3Q19 Results

Economic-Financial Office and Investor Relations Office

DISCLAIMER

This presentation may contain forward-looking statements referring to SABESP’sbusiness outlook, operating and financial results estimates, and growth prospects. Theseare only forecasts, and as such, they are exclusively based on SABESP’s managementexpectation in relation to the future of business and its continuous access to capital tofinance the Company’s business plan. These forward-looking statements largely dependon changes in market conditions, governmental rules, industry performance and theBrazilian economy, among other factors, in addition to risks exhibited in disclosuredocuments filed by SABESP. Therefore, they are subject to changes without prior notice.

AGENDA

1 COMPANY OVERVIEW

2 OUR OPERATIONS

3 OUR FINANCIAL PERFORMANCE

4 SPMR – WATER SITUATION

...ONE OF THE LARGEST WATER AND SEWAGE PROVIDERS IN THE WORLD

COMPANY OVERVIEW MAIN OPERATIONAL INDICATORS(1)

Water Sewage

Connections (million)(2) 9.9 8.3

Coverage (%) (3) 97 89

Treatment(%) (4) --- 77

Retail (in million inhabitants) 27.0 23.7

Wholesale (in million inhabitants) 1.0 0.6

IPM (%) (5) 29.4 ---

IPDt (6) 288 ---

Network (7) 80.3 55.3

SPMR water treatment capacity (8) 82.3 25.8

(1) As of September 30, 2019

(2) Active and inactive water connections. It includes Guarulhos and Santo André

(3) Services available. It includes Guarulhos and does not include Santo André

(4) Consumer units connected to the sewage treatment – It does not include Guarulhos and Santo André

(5) Micromeasured water loss

(6) Water loss – Liters/connection x day

(7) Water - includes water mains / Sewage - includes ocean outfall and trunk collectors

(8) Cubic meters per second (m³/s)

*Source: Depth Water Yearbook 2014-2015

Sabesp is one of the largest water and sewage service providers in the world based on the number of Customers*

Natural monopoly, low operating risk

Serves the City of São Paulo and 371 out of 645 municipalities in the State, covering around 69% of State's urban population

Number of employees: 14,018

4

São Paulo

Regional SystemsSPMR

73.9% ofTotal Revenue

...WITH STRONG CORPORATE GOVERNANCE

OWNERSHIP STRUCTURE % (1)

We are a mixed capital company, majority-owned by the State of São Paulo, with significant private ownership

State Law 11,454/2003 requires the State of São Paulo to own at least 50% + 1 of Sabesp voting shares

Law nº 13,303/16 – Government-Controlled Companies Law

100% Common Shares: 683,509,869

Dividend Policy: 25% - Pay Out: 27.9%

Market Cap: R$ 33.9 billion (1)

5(1) September/2019

AGENDA

1 THE COMPANY

2 OUR OPERATIONS

3 OUR FINANCIAL PERFORMANCE

4 SPMR – WATER SITUATION

90% of water volume and revenue come from residential, commercial and industrial customer

90% of sewage volume and revenue come from residential, commercial and industrial customer

DIVERSIFIED CONSUMER BASE

WATER BILLED VOLUME BY TYPE OF CUSTOMER SEWAGE BILLED VOLUME BY TYPE OF CUSTOMER

WATER REVENUES BY TYPE OF CUSTOMER* SEWAGE REVENUES BY TYPE OF CUSTOMER*

7*Managerial information

Residential 83%

Commercial 9%

Industrial 2%

Public 2%

Wholesale 4%

Residential 85%

Public 2%

Wholesale 1%

Commercial 10%

Industrial 2%

Residential 63%

Commercial 21%

Industrial 5%

Public 7%

Wholesale 4%

Residential 60%

Commercial 25%

Industrial 6%

Public 8%

Wholesale 1%

BROAD COVERAGE OF MUNICIPALITIES

Municipalities% of Total Revenues

(9M19)Remaining Period

(Years)

São Paulo 43.6 21

São Bernardo do Campo 3.1 40

Guarulhos (1) 2.4 39

Praia Grande 2.1 29

Osasco 1.9 10

Santos 1.8 26

São José dos Campos 1.6 19

Barueri 1.5 26

Diadema 1.2 25

Itaquaquecetuba 1.0 28

Total 10+ / Avg. 60.0 26

TOP 10 CONTRACTS

Municipality of São Paulo

Expires in 2040. Transfer of 7.5% of the Gross Revenue* to the Municipal Fundfor Environmental Sanitation and Infrastructure

Minimum investment of 13% of the Gross Revenue, net of Cofins and Pasep

Municipality of Guarulhos**

Expires in 2058. Transfer of 4% of the Gross Revenue to the Municipal Fund for Environmental Sanitation and Infrastructure

Investment of R$ 3.3 bilhões over 40 years

Municipality of Santo André**

Expires in 2059. Transfer of 4% of the Gross Revenue to Municipal Fund for Environmental Sanitation and Infrastructure

Investment of R$ 917 milion over 40 years

* Excluiding: (i) COFINS and PASEP taxes and (ii) unpaid bills of publicly owned properties in the city of São Paulo

** Guarulhos and Santo André contracts have debt guarantee that are suspended in court duringthe contractual term

(1) Program and Service Contract from 2007 to Sep/2019

CONTRACTUAL BASE

MAIN CONTRACTS

8

Nº Municipalities % of Revenue

2019 2018 2017 2019 2018 2017

Renewed / Secured (1) 319 304 285 92.1 81.2 81.7

Metropolitan Region Without Contract 16 25 35 2.5 6.6 9.1

Expired Contracts / Under Negotiation 9 10 16 0.8 2.6 1.2

To be expired (2019 - 2025) 3 4 05 0.2 1.1 0.2

To be expired (2026 - 2030) 25 27 27 3.8 7.1 6.3

Total Retail 372 370 368 99.4 98.7 98.5

Wholesale 3 4 5 0.6 1.3 1.5

Total Sabesp 375 374 375 100.0 100.0 100.0

(1) Operation started in January 2019 / Considers 50% of sewage revenue

REGULATORY FRAMEWORK

State Law

11,454 /2003

Federal Law 11,445/2007

Judged by the Supreme Court in

2013

Bill of Law 4,162/2019

State Government of São Paulo – Controlling Shareholder

State law requires the State of São Paulo to own at least 50% + 1 voting shares at all times

Sanitation Regulatory Framework

Obligation to install the service regulation → Municipal, State level or Consortium

Clarifies the payment conditions of non-amortized investments → up to 4 years

Disbursement of federal funds conditioned to the existence of a contract

Concession Power

Sanitation services in metro regions are subject to shared responsibility between State and Municipality (judged by the Supreme Court in 2013)

If not metro region, concession power belongs to the municipality

Revision of Sanitation Regulatory Framework

The Bill of Law proposed by the Federal Government was approved by the Lower House

Next step will be the approval of the Senate

If changes are made in the Senate, the Bill of Law will return to the Lower House for its final revision

9

TARIFF REVIEW

METHODOLOGY OF TARIFF REVIEW (PRICE CAP)

10

TaxesRequired Revenue

Average

Tariff (P0)

Output of

the Model

= + +

Income Tax

Revenue

Taxes

OPEX +

Personnel

Energy

Materials

Others

Water

Sewage

Others

RABt –RAB0

Initial Asset Base

(-) Depreciation

(+) WK Variation

(+) Capex

Asset

Useful LifeSabesp 4 year Business Plan

+

Arsesp Review

CAPEX

Billed

Volume

W

A

C

C

(8,11%)

ORDINARY TARIFF REVISION (OTR)

(1) Regulatory Asset Base

1ª OTR 2ª OTR

April/2013 – April/2017 April/2017 – April/2021

RAB (R$ Billion)(1) 26.7 39.0

WACC (%) 8.06 8.11

Fator X (%) 0.9386 0.6920

TARIFF READJUSTMENTS AND REVISIONS

READJUSTMENTS AND REVISIONS INDEXES

11

Pass-through to tariff of values transferred to Municipal Infrastructure Funds limited to 4% Resolution 870 of May 13, 2019

General Quality Index (effective in 2020) Resolution 898 of August 11,2019

PDI - Quadrennial Research and Technological Development Program for Innovation (to be applied on tariffs in 2020) Resolution 920 ofNovember 11, 2019

Methodology for Updating the RAB (3rd OTR) Resolution 941 ofDecember 13, 2019

Tariff Structure Revision → Forecast: December of 2020

Schedule of stages of 3rd OTR Forecast: 1st half 2020

OTR- Ordinary Tariff Revision

ETR- Extraordinary Tariff Revision

2015 - Readjustment + Residual + ETR = 15.24%

IPCA Index – Between the readjustement/revision periods

Productivity

Factor

(0.6920%)New Average

Tariff= 1

Inflation

(IPCA)

100x Previous

Average Tariff

QualityFactor*

-

+

ANNUAL TARIFF ADJUSTMENT FORMULA

+/-

REGULATORY SCHEDULE - ARSESP

*To be applied on tariffs in 2020

Add 954 thousand new connections by 2023

Add 1.2 million new connections by 2023

Coverage: from 90% in 2018 (89% 9M19) to 93% in 2023*

Treatment: from 76% in 2018 (77% 9M19) to 84% in 2023

WATER AND SEWAGE OPERATIONS

WATER CONNECTION EVOLUTION (million) WATER COVERAGE (Connection in 000’s)

SEWAGE CONNECTION EVOLUTION (million) SEWAGE COVERAGE (´000s)

12

Guarulhos Santo André

8.3* It includes Guarulhos

9.9

Guarulhos Santo André

Metropolitan Water Program

Tietê Project

Corporate Program for Water Loss Reduction

Clean Stream Program

Clean Wave Program

New Pinheiros River Project

CAPEX AND FINANCING

CAPEX PLAN OF R$ 18.7 BILLION FROM 2019 TO 2023

FINANCING MAIN PROGRAMS

(*) Book Value – Includes non-cash items

(**) Book Value – Items that affected cash

Additional information is presented in

Note 31 of the 3Q19 Financial Information

13

Financial Values (in R$ million)

3.735*

1.917**

AGENDA

1 COMPANY OVERVIEW

2 OUR OPERATIONS

3 OUR FINANCIAL PERFORMANCE

4 SPMR – WATER SITUATION

CDI 14%

TR 13%

TJLP 10%IPCA 11%

PREFIXED (Dóllar) 11%

PREFIXED (Yen)17%

LIBOR 24%JICA 16%IBRD 3%

IADB 19%

Foreign Loans 1%

Eurobond 11%

Debentures(Cap. Market)

23%

BNDES 11%

CEF 12%

Others 4%

LONG TERM AND LOW COST FUNDING

DEBT AMORTIZATION PROFILE (R$ million)

15

TOTAL DEBT BREAKDOWN DEBT BY INDEXOR

Local Currency – 50.8%

Foreign Currency – 49.2%

Nominal Average Cost of DebtLocal 7.10%

Foreign 3.47%General 5.22%

CONSISTENT PERFORMANCES

NET REVENUE (R$ million) NET INCOME (R$ million)

ADJUSTED EBITDA* (R$ million)

Adjusted EBITDA / Adjusted EBITDA Margin Without Construction – LTM 16

DIVIDEND / PAY OUT

2013 2014 2015 2016 2017 2018

Dividend (R$) 0.8 0.4 0.2 1.2 1.0 1.2

Pay Out (%) 27.9 27.9 27.9 27.9 27.9 27.9

Outstanding Shares* 683.5 683.5 683.5 683.5 683.5 683.5

* Million

HISTORICAL LEVERAGE (R$ million)

ADJUSTED TOTAL DEBT VS. ADJUSTED EBITDA* ADJUSTED EBITDA* VS. FINANCIAL EXPENSES**

NET DEBT VS. ADJUSTED EBITDA*

* Adjusted EBITDA – LTM / ** Financial Explosures paid - LTM / Calculated in accordance with CPCs/IFRS 17

RATINGS

AgenciesNational

ScaleGlobalScale

Standard & Poors brAAA BB-

Fitch Rating AA (bra) BB

Moody's Latam Aa2.br Ba2

18

COVENANT – ADJUSTED NET DEBT vs. EBITDA

COVENANT – ADJUSTED TOTAL DEBT vs. EBITDA

19

FINANCIAL HIGHLIGHTS (R$ million)

20

* R$ / 000 shares

** Last 12 months

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 9M19

Net Revenues 7,809 8,580 9,231 9,927 10,738 11,316 11,213 11,712 14,098 14,608 16,085 13,287

Adjusted EBITDA 2,865 2,727 3,222 3,371 3,605 4,007 2,919 3,974 4,572 5,269 6,541 5,786

Adjusted EBITDA Margin 36.7 31.8 34.9 34.0 33.6 35.4 26.0 33.9 32.4 36.1 40.7 43.5

Adj. EBITDA without Constr. Margin 46.3 41.2 44.7 43.2 43.0 44.6 34.4 46.6 43.3 45.4 48.8 63.5

Net Income 863 1,508 1,630 1,381 1,912 1,924 903 536 2,947 2,519 2,835 2,310

Net Margin (%) 11.0 17.6 17.7 13.9 17.8 17.0 8.1 4.6 20.9 17.2 17.6 17.4

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 9M19

Total Assets 17,206 20,243 23,293 25,019 26,476 28,274 30,355 33,707 36,745 39,546 43,565 45,838

Total Debt 6,865 6,560 8,209 8,423 8,875 9,450 10,786 13,122 11,964 12,101 13,153 13,667

Short-term Debt 1,449 1,010 1,240 1,629 1,343 641 1,207 1,526 1,247 1,747 2,104 1,714

Long-Term Debt 5,416 5,548 6,970 6,794 7,533 8,809 9,579 11,595 10,718 10,354 11,049 11,953

Foreign Currency Debt 2,281 1,746 2,249 3,053 3,216 3,699 4,346 6,618 5,660 5,673 6,669 6,729

Shareholders' Equity 6,758 8,439 9,682 10,546 11,257 12,931 13,304 13,717 15,419 17,513 19,552 21,802

Total Debt/Total Cap. (%) 50.4 43.7 45.9 44.4 44.1 42.2 44.8 48.9 43.7 40.9 40.2 38.5

Investments 1,734 2,059 2,194 2,440 2,536 2,716 3,211 3,482 3,878 3,388 4,177 3,735

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 9M19

Dividend Declared (R$/ share) 1.3 1.7 2.0 2.5 2.3 0.8 0.4 0.2 1.2 1.0 1.2 -

Pay Out (%) 34.3 26.1 28.0 47.3 27.9 27.9 27.9 27.9 27.9 27.9 27.9 -

Dividend Yield (%) 4.7 5.0 4.7 4.9 2.7 3.0 2.2 1.2 4.2 3.0 3.8 -

Outstanding shares (million) 227.8 227.8 227.8 227.8 227.8 683.5 683.5 683.5 683.5 683.5 683.5 683.5

AGENDA

1 COMPANY OVERVIEW

2 OUR OPERATIONS

3 OUR FINANCIAL PERFORMANCE

4 SPMR – WATER SITUATION

22

SPMR – WATER SITUATION (01/31/2020)

AVERAGE PRODUCTION (m³/s)

VOLUME STORAGE (%)

PRODUCTION SYSTEMS – AVERAGE PRODUCTION (m³/s)

Production Systems 2013 2014 2015 2016 2017 2018 2019

Cantareira 32.6 23.7 14.1 22.0 25.0 23.9 23.9

Guarapiranga 13.6 14.2 14.9 13.9 13.3 13.4 12.7

Alto Tietê 12.0 13.8 12.1 11.7 11.8 12.9 14.3

Rio Claro 3.9 3.9 3.9 3.8 3.9 3.4 3.1

Rio Grande 4.8 4.8 5.0 4.9 4.5 4.3 4.3

Alto Cotia 1.2 0.9 0.9 1.2 1.2 1.1 1.2

Baixo Cotia 0.8 0.8 1.0 0.9 0.8 0.2

Riberão Estiva 0.1 0.1 0.1 0.1 0.1 0.1 0.1

São Lourenço 1.6 3.1

Total 69.0 62.2 52.0 58.5 60.6 60.9 62.6

WATER INFLOW (m³/s)

SPMR – WATER SITUATION

WATER SUPPLY SYSTEM STRONGER THAN BEFORE THE WATER CRISIS OF 2014/2015

RESERVOIRS 2013 2019 Var. %

Reservoirs (water right) (m³/s) 70.4 80.3 14%

Maximum storage capacity (hm³)(without the technical reserve)

1,816 1,945 7%

Transfers between reservoirs (m³/s) 13.2 35.4 168%

PRODUCTION AND DISTRIBUTION 2013 2019 Var. %

Urban population in the area served (source: SEADE) 20.1 20.9 3.6%

730,000 inhab.

Total water treatment capacity (m³/s) 73.4 82.3 12%

Water production systems 8 9 -

Average monthly production (m³/s) 69.1 62.3 (10%)

Average residential consumption (m³/month) 13.0 10.6 (18%)

Treated water transfers between the systems (m³/s) Up to 3 Up to 12 300%

IPDT (water loss Liters/connection x day) in the SPMR 434 319 (27%)

23

WATER PLAN FOR SPMR – FROM 2015 TO 2019 (MAIN ACTIONS)

24

DESCRIPTION FLOW (m³/s)

PURPOSEAVAILABILITY/ SECURITY

INITIATIVES ACCOMPLISHED IN 2015Reversal increase from Guaratuba River to the Ponte Nova reservoir by 0.5 m³/s

0.5Recover the storage volume and ensure Alto Tietê's water source

Reversal from the Guaió River to the Taiaçupeba reservoir: 1 m³/s 1.0

Increase of the ABV Water Treatment Station production from 15 to 16 m³/s Transfer water from Guarapiranga to the Cantareira area via the aqueduct system

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

4.0Recover the storage volume and ensure the Alto Tietê reservoirTransfer water to Cantareira’s area

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

1.0Ensure Guarapiranga's water sourceTransfer water to Cantareira’s area

TOTAL 2015 6.5

INITIATIVES ACCOMPLISHED IN 2018Jaguari → Atibainha Interconnection: 5.13 m³/s to the Cantareira system (security increase)

5.1Recover storage volume and ensure the Cantareira System's water source

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

TOTAL 2018 11.5

INITIATIVE PLANNED FOR 2020

Reversal from Itapanhaú River (Ribeirão Sertãozinho) to the Biritiba reservoir 2.0 Recover the storage volume and assure Alto Tietê's water source

TOTAL 2019 2.0

TOTAL 2015 – 2019 20.0

SPMR – WATER SITUATION

January 9, 2020

www.sabesp.com.br

IR Contacts

Mario Azevedo de Arruda Sampaio Angela Beatriz AiroldiHead of Capital Markets and IR Investor Relations Managermaasampaio@sabesp.com.br abairoldi@sabesp.com.br+55 (11) 3388-8664 +55 (11) 3388-8793