1. 2016 Results
Economic-Financial Office and Investor Relations Office

2. Disclaimer
This presentation may contain forward-looking statements referring to SABESP’s business outlook, operating and financial results estimates, and growth prospects. These are only forecasts, 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, among other factors, in addition to risks exhibited in disclosure documents filed by SABESP. Therefore, they are subject to changes without prior notice.

3. Agenda Company Overview 1 Our Operations 2 Our Financial Performance 34
SPMR – Water Situation

4. Main Operational Indicators(1)
One of the largest water and sewage service providers in the world…
Company Overview
Main Operational Indicators(1)
Water
Sewage
Connections (million)
8.7
7.1
Coverage (%)
100 87
Treatment (%)
79(²)
Billed Volume (m³ million)
1,990.3
1,552.2
Sabesp is one of the largest water and sewage service providers in the world based on the number of Customers
Provides water to 24.7 million people and sewage services to 21.2 million people
Also sells wholesale treated water to 5 municipalities (3.0 million people)
Natural monopoly, low operating risk
Serves the City of São Paulo and 365 out of 645 municipalities in the State
Covers around 66% of State's urban population
Operations in the São Paulo Metropolitan Region* represent 70% of our total revenues
(1) As of December 31, 2016
(2) Treated sewage as percentage of collected sewage
São Paulo
Regional Systems
Metropolitan Region
*The Metropolitan Region we consider for this estimate, includes 8 municipalities outside the legal boundaries of the São Paulo Metropolitan Region and represents the municipalities served by the Company’s Metropolitan Division

5. Ownership Structure % (1)
…with strong corporate governance
We are a mixed capital company, majority-owned by the State of São Paulo, with significant private ownership
State law requires the State of São Paulo to own at least 50% + 1 voting shares at all times
Currently the Government of São Paulo has 50.3% share
100% common shares
Market Cap: R$ 19.7 billion (as of December, 2016)
Ownership Structure % (1)
(1) As of December, 2016

6. Agenda 3 Our Operations 2 Our Company 1 Our Financial Performance 4
SPMR – Water Situation

7. Diversified customer base
Water Billed Volume by Type of Customer
Sewage Billed Volume by Type of Customer
Passaremos a uma breve apresentação da nossa base de clientes
A maior parcela das nossas receitas provem da nossa base de clientes residenciais, o que é muito positivo por se tratar de segmento de consumo estável e diversificado, diminuindo nossa exposição a um cliente individual
Nossos clientes industriais e comerciais representam cerca de 30% de nossas receitas
Nossa base de clientes residenciais tem crescido consistentemente, o que é refletido no crescimento de ligações de água e esgoto que cresceram respectivamente a taxas médias anuais de 2,8% e 4% nos últimos três anos
Esse crescimento é justificado pelo crescimento vegetativo da população das cidades onde atuamos, bem como pela negociação de novos municípios, onde começamos a prestar os serviços de água e esgoto
Over 80% of water volume comes from residential, commercial and industrial customer
Over 90% of sewage volume comes from residential, commercial and industrial customer
Water Revenues by Type of Customer
Sewage Revenues by Type of Customer

8. Contract with the Municipality of São Paulo
Broad coverage of municipalities
Municipalities
Nº of contracts
% of revenue
Renewed/Secured (Program and Service Contract)
281
80.3%
Expired Contracts 54
12.2%
To be expired ( ) 34
6.7%
Total Retail
369*
99.2%
Wholesale 5
0.8%
Total Sabesp
374
100.0%
*Incluides 2 partial contracts with Mogi das Cruzes and Santa Branca with operations starting in 2017
Contract with the Municipality of São Paulo
30-year-service agreement between Sabesp, Municipality of São Paulo and State Government (expires in 2040)
Minimum investment of 13% of the Gross Revenue, net of Cofins and Pasep
Transfer of 7.5% of the Gross Revenue, net of Cofins and Pasep, to the Municipal Environmental Sanitation and Infrastructure Fund – to be recovered in tariff 8

9. Concession Power in Metropolitan Regions
Regulatory Framework
Obligatory creation of a Regulatory Agency  Municipal or State level
Clarifies the payment conditions of non-amortized investments  up to 4 years
Disbursement of federal funds conditioned to the existence of a sanitation plan
Federal Law # 11,445/07  Federal Decree 7,217/10 and Federal Decree 8,211/14
Concession Power in Metropolitan Regions
Legal proceedings related to this matter under Supreme Court (STF) appraisal were ruled in February 2013
Final decision released in September 2013:
Sanitation services in metro regions are subject to shared responsibility between State and Municipality
State Legislative has two years to adjust the legislation, create entities and mechanisms to implement the ruling
Regulation activities and responsibilities include:
Service quality
Tariff structure and reviews
Planning is a concession holder attribution
ARSESP´s attribution

10. RABT = RAB0 + ∑(CAPEX+∆ CG-DEP)
Tariff Revision
RAB0
CAPEX + OPEX + IRCS + ∆ CG
RABT = RAB0 + ∑(CAPEX+∆ CG-DEP)
Volume (M3)
P0  IRR = WACC (8.06%)
ARSESP: Recent Resolutions / Public Consultation
03/31/16
Resolutions nº 640 e nº 641: ARSESP authorizes the cancelation of the Contingency Tariff and Consumption Reduction Incentive Program – Bonus  In effect since 05/01/2016
Arsesp discloses the RAB
04/11/16
ARSESP authorizes the tariff adjustment of %  in effect since 05/12/16
06/30/16
Update of the Methodology and general criteria for the definition of SABESP’s Regulatory Asset Base  Start of the 2nd Ordinary Tariff Revision
08/30/16
Methodology Update and criteria for the definition of the RAB → ARSESP disclosed the Detailed Public Consultation Report
01/19/17
ARSESP approves the beginning of the 2nd Ordinary Tariff Revision and discloses the timeline for the 1st stage that will be performed as the following:
First stage preliminary  June 2017
Second stage final  April de 2018
Timeline for the 1st stage of the 2nd Tariff Revision
Stage No.
Description
Beginning
Conclusion 1
Submission of the Business Plan by Sabesp
Jan 23, 2017
Jan 31, 2017 2
Analysis of Sabesp's data
Mar 31, 2017 3
Delivery of the Appraisal Report of the RAB by Sabesp 4
Validation of the RAB by ARSESP: reinforced base + partial incremental
Apr 1, 2017
May 15, 2017 5
Receipt of SABESP's final data (historical)
Mar 1, 2017 6
Development of the Initial Technical Note with Initial P0 and Weighted Average Cost of Capital (WACC)
Apr 26, 2017 7
Opening of Public Consultation and Public Hearing - Initial Tariff P0 and WACC
Apr 27, 2017
May 19, 2017 8
Analysis of the contributions received, development of the Final Technical Note and Detailed Report - Initial Tariff P0 and WACC
May 22, 2017
Jun 8, 2017 9
Approval of the Final Technical Note, Detailed Report and Publication of the Resolution with the Preliminary Tariff P0
Jun 9, 2017
Jun 10, 2017 10

11. Tariff Adjustment and Revisions
Annual tariff adjustment formula
Productivity
Factor
(0.9386%)
New Average Tariff = 1
Inflation
(IPCA)
100 x
Previous
Average Tariff
Quality Factor * - +
* Not yet defined
ARSESP’s Adjustments and Revisions
Sabesp’s Formula
ETR – Extraordinary Tariff Revision IPCA – Amplified Consumer Price Index as of Mar/16

12. Water and Sewage Operations
Water Connection Evolution (million)
Water Coverage (Connections in ´000s)
Add 1.0 million new connections by 2022
Passaremos a uma breve apresentação da nossa base de clientes
A maior parcela das nossas receitas provem da nossa base de clientes residenciais, o que é muito positivo por se tratar de segmento de consumo estável e diversificado, diminuindo nossa exposição a um cliente individual
Nossos clientes industriais e comerciais representam cerca de 30% de nossas receitas
Nossa base de clientes residenciais tem crescido consistentemente, o que é refletido no crescimento de ligações de água e esgoto que cresceram respectivamente a taxas médias anuais de 2,8% e 4% nos últimos três anos
Esse crescimento é justificado pelo crescimento vegetativo da população das cidades onde atuamos, bem como pela negociação de novos municípios, onde começamos a prestar os serviços de água e esgoto
Sewage Connection Evolution (million)
Sewage Coverage (Connections in ´000s)
Add 1.3 million new connections by 2022
Collection: 93% in 2021
Treatment: 83% in 2021

13. Capex Plan of R$ 13.9 billion from 2017 to 2021
3,900*
Financial Value (R$ million)
2,136**
Main Programs
Metropolitan Water Program
Tietê Project
Corporate Program for Reduction of Water Loss
Clean Stream Program
Clean Wave Program
(*) Book Value – Includes non-cash items
(**) Book Value – Items that affected cash
- Additional information is presented in
Note 30 of the inancial Information

14. Investment Plan – Financing
2017 to 2021 – R$ 13.9 billion
BNDES R$ 1.3B
CAIXA R$ 1.1B
BID R$ 580MM
JICA R$ 350MM
BIRD R$ 70 MM
FINEP R$ 40 MM
CAIXA

15. Agenda Our Company 1 Our Operations 2 Our Financial Performance 3 4
SPMR – Water Situation

16. Long term and low cost funding
Total debt breakdown
Total debt by currency
(*) IDB 713 agreement
Debt amortization profile (R$ million)

17. Consistent performance
Net Revenues (R$ million)
Net Income (R$ million)
Adjusted EBITDA (R$ million)
Dividends/Pay Out
2010
2011
2012
2013
2014
2015
2016
Dividend Declared (R$)
2.00
2.54
2.35
0.78
0.37
0.22
1.20
Pay Out %
27.9
47.3
Outstanding Shares (million)
227.8
683.5
Adjusted EBITDA Ajustado – Last 12 months Adjusted EBTIDA Margin – Last 12 months Adjusted EBITDA Margin Without Construction – Last 12 months

18. Historical leverage metrics (R$ million)
Adjusted Total Debt vs. Adjusted EBITDA*
Adjusted EBITDA* vs. Financial Expenses**
Adjusted Total Debt = Total Debt - Interest
Net Debt vs. Adjusted EBITDA*
Net Debt vs. Equity
* Adjusted EBITDA – LTM ** Financial Explosures paid - LTM Calculated in accordance with CPCs/IFRS

19. Covenants – Total Adjusted Debt vs EBITDA

20. Financial Highlights (R$ million)
* In accordance with CPCs / IFRS, which includes Construction Costs.
** R$ / 000 shares

21. Agenda 1 Our Company 2 Our Operations 3 Our Financial Performance 4
SPMR – Water Situation

22. Cantareira System – Rainfall (mm)
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
Historical avg.
130.8
161.2
226.8
265.9
206.5
184.1
89.2
83.2
56.0
49.9
36.9
91.9
Historical low
21.4
52.4
104.5
111.8
40.2
55.8
7.6
8.8
0.0
0.1
0.9
2016/17
175.3
170.8
158.4
393.1
94.2
113.4
Oct-Feb
Média: mm
Mínima: mm
2013/14: mm
2014/15: mm
2015/16: mm
2016/17: mm
March
2014: mm
2015: mm
2016: mm
March, 23rd 22

23. 75% of Historical Average Inflow
Cantareira System – Water inflow (m³/s)
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Historical avg.
30.6
35.0
53.1
70.9
73.9
66.9
48.4
38.4
35.3
28.8
24.5
25.6
Historical low
14.0
21.8
26.9
27.6
28.1
24.7
19.9
16.5
13.9
12.0
11.8
1953
17.5
26.0
31.5
34.5
29.8
34.6
23.8
20.7
17.6
16.3
16.2
2013/14
25.1
22.1
22.5
15.4
10.5
18.9
17.2
10.1
10.0
6.4
8.2
9.0
2014/15
5.2
8.8
16.0
11.5
40.7
42.6
18.1
11.3
5.8
18.3
2015/16
14.8
27.1
52.3
73.8
49.6
69.8
24.1
25.0
62.9
19.4
19.3
15.3
2016/17
24.2
29.5
30.2
76.0
36.4
42.9
Historical Average Inflow October-January: 52.7 m³/s
Inflow (Oct-Jan) 1953 : 27.3m³/s
Inflow (Oct-Jan) 2013/14 : m³/s
Inflow (Oct-Jan) 2014/15 : m³/s
Inflow (Oct-Jan) 2015/16 : m³/s
Inflow (Oct-Jan) 2016/17 : m³/s
Inflow Oct-Jan/17:
75% of Historical Average Inflow
March, 23rd 23

24. Water Monthly Production – SPMR vs Cantareira (m³/s)
March, 23rd 24

25. Current operating volume as of June, 7th , 2013
Operating volume available at SPMR’s Reservoirs
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Current operating volume as of June, 7th , 2013
March, 23rd 25

26. Water Plan for the SPMR – 2015 to 2019 (main initiatives)26

27. www.sabesp.com.br IR Contacts
Mario Azevedo de Arruda Sampaio Angela Beatriz Airoldi
Head of Capital Markets and Investor Relations Investor Relations Manager
+55 (11) (11)