Conference Call 2Q12 Results August/2012 Economic-Financial Office and Investor Relations Office

Notice 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. 2

Total water and sewage billed volume, including wholesale (million m³) 2.2% 1,753.8 1,792.2 1.4% 2.7% 874.5 886.8 2.0% 1.8% 1.0% 3

Financial Highlights 4

Costs and Expenses (R$ million) Costs and expenses in 2Q11: R$ 1,739.3 Costs and expenses in 2Q12: R$ 1,852.3 6.5% 16.3% 7.6% 8.6% 0.5% (2.4%) (21.2%) 42.8% (14.9%) 24.9% 8.8% % of Net Revenue in 2Q11 17.6% 20.8% 1.5% 9.9% 6.5% 6.7% 7.5% 1.8% 0.4% % of Net Revenue in 1Q12 17.9% 22.8% 1.7% 2.1% 10.2% 6.0% 5.0% 7.1% 5

Net Income – Main variations 6

Long term low, cost funding Total Debt Breakdown Total Debt by Currency (*) Index that measures the variations of the world’s major currencies – type of international currency (IDB 713 agreement) Debt Amortization Profile R$ million

2012 STATE OWNED CO. TARIFF ADJUSTMENTS Source: AESBE (Brazil's state sanitation companies association). CEDAE (state water and sewage company) – approximate index. 8

www.sabesp.com.br IR Contacts Mario Azevedo de Arruda Sampaio Angela Beatriz Airoldi maasampaio@sabesp.com.br abairoldi@sabesp.com.br +55 (11) 3388-8664 +55 (11) 3388-8793