2018 Results

Economic-Financial Office and Investor Relations Office

DISCLAIMER

This presentation may contain forward-looking statements referring to SABESP’s businessoutlook, operating and financial results estimates, and growth prospects. These are onlyforecasts, and as such, they are exclusively based on SABESP’s management expectation inrelation to the future of business and its continuous access to capital to finance theCompany’s business plan. These forward-looking statements largely depend on changes inmarket 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.

AGENDA

1 COMPANY OVERVIEW

2 OUR OPERATIONS

3 OUR FINANCIAL PERFORMANCE

4 SPMR – WATER SITUATION

...ONE OF THE LARGEST WATER AND SEWAGE PROVIDERS IN THE WORLD

COMPANY OVERVIEW MAIN OPERATIONAL INDICATORS(1)

Water Sewage

Connections (million) 9.1 7.5

Coverage(2) (%) 98 90

Service(3) (%) 95 83

Treatment(4)(%) 76

Billed Volume (m³ million) 2,107.9 1,641.0

(1) As of December 31, 2018 (2) Service Available(3) Households connected (4) Consumer units connected to the sewage treatment

Regional Systems

Metropolitan Region

*The Metropolitan Region we consider for this estimate, includes 8municipalities outside the legal boundaries of the São PauloMetropolitan Region and represents the municipalities served by theCompany’s Metropolitan Division

Sabesp is one of the largest water and sewage service providers in the world based on the number of Customers

Provides water to 25.1 million people and sewage services to 21.7 million people

Also sells wholesale treated water to 5 municipalities (3.1 million people)

Natural monopoly, low operating risk

Serves the City of São Paulo and 369 out of 645 municipalities in the State

Covers around 66% of State's urban population, including the wholesale

Operations in the São Paulo Metropolitan Region* represent 72.2% of our total revenues

4

...WITH STRONG CORPORATE GOVERNANCE

OWNERSHIP STRUCTURE % (1)

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$ 25.1 billion (as of December, 2018) Law nº 13.303/16 – Government-Controlled Companies Law

5(¹) December/2018

AGENDA

1 THE COMPANY

2 OUR OPERATIONS

3 OUR FINANCIAL PERFORMANCE

4 SPMR – WATER SITUATION

80% of water volume and revenue come from residential, commercial and industrial customer

90% of sewage volume and revenue come from residential, commercial and industrial customer

DIVERSIFIED CONSUMER BASE

WATER BILLED VOLUME BY TYPE OF CUSTOMER SEWAGE BILLED VOLUME BY TYPE OF CUSTOMER

WATER REVENUES BY TYPE OF CUSTOMER SEWAGE REVENUES BY TYPE OF CUSTOMER

7

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

Since May/18 – Pass-through of 4%

BROAD COVERAGE OF MUNICIPALITIES

CONTRACTS

CONTRACT WITH THE MUNICIPALITY OF SÃO PAULO TOP 10 CONTRACTS

* Includes 2 partial contracts with Mogi das Cruzes, Aguaí and Guarulhos

8

Municipalities*% of Total Revenue

RemainingPeriod

São Paulo 51.5% 21 years

São Bernardo do Campo 2.9% 15 years

Santos 1.9% 27 years

Osasco 1.7% 11 years

São José dos Campos 1.7% 20 years

Praia Grande 1.3% 30 years

Barueri 1.3% 26 years

Diadema 1.2% 25 years

Suzano 1.0% 23 years

Guarujá 0.9% Expired

Total 10+ / Average 65.3% 20 years

** It does not include the contract with Guarulhos

*Operation in Guarulos started in January 1, 2019

Nº CONTRACTS % OF REVENUE

Renewed/Secured (Program and Service Contract from 2007 to Dec/2018) 307* 81.2%

Metropolitan Region Without Contract 25 6.6%

Expired Contracts / under negotiation 10 2.6%

To be expired (2019 - 2025) 4 1.1%

To be expired (2026 - 2030) 27 7.1%

Total Retail 373 98.7%

Wholesale 4** 1.3%

Total Sabesp 378 100.0%

CONTRACT WITH GUARULHOS

CONTRACT

9

TERM OF DEBT ADJUSTMENT

40-year service contract Water Supply Service Sewage collection, removal and treatment services(*)

(*) Part of the removal and treatment services will be remaine under the municipality’s direct and indirect responsibility

Contract signing parties: State, Municipality and Sabesp Planning shared among State and Municipality (SPMR) Regulator: ARSESP Tariff, control and monitoring Tariff: the same as SPMR (adjustment – catch-up period of approximately 2 years) Expected investment of R$ 2 billion over 40 years Transfers to the Municipal Fund for Environmental Sanitation and Infrastructure

R$ 150 million in 5 years (R$ 30 million per year) 4% of net revenue

The municipality withdraws pending appeals of Sabesp’s collections legal procedings Sabesp: Court orders debt payments (“Precatórios”)

Sabesp suspends the judicial collection of debt The payments remains suspended during the contract term The amounts are used as guarantees in the service contract If the service contract is interrupted, the court orders will be reactivated

Transfer R$ 50 million to the municipality in order to end SAAE’s activities SAAEs employees ceded to Sabesp:

During 6 months - All SAAE’s employees will be ceded to Sabesp From month 7 up to a maximum of 4 years up to 400 employees will continue to be ceded

REGULATORY FRAMEWORK

Sanitation services in metro regions are subject to shared responsibility between State and Municipality

State Legislative has to create an entity and mechanisms to implement the ruling to adjust to the legislation

Legal proceeding related to this matter under Supreme Court (STF) appraisal was ruled in March 2013 The decision was released in September 2013

FEDERAL LAW 11.445/07 / FEDERAL DECREES: 7.217/10, 8.211/14, 8.629/15, 9.254/17

CONCESSION POWER IN METROPOLITAN REGIONS

PROVISIONAL PRESIDENTIAL DECREE 868

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

10

The Provisional Presidential Decree 868 of December 28, 2018, provides changes on the followingLaws: 9,8984/2000 – Creation of the Brazilian National Water Agency (ANA) 10,768/2003 – Disposal of Staff for the Brazilian National Water Agency (ANA) 11,445/2007 – National Guidelines for the Basic Sanitation 13,529/2017 – Authorizes the Federal Government to participate in fund to finance specialized

..... ..technical services

TaxesRequired Revenue

Average

Tariff (P0)

PRICE CAP

Billed

Volume

Output of

the Model

= + +

Reduced by X

Factor X defined by

Arsesp (after year1)

Income

Taxes

Revenue

Taxes

TARIFF REVIEW

OPEX CAPEX+

Personnel

Energy

Materials

Others

Water

Sewage

Others

Sabesp 4 year Business Plan

+

Arsesp Review

RABt–RAB0

Amortization

Rate

Asset

Useful Life

WACC

Cost of Equity

Cost of Debt

Arsesp

Technical

Note

Productivity Factor(0.8885%)

New Average Tariff = 1

Inflation(IPCA)

100x Previous

Average Tariff

Quality

Factor*-

-+

*Not defined yet

METHODOLOGY OF TARIFF REVIEW (PRICE CAP)

ANNUAL TARIFF ADJUSTMENT FORMULA

11

TARIFF AJUSTMENTS AND REVISIONS

ORDINARY TARIFF REVISION (OTR) - 2º CYCLE FROM 2017 TO 2020

ADJUSTMENTS AND REVISIONS INDEXES

12

OTR- Ordinary Tariff Revision ETR- Extraordinary Tariff Revision

2013→ 3.15% on Apri 22 + 2.35% on Dec 11

2015 Adjustment + Residual + ETR = 15.24%

IPCA up to Dec 2018

(1) Regulatory Asset Base(2) Tariff Repositioning Index

ARSESP’s responds to the requests filed by Sabesp:

• Reconsideration request Not accepted• Clarification and revision request Partially accepted

Initial Phase - Oct/2017 Final Phase- May/2018

Preliminary Final Preliminary Final

RAB(1) (R$ Billion) 40.3 40.3 38.4 39

WACC (%) 8.01 8.11 8.11 8.11

Current Average Tariff (R$/m³) 3.47484 3.37255 3.6466 3.6425

X Factor(%) - - 0.9287 0.8885

P0 (R$/m³) 3.62652 3.63861 3.8207 3.7702

TRI(2) (%) 4.365 7.8888 4.7744 3.507

Add 954 thousand new connections by 2023

Add 1.2 million new connections by 2023 Coverage: 93% in 2023 Treatment: 84% in 2023

WATER AND SEWAGE OPERATIONS

WATER CONNECTION EVOLUTION (million) WATER COVERAGE (Connection in 000’s)

SEWAGE CONNECTION EVOLUTION (million) SEWAGE COVERAGE (´000s)

13

Metropolitan Water Program

Tietê Project

Corporate Program for Water Loss Reduction

Clean Stream Program

Clean Wave Program

INVESTMENT AND FINANCING

INVESTMENT PLAN OF R$ 18.7 BILLION FROM 2019 TO 2023

FINANCING MAIN PROGRAMS

(*) Book Value – Includes non-cash items(**) Book Value – Items that affected cash

- Additional information is presented in

Note 33 of the 2018 Financial Information

14

Financial Values (in R$ million)

4,177*

2,126**

AGENDA

1 COMPANY OVERVIEW

2 OUR OPERATIONS

3 OUR FINANCIAL PERFORMANCE

4 SPMR – WATER SITUATION

LONG TERM AND LOW COST FUNDING

TOTAL DEBT BREAKDOWN TOTAL DEBT BY CURRENCY

DEBT AMORTIZATION PROFILE (R$ million)

16

2013 2014 2015 2016 2017 2018

Dividends declared (R$) 0.8 0.4 0.2 1.2 1.0 1.2

Pay Out % 27.9 27.9 27.9 27.9 27.9 27.9

Outstanding Shares (million)

683.5 683.5 683.5 683.5 683.5 683.5

CONSISTENT PERFORMANCES

NET REVENUE (R$ million) NET INCOME (R$ million)

ADJUSTED EBITDA (R$ million) DIVIDENDS / PAY OUT

Adjusted EBITDA – Last 12 months Adjusted EBTIDA Margin – Last 12 months Adjusted EBITDA Margin Without Construction – Last 12 months 17

HISTORICAL LEVERAGE (R$ million)

Covenant: 3.65 Covenant: 2.35

Covenant: 3.50

ADJUSTED TOTAL DEBT VS. ADJUSTED EBITDA* ADJUSTED EBITDA* VS. FINANCIAL EXPENSES**

NET DEBT VS. ADJUSTED EBITDA* NET DEBT VS. EQUITY

Adjusted Total Debt = Total Debt - Interest

* Adjusted EBITDA – LTM ** Financial Explosures paid - LTM Calculated in accordance with CPCs/IFRS18

19

COVENANT – ADJUSTED NET DEBT vs. EBITDA

COVENANT – ADJUSTED TOTAL DEBT vs. EBITDA

20

FINANCIAL HIGHLIGHTS (R$ million)

21

* In accordance with CPCs / IFRS, which includes Construction Costs.

** R$ / 000 shares

2002 2003 2004 2005 2006 2007 2008* 2009* 2010* 2011* 2012* 2013* 2014* 2015* 2016* 2017* 2018*

Gross Revenues w/ construction 3,962 4,308 4,642 5,356 5,984 6,448 6,839 9,085 9,787 10,530 11,391 11,985 11,823 12,284 14,855 15,375 17,056

Net Revenues 3,767 4,131 4,397 4,953 5,527 5,971 7,809 8,580 9,231 9,927 10,738 11,316 11,213 11,712 14,098 14,608 16,085

Adjusted EBITDA 1,860 2,076 1,927 2,286 2,446 2,699 2,865 2,727 3,222 3,371 3,605 4,007 2,919 3,974 4,572 5,269 6,541

Adjusted EBITDA Margin 49.4 50.3 43.8 46.1 44.3 45.2 36.7 31.8 34.9 34.0 33.6 35.4 26.0 33.9 32.4 36.1 40.7

Adjusted EBITDA without

Construction Margin 46.3 41.2 44.7 43.2 43.0 44.6 34.4 46.6 43.3 45.4 48.8

Net Income (651) 833 513 866 789 1,055 863 1,508 1,630 1,381 1,912 1,924 903 536 2,947 2,519 2,835

Net Margin (%) 20.2 11.7 17.5 14.3 17.7 11.0 17.6 17.7 13.9 17.8 17.0 8.1 4.6 20.9 17.2 17.6

Total Assets 16,332 16,590 16,784 17,431 18,000 18,660 17,206 20,243 23,293 25,019 26,476 28,274 30,355 33,707 36,745 39,546 43,565

Total Debt 7,878 7,264 7,051 6,664 6,327 5,685 6,865 6,560 8,209 8,423 8,875 9,450 10,786 13,122 11,964 12,101 13,153

Short-term Debt 1,132 997 1,497 759 853 742 1,449 1,010 1,240 1,629 1,343 641 1,207 1,526 1,247 1,747 2,104

Long-Term Debt 6,593 6,267 5,554 5,905 5,474 4,943 5,416 5,548 6,970 6,794 7,533 8,809 9,579 11,595 10,718 10,354 11,049

Foreign Currency Debt 3,708 3,013 2,681 1,576 1,472 1,242 2,281 1,746 2,249 3,053 3,216 3,699 4,346 6,618 5,660 5,673 6,669

Shareholders' Equity 4,217 7,577 7,952 8,483 9,019 9,781 6,758 8,439 9,682 10,546 11,257 12,931 13,304 13,717 15,419 17,513 19,552

Total Debt/Total Cap. (%) 65.1 48.9 47.0 44.0 41.2 36.8 50.4 43.7 45.9 44.4 44 42 45 48.9 43.7 40.9 40.2

Investments 619 594 601 678 905 921 1,734 2,059 2,194 2,440 2,536 2,716 3,211 3,482 3,878 3,388 4,177

Dividend Declared (R$/ share) - 17.7** 5.4** 12.2** 9.5** 1.3 1.3 1.7 2.0 2.5 2.3 0.8 0.4 0.2 1.2 1.0 1.2

Pay Out (%) - 60.5 29.8 40.2 34.7 28.5 34.3 26.1 28.0 47.3 27.9 27.9 27.9 27.9 27.9 27.9 27.9

Dividend Yield (%) - 10.8 3.4 7.8 3.2 3.2 4.7 5.0 4.7 4.9 2.7 3.0 2.2 1.2 4.2 3.0 3.8

Outstanding shares (mill ion) 28.5 28.5 28.5 28.5 28.5 227.8 227.8 227.8 227.8 227.8 227.8 683.5 683.5 683.5 683.5 683.5 683.5

AGENDA

1 COMPANY OVERVIEW

2 OUR OPERATIONS

3 OUR FINANCIAL PERFORMANCE

4 SPMR – WATER SITUATION

Guarapiranga Alto Tietê

SPMR – WATER SITUATION

Cantareira

Long Term Average – Sep/17 to Oct/18

RAINFALL IN THE MAIN WATER PRODUCTION SYSTEMS (mm)

23

AVERAGE PRODUCTION (m³/s)VOLUME STORAGE (%)

Until March 26, 2019

76%

101%

58%

105%

47%

91%

26% 17% 32% 24%

213%61%

149%

82%

82%

85%116%

93%

0

50

100

150

200

250

300

LTA

2017/2018

2018/2019

88%

111%

53%

80%

26%

120%

92%

34%45%27%81%51%

149%

82%

82%

94%

177%213%

0

50

100

150

200

250

300

350

400

LTA

2017/2018

2018/2019

87%

139%

49%

79%

28%

80%

70%

18% 31% 27%120%50%

122%

71%62%

86%

188%

133%

0

50

100

150

200

250

300

350

400

LTA

2017/2018

2018/2019

SPMR – WATER SITUATION

WATER SUPPLY SYSTEM STRONGER THAN BEFORE THE WATER CRISIS OF 2014/2015

RESERVOIRS 2013 2018 Var. %

Reservoirs (water right) (m³/s) 70.4 80.3 14%

Maximum storage capacity (hm³)(without the technical reserve)

1,816 2,106 16%

Transfers between reservoirs (m³/s) 13.2 35.4 168%

PRODUCTION AND DISTRIBUTION 2013 2018 Var. %

Urban population in the area served (source: SEADE)(million inhabitants)

20.1 20.9 3.6%

730,000 inhab.

Total water treatment capacity (m³/s) 73.4 82.3 12%

Water production systems 8 9 -

Average monthly production (m³/s) 69.1 60.9 (13%)

Average residential consumption (m³/month) 13.0 10.8 (17%)

Treated water transfers between the systems (m³/s) Up to 3 Up to 12 300%

IPDT (water loss per connection per day) in the SPMR 434 322 (26%) 24

WATER PLAN FOR SPMR – FROM 2015 TO 2019 (MAIN ACTIONS)

25

DESCRIPTION

FLOW (m³/s)

PREV. PURPOSE STATUSAVAILABILITY/ SECURITY

INITIATIVES ACCOMPLISHED IN 2015Reversal increase from Guaratuba River to the Ponte Nova reservoir by 0.5 m³/s

0.5 Jan-15• Recover the storage volume and ensure

Alto Tietê's water source

completed

Reversal from the Guaió River to the Taiaçupeba reservoir: 1 m³/s

1 May-15 completed

Increase of the ABV Water Treatment Station production from 15 to 16 m³/s

Jun-15• Transfer water from Guarapiranga to the

Cantareira area via the aqueduct systemcompleted

Interconnection between: Pequeno River → Grande River (Billings) → Taiaçupeba (Alto Tietê) 4 m³/s

4 Sep-15• Recover the storage volume and ensure

the Alto Tietê reservoir• Transfer water to Cantareira’s area

completed

1 m³/s transfer increase from Taquacetuba to Guarapiranga(from 4 to 5 m³/s)

1 Dec-15• Ensure Guarapiranga's water source• Transfer water to Cantareira’s area

completed

TOTAL 2015 6.5

INITIATIVES ACCOMPLISHED IN 2018

Jaguari → Atibainha Interconnection: 5.13 m³/s to the Cantareira system (security increase)

5.13 mar/18• Recover storage volume and ensure the

Cantareira System's water sourcecompleted

São Lourenço Production System: 6.4 m³/s 6.4 abr/18• Produce 6.4 m³/s for the Greater São

Paulo's western regioncompleted

TOTAL 2018 11.53

INITIATIVE PLANNED FOR 2019

Reversal from Itapanhaú River (Ribeirão Sertãozinho) to theBiritiba reservoir

2 2019• Recover the storage volume and assure

Alto Tietê's water sourceunder development

TOTAL 2019 2TOTAL 2015 – 2019 20.03

SPMR – WATER SITUATION

www.sabesp.com.br

IR Contacts

Mario Azevedo de Arruda Sampaio Angela Beatriz AiroldiHead of Capital Markets and IR Investor Relations Managermaasampaio@sabesp.com.br abairoldi@sabesp.com.br+55 (11) 3388-8664 +55 (11) 3388-8793