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 — Q2 2026 Earnings Presentation
28 slides from Companhia De Saneamento Basico Do Estado De Sao Paulo Sabesp's earnings presentation, Aug 14, 2026
Slide 1: Results 2Q26
MO AUN j \e \ RESULTS 6 sabesp 2Q26
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 (4.3)% 815,373 813,751 808,878 792,223 789,300 777,204 775,101 777,603 779,020 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Connections¹ (# in thousand) Water Sewage (0.2%) (0.1%) 9,492 9,506 9,509 9,517 9,487 9,483 9,468 9,442 9,450 8,219 8,23
Slide 5: Financial Highlights – 2Q26
FINANCIAL HIGHLIGHTS – 2Q26 Adjusted Net Revenue¹ Adjusted EBITDA¹ Adjusted Net Income¹ Cash Flow from Operations² R*: +9.4% R*: (2.3%) R*: (37.7%) R*: (9.0%) O*: +6.7% O*: (3.2%) O*: (41.2%) O*: (10.1%) 6,165 3,617 3,533 1,956 2,972 5,635 152 30 1,218 2,705 68 33 6,013 3,503 1,150 2,671 2Q25 2Q26 2
Slide 6: Reported x Adjusted Net Revenue and EBITDA
FINANCIAL HIGHLIGHTS – 2Q26 Reported x Adjusted Net Revenue 10,209 (3,616) (427) (152) 6,013 2Q26 Construction¹ Bifurcation EMAE 2Q26 Reported Adj vs 2Q25 +13.9% +6.7% Reported x Adjusted EBITDA 3,906 (441) 68 (30) 3,503 2Q26 Bifurcation / Incidents EMAE 2Q26 Reported Construction² Adj vs 2Q25 +0.4%
Slide 7: 2Q26 Net Revenue YoY
FINANCIAL HIGHLIGHTS – 2Q26 2Q26 Net Revenue¹ YoY +9.7% 65 (177) 60 6,182 • +8.7%: +9.9% rate phase-in, offset by higher 1 490 109 reforms² 6,013 • +1.1%: New units4 +1.0%; metering upgrade +0.6% 2 and weather (1.1)% 5,635 • (3.1)%: customer categories mix (2.3)%, customer 3 consumption band mix (0.
Slide 8: Highlights: Revenue Deep Dive
FINANCIAL HIGHLIGHTS: REVENUE DEEP DIVE Units with access to discounted Rates¹ (# thousands) 1 2 Price Effect² excl. mix (100 indexed) 4 4 Sabesp price effect² CPI³ Customer price effect excl. mix Customer price effect incl. mix +15% 115 114 115 1,971 2,049 1,975 1,794 110 110 1,661 1,722 Large clie
Slide 9: 2Q26 EBITDA YoY
FINANCIAL HIGHLIGHTS 2Q26 EBITDA¹ YoY (3.2%) 379 (125) (9) (6) (238) 3,617 (116) 1• Legal victories/dismissals in 2Q25 (230M) 3,503 2▪ (i) Investments in customer experience (149)M; (ii) Timing effect due to ERP transition (54)M 3▪ (28)M in Treatment Supplies mainly driven by inflationary pressure d
Slide 10: Highlights: Costs Deep Dive
FINANCIAL HIGHLIGHTS: COSTS DEEP DIVE Personnel 0.9% 30 (26) ▪ 1 +4.4% wage inflation 672 2 678 ▪ 2 (3.7)% headcount reduction 2Q25 Inflation HC Qty Others 2Q26 # of employees 9,305¹ 1 2 8,961¹ Power 2.2% 42 (53) 1▪ 36M inflation and Angra new sector charges 7M 401 20 410 2▪ Better mix free vs capti
Slide 11: Highlights: Net Income
FINANCIAL HIGHLIGHTS: NET INCOME 2Q26 Reported Net Income YoY (31.4%) 199 (195) 2,136 14 (195) (898) 1• Asset base grew 15 bn: from 55B to 70B YoY 405 1,464 2• (i) Higher average net debt (638)M; (ii) higher benchmark (Selic) rate (146)M; (iii) FX gain lapping from 2Q25; 3• Effective income tax rate
Slide 12: Highlights: Capex Deep Dive
FINANCIAL HIGHLIGHTS: CAPEX DEEP DIVE Capex (R$ million) U-Factor¹ Attainment 2024-2026 (in thousand, as of Jul/26) R$ 7.5 billion in investments in 1H26: +15.6% y/y “ICA” – New Water Units 861 13 39 97 • R$ 40.5B contracted backlog through 2029 87 • Historically Capex is higher in 2H vs. 1H 105% 43
Slide 13: Highlights: Capex Deep Dive – Main Projects
FINANCIAL HIGHLIGHTS: CAPEX DEEP DIVE Main projects evolution in 2Q26 Integra Tietê Program – Linear Works • Main deliveries of the quarter: • Main deliveries of the quarter: • WWTP Caieiras: new facility, R$ 94M invested, +0.2 m³/s capacity, +65k people • 69 km of collectors, outfall sewers, and in
Slide 14: Highlights: Debt Deep Dive
FINANCIAL HIGHLIGHTS: DEBT DEEP DIVE Total Debt Breakdown1 Debt Amortization (R$ billion) and Annual Breakdown (%) • R$ 51.7 billion in gross debt (R$ 34.2 billion in net debt) Local Bonds 19.1% DFIs • 54% financial covenant-free Others(1) • Average cost at CDI +0.05%, with a 6.1-year weighted avera
Slide 15: Highlights: Key Ratios
FINANCIAL HIGHLIGHTS: KEY RATIOS Net Debt5/Adj. EBITDA4 - LTM Adj. EBITDA/Net Financial Expense1 - LTM 2.4x 2.5x 8.5x 8.9x 2.2x 1.9x 1.9x 5.8x 4.4x 3.4x 2Q25 3Q25 4Q25 1Q26 2Q26 2Q25 3Q25 4Q25 1Q26 2Q26 Return on Invested Capital (ROIC2,4,5) – LTM Return on Equity (ROE3,4,6) – LTM 17% 17% 17% 14% 14
Slide 16: Agenda
AGENDA 1 Financial & Ops Highlights 2 Focus Areas 3 Q&A
Slide 17: Our strategy and culture drive us to achieve our dream
Our strategy and culture Universal Service Coverage drive us to Customer Satisfaction Deliver Results with Purpose achieve our Stakeholder Understanding and Support Think and Act like long-term Security, Resilience, and Quality of Water and Sanitation services Owners dream To connect people to To be
Slide 18: Safety Action Plan
KEY MESSAGES Be Guided by Safety Action Plan Ethics and Safety Enhanced safety protocols exceeding Brazilian technical standards ̶ Expansion of the Attention Zone from 1m to 3m ̶ Enhanced verification of natural Gas Underground Infrastructure, including additional subsurface investigations and explo
Slide 19: Commercial Action Plan
KEY MESSAGES Commercial Action Plan Put Customers First ~R$ 800M investment in commercial initiatives in FY26 68% 68% 66% New Customer Experience Executive Division:+57 dedicated professionals +98% 1,722 1,975 996 ~200 FTE increase (internal and outsourced), strengthening field operations and custom
Slide 20: Agenda
AGENDA 1 Financial & Ops Highlights 2 Focus Areas 3 Q&A
Slide 21: Q&A
Q&A
Slide 22: Appendix
APPENDIX
Slide 23: Q2 Reported x Adjusted
Q2 REPORTED X ADJUSTED R$ Million 2026 Adjustments SABESP 2Q25 2Q26 Construction Bifurcation Incidents EMAE 2Q26 adj 2Q25 adj D % Revenue from Operations 6,187 6,536 - - - - 6,536 6,187 349 5.6% FAUSP (203) 0 - - - - 0 (203) 204 100.2% Construction revenue 3,083 3,616 3,558 - - 58 - - - n.a. Financi
Slide 24: EMAE Performance
EMAE Performance R$ Million Reported x Adjusted EBITDA 2Q26 2Q26 3,906 EMAE 2Q26 Construction Reported Adjusted Construction revenue 58 58 - Energy Revenue 174 - 174 Bifurcation/ Gross Revenue 232 58 174 (441) Construction¹ Sales Tax (22) - (22) Net Revenue 210 58 152 Construction cost (45) (45) - P
Slide 25: Operational Data
OPERATIONAL DATA KPI² Measure¹ 2022 2023 2024 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Active connections [Qty] 9,230 9,316 9,483 9,492 9,506 9,509 9,517 9,468 9,487 Active units (economies) [Qty] 12,751 12,928 13,233 13,273 13,008 13,370 13,411 13,409 13,460 Production Total Volume [m³] 2,847 2,953 3,129 815
Slide 26: Consumption by Category (1/2)
CONSUMPTION BY CATEGORY (1/2) Billed Volume (millions of m³) Average Rate (R$/m³) Category 2Q26 2Q25 % 2Q26 2Q25 % Residential 954 931 2.5 4.34 4.01 8.3 Commercial 98 100 (2.3) 15.58 13.97 11.5 Histogram Industrial 17 18 (6.8) 21.72 18.26 18.9 Total Retail 1,069 1,049 1.8 5.65 5.21 8.4 Wholesale 13
Slide 27: Consumption by Category (2/2)
CONSUMPTION BY CATEGORY (2/2) Consumo Average médio¹ consumption per month¹ Volume [m³] / Unit [Qty] Measure 2Q 23 2Q 24 2Q 25 2Q 26 Total [m³ / Qty] 14,38 14,59 14,68 14,69 Evolution Residential [m³ / Qty] 13,24 13,49 13,47 13,59 Consumption [m³/qty] Commercial [m³ / Qty] 19,97 19,96 21,41 21,28 In
Slide 28: Reconciliation of Capex and Commitments
RECONCILIATION OF CAPEX AND COMMITMENTS Capex (in R$ million) R$ Million 1Q26 2Q26 Source: Cash Flow Total additions to property, plant, and equipment (34) (56) Note "PP&E" Total additions to contract assets and other concession assets (3,756) (5,049) Note "Contract Assets and Other Concession Asset