Results Conference Call November/2015 Economic-Financial Office and Investor Relations Office
Notice 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. 2
Billed Volume (million m3) Total water and sewage billed volume, including wholesale (8.4)% Sewage Water (5.8)% 892.3 (4.4)% 840.8 384.7 367.7 (6.8)% 507.6 473.1 2,762.5 2,531.5 (6.8)% 1,182.6 1,101.7 (9.5)% 1,579.9 1,429.8 9M14 9M15 Produced Water Volume Billed Water Volume 692 508 615 473 3
Financial Highlights (R$ million) Net Operating Revenue Costs and Expenses 2,823.5 3,197.0 2,323.1 2,563.8 Adjusted EBITDA Net Income (Loss) 903.2 742.4 91.5 (580.1) 4
Costs and Expenses (R$ million) Cost and expenses in *: R$1,541.0 Cost and expenses in *: R$1,570.8 1.9% *Not including construction costs 3.0% 536 552 (1.5)% 40.8% (23.0)% 11.6% (23.2)% (4.1)% 55 42 66 63 301 297 156 220 188 145 243 271 76.4 % 7.7% 38 22 18 20 Payroll and Benefits Supplies Treatment supplies Services Electric power General Expenses Depreciation and Amortization Credit write-offs Tax expenses % Net revenue in 19.0% 1.9% 2.3% 10.7% 5.5% 6.6% 8.6% 0.8% 0.6% % Net revenue in 17.3% 1.3% 2.0% 9.3% 6.9% 4.5% 8.5% 1.2% 0.6% 5
Net income Main variations (R$ million) Var. Net Income 91.5 Net Operating Revenue 3,197.0 2,823.5 373.5 Costs and Expenses (2,563.8) (2,323.1) (240.7) Other Revenues and Expenses * 53.0 (7.4) 60.4 Net Financial (1,539.4) (337.8) (1,201.6) Income Tax and Social Contrib. 273.1 (63.7) 336.8 Net Income (Loss) (580.1) 323.5 (240.7) 91.5 60.4 336.8 (1,201.6) (580.1) Net Income N.O.R. Costs and Expenses Other Rev. and Expenses(*) Net Financial Income Tax and Social Contribution Net Income (Loss) *Including equity result 6
Cantareira System Rainfall (mm) 350.0 156% 300.0 250.0 200.0 105% 103% 150.0 100.0 50.0 93% 32% 89% 59% 84% 28% 73% 33% 56% 35% 96% 51% 45% 89% 28% 71% 81% 88% 61% 83% 72% 168% 0.0 out OCT nov NOV dez DEC JAN jan FEB fev MAR mar APR abr MAY mai JUN jun JUL jul AUG ago SEP 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 Historical Histórica avg. 21.4 130.8 52.4 161.2 104.5 226.8 111.8 265.9 206.5 40.2 184.1 55.8 89.2 7.6 83.2 8.8 56.0 0.0 49.9 0.0 36.9 0.1 91.9 0.9 2013/14 Historical low 123.4 21.4 97.0 52.4 62.9 104.5 87.8 111.8 40.2 73.0 55.8 193.3 7.6 85.7 8.8 37.3 0.0 15.8 0.0 40.4 0.1 22.6 0.9 66.0 2014/15 42.5 135.0 165.5 148.2 322.4 189.9 45.3 74.4 39.7 43.9 30.8 154.5 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 2015/16 116.5 2014/15 42.5 135.0 165.5 148.2 322.4 189.9 45.3 74.4 39.7 43.9 30.8 154.5 2015/16 116.5 7
Alto Tietê System Rainfall (mm) 350.0 300.0 156% 250.0 200.0 99% 76% 120% 90% 201% 150.0 92% 120% 86% 84% 42% 81% 50% 100.0 44% 92% 94% 122% 117% 50.0 43% 73% 60% 75% 17% 21% 48% 0.0 OCT Out Nov NOV DEC Dez JAN Jan FEB Fev MAR Mar APR Abr MAY Mai JUN Jun JUL Jul AUG Ago SEP Set Média Histórica 117.1 129.4 193.5 246.6 194.3 175.4 97.2 78.3 52.5 49.0 38.4 84.5 Historical avg. Minima Histórica 117.1 29.5 129.4 32.7 193.5 52.0 246.6 97.9 194.3 29.6 175.4 39.7 97.2 19.8 78.3 12.8 52.5 3.1 49.0 2.1 38.4 1.1 84.5 7.0 2013/14 Historical low 102.1 29.5 120.1 32.7 95.9 52.0 187.7 97.9 29.6 85.9 39.7 158.4 19.8 89.8 12.8 33.4 3.1 11.2 2.129.5 1.1 28.8 7.0 103.1 2014/15 2013/14 102.1 20.1 108.2 120.1 190.6 95.9 103.8 187.7 85.9 304.0 158.4 179.1 89.8 116.7 33.4 73.7 11.2 38.2 29.5 57.4 28.8 18.6 103.1 170.2 2015/16 94.5 2014/15 20.1 108.2 190.6 103.8 304.0 179.1 116.7 73.7 38.2 57.4 18.6 170.2 2015/16 94.5 8
Cantareira System Water inflow (m ³ /s) 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 outubro Oct novembro Nov dezembro Dec janeiro Jan fevereiro Feb março Mar Apr abril May maio junho Jun julho Jul agosto Aug setembro Sep 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 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 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 Historical low 17.5 14.0 26.0 14.0 31.5 21.8 26.9 27.6 34.5 28.1 29.8 24.7 34.6 19.9 23.8 16.5 20.7 13.9 17.6 16.3 12.0 16.2 11.8 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 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 2014/2015 5.2 8.8 16.0 11.5 40.7 42.6 18.1 14.0 16.2 11.3 5.8 18.3 2015/2016 2013/14 14.8 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 5.8 18.3 2015/16 14.8 9
Alto Tietê System Water inflow (m³/s) 35.0 30.0 25.0 20.0 15.0 10.0 5.0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 0.0 Historical avg. outubro 16.0 novembro 17.1 dezembro 22.8 janeiro 30.2 fevereiro 31.6 março 29.0 22.4 abril maio 17.3 junho 15.2 julho 12.7 agosto 11.6 setembro 13.3 Média Histórica 16.0 17.1 22.8 30.2 31.6 29.0 22.4 17.3 15.2 12.7 11.6 13.3 Historical low 6.9 8.0 8.8 6.6 12.9 11.3 8.1 9.0 7.3 7.4 5.9 6.4 Mínima Histórica 6.9 8.0 8.8 6.6 12.9 11.3 8.1 9.0 7.3 7.4 5.9 6.4 2001 1953 11.0 9.9 9.9 16.8 11.5 12.9 13.1 8.1 9.6 7.3 8.1 7.1 9.3 2013/14 14.9 17.3 17.4 20.6 11.8 19.5 20.2 12.4 11.4 9.3 9.1 12.5 2013/14 14.9 17.3 17.4 20.6 11.8 19.5 20.2 12.4 11.4 9.3 9.1 12.5 2014/15 8.2 9.0 15.3 9.1 24.4 18.7 12.2 12.6 9.6 9.2 4.8 15.6 2015/162014/15 12.0 8.2 9.0 15.3 9.1 24.4 18.7 12.2 12.6 9.6 9.2 4.8 15.6 2015/16 12.0 10
Water Reservoir Level - SPMR * Volume includes technical reserve November, 11 11
Comparison of reservoirs situation during dry season System 2014 dry season (average April to September) Inflow Withdrawal Difference 2015 dry season (average April to September) Inflow Withdrawal Difference Cantareira 10.15 22.62+3.38-15.85 14.00 13.65+2.12-1.75 Alto Tietê 12.48 14.07+2.41-4.00 10.67 12.26-1.59 Guarapiranga 11.72 14.26-2.54 14.22 14.49-0.72 Rio Grande 3.83 4.73-0.90 4.30 5.11-0.81 Rio Claro 4.01 3.98-0.03 4.09 3.94 +0.15 Alto Cotia 0.72 0.84-0.12 0.93 0.90 +0.03 Baixo Cotia 0.89 0.89-0.95 0.95 - TOTAL 43.80 67.18-23.38 49.06 53.87-4.81 Variation from 2014 to 2015: +12% in water inflow -20% in withdrawal September 12
Comparison of reservoirs situation in October System 2014 October Inflow Withdrawal Difference Inflow 2015 October Withdrawal Difference Cantareira 5.20 19.86 + 4.20-18.86 14.80 13.41 + 2.05-0.66 Alto Tietê 8.20 13.73 + 0.27-5.80 12.00 12.60 + 0.27-0.87 Guarapiranga 6.53 14.24-7.71 14.55 15.50-0.95 Rio Grande 1.56 4.75-3.19 5.46 5.02 +0.44 Rio Claro 3.08 4.01-0.93 3.97 4.01-0.04 Alto Cotia 0.46 0.72-0.26 1.14 1.20-0.06 Baixo Cotia 0.74 0.74-0.93 0.93 - TOTAL 25.77 61.94-36.17 52.90 54.99-2.09 Variation from 2014 to 2015: +105% in water inflow -11% in withdrawal 13
Water Plan for the SPMR 2015 to 2017 (main initiatives) Description flow (m³/s) Availability/ guarantee Expansion of the reversal of Guaratuba River to the Ponte 0.5 Jan-15 a) Recover the reserve volume and completed Nova reservoir by 0.5 m³/s guarantee the Alto Tietê reservoir Reversal of Guaió River to the Taiaçupeba reservoir: 1 m³/s 1 Jun-15 completed estm. Initiatives planned for 2015 Objectives Status Pequeno River - Grande River (Billings) - Taiaçupeba (Alto Tietê) interconnection: 4 m³/s 4 Sep-15 a) recover the reserve volume and guarantee the Alto Tietê reservoir completed Expansion of the Taquacetuba - Guarapiranga transfer: +1 m³/s (from 4 to 5 m³/s) Expansion of the ABV water treatment station: from 15 to 16 m³/s Reversão do rio Itapanhaú (ribeirão Sertãozinho) para a represa Biritiba: 2,5 m³/s Reversal of 1 m³/ s of Alto Juquiá - Ribeirão Santa Rita (Guarapiranga basin) 1 Dec-15 a) Guarantee the Guarapiranga reservoir in execution Jul-15 total 2015 6.5 Initiatives planned for 2016 total 2016 3.5 2.5 2016 a) Transfer water from Guarapiranga to the Cantareira area via the aqueduct system a) recover the reserve volume and guarantee the Alto Tietê reservoir completed under development 1 2016 a) increase the Guarapiranda reservoir under development Initiatives planned for 2017 Jaguari - Atibainha interconnection: 5.13 m³/s to the Cantareira System 5.13 2017 São Lourenço production system: 6.4 m³/s 6.4 2017 total 2017 11.53 total geral 2015-2017 21.53 a) recover the reserve volume and guarantee the Cantareira reservoir a) produce 6.4 m³/s for the western region of thermsp in execution in execution 14
www.sabesp.com.br IR Contacts Mario Azevedo de Arruda Sampaio Angela Beatriz Airoldi Head of Capital Markets and Investor Relations Investor Relations Manager maasampaio@sabesp.com.br abairoldi@sabesp.com.br +55 (11) 3388-8664 +55 (11) 3388-8793