Companhia de Saneamento Básico do Estado de São Paulo SABESP : Presentation Conference 3Q20

C O N F E R E N C E

3Q20

Economic-Financial and Investor Relations Office

17 NOVEMBER, 2020

	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
Legal Notice	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.

Conference 3Q20	2

BILLED VOLUME (MILLION M³)

TOTAL WATER AND SEWAGE BILLED VOLUME, INCLUDING WHOLESALE

		958.8	997.0			930.2	924.8	Not considered:
								- Santo André / Mauá
		522.2	538.4			495,3	499,0	-	Residencial Social
	Water		Water	-	Residencial Favela
	Sewage	436.6	458.6		Sewage	429,5	431,2

3Q19

3Q20

3Q19

3Q20

HISTORICAL BILLED VOLUME

Conference 3Q20	3

FINANCIAL HIGHLIGHTS (R$ MILLION)

Gross operating

4,984.1

revenue*

3,639.1

27.0%

R$

MILLION

(*) Does not include construction revenue

Net operating revenue

Costs, adm. & selling expenses and construction costs

Adjusted EBITDA

Adjusted EBIT

Net income

4,438.5

2,867.6 3,456.2

3,009.3

1,513.6

2,545.4

985.4

1,208.9

421.6

5,410.6

18.0%

20.5%

49.7%

61.3%

65.1%

Conference 3Q20

3Q19		3Q20

4

COSTS AND EXPENSES (R$ MILLION)

																										Costs and expenses in 3Q19*: R$ 2,183.9			11.1%
																										Costs and expenses in 3Q20*: R$ 2,426.5
																																	*Excluding construction costs
																		10
			669.4									1%																	299 7%				5%
	517.0													449.9	457.6												463.9	528.2
																			311.0		358.6
																		282.5		224.4
						67.3		63.5			67.4		78.9																			75.1			14.9		18.4
																															-37.6
Salaries and payroll	General Supplies	Treatment Supplies	Services			Electricity	General Expenses	Depreciation and		Allowance for		Tax Expenses
charges and Pension																								Amortization	Doubtful Accounts
	plan obligations
																				3Q19			3Q20
		%Net Revenue in 3Q19
		9.6%				1.2%				1.2%		8.3%		5.2%		6.6%		8.6%	-0.7%		0.3%
		%Net Revenue in 3Q20
		15.1%				1.4%				1.8%		10.3%		7.0%		5.1%		11.9%	1.7%		0.4%
	Conference 3Q20																																	5

FINANCIAL PERFORMANCE (R$ MILLION)

	3Q20	3Q19	Variation
Net Income 3Q19			1,208.9
Net Operating Revenue	4,438.5	5,410.6	(972.1)
Costs & Expenses	(3,456.2)	(2,867.6)	(588.6)
Other Revenue & Expenses (*)	3.9	15.6	(11.7)
Net Financial Result	(330.6)	(719.9)	389.3
Income Tax & Social Contribution	(234.0)	(629.8)	395.8
Net Income 3Q20			421.6

1. Includes equity results

Conference 3Q20	6

MANAGEMENT'S INDICATORS

Total Gross Revenue per m³ Billed - R$/m³ Figures at 3Q20 average prices, updated by IPCA

Operating Expense per m³ Billed - R$/m³ Figures at 3Q20 average prices, updated by IPCA

EBITDA per m³ Billed - R$/m³

Figures at 3Q20 average prices, updated by IPCA

Conference 3Q20	7

3RD ORDINARY TARIFF REVISION

SCHEDULE OF STAGES FOR 3RD OTR

Stage 9 - Release of Preliminary Technical Note - Calculation of P0 Stage 10 - Public Consultation and Public Hearing - Calculation of P0

Stage 11 - Release of the Detailed Report, Final Technical Note and P0 Resolution

January 14

January 15 to

February 19

April 09

2021

Arsesp 2020-2021 Regulatory Agenda

Development of a methodology for regulating water losses

Determination of criteria for sharing indirect revenues and other revenues from regulated sanitation companies with users

Revision of the tariff structure

In progress

In progress

March/2021

Water sources conservation program

Appraisal of the write off made in the Regulatory Asset Base in the first tariff revision

Detailing of Sabesp's risk matrix

Conference 3Q20	8

PLUVIOMETRY

Rainfall Volume 2019/2020 (Oct/19 to Sep/20)

Rainfall in October/20

Rainfall in millimeters (mm)

Source: Sabesp Mananciais app

Conference 3Q20

CANTAREIRA						1,131	74%
					1,533
GUARAPIRANGA	907				68%
					1,339
ALTO TIETÊ						1,028		72%
					1,433
RIO GRANDE						1,091	70%
					1,553
RIO CLARO						1,590	73%
					2,168
COTIA						1,040	78%
					1,335
SÃO LOURENÇO						1,359	78%
					1,744
		Hydrological year 2019/2020			Historical Average	57%
CANTAREIRA		72.9
					128
								67%
GUARAPIRANGA						77.4
					115
								47%
ALTO TIETÊ		53.4		113
								93%
RIO GRANDE						123.8
					133
								58%
RIO CLARO						102.0
					176
								118%
COTIA						141.0
					120
								78%
SÃO LOURENÇO						110.2
					141
						Oct/20		Historical Average	9

Afluência

AFFLUENCY

Cantareira System

90			79.1
80
70
60
50	45.5	43.1

4035.2

30	19.0	18.9
		17.0
20	13.6		12.8
	10.3	9.6
				5.6
10
0
OCT NOV DEC JAN	FEB MAR APR MAY JUN JUL	AUG SEP
	2017/2018	2018/2019			2019/2020
	2020/2021	Average			Minimum

Affluency in m³/s

Source: Boletim Diário dos Mananciais - MAR (http://mananciais.sabesp.com.br/Boletins)

Conference 3Q20

Guarapiranga System

45

40			37.8
35
30
25			21.3
20			17.7
15	10.7	12.1		9.3		9.0
10	6.6		7.0	5.8
	5.5	4.7
5
0
OCT NOV	DEC	JAN FEB MAR APR MAY JUN	JUL	AUG SEP
	2017/2018	2018/2019			2019/2020
	2020/2021	Average			Minimum

Alto Tietê System

70
60
50				38.4
40			35.9
30				18.5
20			16.4
	12.2	7.4		9.8		7.8
8.9			5.8	5.2	4.0
10
0
OCT	NOV	DEC JAN	FEB MAR APR MAY JUN	JUL AUG SEP
		2017/2018	2018/2019			2019/2020		10
		2020/2021	Average				Minimum

Volume dos Mananciais

RESERVOIRS LEVEL

Volume (%) of SPMR's

Water Sources

October 31

Volume (%) of

SPMR's Water

Sources

October 31

72.8%

63.7%				58.9%
52.1%	49.0%	47.4%	50.0%
	45.7%
		44.7%

10.4%

1.4%

2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
System		Capacity (hm³)		Volume (hm³)	Volume (%)
Cantareira			982.07		344.67			35.1
Alto Tietê			560.31		309.59			55.3
Guarapiranga			171.19		77.81			45.5
Rio Grande			112.18		84.92			75.7
Rio Claro			13.67		6.51			47.7
Cotia				16.50		10.06			61.0
São Lourenço			88.82		55.76			62.8
Total Capacity	1,945.40		889.50			45.7

	Source: Boletim Diário dos Mananciais - MAR
Conference 3Q20	(http://mananciais.sabesp.com.br/Boletins)	11

Produção de Água

WATER PRODUCTION

SPMR Treated Water Production (average monthly)

66			65.19
64	63.18	63.10	63.23			63.79	63.32
62.53
			62.32	62.32	61.93

62

60

58

56

54

jan

feb mar apr may jun

jul

aug sep

oct

nov dec

2016 2017 2018 2019 2020

	System	Year Average	Oct/20
	Cantareira	24.71	26.10
Treated Water
Alto Tietê	13.63	12.59
Production per
Guarapiranga	12.39	12.00
System
Rio Grande	4.27	4.41
	Rio Claro	3.61	3.65
	Cotia	1.11	0.90
	São Lourenço	2.95	3.60
	Ribeirão Estiva	0.07	0.07	Production in m³/s
				Source: Boletim Diário de Produção - MAGO
	Cabuçu	0.23	0.15
Conference 3Q20	12
Tanque Grande	0.08	0.06

IR CONTACTS

Mario Azevedo de Arruda Sampaio

Head of Capital Markets and Investor Relations [e-mail]

[phone]

Angela Beatriz Airoldi Investor Relations Manager [e-mail] [phone]

www.sabesp.com.br