OPPORTUNITY AND PROGRESS FOR WATER MANAGEMENTIN LATIN AMERICA.

Countries:Argentina, Bolívia, Brasil, Chile, Colômbia, Costa Rica, Cuba, El Salvador, Equador, Guatemala, Haiti, Honduras, México, Nicarágua, Panamá, Paraguai, Peru, República Dominicana, Uruguai e Venezuela.

Population: 630 million inhabitants, including Caribean region

LATIN AMERICA

In the region there are 100 million people without safety managed sanitation and 24 million without managed drinking water.

WHO/UNICEF Progress on Sanitation and Drinking Water 2017 Update

I N V E S T M E N T SAverage spending on water and sanitation as percent of GDP in selected countries

Source: Infralatam (accessed on July 19, 2017) and World Bank PPI database (accessed on May 12, 2017). Note: Data are for 2008–15

I N V E S T M E N T SInvestment in public-private partnerships in water and sanitation in Latin America and the Caribbean, 1990–2015

Source: World Bank PPI database (accessed on May 12, 2017).

• Technology• Equipment• R&D• Intellectual Property Use• Human Capital Training• Engineering and Design• Software and Databases• Managerial and

organizacional capital andpractises

• New or improvedproducts and services

• New or improvedbusiness processes

• New business model• New or improved

organizational andmanagerial practises

• Patents and otherintelectual property

Innovation Inputs andKnowledge Activities

Innovation Outputs andOutcomes

Impacts

Firm Growth (new demand or increseadmaket share due toenhanced quality or

cost advantadge)

Productivity Growth(Improved business processes and technology)

EconomicDiversification

INNOVATION: A POWERFUL TOOL

Source: World Bank Group - Developing-Country Capabilities and the Unrealized Promise of Technological Catch-Up

Source: CEPAL, Ciencia, tecnología e innovación en la economía digital La situación de América Latina y el Caribe, LC/G.2685(CCITIC.2/3), Santiago, septiember de 2016.

I n v e s t m e n t s i n Re s e a r c h & D e v e l o p m e n tas percent of GDP in selected countries

“To be a global benchmark in the provision of water and sanitation services, in a sustainable, competitive and innovative manner, focused on customers."

SABESP

• Arup InDepth Water Yearbook 2014-2015• ** December/2017

COVERAGE RATES**

100% water suply

90% sewage collection

75% of the propeties connected to thetreatment system

Vision24.9 million peolple directly supplied

with water

4th largest water and sanitation

company of the world – number ofcustomers*

14.1 thousand employees

30% of all investment in Brazil

29.7%

Listed on the São Paulo Stock Exchange

20.0%

Stocks on the New York Stock Exchange

Government of the State of São Paulo 50.3%

Firm commitment to the minority shareholders December /2017

S U S TA I N A B L E D E V E L O P M E N T G O A L S

SABESP has been a signatoryof the United NationsGlobal Compact since 2007

Sabesp reaffirms its mission and acts in synergy with the Sustainable Development Goals (SDG)

In order for countries to achieve the Sustainable Development Goal of ensuring access to basic sanitation by 2030, ODS-6, it would be necessary to invest $ 45 billion in urban areas per year over the next 12 years, a figure that is five times higher to the value that is now invested globally. The conclusion is from a study by the World Water Council - WWC.

In order to achieve the Sustainable Development Goal of ensuring universal access to water by 2030, as well as basic sanitation - ODS 6 - it is necessary to achieve US $ 115 billion a year - World Bank.

RD&I - MODEL ADOPTED BY SABESP

O P E N I N N O V A T I O N INTENSE INTERACTION WITH VARIOUS ACTORS NETWORK INNOVATION MANAGEMENT INTEGRATED AND ORIENTED EFFORTS

SANITATION CONCESSIONAIRES

BUSINESS UNITS AND INTERNAL FUNCTIONAL

AREAS SABESP

REGULATORY AND ENVIRONMENTAL AGENCIES

MANUFACTURERS AND SUPPLIERS

ICTS AND UNIVERSITIES

START UPS

PROMOTION AGENCIES

WORKSHOPSNATIONAL AND INTERNATIONAL

TECHNICAL VISITS

GORVERNMENT AGENCIES

ROYALTIES

SPIN OFFS

TECHNOLOGICAL TRANSFERENCE

INTERNAL TECHNOLOGICAL BASE

EXTERNAL TECHNOLOGICAL BASE

NEW MARKETS

IDEAS

RESULTS

CHALLENGES

C H A L L E N G E S• Water suply in climate change era

• Conflict: human x industrial use of water

• Corporate and regulatory Eficiency

• Management

• Innovation and R&D

• Customized solutions for clientes

• Water Losses Reduction and Control

• High Vulnerability Areas Attendance

• Rivers Cleaning and Depollution

P I TC H S A B E S PO P E N I N G D O O R S T O

I N N O V A T I O Nwww.sabesp.com.br/pitchsabesp

27 CHALLENGES RESULTS FOR SANITATION

585PROPOSALS

5 STARTUPS3

INDIVIDUALS

AREAS CUSTOMER EXPERIENCE LOSS REDUCTION TECHNOLOGIES FOR SANITATION OPERATIONAL AND ENERGY EFFICIENCY CORPORATE MANAGEMENT

COMPANIES12

C I R C U L A R E C O N O M Y – S o m e E x a m p l e s

BIOGAS PROCESSING SYSTEMFranca Sewage Treatment Plant

WASTEWATER TREATMENTBIOGAS

IMPLEMENTATION OF BIOGAS SYSTEM FOR VEHICULAR USE IN FRANCA

FRAUNHOFER INSTITUTE

Purpose Biogas processing system and biomethane production used as fuel in Sabesp's vehicles

Benefits Use of biogas, reduction in fuel costs

Test Site Franca WWTPStatus IN PROGRESS

TECHNOLOGICAL EVALUATION OF BIOGAS SYSTEM FOR VEHICULAR USE IN FRANCAPurpose Technology evaluation of biogas processing

system and its effect on vehicles: GHG emissions, engine useful life, supply logistics, business models, regulation and evaluation of biomethane quality to meet the requirements of the Brazilian Agency of Petroleum, Natural Gas and Biofuels -ANP (quality and monitoring)

WASTEWATER SLUDGE COMPOSTING - SABESFÉRTILSÃO PAULO STATE UNIVERSITY – UNESP BOTUCATU

Purpose Evaluation of process, product generated, and costs

Benefits Technical, economic and operational subsidies to develop a morescientific composting method

Developments Contracting of research project to evaluate the biodrying process

WASTEWATER TREATMENTFINAL DISPOSAL OF WWTP SLUDGE

REGISTRATION OF SOIL CONDITIONER PRODUCED IN LAGEADO WWTP – MUNICIPALITY OF BOTUCATUPurpose Issuance of registration of facility and product by the Ministry of Agriculture, Livestock and Supply

Benefits Beneficial use of sludge to recycle soil nutrients and organic matter

BIODRYING TECHNOLOGY IN LAGEADO WWTP Purpose Determination of design and operation parameters of the biodrying processBenefits Production of class A wastewater sludge without using supporting materialStatus IN PROGRESS

PROJECT PORTFOLIO

USE OF UV FOR DISINFECTION OF REUSE WATER

Purpose Evaluation of UV technology to improve reuse water quality of Jesus Netto WWTP

BenefitsImprovement of reuse water quality to meet the provisions of the new Reuse Resolution of the State of São Paulo and requirements in contract with industrial clients

Test Site Jesus Netto Reuse WWTP

Developments

Technology implemented in full-scale. There will be operational adjustments in coagulant and chlorine dosages, aiming at the reduction of conductivity and chlorides

Status COMPLETED

WASTEWATER TREATMENTREUSE WATER

PROJECT PORTFOLIO

• Inaugurated in 2012 is a partnership between Sabesp and BRK Ambiental

• The largest project for the production of industrial reuse water in South America

• Fifth largest one in the world• Current supply capacity of 650 L/s,

which is expected to rise to 1m³/s• The plant supplies the Capuava

Petrochemical Complex in Greater São Paulo’s ABC region,

• The 418 l/s volume supplied in 2017 is equivalent to the drinking water consumption ofapproximately 210 thousand residents.

AQUAPOLO AMBIENTAL

Thank you!

Dante Ragazzi PauliSuperintendent of Integrated Planningdrpauli@sabesp.com.br