March 2016
Jerson Kelman, CEO
Solving the problems of a
mega-city and addressing
universal access and the
financing of water utilities
BRAZIL
200 million inhabitants 8.5 million km2
27 states 5,600
municipalities
Sabesp
28 million people (3 million in slums)
373 municipalities
% GDP Brazil = 33%
VeoliaEnvironnement
Suez Environnement
Beijing EnterprisesWaterGp
Shanghai Industrial FCC (Aqualia)
RWE
5 th LARGEST
COMPANY
in the world in number
of clients
(Source: Pinsent Masons Water Yearbook/2012-2013)
Water & Sewage
70,800 km
Water pipes
8,2 million
Water connections
Water treatment 235
plants
Water delivered to
25 million people 48,000 km
Sewage pipes
6,7 million
Sewage connections
Sewage 524
treatment plants
Sewage collected from
22 million people 83% of
collected sewage is treated
50,3%
27,3%
22,4%
BM&FBOVESPA
Strong Corporate Governance
NYSE – Level III ADR
INVESTMENTS
US$ 600 MILLION/YEAR HALF FINANCED + PPPs
GOVERNAMENTAL SUBSIDIES?
NO
CROSS SUBSIDIES AMONG CONSUMERS?
YES
Long Term Low Cost Funding
Total debt by currency Total Debt Breakdown
Access to national and international
• Investment funding
• Capital Markets
Historical record: 84 years P(Q<q2014 = 0.004) Recurrence interval: 250 years
Average
How serious was the 2014 – 2015 drought ?
The Cantareira System serves, in normal conditions, almost half of the Sao Paulo
metropolitan population (20 million)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
(volume%)
January 2014 July 2014
January 2015
February
2016
Cantareira storage
Pump water out of the Cantareira
System from a water elevation bellow the intake of the
diversion
Reversal of Vila Guarani Pumping Station
15% of surcharge and
8% applies to Social Tariff/Consumption below 10m³ (no surcharge)
Discounts in the water bill for consumers that
save water & penalties for those that overuse
Properties receive water with lower pressure, but the network continued pressurized
PRESSURE REAGULATING
VALVES WATER DISTRIBUTION
NETWORK
PIPES WITH WATER
Pressure Reduction on Distribution Network
RESERVOIRS
Reduction from Initiatives:
(m³/s)
In comparison with February/14, as the last month with regular production, with iniciatives to offset the lower water withdrawal from the Cantareira System
6.6
3.4 7.7
0.8
█ Bonus Program
█ Water transferred between systems
█ Pressure Reduction/Losses
█ Reduction of transferred water to Guarulhos and São Caetano do Sul
12 17 22 27 32 37
Jan-14 Apr-14 Jul-14 Oct-14 Feb-15 May-15 Aug-15
Water Production Flow (m³/s)
FEB/14 to OCT/15
-18.5 m³/s
