Companhia de Saneamento de Minas Gerais : Material Fact - Labor Process 58 years

Companhia de Saneamento de Minas Gerais

COMPANHIA DE SANEAMENTO DE MINAS GERAIS - COPASA MG

PUBLICLY-HELD COMPANY

CORPORATE TAXPAYER'S ID (CNPJ): 17.281.106/0001-03

MATERIAL FACT

Companhia de Saneamento de Minas Gerais - COPASA MG, according to CVM Resolution 44/2021, hereby informs its shareholders and the public in general about the most recent developments of labor lawsuit 102100-74.2008.5.03.0024, filed in 2008 by the main union of the Company's employees, which is described in item 4.3 of the Reference Form.

On June 18, 2019, the Company filed a Constitutional Claim with the Federal Supreme Court (STF) (Lawsuit 35.342), and issued a decision in favor of COPASA MG on November 21, 2019.

On September 30, 2021, the STF revised its decision whereby the decision issued by the Regional Labor Court of Minas Gerais (TRT-MG), in favor of the lawsuit, would prevail again. The Company filed an Interlocutory Appeal that was rejected, and the decision was published on December 1, 2021. On December 7, 2021, the Company filed Motions for Clarification, as it considered the decision omissive.

As stated on the Financial Statements for December 31, 2020, as well as on the Reference Form for 2021, this lawsuit is classified as a probable loss and the amount provisioned until that time totaled R$33.5 million. Based on recent court decisions, the Company decided to revise the amount provisioned, even though such a lawsuit has not provided the amount of the decision. For this reason, it made preliminary calculations and, according to the best accounting practices, it increased the provision by around R$217 million today, which will be accounted for on December 31, 2021.

Belo Horizonte, December 27th, 2021.

Carlos Augusto Botrel Berto

Chief Financial and Investor Relations Officer