May/2014

Conference Call1Q14 Results

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

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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.

Notice

1Q13 1Q14

529.1 554.9

389.2 410.7Sewage

Water

Billed Volume

3

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

5.2%

5.5%

4.9%

923.9 968.7

762.0 778.0

1Q13 1Q14

Produced Water Volume

529.1

554.9

1Q13 1Q14

Billed Water Volume

Financial Highligts (R$ million)

4

496.2

726.3

921.5

1,918.6

2,645.0

477.6

755.6

1,015.8

2,036.0

2,792.0

Net Income

EBIT

Adjusted EBITDA

Costs, adm, sellingand construction

expenses

Net OperatingRevenue

1Q14 1Q13

5.6%

0,4%

4.0%

10.2%

38,9%

6.1%

(3.7)%

Payroll andBenefits

Supplies Treatmentsupplies

Services Electric power GeneralExpenses

Depreciationand

Amortization

Credit write-offs

Tax expenses

462

4465

229

145

215195

37 40

497

47 70

315

140 153

260

15 20

1Q13 1Q14

5

Costs and Expenses (R$ million)

% Net Revenue in 1Q13

17.5% 1.7% 2.5% 8.6% 5.5% 8.1% 7.4% 1.4% 1.5%

% Net Revenue in 1Q1417.8% 1.7% 2.5% 11.3% 5.0% 5.5% 9.3% 0.5% 0.7%

5.8%

Costs and expenses in 1Q13*: R$1,432.6

Costs and expenses in 1Q14*: R$1.515,5

*Not including construction costs

33.3%

7.6%

6.3%7.4%

37.6%

(3.3%)(29.1%)

(50.9%)(60.7%)

Net Income – Main variations

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Net Income1Q13

N.O.R. Costs and Expenses

Other Rev. and Expenses

Net Financial Income Tax and Social

Contribution

Net Income1Q14

477.6

147.0 (117.4)

(52.2)

0.23.8496.2

1Q13 1Q14 Chg.Net Income 1Q13 496.2

Net operating revenue 2,645.0 2,792.0 147.0Costs and expenses (1,918.6) (2,036.0) (117.4)Other revenues and expenses 8.7 (43.5) (52.2)Net Financial 27.3 27.5 0.2Income tax and social contribution (266.2) (262.4) 3.8

Net Income 1Q14 477.6

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Cantareira System (oct/13 apr/14)

Cantareira SystemAs of May 16, 2014

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Technical Reserve

Entrance30.5 m height 10 Floor

Building

Depth Discharge

Tunnel

PCJ Rivers

Useful Volume

Volume Available

Technical Reserve

Entrance

RMSP Supply

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The Path of the Waters

Cantareira System

Bonus Program 20% water bill savings = 30% discount on water and sewage bill

Scope: Since February consumers served by the Cantareira System Since April all consumers directly served in the SPMR

Bonus Program Balance

Consumers served by the Cantareira System

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Bonus Program

In March In April

Reached the Bonus

Reduced Consumption

IncreasedConsumption

Reached the Bonus

Reduced Consumption

IncreasedConsumption

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