Economic-Financial Office and Investor Relations OfficeEconomic-Financial Office and Investor Relations Office

2Q11 Results2Q11 ResultsConference CallConference CallAugust / 2011August / 2011

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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.

NoticeNotice

Billed VolumeBilled Volume

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

2Q10 2Q11

493.0 506.4

354.9 368.1Sewage

Water

6M10 6M11

990.6 1,016.9

712.5 736.9

3.0%

3.4%

2.7%

1,703.1 1,753.83.1%

3.7%

2.7%

847.9 874.5

731.3 742.6

746.0

755.3

745.0

2Q10 3Q10 4Q10 1Q11 2Q11

Produced Water Volume

493.7 493.6

508.0 510.5 506.4

2Q10 3Q10 4Q10 1Q11 2Q11

Billed Water Volume

25.8

26.0 26.0

26.2

26.0

2Q10 3Q10 4Q10 1Q11 2Q11

Losses

Financial HighlightsFinancial Highlights

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319.5

603.8

752.5

1,668.6

2,272.5

479.6

599.2

775.4

1,739.3

2,339.8

Net Income

EBIT

EBITDA

Costs and Expenses

Net Operating Revenue

2Q11 2Q10

3.0%

4.2%

21.9%

0.8%

3.0%

50.1%

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Costs and Expenses Costs and Expenses (R$ million)(R$ million)

% Net Revenue in 2Q1017.4% 23.3% 1.4% 1.4% 12.1% 5.7% 1.6% 6.5% 3.4% 0.5%

% Net Revenue in 2Q1117.6% 20.8% 1.5% 1.5% 9.9% 6.5% 6.7% 7.5% 1.8% 0.4%

Payroll and Benefits

Construction costs

Supplies Treatment supplies

Services Electric power

General Expenses

Depreciation and

Amortization

Credit write-offs

Tax expenses

396

531

32 31

275

130

36

149

78

12

412

486

35 36

233

151 157176

43

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2Q10 2Q11

18.5%

4.1%

7.1%15.8%

(15.3%)

16.6% 336.1%

(12.8%)

(44.7%)

(8.3%)

4.2%

Costs and expenses in 2Q10: R$ 1,668.6

Costs and expenses in 2Q11: R$ 1,739.3

2Q10 - Net Income

Net Revenue Costs and expenses

Other revenues and expenses

Net financial Income tax and social

contribution

2Q11 - Net Income

Net IncomeNet Income

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Main variations on Net IncomeMain variations on Net Income

Exchange variationResult, net of financials Financial expenses, netIncome tax and social contribution Monetary variation

319.5

67.3

(70.7)

46.8

165.6 (48.9)

479.6

604.0

(18.4)

(164.5)

(76.3)

(25.3)

74.2

647.4

(213.3)

(6.0)(22.7)

189.1%

(5.8)%

(51.5)%

(23.9)%

(7.9)%

15.5%

134.9%

(44.5)%

(1.2)%(4.7)%

2Q10 2Q11 Var.Net Income 2Q10 319.5

Net Revenue 2,272.5 2,339.8 67.3

Costs and expenses (1,668.6) (1,739.3) (70.7)

Other revenues 0.1 46.9 46.8

Net financial (120.0) 45.6 165.6

Income tax and social contribution (164.5) (213.4) (48.9)

Net Income 2Q11 479.6

Annual Adjustment Calculation Index

Part A Part B

Annual Tariff Adjustment vs. Inflation (%)

Inflation (IPCA) X

Manageble Costs

Adjustment defined by ARSESP

Adjustment according to the calculation method

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Full repass of

manageble costs

Including:

Electric power

Treatment supplies

Taxes

Costs for the use of water resources

Annual Tariff AdjustmentAnnual Tariff Adjustment

www.sabesp.com.br

IR Contacts

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