Economic-Financial Office and Investor Relations Office

Conference Call 2011 Results March/2012

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

4Q10 4Q11

508.0 519.7

366.3 378.8Sewage

Water

2010 2011

1,992.3 2,045.0

1,434.3 1,486.3

Billed Volume

3

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

3.1%

3.6%

2.6%

3,426.6 3,531.3

2.8%

3.4%

2.3%

874.3 898.5

746.0

755.3

745.0

741.0

750.7

4Q10 1Q11 2Q11 3Q11 4Q11

Produced Water Volume

508.0 510.5

506.4

508.4

519.7

4Q10 1Q11 2Q11 3Q11 4Q11

Billed Water Volume

26.0

26.2

26.0

25.7 25.6

4Q10 1Q11 2Q11 3Q11 4Q11

Losses

Financial Highlights

4

1,630.4

2,670.3

3,222.5

6,558.4

9,230.4

1,223.4

2,444.7

3,213.4

7,479.1

9,927.4

Net Income

EBIT

EBITDA

Costs and Expenses

Net Operating Revenue

2011 2010

7.6%

14.0%

25.0%

0.3%

8.4%

Payroll and Benefits

Construction costs

Supplies Treatment supplies

Services Electric power

General Expenses

Depreciation and

Amortization

Credit write-offs

Tax expenses

1,401

2,081

147 137

970

531444

552

233

63

1,804

2,177

159 155

994

584 656769

12062

2010 2011

39.2%

28.8%

8.5% 13.3%

2.5%

9.9% 47.7%

(3.0%)

5

Costs and Expenses (R$ million)

(48.3%)

% Net Revenue in 2010

15.2% 22.5% 1.6% 1.5% 10.5% 5.8% 4.8% 6.0% 2.5% 0.7%

% Net Revenue in 2011

18.2% 21.9% 1.6% 1.6% 10.0% 5.9% 6.6% 7.7% 1.2% 0.6%

4.6%

14.0%

Costs and Expenses in 2010: R$ 6,558.4

Costs and Expenses in 2011: R$ 7,479.1

Net Income – Main variations

6

1,630.4

697.1 (920.7)

(94.0)(254.1)

164.7 1,223.4

Net Income

2010

N.O.R. Costs and

Expenses

Other Rev.

and Expenses

Net Financial Income Tax

and Social

Contribution

Net Income

2011

2010 2011 Var.

Net Income - 2010 1,630.4

Net Operating Revenue 9,230.4 9,927.4 697.0

Costs and Expenses (6,558.4) (7,479.1) (920.7)

Other Rev. and Expenses 0.1 (93.9) (94.0)

Net Financial (378.9) (633.0) (254.1)

Income Tax and Social Contribution (662.8) (498.1) 164.7

Net Income - 2011 1,223.4

7

Long term low, cost funding

R$ million

Total Debt Breakdown Total Debt by Currency

Debt Amortization Profile

(*) Index that measures the variations of the world’s major currencies – type of

international currency (IDB 713 agreement)

- 150,0 300,0 450,0 600,0 750,0 900,0

1.050,0 1.200,0 1.350,0 1.500,0 1.650,0

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+

1.629

1.214

735 645 642

385 340 333

965

267 228

1.041

Foregin Currency

Local Currency

Local Currency 63,8%

US Dollar 21,4%

Yen 11,5%

Currency Basket(*) 3,4%

JICA 11,5%

BID 13,7%

Eurobônus 10,9%

Debêntures 22,3%

BNDES 12,7%

CEF 18,2%

BIRD 0,2%

B Brasil 9,9%

Outros 0,6%

Lowest tariff in

Regular Commercial

Base: November/2011

Source: AESBE

Sabesp’s Tariff x Sanitation Companies

Comparison between bills with 10 m³/months water consumption

REGULAR COMMERCIAL

0

10

20

30

40

50

60

70

80

72.17

67.95

55.40

47.8046.60

45.30 45.0043.10 43.10

41.93 41.80

38.07 37.85 37.35 36.95 36.07 35.8034.10 33.10 32.60 32.51 32.50

31.00 30.45

8

0

10

20

30

40

50

60

50.53

28.90

25.7924.52 24.02 24.00

21.70 21.60 21.48 21.23 20.93 20.70 20.5018.97 18.40 18.15

17.0015.65 15.16

13.6414.75 14.00 13.90

8.70

9

6th Lowest Tariff

Regular Residential

Base: November/2011

Source: AESBE

REGULAR RESIDENTIAL

Comparison between bills with 10 m³/months water consumption

Sabesp’s Tariff x Sanitation Companies

From To

18-May-2011 ARSESP disclosed WACC at 8.06%

16-Jan-2012 ARSESP released the Methodology for Sabesp’s Tariff Revision Process

29-Feb-2012 to

14-Mar-2012 Public hearings to discuss the Tariff Revision Process Methodology

30-Mar-2012 16-Apr-2012 Sabesp presents to ARSESP the BRR – Regulatory Remuneration Basis and detailed Business Plan data

ARSESP releases final Tariff Methodology Process

2-May-2012 21-Sep-2012 ARSESP sends the Preliminary Average Tariff Proposal (P0) and Efficiency Gains Factor (X) to Sabesp,

and requests Sabesp to prepare a proposal for the Tariff Structure

23-May-2012 01-Oct-2012 Sabesp presents proposal for the Tariff Structure

13-Jun-2012 09-Oct-2012 Disclosure for public hearing of the Preliminary Average Tariff (P0), Efficiency Gains Factor (X) and Tariff

Structure

13-Jul-2012 09-Nov-2012 Public hearing to discuss the Preliminary Average Tariff (P0), Efficiency Gains Factor (X) and Tariff

Structure

30-Aug-2012 30-Nov-2012 Final disclosure of the Preliminary Average Tariff (P0), Efficiency Gains Factor(X) and Tariff Structure

New Tariff Methodology

11

BRR0 CAPEX + OPEX + Taxes + ∆ WC

BRRT = BRR0 + ∑(CAPEX+∆ WC-DEP) Volume (M3)

P0 IRR = WACC

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