we used to have. As a result of this dismissal of employees, we are going to have a reduction in our reversal for contingencies of BRL 739 million.

On the other hand, well, we have also the assumption of debt with Eletrobras in the amount of BRL 14.205 million as a counterpart for Eletrobras. And we have BRL 3.2 billion of receivables and credits of CCC, and we have BRL 2.4 billion of credits for finances receivables.

It's important to emphasize that in the case of the CCC, in terms of negative liabilities, due to the 4 main operations, we're still going to have in the first quarter, due to the transfer, an additional BRL 1 billion. In the second quarter, with the selling of Amazonas, an additional amount. So in total, Eletrobras has got a representation technology in terms of generation and transmission of energy.

Then we have regulatory and operating highlights. In regulation, we have BRL 517 million already accounted in 2018 in terms of GAG, an improvement regarding renewable generation in 2019; and homologation of ANEEL of credits of CCC and inefficiency of Amazonas C is of BRL 3 billion that happened last year; the reversal of Angra III of BRL 7.2 billion.

And in terms of governance, it was important that our inclusion in ISE in 2019. We had the maximum score of IG/SEST; we were rated 100 for Eletrobras. The institution with a lot of activity in our Statutory Risk and Auditing Committee and the placement of independent members, not only from the board, but also from (inaudible). We hired consulting companies to assess it.

And finally, we had a compulsory loan, which is ongoing. And regarding the settlement of the Superior Court of Justice with the application of interests.

In terms of financial performance of 2018, we have already this balance placed here, you can have a good comparison of 2017 and 2018. So we have already said in terms of net operation. And now, we are going to have more details. You can see in the line of PMSO of operating losses, in this year, we had a loss of 11%. In terms of costs and operating expenses, it's even bigger, but this is an effect that we mentioned before. It goes away from the line of revenue. And we have a drop of almost BRL 11 billion. And we moved from BRL 11 billion to BRL 7 billion, so it was a reduction of -- and we have that was due to energy purchase for resale, an effect of IFRS 15.

In terms of operating provision, we had operation of 43% -- minus 43%. And one of the main results is due to the reversal of impairment and onerous contract. We are going to explore this further. And now, it goes back working. Sorry, you started crackling. I am not able to listen properly. I'm sorry, the booth is not receiving this call successfully. The connection may be not good enough.

(technical difficulty)

Okay. We are back. Okay. I apologize for our colleagues who are here in the call. Okay, so let's continue. Let's keep our good humor, okay?

So Slide 13. We're talking about our performance in the company. I had already mentioned the drop on operating net result due to the effects of IFRS 15 in the systems of transmission, and we emphasize the drop of personnel, materials and others which had a drop of 11%. In variation, this reflects the reduction of cost of personnel.

In terms of operating cost

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and we will be able to talk a little bit more afterwards. It's a real decrease but it's smaller than 34%.

In terms of operating provisions, we mentioned some of them. We had a variation of minus 43%. We are going to provide more details.

And we have also shareholdings equity, which is the main element here of variation in terms of results. We were negative [BRL 130 million] and we had a reversion of BRL 7.900 million. And also, in terms of [CGPS], and now we start operating a new plant from April. And we had BRL 7.900 million.

In terms of shareholdings equity, we have a variation of 62% from BRL 2.692 to 4.352. And we had a reversal of the negative net equity of distributors of BRL 2.9 billion. That means that operations and SPEs, they had a reduction of -- to a little bit less of BRL 2 billion.

And now, we are going to talk about our EBITDA. We had a variation of 158%, BRL 19.990 million this year compared to BRL 7.743 million compared to 2017. The recurring EBITDA, talking about the variations that we had in the system, we had BRL 6.705 million in 2017 compared to BRL 8.456 million this year.

We had a financial result, the improvement of macro economical results, amortization of loans and the transfers and the distributors, we had a reduction in our operation and also the settlement we had with Eletropaulo in the amount of BRL 1 billion. And here, we just have the addition of the EBITDA. And also, in this line, we have the leniency agreement with Odebrecht in the amount of BRL 162 million. And we have in one line, the result of continuing -- discontinued operations, which this year is minus BRL 1.879 million. We have a net result compared to 2017, which was minus BRL 1.72 million; this year, we had BRL 13.348 million. And in 2018, we have more than BRL 5 billion of recurrent net result.

The next page, we would have our quarterly comparison. And Page 15, I will consider the variation not only from our gross revenue. We have an increase of almost BRL 1 billion from BRL 25 billion to BRL 26.5 billion in gross revenue pro forma. To our left, we have an evolution of almost BRL 1 billion. As I said, it's due to the growth of our generation operations and the impact of OEM (sic) O&M .

And then, we have 3 blocks, positive ones, operating revenues, investments, the application of IFRS and the reduction of the construction revenue. And the update of this revenue, we had a return. And basically here, the subject of ranging of the structure of (inaudible) happened in the last year. So we had a variation in the revenues and we have a detailing in the next page of our operating costs. The total costs had a drop of 40% of -- and 53% in the annual base. (inaudible) this start of this new change, most variables that we have here. We have more costs to operate the thermo-electrical. Mauá 3, used more fuel. We had DLV and we can notice that we had an important reduction.

Next, Page 17, we have here personnel, material, services and others and we have the nonrecurrent ones, so the recurrent and nonrecurrent. And the nonrecurrent are the cost of consensual dismissal claim. In the colors here to the right, we have the total. In the annual base, we have a reduction of 12.8%, and in the pro forma, we had a reduction of 12.4%. In highlight in the blue part, we have personnel, which, in the annual base, had a reduction of 12%, and if you compare it to the quarter comparison, it had a great reduction.

Now Page 18. Just to reinforce the provisions, here are the main highlights of the provisions and contingencies. We had a reduction from minus BRL 1.381 million to BRL 500 million. And in contingencies of compulsory loans, we reduced from minus BRL 2.337 million to minus BRL 1.319 million. In onerous contracts of Angra, they varied from BRL 594 million to BRL 1.34 -- BRL 1.354 million. We had a reversal for specific cases of Angra in the amount of BRL 5.854 million. And also, the credit provision for CCC granted to Ceron due to the current position of ANEEL.

In total, in 2017, we had a provision, a negative provision of BRL 4.646 million and this year is positive, and this is due to the process of Angra.

The details in the next page are related to the compulsory loan. We have impacts given the constitution of BRL 2.670 million and the reversal of BRL 1.351 million. That was the change from the financial result we have had in 2017, BRL 949 million, now reduction in 2018 to BRL 884 million.

In compulsory loans, we reduced from BRL 3.286 million to BRL 2.203 million. And the total balance moved from BRL 16.596 million to BRL 17.942 million. We have monetary adjustments and other impacts.

In the company's EBITDA, Page 20, we have the same concept. To the left, we have some points emphasized. We have contingencies, sales of CELG last year, onerous contracts, impairment and the last one, it's the water resources inspection fee. So in the variations that we have in red, BRL 1 billion last year and BRL 11 billion. We are showing the development of our EBITDA to 8 -- from BRL 6.705 million to BRL 8.456 million.

And we had a growth in shareholding. And the highlight, just to operating costs in the amount of 23% and reduction of pro forma using the cost of mobilization (inaudible) here, more than BRL 1.5 million. So we had a growth of 23% EBITDA. And the variation, we have a great variation. And this is what determines the variation that we had. You have the revenues of income. SELIC was accumulated in -- SELIC accumulated 10% a year in 2017, from 6.5% in 2018.

And in this year, the financial result reduced from minus BRL 1.736 million to minus BRL 578 million. From the annual base, we moved from the last quarter from BRL 12.073 million to BRL 13.348 million.

Page 23, we have the impact from our indebtedness. We are reaching this number, closer to 3. We had net debt-to-EBITDA to 26.0, and we were able to triple sales to the distributors. This is positive.

Next page, we have the profile of our indebtedness. We are reaching BRL 54 million in financing and loans, BRL 11.285 million non-indexed U.S. dollars, and we have 14% of RGR.

Page 25, just to show you the result. It's the result which is for the first time in the last years a result of all controlled operations by Eletrobras. I would say that in the nuclear field, we have improved our result. Furnas has had a drop from -- a small drop, a slight one. CHESF, we had a great drop in the number. Amazonas GT, from the beginning of the year, it has a new agreement, already with profit. Electrosul, we reached BRL 130 million. SPE, BRL 109 million. CGTEE, we have also BRL 28 million. And Eletropar, BRL 13 million. In discontinued operation, we had this number, BRL 1.879 million.

I'd like to mention something because we have a small failure. So we are talking about our results destination. We have [BRL 13,081,964] in net profit. This is our distributable base.

This slide, I have to show you now the shareholders' compensation -- is the realization of reserve for revaluation is BRL 22.434 million. And we get to the base of calculation of BRL 12,450,662. Mandatory dividend in this condition is of [BRL 3,112,665]. And total distributed in the year 2018 is [BRL 9,337,996].

Mandatory dividend in 2018, how are we going to deal with it? We had realized dividend and Brazil reserve to be realized. And then we get the total of BRL 3 point -- from the BRL 3.500 billion, we'll have the payment of BRL 368.868 million to preferred dividends and BRL 881.132 million to common dividends that somehow respects our position. And we have investments and we need enough cash to do the distribution in order to be able to pay this BRL 3.500 billion. So we are working with this perspective of paying this amount for preferred and common shares -- shareholders. And the special reserve for retained mandatory dividends in the amount of BRL 2.299 billion (sic) [BRL 2.291 billion] and this is the balance of the distribution from this special reserve for dividends.

Okay. Just a consideration for the master plan of business and management. After those 2 years, we estimate that with this mobilization of people, 45% less people in the company, which have the compensation fund, have [agreed to it], and it's also a result of privatization of the companies. And we have a number of 14,275 people this year. And we're coming from a cost of BRL 6.8 billion and we are estimating a recurrent cost of BRL 3.7 billion. So we are reducing the cost of personnel in half during this restructuring process.

Next page, we also have the impact of this reduction of MSO of BRL 5.876 billion to -- and we are trying to estimate cost of BRL 2.900 billion in terms of cost of MCO (sic) [MSO]. Also a reduction of above 50%.

I'm just showing this because we had a considerable change in our company flowchart. And I'd like to emphasize that in the activities of generation assets from Itaipu, we had Amazonas GT, we had part of our company reorganization in CGTEE. And we had 4 operations of GT, Eletronorte, Eletrosul.

And also at the top, we can show you how we are in terms of SPEs. We had several operations here. We had -- our current position is 172. Sold in auctions of Eletrobras, 25. We still have SPS -- SPEs to be sold, 47. We are incorporating 14. We are extinguishing 35. And the idea is that until the end of next year, we're going to have only 51 operations of SPEs.

Now on Slide 31, let's talk a little bit about the future. Antonio Miro (sic) [Carlos Alberto Sicupira] used to say that cost is like your nails. You have to be trimming it and cutting it all the time. And we have to continue our program of reduction of costs using the directive PDNG 2019-23.

We decided to restore and to restart with the deliberation to restore the UTN Angra 3 because it's going to accumulate 1.4 gigawatts of installed capacity to the Brazilian field, especially in São Paolo, Rio and Minas. It's important for the system. So that's why this plant was a good decision to restart business. And we are seeing if you can find a private partner to complete the building.

We had a restructuring of Amazonas GT and Electronorte and CGTEE with Eletrosul.

And we're going to continue our second program of sales of SPEs and other assets from April 1.

And we have seen the conclusion of the largest plant in Belo Monte. It's going to become the largest one with 11,233 megawatts. We have more wind farms to complete.

So we have excellent perspective for the company, and all of them have been really important for the economic activity.

And now I open for Q&A.

(Operator Instructions) First question from Andre Sampaio from Santander.

Andre. I'd like to ask 2 questions. First of all, regarding the provisionary measure. Do you understand that even if it's not approved, do you believe that the impact on CCC is not going to be reversed? I'd like to confirm this topic. And my second question is regarding the distributors which were privatized. Do we have -- already have a position in the possibility of attrition?

Regarding the second part of your question, we are working and will have to have a position with Cepisa to be presented, but it's going to be an object of presentation and we are still assessing it. We haven't completed the assessment yet. Regarding the O&P, certainly, it has the power of law and this was used not only for Amazonas GT, but also regarding the BRL 3 billion which were now object of assessment. So during the enforcement of the provisional measure, it has the power of law.

Next question is from [Raul] from Itaú BBA.

My first question is that we've seen recent statements from people from the sector and people from the government that another capitalization and privatization of the company would be a privatization of the subsidiaries. Is this being discussed or it's not? And the second question is regarding of the compulsory. Is there any term for you to settle in the courts? And in case there's a loss, do you know how much would be the next provision or the next balance?

Regarding the first statement that you mentioned, what we have today in the Minister of Energy and Economy is a really broad assessment of the alternatives of capitalization of Eletrobras. It's pretty clear that the company needs to privatize. So trust there is a consensus in the sense and the need of privatizing the company. We are analyzing many alternatives and we haven't decided yet. We didn't -- we have until June to have the completion of this assessment. But we understand that this capitalization has to be attractive to attract money and to privatize the company. And maybe this is the battle that we have due to the water risks and so one. That's why we are working. And we hope until this -- in the beginning of the second quarter, we are going to complete it. Regarding the compulsory environment, I'm going to pass word to our Legal Superintendent, but I'd like to mention that we are talking about one action, which has not had any repercussion.

As Mr. Ferreira Junior said, it's a specific case which has not been agreed under the terms of law due to a repetitive result. Therefore, the settlement was taken to the first session of the Superior Court of Justice. It's going to be dealt. There's no binding effect with other cases, but the company is following it up closely. And following the work with all the ministers, we are talking about an grievance, an embargo within the special resource -- with a special appeal. So although the settlement and judgment is suspended at the moment, we understand the region vote given by [Gurgel] last year is the only one in place. Gurgel was against -- which agrees with the government, so we're going to have a joint work with [PGSL] and [Hermon] vote favors Eletrobras' case. The oral votes preferred on February 27 according to Court Minister (inaudible), Minister Francisco Falcão and Minister (inaudible). And so first, the president of -- the chair of the session only votes in case of a tie. And in this case, it's improbable that the 9 ministers, justices are able to -- they are going to vote. So Eletrobras -- and then we believe that after all these votes, we can have an appeal if it's necessary because it's safe from the compulsory contingency provision. We don't believe this sentence is going to be approved because it goes against the repetitive resource on '29. We are talking about one specific case in terms of embargoes and divergences in terms of internal embargo. Regarding terms. The internal from STJ, they can stay with the process for 60 days for examination. They can extend it for an additional 30 and this is due to the regimen. Nothing prevents the justice not to fulfill it. The last request of examinations took more than 100 days to go back to judgment.

But if you're following it really closely because we believe -- because it's not repetitive from 2019 to '29. Another comment that we are going to work to reverse the votes overly preferred. Because sometimes, the justice follows one or other positions without having the time to analyze it closely. I'd like to take the opportunity to highlight Elvira, who took over the financial aboard of Eletrobras and Investor Relations.

Next question is from Carolina from Crédit Suisse.

I also have 2 questions. One is just to update the process of transfer from Amazonas distributor, you also announced that there was a postponement of the period of designation into April 15. Since it's a really short period of time, I'd like to check with you if in fact you believe that until April 15th, the transfer is going to take place. And what is missing? What are we still waiting for? Just wanted to understand when we are going to have the transfer itself. And second question, I'm not sure if you answered that but since the call was cutting, in terms of the internal of Angra, you did the reversal due to the redefinition of the new sales of power and on redefinition of the format of the partnership. Was it the thing due to price and you still depend on the format of this possible partnership of the project? Am I right?

Okay. I will start by answering the first one -- I'm sorry, the second one. We are not just thinking about the cap but also the investments. We have more than BRL 11 billion invested in the plant and we do not reverse that. We believe there's a process ongoing and this is the corporate model that is going to receive partners and we have to think about the capital, and then we have an impact of each of them. Regarding the structure of capital and budget, we had a capital of BRL 15 billion. We have the new tariff. We also had new costs of financing, regional for everything we need, new structure, new costs. And with this, we used [Bremen]. The first moment, we wanted to be more safe in terms of the internal reversal, that's why it was approved by the auditor. Regarding Amazonas, tomorrow, we have a meeting and we expect the transfer until April 15. We have this term. This delay took place, as you may know, due to a tardy request from the region from one competitor. This is the main reason of the delay. And tomorrow, we are going to check if April 15 is really going to be the date. Thank you very much.

Next question is from [Benicio] from HSBC.

Regarding divestments, I'd like to know if Eletrobras is thinking about selling minority shares in companies like [Seterti], COPEL, [Espe]?

We need just consideration first. We have a portfolio of [poly dates]. We have an amount of BRL 10 million and about 40% of [Seterti]. A pretty deal of the actions, they are actions of compulsory results. Last year, we had a summation of these compulsory agreements and we paid and we started to release a respective part for these lawsuits. So of course, in a certain moment, we want the company to be able to use it with liquidity. We still have nothing defined but last year, we had something with Energy [Zamatiburos] and then we may do this here as well, but it still has not been decided yet. We are working for this and working to release from some eq shares that can be released in the future.

(Operator Instructions) Next question is from Francisco Navarrete from Bradesco.

I have 2 questions, and I'd like to hear your opinion about the discussion. Maybe you can call it about Itaipu. There's a negotiation going on regarding tariff Itaipu, how we are going to see Itaipu in 2023. And we have different views from Eletrobras government on how we can include Itaipu in the restructuring of this privatization. I'd like to know your opinion about it. And also, I'd like to know if you see any kind of a divestment in this reimbursement of investments above the basic price. Do you believe that this -- do you think there's a solution or is it a system which is not too visible yet?

Okay, regarding Itaipu, there's a repercussion and the thing is, in August last year, we improved our numbers and we want to see again if we are going to have something as we call annex C in terms of -- okay, and we started this work last year and during this period, we anticipated that for the plant, we had some alternatives. I'd like to make clear that the plant sells [cottons] and is based on the price of services. Until August 2023, it's going to be amortized. And in Paraguay has got a quota to use. The discussion is still in the beginning. The President of Paraguay and is thinking, is talking to the Brazilian one and we are still having a lot of discussions. But as I mentioned, it's still preliminary. And regarding the capitalization process, it's a process which can have the weight of control. They cannot lose control. (inaudible), that is controlled by the government and Itaipu, the same. It's not like a concession, it's a plant by national and that there is a treaty. The governance of this plant is by both countries. So we are also still defining the governance and working on this. Itaipu is really important in Brazil and it's a competitive advantage for us. Obviously, we are looking into it with a lot of care, but you have all this information as well in the presentation. Itaipu is connected to Eletrobras, it's part of our -- we made the decision this year. Everything is really important. It's 1.5 years already into this operation. I'm sorry, the sound is still cutting. Thank you.

My question was more regarding of assets to the basic investments, if they were renewed from 2012, if you had any kind of comments regarding it.

Francisco, the connection is not good enough but I'll ask Paula to talk a little bit about it.

Regarding indemnification, there is a public audience from ANEEL, and somehow, they are going to present an audio, audiovisual and they are going to have the base of 2012, and they are going to consider all considerations in this public audience. But the improvement is going to be made in consideration with it because this brings investments for the clients which are in the concession, they have to be considered in our reports. There's no definition and expectation of payments and of the regulation. There's a public audience and we are still waiting the results of the regulation for this year, but the expectation of payments is not in place yet.

We are now ending our Q&A session. Therefore, we hand the mic to Mr. Wilson Ferreira Junior for his final considerations.

I'd like to hand the mic to Elvira for her to introduce herself and then I'll wrap up afterwards.

Good afternoon, everyone. It's a great pleasure talking to you. I'd like to introduce myself briefly. Last year, I joined Eletrobras as a member of the board and also from the statutory committee. And recently, I took over the financial board for more than 15 days, and that's why I didn't take part of the call personally. And in the next month, I'm going to have the opportunity to meet you closely.

Welcome, Elvira. It's a great satisfaction to have you with us, not only due to your experience but to allow Energia to light Energia. She was here with us already with an auditing position and it's a privilege of having her now. She's going to make our work a lot easier. I'd like to apologize because the conclusion of this balance was hard for us. Many people spent the night working, that's why I apologize because I know the presentation had some problems. I'll correct some of them and the comparison of the quarters. And also, from the investments carried out in 2018, the company had a great effort and invested BRL 4,599,000,000. It's an investment which is large but not the largest one in our series. That's why we are able to complete all -- everything that was ongoing. We accomplished 75% of our goals. And I'd like to mention that the part that we left out from Eletrosul, the transmission line, we still were able to advance and we have -- we could mobilize the company because of Belo Monte. We performed -- we delivered 75%, it's one of the largest indexes we had. But this is still small comparing our size, but the company had to be leveraged to be able to invest new projects. So this presentation provides that to us, shows that our -- now we are going to be more comfortable in terms of leveraging, more than 3x. We have a management capacity not only due to the structure but also perspective of controlled and SGAs, which is also essential for the company to be efficient. We have programs which are structuring our businesses and we expect to have a reduction of additional 2,000 employees. We are going through a different moment to some years ago. Everybody is on the same page and this helps a lot the company. There is a special mission of the Mines and Energy Ministry regarding the company's businesses. It's important to mark the end of 2018 as a year when we started focusing in generation transmission and improve productivity, quality, good governance. And it's a privilege to have this level of businesses.

We are happy and we are hopeful with everything that comes in the future. We planted all the seeds and we hope to be harvesting good fruits of this work that is being done and will continue to be done. I thank again, all your attention for this conference. We are going to disclose this website -- this presentation on our site. And we remain at your disposal in case you have any kind of questions. Thank you very much, and good afternoon, everyone.

Okay. Therefore, Eletrobras conference is closed. We'd like to thank your participation and have a great afternoon.