Conference Call
2013 Results
March/2014
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
Billed Volume
Total water and sewage billed volume, including wholesale (million m³)
2.8%
3,728.2
3,628.3
2.9%
3.5%
961.2
928.9
Sewage
2.6%
3.7%
407.7
393.1
Water
3.3%
1,579.1
1,534.5
535.8
553.5
4Q12
4Q13
2,093.8
2,149.1
2012
2013
Losses
Billed Water Volume
Produced Water Volume
786.0
774.0
25.7
752.0
762.0
553.5
535.8
759.0
534.7
25.5
25.3
532.5
528.5
4Q12
1Q13
2Q13
3Q13
4Q13
4Q12
1Q13
2Q13
3Q13
4Q13
4Q12
1Q13
2Q13
3
Financial Highligts (R$ million)
11,315.6
Net operating
revenue
10,737.6
Costs, adm, selling
and construction
expenses
8,182.5
7,864.6
Net income
4.0%
0,4%
4,006.6
Adjusted EBITDA
EBIT
5.4%
3,605.0
11.1%
3,135.5
2,866.5
9.4%
1,923.6
38,9%
0.6%
1,911.9
2013
2012
4
Costs and Expenses (R$ million)
Costs and expenses in 2012*: R$ 5,450.2
Costs and expenses in 2013*: R$ 5,788.0
3.4%
10.8%
1,739 1,927
(6.3%)
1,076 1,112 590
3.4%
18.0%
688 711
739 871
6.2%
*Not including construction costs
553
35.6%
(45.9%)
6.4%
241
182 193
10.7%
192
178
104
Payroll and
Benefits
Supplies
Treatment
supplies
Services
Electric power
2012
General
Expenses
2013
Depreciation
and
Amortization
Credit writeoffs
68 76
Tax expenses
% Net Revenue in 2012
16.2%
1.7%
% Net Revenue in 2013
17.0%
1.7%
1.7%
10.0%
5.5%
6.4%
6.9%
1.8%
0.6%
2.1%
9.8%
4.9%
6.3%
7.7%
0.9%
0.7%
5
Net Income – Main variations
578.0
(317.9)
35.4
(187.5)
(59.2)
1,911.9
2012
Net Income 2012
Net Operating Revenue
10,737.6
Costs and Expenses
(7,864.6)
Other Revenues and Expenses
(29.7)
Net Financial
(295.7)
Income tax and social contrib.
(635.7)
2013
11,315.6
(8,182.5)
5.7
(483.2)
(732.0)
Net Income 2013
Net Income
2012
N.O.R.
Costs and
Expenses
Other Rev.
and Expenses
1,923.6
Chg.
1,911.9
578.0
(317.9)
35.4
(187.5)
(96.3)
1,923.6
Net Financial
Income Tax
and Social
Contribution
Net Income
2013
6
Interconnected Metropolitan Water System
Water System
Capacity
Volume produced
Production m³/s
2013 m³/s
Cantareira
33.0
32.6
Guarapiranga
14.0
13.6
Alto Tietê
15.0
12.1
Rio Claro
4.0
4.8
Rio Grande
5.0
3.9
Alto Cotia
1.2
1.2
Baixo Cotia(a)
0.9
0.8
Ribeirão da Estiva (a)
0.1
0.1
Total
69.1
(a) has no reservoir
7
jan/03
mar/03
mai/03
jul/03
set/03
nov/03
jan/04
mar/04
mai/04
jul/04
set/04
nov/04
jan/05
mar/05
mai/05
jul/05
set/05
nov/05
jan/06
mar/06
mai/06
jul/06
set/06
nov/06
jan/07
mar/07
mai/07
jul/07
set/07
nov/07
jan/08
mar/08
mai/08
jul/08
set/08
nov/08
jan/09
mar/09
mai/09
jul/09
set/09
nov/09
jan/10
mar/10
mai/10
jul/10
set/10
nov/10
jan/11
mar/11
mai/11
jul/11
set/11
nov/11
jan/12
mar/12
mai/12
jul/12
set/12
nov/12
jan/13
mar/13
mai/13
jul/13
set/13
nov/13
jan/14
mar/14
Porcentagem do Volume Máximo (%)
Volumes – SP Metro Region Systems - 2003 to 2014
110,0
100,0
90,0
80,0
70,0
60,0
50,0
40,0
mar/14
37,8
30,0
20,0
10,0
mar/14
14,0
-
Cantareira
Guarapiranga
Rio Grande
Rio Claro
Alto Tietê
Cotia
8
Monthly volume – Cantareira System 2003 to 2014
9
Evolution of storage conditions in Cantareira System
Temperature average/monthly
30.0
25.0
ºC
20.0
15.0
10.0
5.0
fev-14
jan-14
dez-13
nov-13
out-13
set-13
ago-13
jul-13
jun-13
mai-13
abr-13
mar-13
jan-13
fev-13
0.0
CANTAREIRA SYSTEM
Monthly affluence (m³/s)
80.0
70.0
60.0
50.0
40.0
30.0
20.0
22.1
22.5
25.1
20.4
10.0
15.4
10.5
0.0
outubro
novembro dezembro
janeiro
fevereiro
Média Histórica
março
abril
maio
Mínima Histórica
junho
julho
agosto
setembro
2013/14
10
Measures and Actions
Bonus Program
 20% water bill savings = 30% discount on the water and sewage bill
Scope:
 Since February  consumers served by the Cantareira System
 As from April  all consumers served in the SPMR
 Duration: February to December
 37% of the population served by the Cantareira System already reached
the water savings goal
Utilization of the Technical Reserve of the Cantareira System
 Available volume equivalent to 20% of total storage capacity
 R$ 80 million investment
 Implementation up to June 2014
11
Investment in water
1995-2013 - R$ 9.3 Billion invested in water
 Increase of the availability of water/source 14.9 m³/s
 Increase in water production capacity  from 57.6 to 73.2 m³/s
 Increase in water reservoir volume  130,000 m³
 Building of 175 Km of mains and 11,000 Km distribution network
 Implemented approximately 1.8 million water connections
 Billed water loss reduction by more than 9%
Planned Water Capex
 Corporate Program for Reduction of Water Loss  Goal 18% in 2020, R$ 5.9 billion investment
between 2009-2020
 São Lourenço Production System  + 4.7m³/s water production in 2018, R$ 2.2 billion capex
12
Integration Jaguari – Atibainha
13
Capex (R$ million)
2013 Capex
Investment by segment
Water
Sewage
Total
Metropolitan Region
652.4
977.3
1,629.7
Regional Systems
451.3
635.0
1,086.3
1,103.7
1,612.3
2,716.0
Total
Capex Plan 2014-2018
2014
2015
2016
2017
2018
Total
815
825
814
750
724
3,928
1,169
1,259
1,227
1,371
1,278
6,304
Other
658
592
489
374
418
2,531
Total
2,642
2,676
2,529
2,496
2,420
12,763
Water
Sewage
14
www.sabesp.com.br
IR Contacs
Mario Azevedo de Arruda Sampaio
Head of Capital Markets and Investor Relations
maasampaio@sabesp.com.br
+55 (11) 3388-8664
Angela Beatriz Airoldi
Investor Relations Manager
abairoldi@sabesp.com.br
+55 (11) 3388-8793