Companhia De Saneamento Basico Do Estado De Sao Paulo Sabesp · BMFBOVESPA:SBSP3
Companhia De Saneamento Basico Do Estado De Sao Paulo Sabesp — Companhia de Saneamento Básico do Estado de São Paulo - SABESP — Q3 2025 Earnings Presentation
31 slides from Companhia De Saneamento Basico Do Estado De Sao Paulo Sabesp's earnings presentation, Nov 11, 2025
Slide 1: Results 3Q25
MO AUN j \e \ RESULTS 6 sabesp 3Q25
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation does not contain projections or estimates of future events. However, it may include forward-looking statements that indicate potential trends related to Sabesp, based on the reasonable expectations, beliefs, and assumptions of the Company’s management. The use
Slide 3: Agenda
AGENDA 1 Financial & Ops Highlights 2 Focus Areas 3 Q&A
Slide 4: Ops Highlights
OPS HIGHLIGHTS Volumes (in million m³) Water Production +4.4% 815,373 813,751 808,878 785,013 777,204 792,223 775,101 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 Connections¹ (# in thousand) Water Sewage +0.6% +1.1% 9,483 9,492 9,506 9,509 9,446 9,442 9,450 8,137 8,142 8,156 8,194 8,219 8,239 8,245 1Q24 2Q24
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS Adjusted Net Revenue¹ Adjusted EBITDA¹ Adjusted Net Income¹ Cash Flow from Operations² +0.1% +14.7% +9.5% +21.9% 5,462 5,468 3,206 1,284 1,723 2,794 1,173 1,413 3Q24 3Q25 3Q24 3Q25 3Q24 3Q25 3Q24 3Q25 51.1% 58.6% 50.6% 53.7% EBITDA Margin Cash Conversion³ (1) Excluding non-recur
Slide 6: Financial Highlights: Reported x Adjusted
FINANCIAL HIGHLIGHTS Reported x Adjusted Net Revenue 9,425 (3,924) (140) 108 5,468 3Q25 Construction Bifurcation FAUSP1 3Q25 Reported Adj vs 3Q24 (37.2)% +0.1% Reported x Adjusted EBITDA 74 61 (14) (430) 108 478 3,206 3,069 0 (140) 3Q25 Construction Bifurcation Program FAUSP1 Logistics Taiaçupeba Pr
Slide 7: Financial Highlights: 3Q25 Net Revenue YoY
FINANCIAL HIGHLIGHTS 3Q25 Net Revenue¹ YoY +0.1% 134 (77) 5,462 (68) 5,468 1 FAUSP: rate review (29)M; Revenue increase 17 (38)M 2 +0.3%: gain from large clients’ discount removal 3 +2.5%: new units (+1.5%) and consumption/capita increase (+1.0%) mainly behind metering upgrades 4 (1.4)%: growth in u
Slide 8: Highlights: Revenue Deep Dive
FINANCIAL HIGHLIGHTS: REVENUE DEEP DIVE Total Price effect excl. category mix¹ (100 indexed) 1 Large Clients Price: Demanda Firme² (100 indexed) 3 110 107 180 106 107 163 105 106 160 147 103 138 105 140 120 100 100 95 80 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q24 1Q25 2Q25 3Q25 Units with access to sub
Slide 9: Financial Highlights: Net Revenue and EBITDA YoY
FINANCIAL HIGHLIGHTS 3Q25 Net Revenue¹ YoY +0.1% 5,462 (68) 134 (77) 5,468 17 3Q24 FAUSP Price² Volume² Mix² 3Q25 3Q25 EBITDA¹ YoY +15% 100 48 (82) 1• YoY gain mainly behind FMSAI 160M; Allowances for (12) 3,206 351 doubtful accounts 63M and; Legal settlements 50M 2• Better mix between free and capt
Slide 10: Highlights: Personnel Deep Dive
FINANCIAL HIGHLIGHTS: PERSONNEL DEEP DIVE 3Q25 Personnel YoY (6.6)% 40 (95) 1▪ +5.5% 2025 collective bargain (dissídio) 733 2▪ (13)% headcount reduction 7 685 3Q24 Inflation HC Qty Others 3Q25 # of 10,586¹ 1 2 9,279¹ employees (1) Average of each period, not including temporary employees, interns, a
Slide 11: Highlights: Net Income
FINANCIAL HIGHLIGHTS: NET INCOME 3Q25 Reported Net Income YoY (64.7)% 6,111 (23) (5,190) 1 Effect of asset bifurcation resulting from the contract with URAE-1, net of income tax 2 Interest portion from court ordered debt payment 1,461M 1,232 (545) 2,159 517 58 3Q24 Construction¹ Bifurcation EBITDA D
Slide 12: Highlights: Capex Deep Dive
FINANCIAL HIGHLIGHTS: CAPEX DEEP DIVE Capex (R$ million) U-Factor¹ Attainment 2024 and 2025 (in thousand) Sequential acceleration: 10% increase vs. 2Q25 “ICA” – New Water Units 91 40 616 102 436 • R$ 10.4B YTD 175% 72 141% 111% of FY24-25 311 • +151% Y/Y 3,978 target achieved of FY24-25 target achie
Slide 13: Highlights: Capex Deep Dive (Main works delivered)
FINANCIAL HIGHLIGHTS: CAPEX DEEP DIVE Main works delivered in 2025 ETE Parque Novo Mundo - Sewage Treatment Plant • 948,965 new Units for Sewage Treatment (“IEC”) from Jan/24 to Oct/25 • 29 months construction timeline • Nereda® technology • 13 projects delivered in 3Q25 • 16 new reactors • Aerobic
Slide 14: Highlights: Debt Deep Dive
FINANCIAL HIGHLIGHTS: DEBT DEEP DIVE Total Debt Breakdown1 Debt Amortization (R$ billion) and Annual Breakdown (%) 8% • R$ 4.9B debt issued in July, with maturity in 5, 7 and 10 years • 59% of debt maturing in 2030 onwards Local Bonds 21% DFIs 43% • R$ 11.6B cash on hand covers more than 4 years of
Slide 15: Highlights: Key Ratios
FINANCIAL HIGHLIGHTS: KEY RATIOS Net Debt5/Adj. EBITDA4 - LTM Adj. EBITDA/Financial Expense1 - LTM 1.8 1.9 1.9 4.2 4.3 4.1 1.7 1.7 3.8 3.9 3Q24 4Q24 1Q25 2Q25 3Q25 3Q24 4Q24 1Q25 2Q25 3Q25 Return on Invested Capital (ROIC2,4,5) – LTM Return on Equity (ROE3,4,6) – LTM 14% 14% 13% 12% 12% 10% 10% 10%
Slide 16: Agenda
AGENDA 1 Financial & Ops Highlights 2 Focus Areas 3 Q&A
Slide 17: Our Focus
OUR FOCUS Investment Program New Concession Agreement New Challenge • Early universalization • Regulatory "GAPs" • New obligations (rural, informal) • Compliance with new obligations Operational Efficiency Commercial Efficiency Financial Efficiency New Standard • Quality/standardization • "Revenue a
Slide 18: Sabesp Update
SABESP UPDATE Operational Efficiency New Investment Program Operational Efficiency Financial Efficiency New Challenge Standard New Concession Agreement Commercial Efficiency Capex execution: R$ 4.0B in 3Q25 (R$ 13.2B LTM) Collection rate(1): 101% in Q3, the highest since privatization Capex backlog:
Slide 19: Sabesp Update: Smart Meters Project
SABESP UPDATE Operational Efficiency Investment Program Operational Efficiency • ~1 million meters upgraded in 9M25, ~500k in 3Q25 Smart Meters Project (AMI) (+113% vs. 2Q25) • The world's largest smart metering project in the sector • Focus on oldest and fully depreciated • 4.4 million smart meters
Slide 20: Operational Efficiency: Water Resilience
SABESP UPDATE Operational Efficiency Operational Efficiency: Water resilience Evolution of reservoir levels (%) and rainfall Key Actions Between 2013-2025 400 90 • Water Permits: +17% (from 68.9 to 80.7 m3/s) 350 80 70 • Transfers between water reservoirs: 114% (from 10.2 to 21.8m³/s) 300 60 250 50
Slide 21: Turning Profit into Benefits for Our Society
TURNING PROFIT INTO BENEFITS FOR OUR SOCIETY 25% ~R$ 1.0 billion (1) to FAUSP to smoothen distributed with rates for the population shareholders, including 18% of R$ 5.8B 75% R$ 13.0 billion = 40,000 São Paulo state in net income in reinvested in the in construction, goods and direct and indirect jo
Slide 22: Committing to a Low-Carbon Future
COMMITTING TO A LOW-CARBON FUTURE CHALLENGING CO2 REDUCTION TARGETS BY 2035, AMID SIGNIFICANTLY INCREASING IN THE VOLUME OF TREATED SEWAGE DUE TO UNIVERSALIZATION 15% reduction in Total Combined Emissions (Scopes 1, 2, and 3) within defined limits by 2035, compared to 2024 levels 43% reduction(1) in
Slide 23: Update on EMAE Acquisition
UPDATE ON EMAE ACQUISITION October 2025 4Q25 1Q26 • Signing subject to Regulatory • Regulatory Approvals: Administrative • Subject to satisfaction of the conditions Approvals and satisfaction of Council for Economic Defense (CADE) precedent, the Transaction is currently other conditions precedent in
Slide 24: Agenda
AGENDA 1 Financial & Ops Highlights 2 Focus Areas 3 Q&A
Slide 25: Q&A
Q&A
Slide 26: Appendix
APPENDIX
Slide 27: Q3 Reported x Adjusted Figures
Q3 REPORTED X ADJUSTED FIGURES R$ Millions 27
Slide 28: Operational Data
OPERATIONAL DATA KPI² Measure¹ 2015 2016 2017 2018 2019 2020 2021 2022 2023 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 Active connections [Qty] 7,553 7,722 7,859 7,992 8,725 9,098 9,256 9,230 9,316 9,446 9,442 9,450 9,483 9,492 9,506 9,509 Active units (economies) [Qty] 10,601 10,841 11,039 11,233 12,224 12
Slide 29: Consumption by Category (1/2)
CONSUMPTION BY CATEGORY (1/2) Histogram (1) Others consider own and public buildings 29
Slide 30: Consumption by Category (2/2)
CONSUMPTION BY CATEGORY (2/2) Average consumption per month¹ Volume [m³] / Unit [Qty] Measure 3Q 22 3Q 23 3Q 24 3Q 25 Total³ [m³ / Qty] 14.34 14.37 14.41 14.47 Residential [m³ / Qty] 13.30 13.19 13.26 13.34 Evolution Consumption Commercial [m³ / Qty] 19.06 19.91 20.86 20.92 [m³/qty] Industrial [m³ /
Slide 31: Capex Reconciliation and Commitments
CAPEX RECONCILIATION AND COMMITMENTS 3Q25 CAPEX (In R$ million) 1Q25 2Q25 3Q25 9M25 Source: Contract asset additions (1) 2,789 3,574 3,949 10,312 Note 13 (Additions) Intangible additions (2) 1 1 1 3 Note 14 b (Additions) Non-cash items -1,301 728 -195 -768 Note 33 Intangible and Contract Assets Addi