2Q15 Results Conference Call

August/2015

Economic-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.

Notice

2Q14 2Q15

511.0 468.5

387.3 362.8

Sewage

Water

1H14 1H15

1,066.0 950.3

797.8 734.0

Billed Volume

3

(7.5)%

(6.3)%

(8.3)%

831.3 898.3 (8.0)%

(10.9)%

(9.6)%

1,863.8 1,684.3

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

710

606

2Q14 2Q15

Produced Water Volume

511

469

2Q14 2Q15

Billed Water Volume

Financial Highlights (R$ million)

4

302.4

439.1

661.7

2,315.0

2,754.1

337.3

472.5

756.6

2,350.3

2,822.9

Net income

Adjusted EBIT

Adjusted EBITDA

Costs, adm. exp.,selling and

construction

Net operatingrevenue

2Q15 2Q14

0,4%

10,2%

(1.5)%

14.3%

7.6%

2.5%

11.5%

Payroll andBenefits

Supplies Treatmentsupplies

Services Electric power GeneralExpenses

Depreciationand

Amortization

Credit write-offs

Tax expenses

551

47 65

352

145 190 223

62 18

529

43 64

270 208

49

284

0 18

2Q14 2Q15

27.6%

(4.1)%

(8.1)% (1.0)%

(23.2)% 44.2% (74.4)%

0.7%

5

Costs and Expenses (R$ million)

(99.7) %

% Net revenue in 2Q14

20.0% 1.7% 2.3% 12.8% 5.2% 6.9% 8.1% 2.2% 0.6%

% Net revenue in 2Q15

18.7% 1.5% 2.3% 9.6% 7.4% 1.7% 10.1% 0.0% 0.6%

(11.2)% Cost and expenses in 2Q14*: R$1,650.8

Cost and expenses in 2Q15*: R$1,465.1

*Not including construction costs

Net income – Main variations

6

Net Income

2Q14

N.O.R. Costs and

Expenses

Other Rev.

and

Expenses(*)

Net Financial Income Tax

and Social

Contribution

Net Income

2Q15

337.3

68.8 (35.3) 6.4

177.0 (182.0)

302.4

2Q15 2Q14 Var.

Net Income 2Q14 302.4

Net Operating Revenue 2,822.9 2,754.1 68.8

Costs and Expenses (2,350.3) (2,315.0) (35.3)

Other Revenues and Expenses * 11.6 5.2 6.4

Net Financial 155.4 (21.6) 177.0

Income Tax and Social Contrib. (302.3) (120.3) (182.0)

Net Income 2Q15 337.3

*Including equity result

Cantareira System - Rainfall

7

out nov dez jan fev mar abr mai jun jul ago set

Média Histórica 130,8 161,2 226,8 265,9 206,5 184,1 89,2 83,2 56,0 49,9 36,9 91,9

Minima Histórica 21,4 52,4 104,5 111,8 40,2 55,8 7,6 8,8 0,0 0,0 0,1 0,9

2013/14 123,4 97,0 62,9 87,8 73,0 193,3 85,7 37,3 15,8 40,4 22,6 66,0

2014/15 42,5 135,0 165,5 148,2 322,4 189,9 45,3 74,4 39,7 43,9

93%

59%

28%

33%35%

105%

96%

45%

28%

81%61%

72%

32%

84%

73%56%

156%

103%

51%

89%

71% 88%

0,0

50,0

100,0

150,0

200,0

250,0

300,0

350,0

OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP

Historical avg. 130.8 161.2 226.8 265.9 206.5 184.1 89.2 83.2 56.0 49.9 36.9 91.9

Historical low 21.4 52.4 104.5 111.8 40.2 55.8 7.6 8.8 0.0 0.0 0.1 0.9

2013/14 123.4 97.0 62.9 87.8 73.0 193.3 85.7 37.3 15.8 40.4 22.6 66.0

2014/15 42.5 135.0 165.5 148.2 322.4 189.9 45.3 74.4 39.7 43.9

Cantareira System – Water inflow

8

outubro novembro dezembro janeiro fevereiro março abril maio junho julho agosto setembro

Média Histórica 30,6 35,0 53,1 70,9 73,9 66,9 48,4 38,4 35,3 28,8 24,5 25,6

Mínima Histórica 14,0 14,0 21,8 26,9 27,6 28,1 24,7 19,9 16,5 13,9 12,0 11,8

1953 17,5 26,0 31,5 26,9 34,5 29,8 34,6 23,8 20,7 17,6 16,3 16,2

2013/2014 25,1 22,1 22,5 15,4 10,5 18,9 17,2 10,1 10,0 6,4 8,2 9,0

2014/2015 5,2 8,8 16,0 11,5 40,7 42,6 18,1 14,0 16,2 11,3

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Historical avg. 30.6 35.0 53.1 70.9 73.9 66.9 48.4 38.4 35.3 28.8 24.5 25.6

Historical low 14.0 14.0 21.8 26.9 27.6 28.1 24.7 19.9 16.5 13.9 12.0 11.8

1953 17.5 26.0 31.5 26.9 34.5 29.8 34.6 23.8 20.7 17.6 16.3 16.2

2013/14 25.1 22.1 22.5 15.4 10.5 18.9 17.2 10.1 10.0 6.4 8.2 9.0

2014/15 5.2 8.8 16.0 11.5 40.7 42.6 18.1 14.0 16.2 11.3

9

31

.90

31

.77

27

.65

25

.20

22

.77

23

.30

22

.11

20

.95

21

.38

19

.86

18

.50

18

.96

17

.06

14

.03

14

.04

13

.48

13

.36

13

.34

13

.51

jan

/14

fev/

14

mar

/14

abr/

14

mai

/14

jun

/14

jul/

14

ago

/14

set/

14

ou

t/1

4

no

v/1

4

dez

/14

jan

/15

fev/

15

mar

/15

abr/

15

mai

/15

jun

/15

jul/

15

infl

ow

in m

³/s

Water production from the Cantareira System (in m³/s)

FEB/14 to JUL/15

-18.3 m³/s

Reduction from

initiatives:

(in m³/s)

Comparison with February/2014 = last month of regular production, before the initiative for water saving

6.68

3.4

7.36

0.82

Pressure reduction / Losses

Permittee decrease

Increase in other systems

Bonus program

Jan/1

4

Feb/1

4

Mar/

14

Apr/

14

May/

14

Jun/1

4

Jul/14

Aug/1

4

Sep/1

4

Oct/14

N

ov/1

4

De

c/1

4

Jan/1

5

Feb/1

5

Mar/

15

Apr/

15

May/1

5

Jun/1

5

Jul/15

Sabesp’s initiatives to offset the lower water

Withdrawal from the Cantareira System

10

Water Plan for the SPMR – 2015 to 2017

(main initiatives)

works in progress

Description

flow (m³/s)

estm. Objectives Status Availability/ guarantee

Initiatives planned for 2015

Reversion increase from Guaratuba River to the Ponte Nova reservoir by 0.5 m³/s

0.5 jan/15 ◦ Recover the storing volume and assure Alto Tietê's water source

completed

Reversion from the Guaió River to the Taiaçupeba reservoir: 1 m³/s

1 mai/15 completed

Interconnection between: Pequeno River → Grande River (Billings) → Taiaçupeba (Alto Tietê) 4 m³/s

4 set/15 ◦ Recover the storing volume and assure the Alto Tietê reservoir

works in progress

1 m³/s transfer increasefrom Taquacetuba to Guarapiranga (from 4 to 5 m³/s)

1 dez/15 ◦ Assure Guarapiranga's water source works in progress

Increase of the ABV Water Treatment Station production from 15 to 16 m³/s

jun/15 ◦ Transfer water from Guarapiranga to the Cantareira area via the aqueduct system

completed

total 2015 6.5

Initiatives planned for 2016

Reversion from Itapanhaú River (Ribeirão Sertãozinho) to the Biritiba reservoir: 2.5 m³/s

2.5 2016 ◦ Recover the storing volume and assure Alto Tietê's water source

under development

Reversion of 1 m³/ sfrom Alto Juquiá to Ribeirão Santa Rita (Guarapiranga basin)

1 2016 ◦ Increase Guarapiranga's water source under development

total 2016 3.5

Initiatives planned for 2017

Jaguari → Atibainha Interconnection: 5.13 m³/s to the Cantareira system (security increase)

5.13 2017 a) Recover the stored volume and assure the Cantareira System's water source

in bidding process (works

scheduled to last for 18 months)

São Lourenço Production System: 6.4 m³/s 6.4 2017 ◦ Produce 6.4 m³/s for the Greater São Paulo's western region

works in progress

total 2017 11.53

Total 2015 - 2017 21.53

11

Water Consumption Reduction Incentive

Program - Bonus

10% surcharged

60

%

62

%

61

%

61

%

63

%

63

%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

10

%

10

%

10

%

10

%

10

%

10

% 2

0%

18

%

18

%

18

%

17

%

17

%

fev/15 mar/15 abr/15 mai/15 jun/15 jul/15

BONUS 30% BONUS 20% BÔNUS 10% REDUZIU S/ BÔNUS AUMENTOU CONSUMOBONUS 30% BONUS 20% BONUS 10% REDUCED W/OUT

BONUS

INCREASED

CONSUMPTION

Feb/15 Mar/15 Apr/15 May/15 Jun/15 Jul/15

www.sabesp.com.br

IR Contacts

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