Companhia de Saneamento Básico do Estado de São Paulo - SABESP (NYSE:SBS) Q1 2021 Earnings Conference Call May 18, 2021 1:00 PM ET Company Participants Mario Sampaio – Head of Capital Markets and Investor Relations Rui de Affonso – Chief Financial and Investor Relations Officer Conference Call Participants Mario Sampaio Good afternoon everyone and welcome to the SABESP Video Conference to discuss the Results for First Quarter of 2021. My name is Mario Sampaio. I am the Head of Capital Markets and Investor R ...

Companhia de Saneamento Básico do Estado de São Paulo (NYSE:SBS) Q4 2020 Results Conference Call March 30, 2021 1:00 PM ET Company Participants Mario Sampaio - Head of Capital Market and Investor Relations Rui Affonso - Chief Financial and Investor Relations Officer Marcelo Miyagui - Head of Accounting Agnaldo Pacheco - Head of Controller Louis Tiberio - Head of Tariffs and Costs Conference Call Participants Mario Sampaio Good afternoon everybody. Welcome to the SABESP's Video Conference to Discuss the Resu ...

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Financial Data and Key Metrics Changes - Income totaled R$421.6 million in Q3 2020, down from R$1.2 billion in Q3 2019, primarily due to nonrecurring revenue from an agreement with the municipality of Santo Andre [12] - Net operating revenue decreased by 18% from R$5.4 billion in Q3 2019 to R$4.4 billion in Q3 2020, influenced by the same agreement and a change in tariff mix [13] - Adjusted EBITDA fell from R$3 billion in Q3 2019 to R$1.5 billion in Q3 2020, with the adjusted EBITDA margin dropping from 55.6% to 34.1% [14] Business Line Data and Key Metrics Changes - Total billed volume increased by 4% in the quarter, with residential consumption rising by 3% while non-residential categories fell by 14.7% [11] - Costs, administrative selling expenses, and construction costs increased by 20.5% compared to Q3 2019, with construction costs alone rising from R$683 million to R$1 billion [15] Market Data and Key Metrics Changes - The delinquency rate is expected to rise in line with the economic situation and unemployment rates in Brazil, with a gradual recovery anticipated as the economy improves [36] Company Strategy and Development Direction - SABESP is prepared to expand markets and participate in future competitions, as evidenced by its participation in a bidding process for services in the Metropolitan region [10] - The company aims to maintain liquidity and payment capacity while executing expected investments of R$3.5 billion for the year [9] Management's Comments on Operating Environment and Future Outlook - The management noted that the economic recovery has been slow, impacting revenues due to a shift in consumption patterns towards residential use and higher delinquency levels [5] - Future results may differ materially from current expectations due to risks and uncertainties related to the economic and health crises [3] Other Important Information - SABESP issued R$1,045 million in debentures during Q3, contributing to a total of R$2.5 billion in debenture issuances for the year [7] - The company has taken measures to reduce foreign currency exposure from approximately 49% last year to 25% this year [8] Q&A Session Summary Question: Update on presidential beacons regarding federal sanitation bill - Management indicated that the impact on SABESP would depend on Congress's decisions regarding vetoes, with no major issues anticipated for the company [30] Question: Appetite for new concessions outside São Paulo - Management expressed interest in competing for contracts outside São Paulo, emphasizing a careful approach to partnerships with the private sector [33] Question: Cost impacts and savings from ongoing voluntary plans - Management did not provide specific quantification but acknowledged ongoing initiatives to manage costs [34] Question: Evolution of delinquencies in coming quarters - Management expects delinquency rates to rise with the economic situation but anticipates a gradual recovery as the economy improves [36] Question: Discussion on tariffs and rate base - Management confirmed that the weighted average cost of capital is currently at 8.1% and emphasized the importance of a transparent tariff review process [38][40]

Financial Data and Key Metrics Changes - Net income decreased to BRL 378.2 million in Q2 2020 from BRL 454.4 million in Q2 2019, reflecting the impact of the COVID-19 crisis [13] - Adjusted EBITDA increased by 28.4% from BRL 1.23 billion in Q2 2019 to BRL 1.58 billion in Q2 2020 [14] - Net operating revenue grew by 10.9%, from BRL 4 billion in Q2 2019 to BRL 4.43 billion in Q2 2020 [14] - Adjusted EBITDA margin improved to 35.7% in Q2 2020 from 30.8% in Q2 2019 [15] Business Line Data and Key Metrics Changes - Total billed volume decreased by 2%, with water consumption down by 2.1% and sewage by 2% [10] - Residential category volume increased by 0.7%, while commercial, industrial, and public categories saw significant declines of 18.4%, 16.7%, and 24.5% respectively compared to Q2 2019 [11][12] Market Data and Key Metrics Changes - The consumption mix shifted towards residential customers, which are less profitable compared to commercial and industrial customers, impacting average tariff prices [12] - Increased delinquency rates and bill payment exemptions for certain customer categories added to the financial challenges faced by the company [7] Company Strategy and Development Direction - The company focused on cost reduction and securing markets by signing contracts with 13 municipalities, including a significant agreement with Mauá [8] - SABESP is actively negotiating funding for strategic projects and debt refinancing, having raised nearly BRL 2.5 billion through local bond issues [9][27] - The company is adapting to regulatory changes in the sanitation sector, which may enhance competitive advantages due to existing contracts and governance levels [34][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the adverse effects of the pandemic and economic instability on operations, but highlighted successful cost containment measures [6][13] - The company is optimistic about securing additional funding and managing debt service suspensions, which will support liquidity and investment execution [21][27] - Regulatory changes are expected to create a more attractive environment for investments in the sanitation sector, which the company is well-positioned to leverage [34] Other Important Information - The company has suspended debt service for five months, amounting to BRL 130 million, which will be added to the principal of the debt [22] - A tariff adjustment index of 3.4026% was authorized, reflecting annual adjustments and compensatory measures [28] Q&A Session Summary - No questions were raised during the Q&A session, indicating a comprehensive presentation and engagement from participants [36][37]

Companhia de Saneamento Básico do Estado de São Paulo SABESP (NYSE:SBS) Q1 2020 Earnings Conference Call May 19, 2020 1:00 PM ET Company Participants Rui Affonso - Chief Financial Officer and Investor Relations Officer Mario Sampaio - Head of Capital Markets and Investor Relations Conference Call Participants Lilyanna Yang - HSBC Operator Good afternoon, ladies and gentlemen. At this time, weÂ'd like to welcome everybody to SABESP Conference Call to discuss its results of First Quarter of 2020. The audio fo ...

1Q20 Results Economic-Financial Office and Investor Relations Office DISCLAIMER This presentation may contain forward-looking statements referring to SABESP's business outlook, operating and financial results estimates, and growth prospects. These are only forecasts, 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 cha ...

Financial Data and Key Metrics Changes - In 2019, net income reached R$3.4 billion, an increase of 18.8% from R$2.8 billion in 2018 [10] - Net operating revenue was R$18 billion, up 11.9% from R$16.1 billion in 2018 [11] - Adjusted EBITDA for 2019 was R$7.5 billion, a 14.8% increase from R$6.5 billion in 2018, with an adjusted EBITDA margin of 41.8% compared to 40.7% in the previous year [12] Business Line Data and Key Metrics Changes - Total volume billed in 2019 grew by 3.5%, with water volume increasing by 0.2% and sewage volume by 7.7% when including Guarulhos and Santo André [8] - In retail, the public category saw a 4.6% increase, followed by residential at 2.7%, commercial at 2.4%, and industrial at 1.7% [9] Market Data and Key Metrics Changes - The company added approximately 2.5 million people to its service population in 2019, including the incorporation of Santo André and Guarulhos [26] - The number of contracts increased from 307 to 324, with its share in total revenue rising from 84.8% to 92.2% [27] Company Strategy and Development Direction - The company is focused on improving sanitation and health, especially during the COVID-19 pandemic, emphasizing the importance of clean water [5] - The company aims to maintain investments in regular water supplies and has started producing reused water for cleaning purposes [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in facing the challenges posed by the pandemic, citing previous experiences with crises [7] - The economic recession caused by the pandemic is not expected to significantly affect revenues, with residential consumption likely to remain stable [32] Other Important Information - The company signed a significant contract with the municipality of Santo André, contributing R$1.3 billion in revenue [13] - Adjustments in costs were noted, with administrative and commercial expenses increasing by 12% mainly due to services and electricity [11][18] Q&A Session Summary Question: Revenue and Cost Adjustments - Inquiry about the expected tariff hike and the level of returns for the upcoming rate review [38] - Management confirmed that tariff adjustments are anticipated, but the situation is being monitored due to the pandemic [42][44] Question: Rate Review Concerns - Questions regarding risks in the rate review process, particularly concerning the regulatory asset base and operational expenses [48] - Management indicated optimism about the discussions with regulatory bodies and the potential for recovering asset bases [55] Question: Foreign Exchange Debt Exposure - Inquiry about the company's strategy to reduce foreign exchange exposure and the cost of local currency funding [57] - Management confirmed ongoing discussions to negotiate changes in contracts to minimize foreign currency exposure [59]

Financial Data and Key Metrics Changes - In Q3 2019, net income reached R$1.2 billion, a significant increase of 113.9% compared to R$565 million in Q3 2018, primarily driven by R$1.3 billion in extraordinary revenues from an agreement with the municipality of Sao Paulo [8][19] - Net operating revenues increased to R$5.4 billion from R$3.8 billion in Q3 2018, marking a 42% growth [9][19] - Adjusted EBITDA rose to R$3 billion, up 109% from R$1.4 billion in the same period last year, with an adjusted EBITDA margin of 55.6% compared to 37.6% in Q3 2018 [10][19] Business Line Data and Key Metrics Changes - Total billed volume increased by 2.8%, with water services growing by 2.4% and sewage services by 3.4% compared to Q3 2018. Including Guarulhos and Santo Andre, total billed volume growth was 3.8% [7] - The operation in Santo Andre contributed R$1.3 billion to operating revenues, while Guarulhos added R$160 million in operating revenue [11][12] Market Data and Key Metrics Changes - The company has made significant progress in expanding its services in Guarulhos and Santo Andre, with successful initiatives to eliminate water rationing in Guarulhos and improve water distribution in Santo Andre [4][5] Company Strategy and Development Direction - The company aims to enhance its consumer base and is focused on cleaning the Pinheiros River by 2022, which involves substantial investments in sewage collection and treatment [5] - Innovative contracting processes are being utilized to accelerate results in sewage treatment, which is crucial for the company's image and shareholder interests [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the results and highlighted the importance of the agreements with municipalities for future growth [4][8] - The company is aware of the macroeconomic conditions affecting interest and exchange rates and is considering actions to mitigate foreign exchange exposure [25] Other Important Information - The company reversed a provision of R$173 million related to employee retirements, positively impacting salaries and benefits [13] - A new healthcare plan was implemented, resulting in savings of R$39.1 million in healthcare expenses compared to Q3 2018 [16] Q&A Session Summary - There were no questions during the Q&A session, and the conference concluded with a note of appreciation from management for the participants' time [27][28]

Companhia de Saneamento Básico do Estado de Sao Paulo - SABESP (NYSE:SBS) Q2 2019 Earnings Conference Call August 16, 2019 1:00 PM ET Company Participants Mario Sampaio - Head, Capital Market & IR Conference Call Participants Hasan Doza - WAM Operator Good afternoon, ladies and gentlemen. At this time, we would like to welcome everyone to SABESP's conference call to discuss its results for the second quarter of 2019. The audio for this conference is being broadcast simultaneously through the Internet on the ...