Companhia de Saneamento Básico do Estado de São Paulo SABESP : Presentation Conference Call 1Q20

1Q20 CONFERENCE CALL

Economic-Financial and Investor Relations Office

May 19, 2020

LEGAL NOTICE

This presentation may contain forward-looking statements referring to SABESP's business outlook, operating and financial estimates and growth prospects. These are only projections and, as such, they are exclusively based on the expectation of SABESP's management team in relation to the future of the business and its continuous access to capital to finance the Company's business plan. These forward-looking statements largely depend on changes in market conditions, governmental rulings, industry performance and the Brazilian economy, amongst other factors, in addition to the risks disclosed in the documents filed by SABESP, thus they are subject to changes without prior notice.

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BILLED VOLUME (million m³)

Total water and sewage billed volume, including wholesale

							Sabesp									Sabesp
						(Excluding Santo André)							(Including Santo André)
								2.2%										2.6%
						950.4		917.7								972.4		997.9
								2.0 %									532.5	1.1%	538.4
						514.8	525.3
				Water							Water
				Sewage			2.5 %							Sewage		4.5%
						435.6	446.4								439.9		459.5
						1Q19		1Q20								1Q19		1Q20
									Historical Billed Volume
														942	944	931		950	973	989	959	993	998
									910	925	904	923	924
856				863	872	880	880
835	841

																																																					522	536	538
												490	494	495	512	520	509	519	528	531	523	520	534		533	556	437	457	460
485	472	473	484		433
386				399	405	395	404	414	413	408	404	416	440
371	363	368	379	382	386
		1Q15			2Q15			3Q15			4Q15			1Q16			2Q16			3Q16			4Q16		1Q17		2Q17			3Q17			4Q17			1Q18			2Q18			3Q18			4Q18			1Q19			2Q19			3Q19			4Q19			1Q20	3
																									Sewage			Water			Water + Sewage

FINANCIAL HIGLIGHTS (R$ million)

3,536.1

Gross operating revenue*7.6%3,803.9

3,878.5

Net operating revenue4.2%4,042.4

Costs, adm. &		2,746.4
selling expenses		3,045.7	10.9%
and construction costs
Adjusted EBITDA	1,544.7
	3.9%
1,483.8

1,133.9

Adjusted EBIT11.8%

1,000.3

647.3

Net income/(loss)201.6%-657.9

(*) Does not include construction revenue

1Q19		1Q20	4

COSTS AND EXPENSES (R$ million)

								Costs and expenses in 1Q19*: R$	-2.156,4	17.6%
								Costs and expenses in 1Q20*: R$	-2.536,9
-0.5%										*Excluding construction costs
681.0 677.8									17.7%
					0.5%
							15.4%	52.5%	483.5
					422.2	424.1			410.8
			8.2%			326.5	292.4			1,919.2%
	14.5%			283.0
								191.7			157.5	-1.3%
	57.4	65.7	86.7	93.8
									7.8	15.8	15.6
Salaries and payroll	General Supplies	Treatment Supplies	Services	Electricity	General Expenses	Depreciation and	Allowance for Doubtful	Tax Expenses
charges and Pension									Amortization		Accounts
plan obligations

1Q19 1Q20

% Net Revenue in 1Q19
17.6%	1.5%	2.2%	10.9%	7.3%	4.9%	10.6%	0.2%	0.4%
% Net Revenue in 2019
16.8%	1.6%	2.3%	10.5%	8.1%	7.2%	12.0%	3.9%	0.4%

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FINANCIAL PERFORMANCE (R$ million)

163.9

(299.3) (3.2)

647.3

(1,829.8)

663.2

(657.9)

1Q19	N.O.R.	Costs &	Other Revenue	Net Financial	Income Tax &	1Q20
Net Income/ (Loss)		Expenses	& Expenses (*)	Result	Social Contribution	Net Income/(Loss)

	1Q20	1Q19	Variation
Net Income 1Q19			647.3
Net Operating Revenue	4,042.4	3,878.5	163.9
Costs & Expenses	(3,045.7)	(2,746.4)	(299.3)
Other Revenue & Expenses (*)	6.4	9.6	(3.2)
Net Financial Result	(1,980.3)	(150.5)	(1,829.8)
Income Tax & Social
Contribution	319.3	(343.9)	663.2
Net Income 1Q20			(657.9)

(*) Includes equity results	6

COVID-19 - SOCIAL INITIATIVES

• Installation of water in field hospitals
• Cleaning of the areas
• • 290 municipalities in the State
  • 9 thousand cleaning initiatives
• Distribution of water tanks
• • Total of 4,500 water tanks
• Installation of washbasins and drinking fountains throughout the State
• • 65 cities in the coastal and interior areas
  • 60 washbasins installed in the São Paulo Metropolitan Region
• Volunteer Program
• • 35 tons of food and 17 tons of hygiene kits

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INITIATIVES TO COMBAT THE EFFECTS OF THE ECONOMIC CRISIS

Economic Crisis		Covid-19

Factors impacting the Company's results and liquidity

UNFAVORABLE	FAVORABLE

• Reduction innon-residential demand
• Increase in default
• Exemption of temporary tariffs to social/favela categories
• Postponement of tariff adjustment
• High exchange rate volatility

• Increase in residential demand
• Expansion of public and multilateral financing to the sector
• Postponement of the payment of 50% of the Regulation and Inspection Fee
• Possibility to postpone amortizations

MEASURES	STATUS
R$ 360 million budget reduction in expenses and postponement of R$ 300 million in investments	Effetive
25th debentures issuance totaling R$ 1.45 billion	Effetive
Replacement of debt in foreign currency for local currency (US$ 495 million)	Effetive
Reduction of staff through the Knowledge Retention Program	Ongoing
Postponements of amortizations, bringing receipts forward and contracting new financing	Under analysis
Replace escrow deposits for guarantee insurance	Under analysis	8

DEBT BREAKDOWN

1Q20	1Q20 - With Change Currency Adjustment

• Debt conversion from US$ 494 million for R$ 2.8 billion
• • 32% reduction in total foreign currency debt
  • 17% reduction in foreign exchange exposure estimated in dollar on March 31st
• 25th debenture issueance
• • Amount of R$ 1.45 billion
  • Conditions: CDI +3,30% - Term: 18 month
• Additional (potential) Funding
• • IDB Invest - mandate letter
  • Infrastructure debentures - R$ 1 billion - approved by the Ministry of Regional Development
• Support from public banks and multilateral entities
• • Standstill on debt payment
  • Disbursement anticipation

Scope adjustments and/or counterparts limits

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www.sabesp.com.br

IR Contacts

Mario Azevedo de Arruda Sampaio	Angela Beatriz Airoldi
Head of Capital Markets and Investor Relations	Investor Relations Manager
[e-mail]	[e-mail]
[phone]	[phone]