Glossary

A

ABES

Brazilian Association of Sanitary and Environmental Engineering.

ABRASCA

Brazilian Association of Public Companies.

Active Economy

The term active economy is used to name all property or subdivision of a property that has a private facility for common use of water and / or sewage services registered and invoiced by the Company.

ADRs American Depositary Receipts

ADRs are stocks that trade in the U.S. but represent a specified number of shares in a foreign corporation.  Like regular stocks, ADRs are bought and sold on U.S. markets.

AGEPAR

Regulatory Agency for Delegated Public Services of Infrastructure of Parana.

ANA

Brazilian Water Agency, an autonomous government agency under special regime linked to the Ministry for the Environment (MMA).

ANEFAC

National Association of Finance, Administration and Accounting Executives.

APIMEC

Association of Investment Analysts and Professionals of the Capital Market.

B

B3

B3 S.A. – Brasil, Bolsa, Balcão, is the result of the merger between BM&FBOVESPA S.A. Securities, Commodities & Futures Exchange and Cetip S.A. Organized Markets. Is is the only securities, commodities and futures exchange operating in Brazil and also the leading depository for fixed-income securities in Latin America and the leading clearinghouse for private assets in Brazil

BACEN

Banco Central do Brasil - Central Bank of Brazil.

Base Date

Date used as reference to determine the application of the monetary restatement index necessary to update the tariff practiced.

Benchmarking

Benchmarking is a process in which a company compares its products and methods with those of the most successful companies in its field, in order to try to improve its own performance.

Billed Volume

Effectively billed volume, considering the tariff structure that determines a minimum tariff of 5m³.

Bookkeeper Agent

An agent that aims to keep the bookkeeping of the securities in the name of the respective holders.

C

CA

Board of Directors.

CAE

Statutory Audit Committee.

CAPEX

Capital Expenditure are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment.

CCEE/PR

State Companies Control Board of the State of Paraná.

CF

Fiscal Council.

CFC

Federal Accounting Council.

CIA

Nomination and Evaluation Committee.

Common Share (ON)

A type of share that provides participation in the economic results of a company. It confers to its holder the right to vote in assembly. It does not give preferential right to dividends.

Concession Contract

Concession contracts were signed prior to Law 11,445/2007, and those who provided the service accumulated various functions such as planning, execution of works and definition of tariffs. In this situation, the granting authority had little or no participation in the decisions about how to provide services in its city.

Corporate Governance

Corporate governance is the system of rules, practices and processes by which a firm is directed and controlled. It involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the community.

Covenants

A covenant is a promise in an indenture, or any other formal debt agreement, that certain activities will or will not be carried out.

CS Bioenergia

Provider of services and energy generator from the biodigestion of the sludge, residue resulting from the treatment of sanitary sewage, composed essentially by organic matter.

CT

Tecnical Advisory Comittee.

CVM

The Brazilian SEC - Securities Exchange Comission.

D

DAE

Water and Sewage Department (extinct department).

Debenture

A debenture is a type of debt instrument that is not secured by physical assets or collateral. It could be convertible into shares.

DI

Interest rate on loans between Brazilian financial institutions.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its share price.

E

EBITDA Margin

EBITDA margin is a measurement of a company's operating profitability as a percentage of its revenue.

EBITDA

Otherwise known as Earnings Before Interest, Taxes, Depreciation and Amortization.

ECD

Expectation of demand growth over the 15-year horizon.

EGM

Extraordinary General Meeting.

ETA

Water treatment station.

ETE

Sewage treatment station.

ETP

Preliminary Technical Study.

F

Fiduciary Agent

A fiduciary is a person other than the owner who is legally appointed and authorized to act in the stead of a beneficiary (mainly for debenture holders).

Free Float

Free float or public float represents the portion of shares of a corporation that are in the hands of public investors as opposed to locked-in stock held by promoters, company officers, controlling-interest investors, or government.

FUNASA

National Health Foundation.

G

GOA

General Ordinary Assembly.

Gross Debt

Represents the sum of the debit balance of all debts contracted by the company.

Gross Margin

A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage.

H

I

IA

Utilization Rate.

IARCE

Index of Service with Sewage Collection Network.

IARDA

Index of Service with Water Distribution Network.

IBAMA

Brazilian Institute of Environment and Renewable Natural Resources.

IBGC

Brazilian Institute of Corporate Governance.

IBGE

Brazilian Institute of Geography and Statistics.

Ibovespa

The most popular index of Bovespa - The Sao Paulo Stock Exchange.

IBRI

Brazilian Institute of Investor Relations.

IDA

Annual Deferral Rate

IGPM

Brazilian General Price Index of the Market.

INPC

Brazilian National Consumer Price Index.

IPCA

Brazilian Broad Consumer Price Index.

IPC-FIPE

Brazilian Consumer Price Index, calculated by the Calculated by the Economic Research Institute Foundation (FIPE).

IPL

Losses Rate Per Connection.

IPO & Re-IPO

Initial Public Offer.

IRT

Tariff Readjustment Index.

ISO

International Organization for Standardization.

ITR

Quarterly Information

J

JCP

Interest on Equity.

Joint-venture

A joint venture is a pact in which two or more parties agree to combine resources to accomplish a business-related task.

K

L

Law 11,445/2007

Brazilian law that establishes the national guidelines for basic sanitation and for the federal policy of basic sanitation.

Law 13,303/2016

Government-Owned Companies Act. Brazilian law that provides for the legal status of public companies, mixed-capital companies and their subsidiaries, within the Union, the States, the Federal District and the Municipalities.

LIBOR

London Interbank Offered Rate.

M

Majority Shareholder

Shareholder holding such a number of shares with voting rights that allows it to retain control of a company. It is the individual, or set of individuals, that has the effective administrative control of the company, for possessing a sufficient number of common shares.

Market Maker

A market maker is a legal entity, duly registered at B3, committed to submiting spreads (bids and offers) regularly and continuously during the trading session, promoting the liquidity of securities, facilitating business and mitigating artificial movements in prices.

Material Fact

A material fact is any decision by a controlling shareholder, the general meeting or management bodies, or any political, administrative, technical, business or economic-financial act or fact related to its business that may influence (i) the price of securities issued by the company; (ii) the decision of the investors to buy, sell or hold such securities; and (iii) in the decision of the investors to exercise any rights inherent to the condition of holder of securities issued by the company.

Measured Volume

Volume supplied and recorded through meters in a given cycle.

Minority Shareholder

Shareholder that do not hold a significant number of common shares, with voting rights, that allows him to maintain the shareholding control of a company.

N

Net Debt / EBITDA

Index created to analyze the level of indebtedness of a company.

Net Debt

This is the Gross Debt discounted from the company's cash and cash equivalents.

Net Margin

Net profit margin, or net margin, is equal to net income or profits divided by total revenue and represents how much profit each dollar of sales generates.

Notice to Shareholders

Publication used to make available the documents related to the GOA.

Notice to the Market

Publication used for the disclosure of: (i) acquisition or disposal of relevant holdings; (ii) information not characterized as a material fact, but that is useful to shareholders or the market; and (iii) clarifications provided by the companies to CVM or the stock exchange.

O

OCC

Operation Control Center.

Onerous Concession

Contract executed by the public power with a private individual to perform a public work or service or use a public good, at its own risk, during the term and contractual conditions.

Operating Income

Gross profit minus overhead expenses.

Operating Margin

Operating margin is a measure of a company's profitability, and an indicator of how well it is being managed and how risky it is.

OPEX

Operational Expenditure.

P

PAI

Stimulated Retirement Program.

Parcel A

A portion that includes non-manageable costs, where costs with sector charges, taxes and other funds, electricity and chemicals are considered.

Parcel B

These are the manageable costs of the tariff. Composed of other operating costs, capital remuneration, regulatory depreciation, defaults and other revenues.

Payout

Payout refers to the expected financial return or monetary disbursement from an investment or annuity.

PDVTC

Voluntary Dismissal Program with Knowledge Transmission.

PMI

Expression of Interest Procedure.

PMSB

Municipal Plan of Basic Sanitation.

PNQS

Sanitation Quality National Awards.

PPI

Multi-year Investment Plan.

PPP

Public-Private Partnership.

PPR

Profit Sharing Program.

Preferred Share (PN)

A type of representative share of the capital stock of a company, without voting rights, and with priority in the distribution of dividends.

Program Contract

The program contract is the instrument established by Law 11455/2007, in which one federative entity transfers to another the execution of services. In the case of basic sanitation, where services are commonly provided by state companies (such as Sanepar, in Paraná), the program contract is entered into between the Municipality and the Company.

Q

QRR

Regulatory Reintegration Quota.

R

RAB

Regulatory Asset Base.

Rating

A rating is an assessment tool assigned by an analyst or rating agency (such as Moody’s, a Fitch e a S&P) to a stock or bond indicating its potential for opportunity or safety.

REDIR

Meeteing of the Board of Executive Officers

ROE

Return on Equity.

ROIC

Return Over Invested Capital.

RTE

Extraordinary Tariff Review: Mechanism that can be used in the cumulative occurrence of events not foreseen in the contracts and that are out of the control of the service provider and that alter the economic-financial balance of the contract.

RTP

Periodic Tariff Review: Its purpose is to review all the components that make up the tariff, resulting in a new value that does not necessarily communicate with the inflation occurred in the period.

RVB

Remote Vote Bulletin.

S

SAA

Water Supply System.

SAIC

Curitiba Metropolitan Area Integrated Water Supply System.

SEFA / PR

Secretary of Finance of the State of Paraná.

SELIC Rate

Brazilian interest rate equivalent to the referential rate of the Special Settlement and Custody System (Selic) for federal securities.

SELIC

Special Settlement and Custody System.

SES

Sanitary Sewage System.

Shareholders' Agreement

A shareholders' agreement is an arrangement among a company's shareholders that describes how the company should be operated and outlines shareholders' rights and obligations.

T

Tariff Adjustment

This is a procedure that is much simpler and more objective than tariff review (whether periodic or extraordinary). Its objective is only the recomposition of the purchasing power of the tariff due to inflation in a given period

TCE-PR

Court of Accounts of the State of Paraná.

TLP

Long Term Rate.

TR

Referential Rate.

U

UCI

Utilization of Installed Capacity.

UNITS

UNITS or Securities Deposit Certificates are assets composed by more than one class of securities, such as a common stock and a subscription warrant, for example, traded together.

V

W

WACC

Weighted Average Capital Cost.

X

X-Factor

Productivity gain sharing factor.

Y

Z

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