3Q10 Results3Q10 ResultsConference CallConference Call

Economic-Financial Office and Investor Relations OfficeEconomic-Financial Office and Investor Relations Office

November/10November/10

This presentation may contain forward-looking statements referring to SABESP’s business outlook. operating and financial results estimates. and growth prospects. These are only projections. and as such. they are exclusively based on SABESP’s management expectation in relation to the future of 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 rules. industry performance and the Brazilian economy. amongst other factors. in addition to risks exhibited in disclosure documents filed by SABESP. Therefore. they are subject to changes without prior notice.

NoticeNotice

2

3Q09 3Q10

468.5 493.6

335.9 355.5Sewage

Water

1H09 1H10

1,426.1 1,484.3

1,017.4 1,068.0

Total billed water and sewage volume, including wholesale (million m³)Total billed water and sewage volume, including wholesale (million m³)

Billed VolumeBilled Volume

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5.6%

4.5%

5.8%

5.4%

5.0%

4.1%

699.5

720.9 732.0

731.3

742.6

3T09 4T09 1T10 2T10 3T10

Produced Water Volume

468.5

492.8

497.7

493.7

493.6

3T09 4T09 1T10 2T10 3T10

Billed Water Volume

26.5

26.0

25.7

25.8 26.0

3T09 4T09 1T10 2T10 3T10

Losses

Net Income

EBIT

EBITDA

Costsand Expenses

Net Operating Income

195.7

455.6

617.1

1173.4

1629.0

449.8

655.1

799.6

1180.4

1835.6

3T10 3T09

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Financial HighlightsFinancial Highlights

Variation 3Q09 X 3Q10

0.6%

29.6%

43.8%

129.8%

12.7%

Payroll and Benefits

Supplies Treatment supplies

Services Electric power

General Expenses

Depreciation and

Amortization

Credit write-offs

Tax expenses

355

40 33

236

121146

162

72

9

348

36 32

221

132166

145

89

12

3Q09 3Q10

Costs and expenses in 3Q09: R$ 1,173.4

Costs and expenses in 3Q10: R$ 1,180.4

5

Costs and Expenses (R$ million)Costs and Expenses (R$ million)

% Net Revenue in 3Q09 21.8% 2.4% 2.1% 14.5% 7.5% 9.0% 9.9% 4.4% 0.6%

% Net Revenue in 3Q1019.0% 2.0% 1.7% 12.1% 7.2% 9.0% 7.9% 4.8% 0.6%

0,6%

(10,5%)

(1,8%)

(8,1%) (5,4%)

(6,4%)

9,0%13,9%

24,5%

23,9%

Net IncomeNet Income

Main variation of the items that affected net income (R$ million)Main variation of the items that affected net income (R$ million)Main variation of the items that affected net income (R$ million)Main variation of the items that affected net income (R$ million)

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3Q09 3QT10 Var.

Net Income 3Q09: R$ 195.7 million

Net Op. Revenue 1,629.0 1,835.6 206.6

Costs and expenses (1,173.4) (1,180.4) 7.0

Other Rev. and Exp. 7.0 10.6 3.6

Net Financial (157.0) 21.7 178.7

Income Tax and Social Contr. (109.9) (237.6) (127.7)

Net Income 3Q10: R$ 449.9 million

3Q09 Net Income

Net Op. Rev. Costs and Expenses

Other Rev. andExpenses

Net Financial Income Tax and Social Contr.

3Q10Net Income

462.6

195.7

449.9

665.8

(109.9)(237.6)

103.8

206.6 7.0 3.6

178.7

(127.7)

60.5

(254.4)

4.5

(6.4)

(43.3)

Operating Result Income Tax and Social Contr. Exchange Var. Net Financial Monetary Var.

CounterpartR$ 1.5 bi

17.4%

Free FundsR$ 2.5 bi

29.1%ContractedR$ 3.1 bi

68%

Under contractingR$ 387 mi

9%

Under negotiationR$ 1.0 bi

23%

FinancingR$ 4.6 bi

53.5%

Investment Plan - Financing

Company FundsR$ 4 billion = 46.5%

Third Party FundsR$ 4.6 billion = 53.5%

CEF R$ 1.3 bi

BNDES R$ 638 mi

BIRD R$ 115 mi

BID R$ 958 mi

JICA R$ 80 mi

Total Financed Investments

- Total Amount = R$ 6.1 bi- Total Financed Amount = R$ 4.6 bi- Counterpart = R$ 1.5 bi- Leverage= 75%

R$ 3.5 bi

84%

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JICA

JICA

CEF

BNDES

www.sabesp.com.br

IR Contacts

Mario Azevedo de Arruda Sampaio Angela Beatriz Airoldimaasampaio@sabesp.com.br abairoldi@sabesp.com.br(55 11) 3388-8664 (55 11) 3388-8793