November/2013November/2013

Conference CallConference Call3Q13 Results3Q13 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

3

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

3Q12 3Q13

522.7 532.5

384.5 392.5Sewage

Water

9M12 9M13

1,557.6 1,595.8

1,141.8 1,171.22.0%

2.1%

1.9%

907.2 925.0

2.5%

2.6%

2.5%

2,699.4 2,767.0

754.0 774.0

762.0

752.0

759.0

3Q12 4Q12 1Q13 2Q13 3Q13

Produced Water Volume

522.7

535.8

534.7

528.5 532.5

3Q12 4Q12 1Q13 2Q13 3Q13

Billed Water Volume

25.8 25.7 25.5

25.3 25.0

3Q12 4Q12 1Q13 2Q13 3Q13

Losses

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

4

361.8

721.8

902.0

1,988.6

2,711.0

475.0

833.6

1,042.0

1,940.5

2,772.4

Net income

EBIT

Adjusted EBITDA

Costs, adm, sellingand construction

expenses

Net operatingrevenue

3Q13 3Q12

2.3%

0,4%

15.5%

15.5%

38,9%

(2.4%)

31.3%

Payroll andBenefits

Supplies Treatmentsupplies

Services Electric power GeneralExpenses

Depreciationand

Amortization

Credit write-offs

Tax expenses

427

46 39

262

145

210180

71

11

489

49 64

285

133 134

208

28 11

3Q12 3Q13

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

% Net Revenue in 3Q12

15.7% 1.7% 1.4% 9.6% 5.3% 7.7% 6.6% 2.6% 0.4%

% Net Revenue in 3Q1317.6% 1.8% 2.3% 10.3% 4.8% 4.8% 7.5% 1.0% 0.4%

0.8%

Costs and expenses in 3Q12*: R$ 1,389.4

Costs and expenses in 3Q13*: R$ 1,401.0

*Not including construction costs

15.6%

14.6%

5.9% 62.7%

9.0%

(8.1%)

(36.1%)

5.6%(60.8%)

Net Income – Main variationsNet Income – Main variations

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Net Income2Q12

N.O.R. Costs andExpenses

Other Rev. and Expenses

Net Financial Income Taxand Social

Contribution

Net Income2Q13

475.0

61.4

48.1

73.5 (10.6)(59.2)

361.8

3Q12 3Q13 Chg.Net Income 3Q12 361.8

Net Operating Revenue 2,711.0 2,772.4 61.4Costs and Expenses (1,988.6) (1,940.5) 48.1Other Revenues and Expenses (60.1) 13.4 73.5Net Financial (109.3) (119.9) (10.6)Income tax and social contrib. (191.2) (250.4) (59.2)

Net Income 3Q13 475.0

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Long term and low cost fundingLong term and low cost funding Long term and low cost fundingLong term and low cost funding

R$ million

Total Debt Breakdown Total Debt by Currency

Debt Amortization Profile

(*) IDB 713 agreement

JICA 10.4%

IDB 15.6%

Eurobônus 12.3%

Debêntures 26.4%

BNDES 11.2%

CEF 17.1%

BIRD 0.9%B Brasil 2.2%

Others 4.0%

Local Currency

60.9%

US Dollar 25.9%

Yen 10.4%

Currency Basket* 2.8%

0150300450600750900

1,0501,2001,3501,5001,650

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025+

251

564

1,009 962

674 791 851

1,347

376 336 305

217

1,403

Local Currency Foregin Currency

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FoRMULA ITEM R$ THOUSAND % OVER (1)

(1) (+) Primary Revenue 9,116,133

(2) = (1)*6.2707% (+) IPCA adjustment 571,645 6.2707%

(3) = (1)*0.4297% (-) X Factor 39,172 0.4297%

(4) = (1) – (2) – (3) (=) Net Revenue of X Factor 9,648,606 5.8410%

(5) (-) Income with advances 2.3509% 84,312 0.9249%

(6) (+) Losses with postponement of the IPCA 59,604 0.6538%

(7) = (4) – (5) + (6) (=) Gross Revenue 2.3509% 9,623,899 5.5700%

(8) = (7) – (7)/(1+2.3509%) (-) Adjustment of 2.3509% 221,052 2.4248%

(9) = (7) – (8) (=) Net Revenue of 2.3509% 9,402,847 3.1451%

ARSESP’s Resolution 435ARSESP’s Resolution 435ARSESP’s Resolution 435ARSESP’s Resolution 435

ARSESP’s Resolution 434ARSESP’s Resolution 434ARSESP’s Resolution 434ARSESP’s Resolution 434

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Fixes the date of March 10, 2014 for the publication of the definitive Initial Maximum Tariff Price (P0) and the Efficiency Factor (X Factor) for the tariff cycle initiated on August 10, 2012, and establishes the following steps for the completion of the first Tariff Review:

i)Stage D1 - Sabesp presents the revised Asset Base (12/5/2013);

ii)Stage D2 - ARSESP publishes its proposals for the P0 and the X Factor, initiation of a Public Consultation and call for  a Public Hearing (1/10/2014);

iii)Stage D3 - Public Hearing held and Public Consultation concluded (2/5/2014);

iv)Stage D4 - Publication of results related to the P0 and the X Factor, report on Public Consultation contributions (3/10/2014); and

v)Stage D5 - ARSESP publishes Sabesp's new Tariff Structure definition and implementation schedule (3/10/2014).

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