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 — Q1 2026 Earnings Presentation
26 slides from Companhia De Saneamento Basico Do Estado De Sao Paulo Sabesp's earnings presentation, May 8, 2026
Slide 1: Results 1Q26
MO AUN j \e \ RESULTS 6 sabesp 1Q26
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 (4.6)% 785,013 777,204 775,101 792,223 815,373 813,751 808,878 789,300 777,603 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 Connections¹ (# in thousand) Water Sewage (0.2)% (0.1)% 9,483 9,492 9,506 9,509 9,517 9,446 9,442 9,450 9,468 8,239 8,24
Slide 5: Financial Highlights – 1Q26
FINANCIAL HIGHLIGHTS – 1Q26 Adjusted Net Revenue¹ Adjusted EBITDA¹ Adjusted Net Income¹ Cash Flow from Operations² +10.9% +25.9% +32.2% (11.5%) 906 6,021 3,786 1,554 5,428 802 3,008 1,176 1Q25 1Q26 1Q25 1Q26 1Q25 1Q26 1Q25 1Q26 55.4% 62.9% 28.2% 21.4% EBITDA Margin Cash Conversion³ (1) Excluding non
Slide 6: Reported x Adjusted Net Revenue and EBITDA
FINANCIAL HIGHLIGHTS – 1Q26 Reported x Adjusted Net Revenue 9,965 (3,633) (311) 6,021 1Q26 Construction Bifurcation 1Q26 Reported Adj vs 1Q25 +18.3% +10.9% Reported x Adjusted EBITDA 4,080 (311) 16 3,786 1Q26 Bifurcation M&A Expenses 1Q26 Reported Adj. vs 1Q25 +19.1% +25.9% 6
Slide 7: 1Q26 Net Revenue YoY
FINANCIAL HIGHLIGHTS – 1Q26 1Q26 Net Revenue¹ YoY +10.9% 131 (185) 647 6,021 1• +11.9%: +9.1% tariff phase-in and +2.8% due to commercial initiatives (large clients and revenue assurance) 5,428 2• +2.4%: New units +2.9%, partially offset by lower average temperature (3.3)ºC and lower reservoir level
Slide 8: Revenue Deep Dive
FINANCIAL HIGHLIGHTS: REVENUE DEEP DIVE Total Price effect excl. mix¹ (100 indexed) 1 3 Meter Replacement (# thousands) 115 109.1 110 +51% 105 504 532 100.0 100.0 100.0 100 326 216 237 95 1Q25 2Q25 3Q25 4Q25 1Q26 1Q25 2Q25 3Q25 4Q25 1Q26 Units with access to subsidized Rates² (# thousands) 2 +23% 1▪
Slide 9: Net Revenue and EBITDA YoY
FINANCIAL HIGHLIGHTS 1Q26 Net Revenue¹ YoY +10.9% 131 (185) 647 6,021 5,428 1Q25 Price Volume Mix² 1Q26 1Q26 EBITDA¹ YoY +25.9% 1• 30M Past due recovery from public counter parts 170 (10) (81) 3,786 50 56 2• Better mix free vs captive market +12.6pp y/y, 593 reaching 86% 3▪ Headcount reduction (13)%
Slide 10: Personnel Deep Dive
FINANCIAL HIGHLIGHTS: PERSONNEL DEEP DIVE 1Q26 Personnel YoY (25.9)% 36 (87) 1▪ +5.5% Wage inflation 655 (118) 2▪ (13)% headcount reduction 485 3▪ Workforce mix 1Q25 Inflation HC Qty Others 1Q26 # of employees 10,089¹ 1 2 3 8,814¹ (1) Average of each period, not including temporary employees, intern
Slide 11: Net Income
FINANCIAL HIGHLIGHTS: NET INCOME 1Q26 Reported Net Income YoY +18.0% 731 (114) (432) 160 1,749 1 (i) Higher average net debt (442)M; (ii) higher benchmark (Selic) rate (84)M 1,482 0 (78) 2 Lower taxes due to IOC payments 1Q25 Construction¹ Bifurcation EBITDA D&A Net Financial Income Tax 1Q26 Reporte
Slide 12: Capex Deep Dive
FINANCIAL HIGHLIGHTS: CAPEX DEEP DIVE Capex (R$ million) U-Factor¹ Attainment 2024 and 2026 (in thousand) R$ 3.7 billion in investments in 1Q26: +30.8% y/y “ICA” – New Water Units 861 110 87 +30.8% 87% 228 436 3,728 of FY24-26 target achieved 74% of FY26 436 target 1,243 2024-25 Overachievement 1Q26
Slide 13: Capex Deep Dive: Main Projects Evolution
FINANCIAL HIGHLIGHTS: CAPEX DEEP DIVE Main projects evolution in 1Q26 Update to the 2024–29 Capex Plan • Countryside Universalization: Under • Phase 1: 11 projects already contracted – R$ 5.1 bn discussion with the regulator • Phase 2: RFP of 8 additional projects – R$ 5.4 bn • Integra Tietê Program
Slide 14: Debt Deep Dive
FINANCIAL HIGHLIGHTS: DEBT DEEP DIVE Total Debt Breakdown1 Debt Amortization (R$ billion) and Annual Breakdown (%) Local Bonds 19.3% • R$ 51.6 billion in gross debt (R$ 32.5 billion in net debt) DFIs Others(1) • Average cost at CDI +0.02%, with a 6.3-year weighted average maturity Bonds USD 9.2% 46.
Slide 15: Key Ratios
FINANCIAL HIGHLIGHTS: KEY RATIOS Net Debt5/Adj. EBITDA4 - LTM Adj. EBITDA/Financial Expense1 - LTM 2.2 2.4 4.3 4.1 3.9 1.7 1.9 1.9 3.1 2.9 1Q25 2Q25 3Q25 4Q25 1Q26 1Q25 2Q25 3Q25 4Q25 1Q26 Return on Invested Capital (ROIC2,4,5) – LTM Return on Equity (ROE3,4,6) – LTM 17% 17% 13% 14% 14% 10% 10% 10%
Slide 16: Agenda
AGENDA 1 Financial & Ops Highlights 2 Focus Areas 3 Q&A
Slide 17: Key Messages
KEY MESSAGES QUALITY PROFITABILITY GROWTH SOCIETY • Customer satisfaction • Business efficiency • Universalization • Understanding and support for stakeholders • People development • Innovation & Digital transformation • New business development • Social and environmental engagement with communities
Slide 18: Main Challenges Until 2029
MAIN CHALLENGES UNTIL 2029 Regulatory Accounting Beginning of Tax Reform Tariff Review, base year Universalization for 2030 Coverage targets (%) per city EMAE’s water integration 2026 2027 2028 2029 18
Slide 19: Agenda
AGENDA 1 Financial & Ops Highlights 2 Focus Areas 3 Q&A
Slide 20: Q&A
Q&A
Slide 21: Appendix
APPENDIX
Slide 22: Q1 Reported x Adjusted
Q1 REPORTED X ADJUSTED R$ Million 22
Slide 23: Operational Data
OPERATIONAL DATA KPI² Measure¹ 2022 2023 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 Active connections [Qty] 9,230 9,316 9,446 9,442 9,450 9,483 9,492 9,506 9,509 9,517 9,468 Active units (economies) [Qty] 12,751 12,928 13,120 13,142 13,181 13,233 13,273 13,008 13,370 13,411 13,409 Production Tota
Slide 24: Consumption by Category (1/2)
CONSUMPTION BY CATEGORY (1/2) Histogram (1) Others consider own and public buildings 24
Slide 25: Consumption by Category (2/2)
CONSUMPTION BY CATEGORY (2/2) Consumo Average médio¹ consumption per month¹ Volume [m³] / Unit [Qty] Measure 1Q 23 1Q 24 1Q 25 1Q 26 Total [m³ / Qty] 14,23 14,68 14,90 14,46 Evolution Residential [m³ / Qty] 13,20 13,62 13,81 13,47 Consumption [m³/qty] Commercial [m³ / Qty] 19,26 20,12 21,02 20,23 In
Slide 26: Reconciliation of Capex and Commitments
RECONCILIATION OF CAPEX AND COMMITMENTS CAPEX (in R$ million) 1Q25 2Q25 3Q25 4Q25 1Q26 Source: Contract asset additions (1) 2.789 3.574 3.949 6.373 3.756 Note 13 (Additions) Supplier advance payment 0 0 0 -1.778 -63 Note 13 Intangible additions (2) 1 1 1 0 0 Note 14 b (Additions) Non-cash items -1.3