March/2014March/2014

Conference CallConference Call2013 Results2013 Results

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

2

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

Billed VolumeBilled Volume

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

4Q12 4Q13

535.8 553.5

393.1 407.7Sewage

Water

2012 2013

2,093.8 2,149.1

1,534.5 1,579.13.5%

3.7%

3.3%

928.9 961.2

2.8%

2.9%

2.6%

3,628.3 3,728.2

774.0

762.0 752.0

759.0

786.0

4Q12 1Q13 2Q13 3Q13 4Q13

Produced Water Volume

535.8 534.7

528.5

532.5 553.5

4Q12 1Q13 2Q13 3Q13 4Q13

Billed Water Volume

25.7 25.5 25.3

25.0 24.4

4Q12 1Q13 2Q13 3Q13 4Q13

Losses

Financial Highligts (R$ million)Financial Highligts (R$ million)

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1,911.9

2,866.5

3,605.0

7,864.6

10,737.6

1,923.6

3,135.5

4,006.6

8,182.5

11,315.6

Net income

EBIT

Adjusted EBITDA

Costs, adm, sellingand construction

expenses

Net operatingrevenue

2013 2012

0,4%

38,9%

5.4%

9.4%

11.1%

4.0%

0.6%

Payroll andBenefits

Supplies Treatmentsupplies

Services Electric power GeneralExpenses

Depreciationand

Amortization

Credit write-offs

Tax expenses

1,739

182 178

1,076 590 688 739

192

68

1,927

193241

1,112553

711 871

10476

2012 2013

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

% Net Revenue in 2012

16.2% 1.7% 1.7% 10.0% 5.5% 6.4% 6.9% 1.8% 0.6%

% Net Revenue in 201317.0% 1.7% 2.1% 9.8% 4.9% 6.3% 7.7% 0.9% 0.7%

6.2%

Costs and expenses in 2012*: R$ 5,450.2

Costs and expenses in 2013*: R$ 5,788.0

*Not including construction costs18.0%10.8%

6.4%

35.6%

3.4%(6.3%) 3.4%

10.7%

(45.9%)

Net Income – Main variationsNet Income – Main variations

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Net Income2012

N.O.R. Costs andExpenses

Other Rev. and Expenses

Net Financial Income Taxand Social

Contribution

Net Income2013

2012 2013 Chg.Net Income 2012 1,911.9

Net Operating Revenue 10,737.6 11,315.6 578.0Costs and Expenses (7,864.6) (8,182.5) (317.9)Other Revenues and Expenses (29.7) 5.7 35.4Net Financial (295.7) (483.2) (187.5)Income tax and social contrib. (635.7) (732.0) (96.3)

Net Income 2013 1,923.6

1,923.6

578.0 (317.9)

35.4 (187.5)(59.2)

1,911.9

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Interconnected Metropolitan Water SystemInterconnected Metropolitan Water SystemWater System Capacity Volume produced Production m³/s 2013 m³/sCantareira 33.0 32.6Guarapiranga 14.0 13.6Alto Tietê 15.0 12.1Rio Claro 4.0 4.8Rio Grande 5.0 3.9Alto Cotia 1.2 1.2Baixo Cotia(a) 0.9 0.8Ribeirão da Estiva (a) 0.1 0.1Total 69.1(a) has no reservoir

Volumes – SP Metro Region Systems - 2003 to 2014Volumes – SP Metro Region Systems - 2003 to 2014

mar/1414,0

mar/1437,8

-

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

110,0

jan/0

3m

ar/0

3m

ai/03

jul/0

3se

t/03

nov/

03jan

/04

mar

/04

mai/

04jul

/04

set/0

4no

v/04

jan/0

5m

ar/0

5m

ai/05

jul/0

5se

t/05

nov/

05jan

/06

mar

/06

mai/

06jul

/06

set/0

6no

v/06

jan/0

7m

ar/0

7m

ai/07

jul/0

7se

t/07

nov/

07jan

/08

mar

/08

mai/

08jul

/08

set/0

8no

v/08

jan/0

9m

ar/0

9m

ai/09

jul/0

9se

t/09

nov/

09jan

/10

mar

/10

mai/

10jul

/10

set/1

0no

v/10

jan/1

1m

ar/1

1m

ai/11

jul/1

1se

t/11

nov/

11jan

/12

mar

/12

mai/

12jul

/12

set/1

2no

v/12

jan/1

3m

ar/1

3m

ai/13

jul/1

3se

t/13

nov/

13jan

/14

mar

/14

Porce

ntag

em d

o Volu

me M

áxim

o (%

)

Cantareira Guarapiranga Rio Grande Rio Claro Alto Tietê Cotia

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Monthly volume – Cantareira System 2003 to 2014Monthly volume – Cantareira System 2003 to 2014

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Evolution of storage conditions in Cantareira SystemEvolution of storage conditions in Cantareira System

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Bonus Program20% water bill savings = 30% discount on the water and sewage bill

Scope:Since February consumers served by the Cantareira SystemAs from April all consumers served in the SPMRDuration: February to December37% of the population served by the Cantareira System already reached the water savings goal

Utilization of the Technical Reserve of the Cantareira SystemAvailable volume equivalent to 20% of total storage capacityR$ 80 million investmentImplementation up to June 2014

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Measures and ActionsMeasures and Actions

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Investment in waterInvestment in water

1995-2013 - R$ 9.3 Billion invested in waterIncrease of the availability of water/source 14.9 m³/sIncrease in water production capacity from 57.6 to 73.2 m³/sIncrease in water reservoir volume 130,000 m³Building of 175 Km of mains and 11,000 Km distribution networkImplemented approximately 1.8 million water connectionsBilled water loss reduction by more than 9%

Planned Water CapexCorporate Program for Reduction of Water Loss Goal 18% in 2020, R$ 5.9 billion investment between 2009-2020 São Lourenço Production System + 4.7m³/s water production in 2018, R$ 2.2 billion capex

Integration Jaguari – Atibainha Integration Jaguari – Atibainha

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Capex (R$ million)Capex (R$ million)

2014 2015 2016 2017 2018 Total

Water 815 825 814 750 724 3,928

Sewage 1,169 1,259 1,227 1,371 1,278 6,304

Other 658 592 489 374 418 2,531

Total 2,642 2,676 2,529 2,496 2,420 12,763

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Capex Plan 2014-2018

Investment by segment Water Sewage Total

Metropolitan Region 652.4 977.3 1,629.7

Regional Systems 451.3 635.0 1,086.3

Total 1,103.7 1,612.3 2,716.0

2013 Capex

www.sabesp.com.brIR Contacs

Mario Azevedo de Arruda SampaioHead of Capital Markets and Investor Relationsmaasampaio@sabesp.com.br+55 (11) 3388-8664

Angela Beatriz AiroldiInvestor Relations Managerabairoldi@sabesp.com.br+55 (11) 3388-8793