SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT
TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For June, 2024
(Commission File No. 1-31317)
Companhia de Saneamento Básico
do Estado de São Paulo - SABESP
(Exact name of registrant as specified
in its charter)
Basic Sanitation Company of the State
of Sao Paulo - SABESP
(Translation of Registrant's name
into English)
Rua Costa Carvalho, 300
São
Paulo, S.P., 05429-900
Federative Republic of Brazil
(Address of Registrant's principal
executive offices)
Indicate by check mark whether the registrant
files or will file
annual reports under cover Form 20-F or Form 40-F.
Form 20-F ___X___ Form 40-F ______
Indicate by check mark if the registrant
is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1)__.
Indicate by check mark if the registrant
is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7)__.
Indicate by check mark whether the registrant
by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to
Rule 12g3-2(b) under
the Securities Exchange Act of 1934.
Yes ______ No ___X___
If "Yes" is marked, indicated below
the file number assigned to the
registrant in connection with Rule 12g3-2(b):
ITR - Quarterly
Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version
: 1
|
|
|
Table of Contents
Company Information
|
Capital Breakdown |
1 |
Parent Company’s Financial
Statements
|
Statement of Financial Position – Assets |
2 |
Statement of Financial Position – Liabilities |
3 |
Income Statement |
5 |
Statement of Comprehensive Income |
6 |
Statement of Cash Flows (Indirect Method) |
7 |
Statement of Changes in Equity
|
01/01/2024 to 03/31/2024 |
9 |
01/01/2023 to 03/31/2023 |
10 |
Value Added Statement |
11 |
Consolidated Financial Statements
|
Statement of Financial Position – Assets |
12 |
Statement of Financial Position – Liabilities |
13 |
Income Statement |
15 |
Statement of Comprehensive Income |
16 |
Statement of Cash Flows (Indirect Method) |
17 |
Statement of Changes in Equity
|
01/01/2024 to 03/31/2024 |
19 |
01/01/2023 to 03/31/2023 |
20 |
Value Added Statement |
21 |
Comments on the Company’s Performance |
22 |
Notes to the Quarterly Information |
32 |
Comments on the Company’s Projections |
95 |
Other Information Deemed as Relevant by the Company |
96 |
Reports and Statements
|
Unqualified Report on Special Review |
98 |
Executive Officers’ Statement on the Financial
Statements |
100 |
Executive Officers’ Statement on the Report of
Independent Registered Public Accounting Firm
|
101 |
ITR - Quarterly
Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version
: 1
|
|
|
Company Information / Capital Breakdown
Number
of Shares |
Current
Quarter |
(Unit) |
03/31/2024 |
Paid-up
Capital |
|
Common |
683,509,869 |
Preferred |
0 |
Total |
683,509,869 |
Treasury
Shares |
|
Common |
0 |
Preferred |
0 |
Total |
0 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Parent Company’s Financial Statements
/ Statement of Financial Position - Assets
(R$ thousand)
Code |
Description |
Current
Quarter |
Previous
Year |
|
|
03/31/2024 |
12/31/2023 |
1 |
Total
Assets |
64,971,897 |
61,397,861 |
1.01 |
Current
Assets |
10,611,503 |
7,779,332 |
1.01.01 |
Cash
and Cash Equivalents |
2,019,256 |
838,338 |
1.01.02 |
Financial
Investments |
4,169,871 |
2,425,921 |
1.01.02.03 |
Financial
Investments Valued at Amortized Cost |
4,169,871 |
2,425,921 |
1.01.03 |
Accounts
Receivable |
3,851,513 |
3,842,235 |
1.01.03.01 |
Trade
Receivables |
3,584,889 |
3,580,962 |
1.01.03.02 |
Other
Receivables |
266,624 |
261,273 |
1.01.03.02.01 |
Related-Party
Balances |
266,624 |
261,273 |
1.01.04 |
Inventories |
121,610 |
85,953 |
1.01.06 |
Recoverable
Taxes |
328,158 |
494,645 |
1.01.06.01 |
Current
Recoverable Taxes |
328,158 |
494,645 |
1.01.08 |
Other
Current Assets |
121,095 |
92,240 |
1.01.08.03 |
Other |
121,095 |
92,240 |
1.01.08.03.01 |
Restricted
Cash |
45,694 |
54,944 |
1.01.08.03.20 |
Other
Assets |
75,401 |
37,296 |
1.02 |
Noncurrent
Assets |
54,360,394 |
53,618,529 |
1.02.01 |
Long-Term
Assets |
9,346,121 |
9,070,160 |
1.02.01.04 |
Accounts
Receivable |
345,801 |
272,436 |
1.02.01.04.01 |
Trade
Receivables |
345,801 |
272,436 |
1.02.01.07 |
Deferred
Taxes |
115,285 |
98,076 |
1.02.01.07.01 |
Deferred
Income Tax and Social Contribution |
115,285 |
98,076 |
1.02.01.09 |
Receivables
from Related Parties |
932,308 |
935,272 |
1.02.01.09.03 |
Receivables
from Controlling Shareholders |
932,308 |
935,272 |
1.02.01.10 |
Other
Noncurrent Assets |
7,952,727 |
7,764,376 |
1.02.01.10.04 |
Escrow
Deposits |
124,740 |
130,979 |
1.02.01.10.05 |
Water
and Basic Sanitation National Agency – ANA |
1,879 |
2,673 |
1.02.01.10.06 |
Contract
Asset |
7,582,365 |
7,393,096 |
1.02.01.10.20 |
Other
Assets |
243,743 |
237,628 |
1.02.02 |
Investments |
217,195 |
208,541 |
1.02.02.01 |
Equity
Interest |
170,529 |
161,863 |
1.02.02.01.03 |
Equity
Interest in Jointly-Owned Subsidiaries |
139,412 |
130,520 |
1.02.02.01.04 |
Other
Investments |
31,117 |
31,343 |
1.02.02.02 |
Investment
Properties |
46,666 |
46,678 |
1.02.03 |
Property,
Plant and Equipment |
484,312 |
474,559 |
1.02.04 |
Intangible
Assets |
44,312,766 |
43,865,269 |
1.02.04.01 |
Intangible
Assets |
44,312,766 |
43,865,269 |
1.02.04.01.01 |
Concession
Agreements |
1,109,187 |
1,143,877 |
1.02.04.01.02 |
Program
Contracts |
22,249,066 |
21,896,523 |
1.02.04.01.03 |
Service
Contracts |
20,239,064 |
20,193,585 |
1.02.04.01.04 |
Software
License of Use |
488,758 |
513,224 |
1.02.04.01.05 |
Right
of Use |
226,691 |
118,060 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Parent Company’s Financial Statements
/ Statement of Financial Position – Liabilities
(R$ thousand)
Code |
Description |
Current
Quarter |
Previous
Year |
|
|
03/31/2024 |
12/31/2023 |
2 |
Total
Liabilities |
64,971,897 |
61,397,861 |
2.01 |
Current
Liabilities |
8,580,531 |
8,331,681 |
2.01.01 |
Social
and Labor Obligations |
742,587 |
807,440 |
2.01.01.01 |
Social
Obligations |
34,469 |
65,413 |
2.01.01.02 |
Labor
Obligations |
708,118 |
742,027 |
2.01.02 |
Suppliers |
491,038 |
456,064 |
2.01.02.01 |
Domestic
Suppliers |
491,038 |
456,064 |
2.01.03 |
Tax
Obligations |
617,923 |
511,468 |
2.01.03.01 |
Federal
Tax Obligations |
612,525 |
499,340 |
2.01.03.01.01 |
Income
Tax and Social Contribution Payable |
388,734 |
205,587 |
2.01.03.01.02 |
Pis-Pasep
and Cofins Payable |
136,927 |
141,576 |
2.01.03.01.03 |
INSS
(Social Security Contribution) Payable |
42,136 |
44,556 |
2.01.03.01.20 |
Other
Federal Taxes |
44,728 |
107,621 |
2.01.03.03 |
Municipal
Tax Obligations |
5,398 |
12,128 |
2.01.04 |
Borrowings
and Financing |
2,716,361 |
2,616,406 |
2.01.04.01 |
Borrowings
and Financing |
1,294,586 |
1,291,129 |
2.01.04.01.01 |
In
Local Currency |
1,048,287 |
1,041,428 |
2.01.04.01.02 |
In Foreign
Currency |
246,299 |
249,701 |
2.01.04.02 |
Debentures |
1,215,311 |
1,206,894 |
2.01.04.03 |
Financing
through Lease |
206,464 |
118,383 |
2.01.05 |
Other
Obligations |
2,926,646 |
2,875,936 |
2.01.05.01 |
Payables
to Related Parties |
3,139 |
1,354 |
2.01.05.01.03 |
Payables
to Controlling Shareholders |
3,139 |
1,354 |
2.01.05.02 |
Other |
2,923,507 |
2,874,582 |
2.01.05.02.01 |
Dividends
and Interest on Capital Payable |
837,391 |
837,391 |
2.01.05.02.04 |
Services
Payable |
836,294 |
749,226 |
2.01.05.02.05 |
Refundable
Amounts |
28,312 |
28,522 |
2.01.05.02.06 |
Program
Contract Commitments |
20,896 |
21,969 |
2.01.05.02.07 |
Public-Private
Partnership - PPP |
435,671 |
487,926 |
2.01.05.02.09 |
Indemnities |
11,170 |
8,750 |
2.01.05.02.20 |
Other
Obligations |
753,773 |
740,798 |
2.01.06 |
Provisions |
1,085,976 |
1,064,367 |
2.01.06.01 |
Tax,
Social Security, Labor, and Civil Provisions |
708,296 |
685,822 |
2.01.06.01.01 |
Tax
Provisions |
37,712 |
36,793 |
2.01.06.01.02 |
Pension
Plan and Labor Provisions |
538,889 |
540,427 |
2.01.06.01.04 |
Civil
Provisions |
131,695 |
108,602 |
2.01.06.02 |
Other
Provisions |
377,680 |
378,545 |
2.01.06.02.03 |
Provisions
for Environmental Liabilities and Decommissioning |
22,718 |
20,561 |
2.01.06.02.04 |
Provisions
for Customers |
158,667 |
160,883 |
2.01.06.02.05 |
Provisions
for Suppliers |
196,295 |
197,101 |
2.02 |
Noncurrent
Liabilities |
25,710,695 |
23,208,804 |
2.02.01 |
Borrowings
and Financing |
19,307,946 |
16,919,944 |
2.02.01.01 |
Borrowings
and Financing |
10,138,795 |
10,448,915 |
2.02.01.01.01 |
In Local
Currency |
7,754,002 |
7,952,725 |
2.02.01.01.02 |
In
Foreign Currency |
2,384,793 |
2,496,190 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Parent Company’s Financial Statements
/ Statement of Financial Position – Liabilities
(R$ thousand)
Code |
Description |
Current
Quarter |
Previous
Year |
|
|
03/31/2024 |
12/31/2023 |
2.02.01.02 |
Debentures |
8,811,528 |
6,137,902 |
2.02.01.03 |
Financing
through Lease |
357,623 |
333,127 |
2.02.02 |
Other
Obligations |
5,625,524 |
5,526,795 |
2.02.02.02 |
Other |
5,625,524 |
5,526,795 |
2.02.02.02.04 |
Pension
Plan Obligations |
2,131,230 |
2,142,871 |
2.02.02.02.05 |
Program
Contract Commitments |
12,139 |
12,047 |
2.02.02.02.06 |
Public-Private
Partnership - PPP |
2,787,032 |
2,798,688 |
2.02.02.02.07 |
Indemnities |
35,885 |
14,460 |
2.02.02.02.08 |
Labor
Obligations |
58,636 |
67,755 |
2.02.02.02.09 |
Deferred
Cofins/Pasep |
169,265 |
164,097 |
2.02.02.02.20 |
Other
Obligations |
431,337 |
326,877 |
2.02.04 |
Provisions |
777,225 |
762,065 |
2.02.04.01 |
Tax,
Social Security, Labor, and Civil Provisions |
236,379 |
235,430 |
2.02.04.01.01 |
Tax
Provisions |
57,926 |
46,754 |
2.02.04.01.02 |
Pension
Plan and Labor Provisions |
171,002 |
170,471 |
2.02.04.01.04 |
Civil
Provisions |
7,451 |
18,205 |
2.02.04.02 |
Other
Provisions |
540,846 |
526,635 |
2.02.04.02.03 |
Provisions
for Environmental Liabilities and Decommissioning |
488,006 |
472,124 |
2.02.04.02.04 |
Provisions
for Customers |
4,388 |
8,312 |
2.02.04.02.05 |
Provisions
for Suppliers |
48,452 |
46,199 |
2.03 |
Equity |
30,680,671 |
29,857,376 |
2.03.01 |
Paid-Up
Capital |
15,000,000 |
15,000,000 |
2.03.04 |
Profit
Reserves |
14,711,014 |
14,711,014 |
2.03.04.01 |
Legal
Reserve |
1,864,604 |
1,864,604 |
2.03.04.08 |
Additional
Dividend Proposed |
93,047 |
93,047 |
2.03.04.10 |
Reserve
for Investments |
12,753,363 |
12,753,363 |
2.03.05 |
Retained
Earnings/Accumulated Losses |
823,295 |
0 |
2.03.06 |
Equity
Valuation Adjustments |
146,362 |
146,362 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Parent Company’s Financial Statements
/ Income Statement
(R$ thousand)
Code |
Description |
YTD Current
Year |
YTD Previous
Year |
|
|
01/01/2024
to 03/31/2024 |
01/01/2023
to 03/31/2023 |
3.01 |
Revenue
from Sales and/or Services |
6,551,713 |
5,698,369 |
3.02 |
Cost
of Sales and/or Services |
-3,971,227 |
-3,653,723 |
3.02.01 |
Cost
of Sales and/or Services |
-2,664,855 |
-2,500,708 |
3.02.02 |
Construction
Costs |
-1,306,372 |
-1,153,015 |
3.03 |
Gross
Profit |
2,580,486 |
2,044,646 |
3.04 |
Operating
Expenses/Income |
-921,812 |
-652,173 |
3.04.01 |
Selling
Expenses |
-400,361 |
-388,462 |
3.04.01.01 |
Selling
Expenses |
-209,843 |
-225,657 |
3.04.01.02 |
Allowance
for Doubtful Accounts |
-190,518 |
-162,805 |
3.04.02 |
General
and Administrative Expenses |
-537,374 |
-284,679 |
3.04.04 |
Other
Operating Income |
10,291 |
20,352 |
3.04.04.01 |
Other
Operating Income |
11,361 |
23,045 |
3.04.04.02 |
Cofins
and Pasep |
-1,070 |
-2,693 |
3.04.05 |
Other
Operating Expenses |
-3,205 |
-5,718 |
3.04.06 |
Equity
results of investments |
8,837 |
6,334 |
3.05 |
Income
before Financial Result and Taxes |
1,658,674 |
1,392,473 |
3.06 |
Financial
Result |
-335,792 |
-259,528 |
3.06.01 |
Financial
Revenue |
249,973 |
219,119 |
3.06.01.01 |
Financial
Revenue |
261,587 |
230,108 |
3.06.01.02 |
Exchange
Variation Gains |
1 |
-201 |
3.06.01.03 |
Cofins
and Pasep |
-11,615 |
-10,788 |
3.06.02 |
Financial
Expenses |
-585,765 |
-478,647 |
3.06.02.01 |
Financial
Expenses |
-592,097 |
-562,471 |
3.06.02.02 |
Exchange
Variation Losses |
6,332 |
83,824 |
3.07 |
Profit
before Taxes on Income |
1,322,882 |
1,132,945 |
3.08 |
Income
Tax and Social Contribution |
-499,587 |
-385,733 |
3.08.01 |
Current |
-516,796 |
-383,488 |
3.08.02 |
Deferred |
17,209 |
-2,245 |
3.09 |
Net
Income from Continuing Operations |
823,295 |
747,212 |
3,11 |
Profit/Loss
for the Period |
823,295 |
747,212 |
3.99 |
Earnings
per Share - (Reais/Share) |
|
|
3.99.01 |
Basic
Earnings per Share |
|
|
3.99.01.01 |
Common
|
1.20451 |
1.0932 |
3.99.02 |
Diluted
Earnings per Share |
|
|
3.99.02.01 |
Common
|
1.20451 |
1.0932 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Parent Company’s Financial Statements
/ Statement of Comprehensive Income
(R$ thousand)
Code |
Description |
YTD Current
01/01/2024 to 03/31/2024 |
YTD Previous Year
01/01/2023 to 03/31/2023 |
4.01 |
Net Income for the Period |
823,295 |
747,212 |
4.03 |
Comprehensive Income for the Period |
823,295 |
747,212 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Parent Company’s Financial Statements /
Statement of Cash Flows – Indirect Method
(R$ thousand)
Code |
Description |
YTD Current
Year |
YTD Previous
Year |
|
|
01/01/2024
to 03/31/2024 |
01/01/2023
to 03/31/2023 |
6.01 |
Net
Cash from Operating Activities |
1,395,190 |
395,306 |
6.01.01 |
Cash
from Operations |
2,825,877 |
2,513,490 |
6.01.01.01 |
Profit
before Income Tax and Social Contribution |
1,322,882 |
1,132,945 |
6.01.01.02 |
Provision
and Inflation Adjustments on Provisions |
83,945 |
70,031 |
6.01.01.04 |
Finance
Charges from Customers |
-109,237 |
-95,653 |
6.01.01.05 |
Residual
Value of Property, Plant and Equipment, Intangible Assets, and Investment Properties Written-off |
918 |
3,515 |
6.01.01.06 |
Depreciation
and Amortization |
772,552 |
657,145 |
6.01.01.07 |
Interest
on Borrowings and Financing Payable |
344,775 |
316,805 |
6.01.01.08 |
Inflation
Adjustment and Exchange Gains (Losses) on Borrowings and Financing |
47,701 |
-13,316 |
6.01.01.09 |
Interest
and Inflation Adjustments on Liabilities |
5,271 |
6,915 |
6.01.01.10 |
Interest
and Inflation Adjustments on Assets |
-60,490 |
-28,976 |
6.01.01.11 |
Allowance
for Doubtful Accounts |
190,518 |
162,805 |
6.01.01.12 |
Provision
for Consent Decree (TAC) and Knowledge Retention Program (PRC) |
-107,796 |
-345 |
6.01.01.13 |
Equity
results of investments |
-8,837 |
-6,334 |
6.01.01.14 |
Interest
and Inflation Adjustment - PPP |
145,823 |
123,045 |
6.01.01.15 |
Other
Adjustments |
4,346 |
4,119 |
6.01.01.16 |
Transfer
to the São Paulo Municipal Government |
174,673 |
155,387 |
6.01.01.17 |
Construction
Margin on Intangible Assets Arising from Concession Agreements |
-30,046 |
-26,519 |
6.01.01.18 |
Pension
Plan Obligations |
48,879 |
51,921 |
6.01.02 |
Changes
in Assets and Liabilities |
-631,688 |
-1,460,999 |
6.01.02.01 |
Trade
Receivables |
-152,421 |
-183,680 |
6.01.02.02 |
Related-Party
Balances and Transactions |
6,591 |
10,172 |
6.01.02.03 |
Inventories |
-35,657 |
6,951 |
6.01.02.04 |
Taxes
Recoverable |
166,487 |
-23,531 |
6.01.02.05 |
Other
Assets |
-43,426 |
-33,323 |
6.01.02.06 |
Escrow
Deposits |
12,497 |
-742 |
6.01.02.08 |
Trade
Payables and Contractors |
-418,697 |
-414,033 |
6.01.02.09 |
Social
and Labor Obligations |
33,630 |
-2,630 |
6.01.02.10 |
Pension
Plan Obligations |
-60,520 |
-58,324 |
6.01.02.11 |
Taxes
and Contributions Payable |
-84,938 |
-225,360 |
6.01.02.12 |
Services
Payable |
-87,605 |
-274,097 |
6.01.02.13 |
Other
Obligations |
74,379 |
-232,389 |
6.01.02.14 |
Provisions |
-47,176 |
-31,604 |
6.01.02.15 |
Deferred
Cofins/Pasep |
5,168 |
1,591 |
6.01.03 |
Other |
-798,999 |
-657,185 |
6.01.03.01 |
Interest
Paid |
-473,596 |
-543,850 |
6.01.03.02 |
Income
Tax and Social Contribution Paid |
-325,403 |
-113,335 |
6.02 |
Net
Cash from Investing Activities |
-2,282,568 |
-583,553 |
6.02.01 |
Acquisition
of Contract Asset and Intangible Assets |
-571,059 |
-570,332 |
6.02.02 |
Acquisition
of Property, Plant and Equipment |
-15,911 |
-30,954 |
6.02.04 |
Restricted
Cash |
9,250 |
-10,827 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Parent Company’s Financial Statements /
Statement of Cash Flows – Indirect Method
(R$ thousand)
Code |
Description |
YTD Current
Year |
YTD Previous
Year |
|
|
01/01/2024
to 03/31/2024 |
01/01/2023
to 03/31/2023 |
6.02.07 |
Financial
Investments |
-1,704,848 |
28,560 |
6.03 |
Net
Cash from Financing Activities |
2,068,296 |
-842,788 |
6.03.01 |
Funding |
2,939,695 |
121,611 |
6.03.02 |
Amortization |
-660,026 |
-716,239 |
6.03.04 |
Public-Private
Partnership - PPP |
-209,734 |
-208,764 |
6.03.05 |
Program
Contract Commitments |
-1,639 |
-39,396 |
6.05 |
Increase
(Decrease) in Cash and Cash Equivalents |
1,180,918 |
-1,031,035 |
6.05.01 |
Opening
Balance of Cash and Cash Equivalents |
838,338 |
1,867,485 |
6.05.02 |
Closing
Balance of Cash and Cash Equivalents |
2,019,256 |
836,450 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Parent Company’s Financial Statements
/ Statement of Changes in Equity - 01/01/2024 to 03/31/2024
(R$ thousand)
Code |
Description |
Paid-up
Capital |
Capital
Reserves, Options Granted, and Treasury Shares |
Profit
Reserves |
Retained Earnings/Accumulated
Losses |
Other Comprehensive
Income |
Equity |
5.01 |
Opening
Balances |
15,000,000 |
0 |
14,711,014 |
0 |
146,362 |
29,857,376 |
5.02 |
Previous
Year Adjustments |
0 |
0 |
0 |
0 |
0 |
0 |
5.03 |
Adjusted
Opening Balances |
15,000,000 |
0 |
14,711,014 |
0 |
146,362 |
29,857,376 |
5.04 |
Capital
Transactions with Partners |
0 |
0 |
0 |
0 |
0 |
0 |
5.05 |
Total
Comprehensive Income |
0 |
0 |
0 |
823,295 |
0 |
823,295 |
5.05.01 |
Net
Income for the Period |
0 |
0 |
0 |
823,295 |
0 |
823,295 |
5.06 |
Internal
Changes in Equity |
0 |
0 |
0 |
0 |
0 |
0 |
5.07 |
Closing
Balances |
15,000,000 |
0 |
14,711,014 |
823,295 |
146,362 |
30,680,671 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Parent Company’s Financial Statements
/ Statement of Changes in Equity - 01/01/2023 to 03/31/2023
(R$ thousand)
Code |
Description |
Paid-up
Capital |
Capital
Reserves, Options Granted, and Treasury Shares |
Profit
Reserves |
Retained Earnings/Accumulated
Losses |
Other Comprehensive
Income |
Equity |
5.01 |
Opening
Balances |
15,000,000 |
0 |
12,155,890 |
0 |
177,643 |
27,333,533 |
5.02 |
Previous
Year Adjustments |
0 |
0 |
0 |
0 |
0 |
0 |
5.03 |
Adjusted
Opening Balances |
15,000,000 |
0 |
12,155,890 |
0 |
177,643 |
27,333,533 |
5.04 |
Capital
Transactions with Partners |
0 |
0 |
0 |
0 |
0 |
0 |
5.05 |
Total
Comprehensive Income |
0 |
0 |
0 |
747,212 |
0 |
747,212 |
5.05.01 |
Net
Income for the Period |
0 |
0 |
0 |
747,212 |
0 |
747,212 |
5.06 |
Internal
Changes in Equity |
0 |
0 |
0 |
0 |
0 |
0 |
5.07 |
Closing
Balances |
15,000,000 |
0 |
12,155,890 |
747,212 |
177,643 |
28,080,745 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Parent Company’s Financial Statements
/ Value Added Statement
(R$ thousand)
Code |
Description |
YTD Current
Year |
YTD Previous
Year |
|
|
01/01/2024
to 03/31/2024 |
01/01/2023
to 03/31/2023 |
7.01 |
Revenue |
6,809,835 |
5,949,048 |
7.01.01 |
Goods,
Products, and Services Sold |
5,652,574 |
4,909,274 |
7.01.02 |
Other
Revenue |
11,361 |
23,045 |
7.01.03 |
Revenue
from Construction of Own Assets |
1,336,418 |
1,179,534 |
7.01.04 |
Allowance
for/Reversal of Doubtful Accounts |
-190,518 |
-162,805 |
7.02 |
Inputs
Acquired from Third Parties |
-2,973,305 |
-2,502,821 |
7.02.01 |
Costs
of Goods, Products and Services Sold |
-2,426,307 |
-2,151,327 |
7.02.02 |
Materials,
Electricity, Outsourced Services, and Others |
-543,793 |
-345,776 |
7.02.04 |
Other |
-3,205 |
-5,718 |
7.03 |
Gross
Value Added |
3,836,530 |
3,446,227 |
7.04 |
Retentions |
-772,552 |
-657,145 |
7.04.01 |
Depreciation,
Amortization, and Depletion |
-772,552 |
-657,145 |
7.05 |
Net
Value Added Produced |
3,063,978 |
2,789,082 |
7.06 |
Value
Added Received in Transfer |
270,425 |
236,241 |
7.06.01 |
Equity
results of investments |
8,837 |
6,334 |
7.06.02 |
Financial
Revenue |
261,588 |
229,907 |
7.07 |
Total
Value Added to Distribute |
3,334,403 |
3,025,323 |
7.08 |
Distribution
of Value Added |
3,334,403 |
3,025,323 |
7.08.01 |
Personnel |
651,577 |
663,868 |
7.08.01.01 |
Direct
Compensation |
444,109 |
453,047 |
7.08.01.02 |
Benefits |
147,012 |
172,881 |
7.08.01.03 |
Government
Severance Indemnity Fund for Employees (FGTS) |
60,456 |
37,940 |
7.08.02 |
Taxes,
Fees, and Contributions |
1,115,677 |
959,120 |
7.08.02.01 |
Federal |
1,050,551 |
898,314 |
7.08.02.02 |
State |
48,203 |
43,235 |
7.08.02.03 |
Municipal |
16,923 |
17,571 |
7.08.03 |
Value
Distributed to Providers of Capital |
743,854 |
655,123 |
7.08.03.01 |
Interest |
740,160 |
646,449 |
7.08.03.02 |
Rentals |
3,694 |
8,674 |
7.08.04 |
Value
Distributed to Shareholders |
823,295 |
747,212 |
7.08.04.03 |
Retained
Earnings/Accumulated Losses for the Period |
823,295 |
747,212 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Consolidated Financial Statements / Statement
of Financial Position - Assets
(R$ thousand)
Code |
Description |
Current Quarter
03/31/2024 |
Previous Year
12/31/2023 |
1 |
Total
Assets |
65,045,746 |
61,470,957 |
1.01 |
Current
Assets |
10,619,695 |
7,783,450 |
1.01.01 |
Cash
and Cash Equivalents |
2,019,391 |
838,484 |
1.01.02 |
Financial
Investments |
4,172,591 |
2,426,752 |
1.01.02.01 |
Financial
Investments Assessed at Fair Value through Profit or Loss |
4,172,591 |
2,426,752 |
1.01.02.01.03 |
Financial
Investments Valued at Amortized Cost |
4,172,591 |
2,426,752 |
1.01.03 |
Accounts
Receivable |
3,857,094 |
3,845,567 |
1.01.03.01 |
Trade
Receivables |
3,590,432 |
3,584,287 |
1.01.03.02 |
Other
Receivables |
266,662 |
261,280 |
1.01.03.02.01 |
Related-Party
Balances |
266,662 |
261,280 |
1.01.04 |
Inventories |
122,166 |
86,008 |
1.01.06 |
Recoverable
Taxes |
328,173 |
494,647 |
1.01.06.01 |
Current
Recoverable Taxes |
328,173 |
494,647 |
1.01.06.01.01 |
Current
Recoverable Taxes |
328,173 |
494,647 |
1.01.08 |
Other
Current Assets |
120,280 |
91,992 |
1.01.08.03 |
Other |
120,280 |
91,992 |
1.01.08.03.01 |
Restricted
Cash |
45,694 |
54,944 |
1.01.08.03.02 |
Other
Assets |
74,586 |
37,048 |
1.02 |
Noncurrent
Assets |
54,426,051 |
53,687,507 |
1.02.01 |
Long-Term
Assets |
9,265,422 |
8,991,549 |
1.02.01.04 |
Accounts
Receivable |
345,801 |
272,436 |
1.02.01.04.01 |
Trade
Receivables |
345,801 |
272,436 |
1.02.01.07 |
Deferred
Taxes |
115,285 |
98,076 |
1.02.01.07.01 |
Deferred
Income Tax and Social Contribution |
115,285 |
98,076 |
1.02.01.09 |
Receivables
from Related Parties |
932,308 |
935,272 |
1.02.01.09.03 |
Receivables
from Controlling Shareholders |
932,308 |
935,272 |
1.02.01.10 |
Other
Noncurrent Assets |
7,872,028 |
7,685,765 |
1.02.01.10.04 |
Escrow
Deposits |
124,740 |
130,979 |
1.02.01.10.05 |
Water
and Basic Sanitation National Agency – ANA |
1,879 |
2,673 |
1.02.01.10.06 |
Contract
Asset |
7,582,725 |
7,393,096 |
1.02.01.10.20 |
Other
Assets |
162,684 |
159,017 |
1.02.02 |
Investments |
217,195 |
208,541 |
1.02.02.01 |
Equity
Interest |
170,529 |
161,863 |
1.02.02.01.04 |
Equity
Interest in Jointly-Owned Subsidiaries |
139,412 |
130,520 |
1.02.02.01.05 |
Other
Investments |
31,117 |
31,343 |
1.02.02.02 |
Investment
Properties |
46,666 |
46,678 |
1.02.03 |
Property,
Plant and Equipment |
484,312 |
474,559 |
1.02.04 |
Intangible
Assets |
44,459,122 |
44,012,858 |
1.02.04.01 |
Intangible
Assets |
44,459,122 |
44,012,858 |
1.02.04.01.01 |
Concession
Agreements |
1,255,543 |
1,291,466 |
1.02.04.01.02 |
Program
Contracts |
22,249,066 |
21,896,523 |
1.02.04.01.03 |
Service
Contracts |
20,239,064 |
20,193,585 |
1.02.04.01.04 |
Software
License of Use |
488,758 |
513,224 |
1.02.04.01.05 |
Right
of Use |
226,691 |
118,060 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Consolidated Financial Statements / Statement
of Financial Position - Liabilities
(R$ thousand)
Code |
Description |
Current
Quarter |
Previous
Year |
Conta |
|
03/31/2024 |
12/31/2023 |
2 |
Total
Liabilities |
65,045,746 |
61,470,957 |
2.01 |
Current
Liabilities |
8,657,501 |
8,407,842 |
2.01.01 |
Social
and Labor Obligations |
742,587 |
807,440 |
2.01.01.01 |
Social
Obligations |
34,469 |
65,413 |
2.01.01.02 |
Labor
Obligations |
708,118 |
742,027 |
2.01.02 |
Suppliers |
490,494 |
456,215 |
2.01.02.01 |
Domestic
Suppliers |
490,494 |
456,215 |
2.01.03 |
Tax
Obligations |
619,028 |
511,972 |
2.01.03.01 |
Federal
Tax Obligations |
613,630 |
499,844 |
2.01.03.01.01 |
Income
Tax and Social Contribution Payable |
389,712 |
205,964 |
2.01.03.01.02 |
Pis-Pasep
and Cofins Payable |
137,048 |
141,703 |
2.01.03.01.03 |
INSS
(Social Security Contribution) Payable |
42,142 |
44,556 |
2.01.03.01.20 |
Other
Federal Taxes |
44,728 |
107,621 |
2.01.03.03 |
Municipal
Tax Obligations |
5,398 |
12,128 |
2.01.04 |
Borrowings
and Financing |
2,716,361 |
2,616,406 |
2.01.04.01 |
Borrowings
and Financing |
1,294,586 |
1,291,129 |
2.01.04.01.01 |
In
Local Currency |
1,048,287 |
1,041,428 |
2.01.04.01.02 |
In Foreign
Currency |
246,299 |
249,701 |
2.01.04.02 |
Debentures |
1,215,311 |
1,206,894 |
2.01.04.03 |
Financing
through Lease |
206,464 |
118,383 |
2.01.05 |
Other
Obligations |
3,003,055 |
2,951,442 |
2.01.05.01 |
Payables
to Related Parties |
3,139 |
1,354 |
2.01.05.01.03 |
Payables
to Controlling Shareholders |
3,139 |
1,354 |
2.01.05.02 |
Other |
2,999,916 |
2,950,088 |
2.01.05.02.01 |
Dividends
and Interest on Capital Payable |
837,391 |
837,391 |
2.01.05.02.04 |
Services
Payable |
838,703 |
750,732 |
2.01.05.02.05 |
Refundable
Amounts |
28,312 |
28,522 |
2.01.05.02.06 |
Program
Contract Commitments |
20,896 |
21,969 |
2.01.05.02.07 |
Public-Private
Partnership - PPP |
435,671 |
487,926 |
2.01.05.02.09 |
Indemnities |
11,170 |
8,750 |
2.01.05.02.20 |
Other
Obligations |
827,773 |
814,798 |
2.01.06 |
Provisions |
1,085,976 |
1,064,367 |
2.01.06.01 |
Tax,
Social Security, Labor, and Civil Provisions |
708,296 |
685,822 |
2.01.06.01.01 |
Tax
Provisions |
37,712 |
36,793 |
2.01.06.01.02 |
Pension
Plan and Labor Provisions |
538,889 |
540,427 |
2.01.06.01.04 |
Civil
Provisions |
131,695 |
108,602 |
2.01.06.02 |
Other
Provisions |
377,680 |
378,545 |
2.01.06.02.03 |
Provisions
for Environmental Liabilities and Decommissioning |
22,718 |
20,561 |
2.01.06.02.04 |
Provisions
for Customers |
158,667 |
160,883 |
2.01.06.02.05 |
Provisions
for Suppliers |
196,295 |
197,101 |
2.02 |
Noncurrent
Liabilities |
25,707,574 |
23,205,739 |
2.02.01 |
Borrowings
and Financing |
19,307,946 |
16,919,944 |
2.02.01.01 |
Borrowings
and Financing |
10,138,795 |
10,448,915 |
2.02.01.01.01 |
In Local
Currency |
7,754,002 |
7,952,725 |
2.02.01.01.02 |
In
Foreign Currency |
2,384,793 |
2,496,190 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Consolidated Financial Statements / Statement
of Financial Position - Liabilities
(R$ thousand)
Code |
Description |
Current
Quarter |
Previous
Year |
Conta |
|
03/31/2024 |
12/31/2023 |
2.02.01.02 |
Debentures |
8,811,528 |
6,137,902 |
2.02.01.03 |
Financing
through Lease |
357,623 |
333,127 |
2.02.02 |
Other
Obligations |
5,622,403 |
5,523,730 |
2.02.02.02 |
Other |
5,622,403 |
5,523,730 |
2.02.02.02.04 |
Pension
Plan Obligations |
2,131,230 |
2,142,871 |
2.02.02.02.05 |
Program
Contract Commitments |
12,139 |
12,047 |
2.02.02.02.06 |
Public-Private
Partnership - PPP |
2,787,032 |
2,798,688 |
2.02.02.02.07 |
Indemnities |
35,885 |
14,460 |
2.02.02.02.08 |
Labor
Obligations |
58,636 |
67,755 |
2.02.02.02.09 |
Deferred
Cofins/Pasep |
169,265 |
164,097 |
2.02.02.02.20 |
Other
Obligations |
428,216 |
323,812 |
2.02.04 |
Provisions |
777,225 |
762,065 |
2.02.04.01 |
Tax,
Social Security, Labor, and Civil Provisions |
236,379 |
235,430 |
2.02.04.01.01 |
Tax
Provisions |
57,926 |
46,754 |
2.02.04.01.02 |
Pension
Plan and Labor Provisions |
171,002 |
170,471 |
2.02.04.01.04 |
Civil
Provisions |
7,451 |
18,205 |
2.02.04.02 |
Other
Provisions |
540,846 |
526,635 |
2.02.04.02.03 |
Provisions
for Environmental Liabilities and Decommissioning |
488,006 |
472,124 |
2.02.04.02.04 |
Provisions
for Customers |
4,388 |
8,312 |
2.02.04.02.05 |
Provisions
for Suppliers |
48,452 |
46,199 |
2.03 |
Consolidated
Equity |
30,680,671 |
29,857,376 |
2.03.01 |
Paid-Up
Capital |
15,000,000 |
15,000,000 |
2.03.04 |
Profit
Reserves |
14,711,014 |
14,711,014 |
2.03.04.01 |
Legal
Reserve |
1,864,604 |
1,864,604 |
2.03.04.08 |
Additional
Dividend Proposed |
93,047 |
93,047 |
2.03.04.10 |
Reserve
for Investments |
12,753,363 |
12,753,363 |
2.03.05 |
Retained
Earnings/Accumulated Losses |
823,295 |
0 |
2.03.06 |
Equity
Valuation Adjustments |
146,362 |
146,362 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Consolidated Financial Statements / Income Statement
(R$ thousand)
Code |
Description |
YTD Current
Year |
YTD Previous
Year |
|
|
01/01/2024
to 03/31/2024 |
01/01/2023
to 03/31/2023 |
3.01 |
Revenue
from Sales and/or Services |
6,560,246 |
0 |
3.02 |
Cost
of Sales and/or Services |
-3,975,427 |
0 |
3.02.01 |
Cost
of Sales and/or Services |
-2,668,704 |
0 |
3.02.02 |
Construction
Costs |
-1,306,723 |
0 |
3.03 |
Gross
Profit |
2,584,819 |
0 |
3.04 |
Operating
Expenses/Income |
-922,764 |
0 |
3.04.01 |
Selling
Expenses |
-400,605 |
0 |
3.04.01.01 |
Selling
Expenses |
-210,087 |
0 |
3.04.01.02 |
Allowance
for Doubtful Accounts |
-190,518 |
0 |
3.04.02 |
General
and Administrative Expenses |
-538,138 |
0 |
3.04.04 |
Other
Operating Income |
10,291 |
0 |
3.04.04.01 |
Other
Operating Income |
11,361 |
0 |
3.04.04.02 |
Cofins
and Pasep |
-1,070 |
0 |
3.04.05 |
Other
Operating Expenses |
-3,205 |
0 |
3.04.06 |
Equity
results of investments |
8,893 |
0 |
3.05 |
Income
before Financial Result and Taxes |
1,662,055 |
0 |
3.06 |
Financial
Result |
-338,195 |
0 |
3.06.01 |
Financial
Revenue |
247,576 |
0 |
3.06.01.01 |
Financial
Revenue |
259,190 |
0 |
3.06.01.02 |
Exchange
Variation Gains |
1 |
0 |
3.06.01.03 |
Cofins
and Pasep |
-11,615 |
0 |
3.06.02 |
Financial
Expenses |
-585,771 |
0 |
3.06.02.01 |
Financial
Expenses |
-592,103 |
0 |
3.06.02.02 |
Exchange
Variation Losses |
6,332 |
0 |
3.07 |
Profit
before Taxes on Income |
1,323,860 |
0 |
3.08 |
Income
Tax and Social Contribution |
-500,565 |
0 |
3.08.01 |
Current |
-517,774 |
0 |
3.08.02 |
Deferred |
17,209 |
0 |
3.09 |
Net
Income from Continuing Operations |
823,295 |
0 |
3,11 |
Consolidated
Profit/Loss for the Period |
823,295 |
0 |
3.99 |
Earnings
per Share - (Reais/Share) |
|
|
3.99.01 |
Basic
Earnings per Share |
|
|
3.99.01.01 |
Common
|
1.20451 |
0 |
3.99.02 |
Diluted
Earnings per Share |
|
|
3.99.02.01 |
Common
|
1.20451 |
0 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Consolidated Financial Statements / Statement
of Comprehensive Income
(R$ thousand)
Code |
Description |
YTD Current
01/01/2024 to 03/31/2024 |
YTD Previous Year
01/01/2023 to 03/31/2023 |
4.01 |
Consolidated Net Income for the Period |
823,295 |
0 |
4.03 |
Consolidated Comprehensive Income for the Period |
823.295 |
0 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Consolidated Financial Statements / Statement
of Cash Flows – Indirect Method
(R$ thousand)
Code |
Description |
YTD Current
Year |
YTD Previous
Year |
|
|
01/01/2024
to 03/31/2024 |
01/01/2023
to 03/31/2023 |
6.01 |
Net
Cash from Operating Activities |
1,397,420 |
0 |
6.01.01 |
Cash
from Operations |
2,828,023 |
0 |
6.01.01.01 |
Profit
before Income Tax and Social Contribution |
1,323,860 |
0 |
6.01.01.02 |
Provision
and Inflation Adjustments on Provisions |
83,945 |
0 |
6.01.01.04 |
Finance
Charges from Customers |
-109,237 |
0 |
6.01.01.05 |
Residual
Value of Property, Plant and Equipment, Intangible Assets, and Investment Properties Written-off |
918 |
0 |
6.01.01.06 |
Depreciation
and Amortization |
773,785 |
0 |
6.01.01.07 |
Interest
on Borrowings and Financing Payable |
344,775 |
0 |
6.01.01.08 |
Inflation
Adjustment and Exchange Gains (Losses) on Borrowings and Financing |
47,701 |
0 |
6.01.01.09 |
Interest
and Inflation Adjustments on Liabilities |
5,271 |
0 |
6.01.01.10 |
Interest
and Inflation Adjustments on Assets |
-60,490 |
0 |
6.01.01.11 |
Allowance
for Doubtful Accounts |
190,518 |
0 |
6.01.01.12 |
Provision
for Consent Decree (TAC) and Knowledge Retention Program (PRC) |
-107,796 |
0 |
6.01.01.13 |
Equity
results of investments |
-8,893 |
0 |
6.01.01.14 |
Interest
and Inflation Adjustment - PPP |
145,823 |
0 |
6.01.01.15 |
Other
Adjustments |
4,346 |
0 |
6.01.01.16 |
Transfer
to the São Paulo Municipal Government |
174,673 |
0 |
6.01.01.17 |
Construction
Margin on Intangible Assets Arising from Concession Agreements |
-30,055 |
0 |
6.01.01.18 |
Pension
Plan Obligations |
48,879 |
0 |
6.01.02 |
Changes
in Assets and Liabilities |
-631,604 |
0 |
6.01.02.01 |
Trade
Receivables |
-154,632 |
0 |
6.01.02.02 |
Related-Party
Balances and Transactions |
6,553 |
0 |
6.01.02.03 |
Inventories |
-36,158 |
0 |
6.01.02.04 |
Taxes
Recoverable |
166,474 |
0 |
6.01.02.05 |
Other
Assets |
-41,024 |
0 |
6.01.02.06 |
Escrow
Deposits |
12,497 |
0 |
6.01.02.08 |
Trade
Payables and Contractors |
-419,392 |
0 |
6.01.02.09 |
Social
and Labor Obligations |
33,630 |
0 |
6.01.02.10 |
Pension
Plan Obligations |
-60,520 |
0 |
6.01.02.11 |
Taxes
and Contributions Payable |
-85,314 |
0 |
6.01.02.12 |
Services
Payable |
-86,703 |
0 |
6.01.02.13 |
Other
Obligations |
74,993 |
0 |
6.01.02.14 |
Provisions |
-47,176 |
0 |
6.01.02.15 |
Deferred
Cofins/Pasep |
5,168 |
0 |
6.01.03 |
Other |
-798,999 |
0 |
6.01.03.01 |
Interest
Paid |
-473,596 |
0 |
6.01.03.02 |
Income
Tax and Social Contribution Paid |
-325,403 |
0 |
6.02 |
Net
Cash from Investing Activities |
-2,284,809 |
0 |
6.02.01 |
Acquisition
of Contract Asset and Intangible Assets |
-571,410 |
0 |
6.02.02 |
Acquisition
of Property, Plant and Equipment |
-15,911 |
0 |
6.02.04 |
Restricted
Cash |
9,250 |
0 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Consolidated Financial Statements / Statement
of Cash Flows – Indirect Method
(R$ thousand)
Code |
Description |
YTD Current
Year |
YTD Previous
Year |
|
|
01/01/2024
to 03/31/2024 |
01/01/2023
to 03/31/2023 |
6.02.07 |
Financial
Investments |
-1,706,738 |
0 |
6.03 |
Net
Cash from Financing Activities |
2,068,296 |
0 |
6.03.01 |
Funding |
2,939,695 |
0 |
6.03.02 |
Amortization |
-660,026 |
0 |
6.03.04 |
Public-Private
Partnership - PPP |
-209,734 |
0 |
6.03.05 |
Program
Contract Commitments |
-1,639 |
0 |
6.05 |
Increase
(Decrease) in Cash and Cash Equivalents |
1,180,907 |
0 |
6.05.01 |
Opening
Balance of Cash and Cash Equivalents |
838,484 |
0 |
6.05.02 |
Closing
Balance of Cash and Cash Equivalents |
2,019,391 |
0 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Consolidated Financial Statements / Statement
of Changes in Equity - 01/01/2024 to 03/31/2024
(R$ thousand)
Code |
Description |
Paid-up
Capital |
Capital
Reserves, Options Granted, and Treasury Shares |
Profit
Reserves |
Retained Earnings/Accumulated
Losses |
Other Comprehensive
Income |
Equity |
Non-Controlling
Interests |
Equity
Consolidated |
5.01 |
Opening
Balances |
15,000,000 |
0 |
14,711,014 |
0 |
146,362 |
29,857,376 |
0 |
29,857,376 |
5.02 |
Previous
Year Adjustments |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.03 |
Adjusted
Opening Balances |
15,000,000 |
0 |
14,711,014 |
0 |
146,362 |
29,857,376 |
0 |
29,857,376 |
5.04 |
Capital
Transactions with Partners |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.05 |
Total
Comprehensive Income |
0 |
0 |
0 |
823,295 |
0 |
823,295 |
0 |
823,295 |
5.05.01 |
Net
Income for the Period |
0 |
0 |
0 |
823,295 |
0 |
823,295 |
0 |
823,295 |
5.06 |
Internal
Changes in Equity |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07 |
Closing
Balances |
15,000,000 |
0 |
14,711,014 |
823,295 |
146,362 |
30,680,671 |
0 |
30,680,671 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Consolidated Financial Statements / Statement
of Changes in Equity - 01/01/2023 to 03/31/2023
(R$ thousand)
Justification: There were no consolidated data in the
period.
Code |
Description |
Paid-up
Capital |
Capital
Reserves, Options Granted, and Treasury Shares |
Profit
Reserves |
Retained Earnings/Accumulated
Losses |
Other Comprehensive
Income |
Equity |
Non-Controlling
Interests |
Equity
Consolidated |
5.01 |
Opening
Balances |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.02 |
Previous
Year Adjustments |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.03 |
Adjusted
Opening Balances |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.04 |
Capital
Transactions with Partners |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.05 |
Total
Comprehensive Income |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.06 |
Internal
Changes in Equity |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
5.07 |
Closing
Balances |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Consolidated Financial Statements / Value Added
Statement
(R$ thousand)
Code |
Description |
YTD Current
Year |
YTD Previous
Year |
|
|
01/01/2024
to 03/31/2024 |
01/01/2023
to 03/31/2023 |
7.01 |
Revenue |
6,818,720 |
0 |
7.01.01 |
Goods,
Products, and Services Sold |
5,661,099 |
0 |
7.01.02 |
Other
Revenue |
11,361 |
0 |
7.01.03 |
Revenue
from Construction of Own Assets |
1,336,778 |
0 |
7.01.04 |
Allowance
for/Reversal of Doubtful Accounts |
-190,518 |
0 |
7.02 |
Inputs
Acquired from Third Parties |
-2,976,790 |
0 |
7.02.01 |
Costs
of Goods, Products and Services Sold |
-2,429,070 |
0 |
7.02.02 |
Materials,
Electricity, Outsourced Services, and Others |
-544,515 |
0 |
7.02.04 |
Other |
-3,205 |
0 |
7.03 |
Gross
Value Added |
3,841,930 |
0 |
7.04 |
Retentions |
-773,785 |
0 |
7.04.01 |
Depreciation,
Amortization, and Depletion |
-773,785 |
0 |
7.05 |
Net
Value Added Produced |
3,068,145 |
0 |
7.06 |
Value
Added Received in Transfer |
268,084 |
0 |
7.06.01 |
Equity
results of investments |
8,893 |
0 |
7.06.02 |
Financial
Revenue |
259,191 |
0 |
7.07 |
Total
Value Added to Distribute |
3,336,229 |
0 |
7.08 |
Distribution
of Value Added |
3,336,229 |
0 |
7.08.01 |
Personnel |
652,053 |
0 |
7.08.01.01 |
Direct
Compensation |
444,585 |
0 |
7.08.01.02 |
Benefits |
147,012 |
0 |
7.08.01.03 |
Government
Severance Indemnity Fund for Employees (FGTS) |
60,456 |
0 |
7.08.02 |
Taxes,
Fees, and Contributions |
1,117,022 |
0 |
7.08.02.01 |
Federal |
1,051,853 |
0 |
7.08.02.02 |
State |
48,230 |
0 |
7.08.02.03 |
Municipal |
16,939 |
0 |
7.08.03 |
Value
Distributed to Providers of Capital |
743,859 |
0 |
7.08.03.01 |
Interest |
740,165 |
0 |
7.08.03.02 |
Rentals |
3,694 |
0 |
7.08.04 |
Value
Distributed to Shareholders |
823,295 |
0 |
7.08.04.03 |
Retained
Earnings/Accumulated Losses for the Period |
823,295 |
0 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Comments on the Company’s Performance | |
| |
Highlights
Adjusted EBITDA totaled R$
2,428.8 million in 1Q24, up by R$ 393.8 million (+19.4%) over the R$ 2,035.0 million reported in 1Q23. Consequently, the adjusted EBITDA
margin reached 37.0% compared to 35.7% in 1Q23, and the adjusted EBITDA margin (excluding construction revenue) reached 46.5% compared
to the 45.0% reported in 1Q23.
Excluding the effects
of the agreement with AAPS (detailed below), adjusted EBITDA was R$ 2,591.2 million in 1Q24, with an adjusted EBITDA margin of 39.5%.
Net income came to R$ 823.3
million in 1Q24, up by R$ 76.1 million (+10.2%) over the R$ 747.2 million recorded in 1Q23.
Excluding the agreement with AAPS, net income totaled
R$ 985.7 million in 1Q24.
Revenue from sanitation services
Increase of R$ 751.8 million (+15.3%), impacted by (i)
a 9.6% tariff adjustment implemented since May 2023; and
(ii) a 5.3% increase in total billed volume.
|
|
|
Var. |
|
1Q24 |
1Q23 |
R$ |
% |
Revenue
from sanitation services |
5,661.1 |
4,909.3 |
751.8 |
15.3 |
Billed
volume (million m³) |
1,085.6 |
1,030.5 |
55.1 |
5.3 |
Average
tariff |
5.2 |
4.8 |
0.5 |
9.5 |
Impacts from the exchange variation
In 1Q24, the positive exchange
variation was smaller than that reported in 1Q23, due to the appreciation of the U.S. dollar in the current period compared to a depreciation
of the U.S. dollar and Yen in the previous period, as shown below:
|
1Q24 |
1Q23 |
Foreign
currency debt - R$ million |
2,631.1 |
2,634.0 |
Foreign
currency debt as a percentage of total debt |
12.0% |
14.0% |
U.S.
dollar variation in the quarter |
3.2% |
(2.6%) |
Yen
variation in the quarter |
(3.5%) |
(3.3%) |
In April 2024, the Company
executed derivative financial agreements with the financial institutions defined in the Financial Risk Policy to reduce the exposure
of the total balance in foreign currency of existing debts, totaling US$ 531 million, against fluctuations in the foreign exchange market
and mitigate the impacts of these fluctuations on the Company’s economic and financial results. The agreements are valid until
December 2024.
Agreement with AAPS
An agreement between SABESP
and AAPS (Sabesp’s Association of Retirees and Pensioners) regarding financial compensation for the migration of retirees, former
employees, pensioners, and dependents between health plans was approved in January 2024 to address the current and future deficits related
to beneficiaries who joined the migration, in addition to the withdrawal by AAPS of the lawsuit seeking the merger of active and inactive
asset masses into a single plan, which could have led to post-employment liabilities with an expected potential loss of R$303.9 million
on December 31, 2022.
The impact of the agreement
generated a non-current expense of R$ 162.4 million, recorded under general expenses in 1Q24. The payments will be made in 60 monthly
installments starting in March 2024.
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Comments on the Company’s Performance | |
| |
| 1. | Result
for the period (Consolidated) |
R$ million
|
|
|
Var. |
|
1Q24 |
1Q23 |
R$ |
% |
Revenue
from sanitation services |
5,661.1 |
4,909.3 |
751.8 |
15.3 |
COFINS
and PASEP/TRCF taxes |
(437.7) |
(390.4) |
(47.3) |
12.1 |
(=)
Revenue from sanitation services, net |
5,223.4 |
4,518.9 |
704.5 |
15.6 |
Construction
revenue |
1,336.8 |
1,179.5 |
157.3 |
13.3 |
(=)
Net operating income |
6,560.2 |
5,698.4 |
861.8 |
15.1 |
Construction
costs |
(1,306.7) |
(1,153.0) |
(153.7) |
13.3 |
Costs
and expenses |
(3,607.4) |
(3,173.8) |
(433.6) |
13.7 |
Other
operating income (expenses), net |
7.1 |
14.6 |
(7.5) |
(51.4) |
Equity
results of investments |
8.9 |
6.3 |
2.6 |
41.3 |
(=)
Earnings before financial result, income tax, and social contribution |
1,662.1 |
1,392.5 |
269.6 |
19.4 |
Financial
result |
(338.2) |
(259.5) |
(78.7) |
30.3 |
(=)
Earnings before income tax and social contribution |
1,323.9 |
1,133.0 |
190.9 |
16.8 |
Income
tax and social contribution |
(500.6) |
(385.8) |
(114.8) |
29.8 |
(=)
Net income |
823.3 |
747.2 |
76.1 |
10.2 |
Earnings
per share (R$)* |
1.20 |
1.09 |
|
|
* Number
of shares = 683,509,869
The net operating income,
which includes construction revenue, totaled R$ 6,560.2 million in 1Q24, an increase of 15.1% over 1Q23.
Excluding construction
costs and the provision for the agreement with AAPS, costs and expenses totaled R$ 3,445.0 million, an increase of R$ 271.2 million (+8.5%).
Considering the agreement, costs and expenses totaled R$ 3,607.4 million (+13.7%).
The Company recorded a net income
of R$ 823.3 million in 1Q24, compared to R$ 747.2 million in 1Q23.
Adjusted EBITDA Reconciliation (Non-accounting
measures)
R$ million
|
|
|
Var. |
|
1Q24 |
1Q23 |
R$ |
% |
Net
income |
823.3 |
747.2 |
76.1 |
10.2 |
(+)
Agreement with AAPS |
162.4 |
- |
162.4 |
- |
(=)
Adjusted Net Income |
985.7 |
747.2 |
238.5 |
31.9 |
Income
tax and social contribution |
500.6 |
385.8 |
114.8 |
29.8 |
Financial
result |
338.2 |
259.5 |
78.7 |
30.3 |
Other
operating income (expenses), net |
(7.1) |
(14.6) |
7.5 |
(51.4) |
Depreciation
and amortization |
773.8 |
657.1 |
116.7 |
17.8 |
(=)
Adjusted EBITDA (excluding the agreement with AAPS)** |
2,591.2 |
2,035.0 |
556.2 |
27.3 |
(%)
Adjusted EBITDA margin (excluding the agreement with AAPS) |
39.5 |
35.7 |
|
|
(%)
Adjusted EBITDA margin (excluding the agreement with AAPS) on Net Revenue, excluding Construction |
49.6 |
45.0 |
|
|
* Adjusted EBITDA corresponds to income before (i) other operating
income (expenses), net; (ii) financial result;
(iii) income tax and social contribution; (iv) depreciation
and amortization expenses; and (v) incentivized dismissal program.
Excluding the effects of the agreement with AAPS, adjusted
EBITDA was R$ 2,591.2 million in 1Q24.
Considering the agreement with AAPS and construction
revenue, adjusted EBITDA came to R$ 2,428.8 million in 1Q24, with an adjusted EBITDA margin of 37.0% (R$ 9,500.3 million and 35.9% in
the last 12 months).
Excluding the effects of the agreement with
AAPS and construction costs, the adjusted EBITDA margin reached 49.6% in 1Q24, compared to 45.0% in 1Q23.
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Comments on the Company’s Performance | |
| |
| 2. | Revenue
from sanitation services |
The gross operating income
from sanitation services, which excludes construction revenue, totaled R$ 5,661.1 million in 1Q24, an increase of R$ 751.8 million (+15.3%)
over the R$ 4,909.3 million recorded in 1Q23.
The main factors that led to the increase were:
●
Tariff adjustment of 9.6% since May 2023; and
●
An increase of 5.3% in the total billed volume.
Construction revenue increased by R$ 157.3 million (+13.3%),
due to higher investments made.
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Comments on the Company’s Performance | |
| |
The following tables show the water and sewage
billed volumes, on a quarter-over-quarter basis, per customer category.
WATER
AND SEWAGE BILLED VOLUME(1) PER CUSTOMER CATEGORY – million m3 |
|
Water |
Sewage |
Water
+ Sewage |
Category |
1Q24 |
1Q23 |
Var.
% |
1Q24 |
1Q23 |
Var.
% |
1Q24 |
1Q23 |
Var.
% |
Residential |
498.2 |
472.2 |
5.5 |
437.2 |
412.8 |
5.9 |
935.4 |
885.0 |
5.7 |
Commercial |
47.2 |
46.7 |
1.1 |
45.5 |
43.9 |
3.6 |
92.7 |
90.6 |
2.3 |
Industrial |
8.9 |
8.6 |
3.5 |
9.6 |
9.3 |
3.2 |
18.5 |
17.9 |
3.4 |
Public |
11.4 |
10.0 |
14.0 |
10.3 |
9.2 |
12.1 |
21.7 |
19.2 |
13.1 |
Total
retail |
565.7 |
537.5 |
5.2 |
502.6 |
475.2 |
5.8 |
1,068.3 |
1,012.7 |
5.5 |
Wholesale
(2) |
11.6 |
12.2 |
(4.9) |
5.7 |
5.6 |
1.8 |
17.3 |
17.8 |
(2.8) |
Overall
Total |
577.3 |
549.7 |
5.0 |
508.3 |
480.8 |
5.7 |
1,085.6 |
1,030.5 |
5.3 |
| 1 | Unaudited
by external auditors; |
| 2 | Wholesale
includes volumes of reuse water and non-domestic sewage. |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Comments on the Company’s Performance | |
| |
| 5. | Costs,
administrative & selling expenses |
Costs, administrative and selling expenses increased by
R$ 433.6 million in 1Q24 (+13.7%).
Costs, administrative and selling expenses as
a percentage of net revenue (excluding construction revenue) were 69.1% in 1Q24 compared to 70.2% in 1Q23.
Excluding the agreement with AAPS, costs and expenses
totaled R$ 3,445.0 million, an increase of R$ 271.2 million (+8.5%).
R$ million
|
|
|
Var. |
|
1Q24 |
1Q23 |
R$ |
% |
Salaries,
payroll charges and benefits, and Pension plan obligations |
708.4 |
744.2 |
(35.8) |
(4.8) |
General
supplies |
90.8 |
87.5 |
3.3 |
3.8 |
Treatment
supplies |
141.4 |
164.9 |
(23.5) |
(14.3) |
Services |
682.8 |
624.9 |
57.9 |
9.3 |
Electricity |
394.3 |
395.8 |
(1.5) |
(0.4) |
General expenses
Agreement with AAPS
Share of the municipal government in the collection
(São Paulo)
Share of the municipal government in the collection
(other municipalities) Other general expenses |
605.0
162.4
170.1
75.1
197.4 |
314.8
-
149.6
36.9
128.3 |
290.2
162.4
20.5
38.2
69.1 |
92.2
-
13.7
103.5
53.9 |
Tax
expenses |
20.4 |
21.8 |
(1.4) |
(6.4) |
Depreciation
and amortization |
773.8 |
657.1 |
116.7 |
17.8 |
Allowance
for doubtful accounts |
190.5 |
162.8 |
27.7 |
17.0 |
Costs,
administrative & selling expenses |
3,607.4 |
3,173.8 |
433.6 |
13.7 |
%
of net revenue (excluding construction revenue) |
69.1 |
70.2 |
|
|
Salaries, payroll charges
and benefits, and Pension plan obligations
In 1Q24, the R$ 35.8 million decrease (-4.8%) was mainly
due to the 10.9% reduction in the average number of employees, with an impact of R$ 64.4 million.
The aforementioned decrease was partially offset
by the 4.9% salary adjustment in May 2023 and the application of 2.0% referring to the Career and Salary Plan in February 2024.
Treatment supplies
Treatment supplies fell by
R$ 23.5 million (-14.3%) in 1Q24 compared to 1Q23. The decrease was mainly due to:
● | | Decrease in some
product prices, part of which was impacted by the international market, considering the new products; and |
● | | Greater water availability
that allowed the optimization of water source usage, resulting in reduced use of algaecides, coagulants, and disinfectants. The Company
manages the use of chemicals and the advancement or retreat of the Production Systems by using systems that provide the best cost-effectiveness. |
Services
Service expenses totaled R$ 682.8 million, an increase
of R$ 57.9 million (+9.3%) over the R$ 624.9 million recorded in 1Q23. The main increases were:
● | | R$ 47.9 million
for the maintenance of water and sewage networks, connections, and systems; and |
● | | R$ 10.6 million
with technical services. |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Comments on the Company’s Performance | |
| |
Electricity
Electricity expenses totaled
R$ 394.3 million in 1Q24, a decrease of R$ 1.5 million (0.4%) from the R$ 395.8 million recorded in 1Q23. Of the total, the Free Market
Tariffs (ACL) accounted for 51.0% of total expenses in 1Q24 (55.0% in 1Q23) while the Regulated Market Tariffs (ACR) accounted for 49.0%
(45.0% in 1Q23).
The main factors that contributed to this variation were:
● | | An average decrease
of 4.5% in ACL prices (including Grid Market Tariffs - TUSD), with a 5.0% decrease in consumption; and |
● | | An average increase
of 8.6% in ACR tariffs, with a decrease of 1.8% in consumption. |
General expenses
Increase of R$ 290.2 million (+92.2%), totaling R$ 605.0
million in 1Q24, compared to the R$ 314.8 million reported in 1Q23, mainly due to:
● | | Provision of R$
162.4 million in 1Q24, referring to the agreement with AAPS; |
● | | Increase of R$ 68.7
million in expenses with lawsuits; and |
● | | Higher provision
for transfer to the Municipal Funds for Environmental Sanitation and Infrastructure, of R$ 58.7 million. |
Expenses with municipal transfers totaled R$
245.2 million in 1Q24, compared to the R$ 186.5 million reported in 1Q23. Expenses with the use of water totaled R$ 25.0 million in 1Q24,
compared to the R$ 25.2 million reported in 1Q23.
R$ million
Municipal
Transfers |
Municipality |
2024 |
2023 |
Var. |
Var.
% |
Start |
SÃO
PAULO |
170.1 |
149.6 |
20.5 |
13.7 |
Jun/10 |
BARUERI |
10.7 |
- |
10.7 |
- |
May/23 |
GUARULHOS |
7.4 |
- |
7.4 |
- |
Dec/23 |
DIADEMA |
2.7 |
- |
2.7 |
- |
Jul/23 |
OTHER
MUNICIPALITIES |
54.3 |
36.9 |
17.4 |
47.2 |
|
TOTAL |
245.2 |
186.5 |
58.7 |
31.5 |
|
Depreciation and amortization
The R$ 116.7 million increase (+17.8%) was due to the
beginning of operations of intangible assets, totaling R$ 7.2 billion.
Allowance for doubtful
accounts
Increase of R$ 27.7 million (+17.0%), moving up from R$
162.8 million in 1Q23 to R$ 190.5 million in 1Q24, in line with the increased reported in sanitation revenue.
Expenses with allowance for doubtful accounts as a percentage
of sanitation revenue moved up from 3.3% in 1Q23 to 3.4% in 1Q24.
| 6. | Other
net operating income (expenses) |
Negative variation of R$ 7.5 million, mainly due to
the non-recurring revenue from the sale of unusable materials in 1Q23, of R$ 6.1 million.
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| |
Comments on the Company’s Performance | |
| |
7.
Financial result |
|
|
|
R$ million |
|
|
|
Var. |
|
|
1Q24 |
1Q23 |
R$ |
% |
Financial
expenses, net of revenue |
(302.9) |
(257.2) |
(45.7) |
17.8 |
Monetary
and exchange variations, net |
(35.3) |
(2.3) |
(33.0) |
1,434.8 |
Financial
Result |
(338.2) |
(259.5) |
(78.7) |
30.3 |
|
R$
million |
|
Var. |
|
1Q24 |
1Q23 |
R$ |
% |
Financial expenses
Interest
and charges on domestic borrowings and financing |
(276.6) |
(273.1) |
(3.5) |
1.3 |
Interest
and charges on international borrowings and financing |
(28.7) |
(21.0) |
(7.7) |
36.7 |
Other
financial expenses |
(189.3) |
(122.1) |
(67.2) |
55.0 |
Total
financial expenses |
(494.6) |
(416.2) |
(78.4) |
18.8 |
Financial
revenue |
191.7 |
159.0 |
32.7 |
20.6 |
Financial
expenses, net of revenue |
(302.9) |
(257.2) |
(45.7) |
17.8 |
Financial expenses, net
of revenue
The main impacts resulted from:
| ● | Increase
of R$ 7.7 million in interest and charges on international borrowings and financing, mainly
due to new IDB fundraising; |
| ● | Increase
of R$ 67.2 million in other financial expenses, due to the R$ 60.1 million increase in interest
on PPP; and |
| ● | Increase
of R$ 32.7 million in financial revenues, mainly due to higher interest charged on overdue
bills in 1Q24. |
R$ million
Monetary and exchange variations on liabilities
Monetary
variations on borrowings and financing |
(54.0) |
(70.5) |
16.5 |
(23.4) |
Exchange
variations on borrowings and financing |
6.3 |
83.8 |
(77.5) |
(92.5) |
Other
monetary variations |
(43.5) |
(75.7) |
32.2 |
(42.5) |
Total
monetary and exchange variations on liabilities |
(91.2) |
(62.4) |
(28.8) |
46.2 |
Monetary
and exchange variations on assets |
55.9 |
60.1 |
(4.2) |
(7.0) |
Monetary
and exchange variations, net |
(35.3) |
(2.3) |
(33.0) |
1,434.8 |
Monetary
and exchange variations, net
The negative effect of net monetary
and exchange variations in 1Q24 was R$ 33.0 million, especially due to:
| ● | A
decrease of R$ 16.5 million in monetary variations on borrowings and financing, mainly because
of (i) a decrease in IPCA (from 2.09% in 1Q23 to 1.42% in 1Q24); and (ii) higher capitalization
of monetary variation on debentures in 1Q24, of R$ 5.5 million; |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Comments on the Company’s Performance | |
| |
| ● | A
reduction of R$ 77.5 million in exchange variation gains on borrowings and financing, due
to the appreciation of the U.S. dollar and depreciation of the Yen in 1Q24 (3.2% and -3.5%,
respectively), compared to the depreciation recorded in both currencies in 1Q23 (-2.6% and
-3.3%, respectively); and |
| ● | A
decrease of R$ 32.2 million in other monetary variations, mainly due to lower monetary variation
on Public-Private Partnership (PPPs) agreements in 1Q24, of R$ 34.2 million. |
| 8. | Income
tax and social contribution |
The R$ 114.8 million increase (+29.8%) in 1Q24 was mainly
due to the R$ 861.8 million increase in net operating income, mainly offset by:
●
R$ 433.6 million increase in costs and expenses; and
●
Negative variation of R$ 78.7 million in the financial
result.
Information
* |
1Q24 |
1Q23 |
% |
Water
Connections1 |
9,424 |
9,375 |
0.5 |
Sewage
Connections1 |
8,119 |
8,049 |
0.9 |
Population
Directly Served - Water2 |
28.1 |
28.1 |
0.0 |
Population
Directly Served - Sewage2 |
24.9 |
24.8 |
0.4 |
Number
of Employees |
10,672 |
12,211 |
(12.6) |
Volume
of water produced in the quarter 3 |
772 |
733 |
5.4 |
IPM
- Measured Water Loss (%) 3 |
29.2% |
29.5% |
(1.0) |
IPDt
(liters/connection x day) 3 |
260 |
255 |
2.0 |
1. | | Active connections in thousand units at the end of the period. |
2. | | In million inhabitants, at the end of the period. Does not include wholesale. |
* | | Unaudited by external auditors; |
Economic
variables at the close of the quarter * |
1Q24 |
1Q23 |
Amplified
Consumer Price Index 1 |
1.42 |
2.09 |
National
Consumer Price Index 1 |
1.58 |
1.88 |
Consumer
Price Index 1 |
1.18 |
1.46 |
DI
2 |
11.28 |
13.65 |
U.S.
dollar 3 |
4.9962 |
5.0804 |
Yen
3 |
0.03301 |
0.03827 |
1. | | Accrued in the quarter (%) |
2. | | Average quarterly rate (%) |
.3. | | Ptax sale rate on the last day |
* | | Unaudited by external auditors |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Comments on the Company’s Performance | |
| |
| 10. | Borrowings
and financing |
R$ thousand
DEBT
PROFILE |
2024 |
2025 |
2026 |
2027 |
2028 |
2029 |
2030
onwards |
TOTAL |
%
of total |
Local
currency |
|
|
|
|
|
|
|
|
|
Brazilian
Federal Savings Bank |
82,048 |
115,356 |
122,556 |
130,195 |
138,177 |
143,481 |
868,098 |
1,599,911 |
7 |
IDBs
- National |
139,754 |
260,899 |
330,209 |
315,069 |
420,959 |
385,919 |
1,971,918 |
3,824,727 |
17 |
IFC |
22,800 |
44,200 |
61,800 |
80,800 |
123,600 |
181,600 |
1,209,145 |
1,723,945 |
8 |
Debentures |
905,061 |
1,328,730 |
1,217,890 |
1,387,314 |
665,375 |
1,304,027 |
3,218,442 |
10,026,839 |
46 |
BNDES |
210,955 |
260,803 |
250,860 |
238,124 |
84,351 |
34,189 |
189,563 |
1,268,845 |
6 |
Other |
2,254 |
2,771 |
142 |
- |
- |
- |
- |
5,167 |
0 |
Leases
(Concession Agreements, Program Contracts, and Contract Asset) (1) |
78,403 |
42,199 |
19,538 |
19,538 |
19,538 |
19,012 |
114,209 |
312,437 |
1 |
Leases
(Others) (2) |
73,415 |
90,971 |
44,524 |
3,361 |
39,379 |
- |
- |
251,650 |
1 |
Interest
and Other Charges |
304,965 |
74,729 |
- |
- |
- |
- |
- |
379,694 |
2 |
Total
in local currency |
1,819,655 |
2,220,658 |
2,047,519 |
2,174,401 |
1,491,379 |
2,068,228 |
7,571,375 |
19,393,215 |
88 |
Foreign currency |
|
|
|
|
|
|
|
|
|
IDBs |
25,676 |
71,361 |
40,019 |
40,019 |
40,019 |
40,019 |
556,235 |
813,348 |
4 |
IBRDs |
15,188 |
30,375 |
30,375 |
30,375 |
30,375 |
41,525 |
329,045 |
507,258 |
2 |
JICAs |
75,585 |
141,639 |
141,639 |
141,639 |
141,639 |
141,526 |
503,886 |
1,287,553 |
6 |
Interest
and Other Charges |
19,741 |
3,192 |
- |
- |
- |
- |
- |
22,933 |
0 |
Total
in foreign currency |
136,190 |
246,567 |
212,033 |
212,033 |
212,033 |
223,070 |
1,389,166 |
2,631,092 |
12 |
|
|
|
|
|
|
|
|
|
|
OVERALL
TOTAL |
1,955,845 |
2,467,225 |
2,259,552 |
2,386,434 |
1,703,412 |
2,291,298 |
8,960,541 |
22,024,307 |
100 |
| 1 | Refers
to work contracts signed as Assets Lease; |
| 2 | Obligations related to leasing agreements, mainly vehicle leases. |
Covenants
The table below shows the most restrictive clauses in 1Q24:
Covenants |
Adjusted
EBITDA / Adjusted Financial Expenses |
Equal
to or higher than 2.80 |
EBITDA
/ Financial Expenses Paid |
Equal
to or higher than 2.35 |
Adjusted
Net Debt / Adjusted EBITDA |
Equal
to or lower than 3.80 |
Net
Debt / Adjusted EBITDA |
Equal
to or lower than 3.50 |
Other
Onerous Debt 1 / Adjusted EBITDA |
Equal
to or lower than 1.30 |
Adjusted
Current Ratio |
Higher
than 1.00 |
1 “Other Onerous Debts” correspond to the
sum of pension plan obligations and healthcare plan, installment payment of tax debts, and installment payment of debts with the electricity
supplier.
In 1Q24 and 1Q23, the Company met the requirements of its
borrowings and financing agreements.
Investments totaled R$ 1,420.3
million in 1Q24, presented as additions in the notes to the quarterly information under Contract Asset, Intangible Assets, and Property,
Plant and Equipment, of R$ 1,270.6 million, R$ 133.8 million, and R$ 15.9 million, respectively. Cash disbursed in the period referring
to investments, including from previous periods, totaled R$ 587.3 million.
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| |
Comments on the Company’s Performance | |
| |
The table below shows investments broken down by water
and sewage:
R$ million
Water |
Sewage |
Total |
Investments
made |
669.2 |
751.1 |
1,420.3 |
|
|
|
|
| 12. | Public-Private
Partnership - PPP |
The chart below shows expenses with Public-Private Partnerships
in 1Q24, compared to the figures reported in 1Q23:
R$ thousand
SÃO LOURENÇO PRODUCTION SYSTEM
General
supplies |
4,906.7 |
4,797.8 |
108.9 |
2.3 |
Services |
10,353.4 |
10,123.7 |
229.7 |
2.3 |
General
expenses |
1,355.9 |
1,325.8 |
30.1 |
2.3 |
Amortization |
4,078.0 |
4,055.6 |
22.4 |
0.6 |
Interest |
138,671.0 |
49,493.0 |
89,178.0 |
180.2 |
Monetary
adjustment |
- |
32,314.0 |
(32,314.0) |
(100.0) |
Total |
159,365.0 |
102,109.9 |
57,255.1 |
56.1 |
ALTO TIETÊ PRODUCTION SYSTEM
Services |
12,645.8 |
18,358.2 |
(5,712.4) |
(31.1) |
Amortization |
42,474.5 |
42,474.5 |
- |
- |
Interest |
(24,568.3) |
4,464.1 |
(29,032.4) |
(650.4) |
Monetary
adjustment |
261.9 |
2,168.9 |
(1,907.0) |
(87.9) |
Total |
30,813.9 |
67,465.7 |
(36,651.8) |
(54.3) |
Total
expenses with PPP |
190,178.9 |
169,575.6 |
20,603.3 |
12.1 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
Companhia de Saneamento Básico do Estado de São
Paulo (SABESP or Company) is a mixed-capital company headquartered in the municipality of São Paulo, at Rua Costa Carvalho, 300,
CEP 05429-900, controlled by the São Paulo State. The Company is engaged in the provision of basic and environmental sanitation
services in the São Paulo State, and supplies treated water and sewage services on a wholesale basis.
In addition to providing basic sanitation services in
the São Paulo State, SABESP may perform activities in other states and countries and can operate in drainage, urban cleaning,
solid waste handling and energy markets. SABESP aims to be a world reference in the provision of sanitation services, in a sustainable,
competitive, and innovative manner, with a focus on customers.
As of March 31, 2024, the Company operated water and
sewage services in 376 municipalities of the São Paulo State, including the Municipality of Olímpia, which started being
operated by the Company on December 11, 2023, of which 351 of these municipalities have already signed contracts, according to Law 11,445/2007.
Most of these municipalities’ operations are based on 30-year concession, program, and service contracts, except for the municipalities
of Guarulhos, Mauá, Santo André, São Bernardo do Campo, São João da Boa Vista, and Tejupá,
which have a 40-year term.
The table below shows a summary of the contractual situation
of the municipalities served:
|
Parent Company |
|
|
|
|
|
|
|
|
Municipalities that have already
signed contracts: |
351 |
351 |
351 |
Balance –
intangible and contract assets |
49,485,788 |
48,759,219 |
45,931,674 |
Percentage
of intangible and contract assets |
95.36% |
95.12% |
94.79% |
Revenue from sanitation services
(excluding construction revenue) |
5,384,173 |
20,510,427 |
4,678,421 |
Percentage of revenue from
sanitation services (excluding construction revenue) |
95.25% |
95.35% |
95.30% |
|
|
|
|
Municipalities with expired
contracts: |
1 |
1 |
1 |
Balance –
intangible and contract assets |
11,429 |
11,309 |
11,443 |
Percentage
of intangible and contract assets |
0.02% |
0.02% |
0.02% |
Revenue from sanitation services
(excluding construction revenue) |
4,361 |
17,559 |
3,822 |
Percentage of revenue from
sanitation services (excluding construction revenue) |
0.08% |
0.08% |
0.08% |
|
|
|
|
Municipalities with concession
agreements due by 2030: |
23 |
23 |
23 |
Balance –
intangible and contract assets |
1,045,481 |
1,051,209 |
1,064,090 |
Percentage
of intangible and contract assets |
2.02% |
2.05% |
2.20% |
Revenue from sanitation services
(excluding construction revenue) |
223,943 |
833,418 |
189,704 |
Percentage of revenue from
sanitation services (excluding construction revenue) |
3.96% |
3.87% |
3.86% |
Municipality of São
Paulo: |
|
|
|
Percentage of intangible and
contract assets |
43.20% |
43.40% |
43.21% |
Percentage of revenue from
sanitation services (excluding construction revenue) |
43.56% |
44.95% |
44.53% |
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Notes to the Quarterly Information
| |
| |
The Company's shares have been listed on the Novo Mercado
segment of B3 under ticker SBSP3 since April 2002 and on the New York Stock Exchange (NYSE) as Level III American Depositary Receipts
(“ADRs”), under ticker SBS, since May 2002.
Since 2008, the Company has been setting up partnerships
with other companies, which resulted in the following companies: Sesamm, Águas de Andradina, Saneaqua Mairinque, Aquapolo Ambiental,
Águas de Castilho, Attend Ambiental, Paulista Geradora de Energia, Cantareira SP Energia, FOXX URE-BA Ambiental, and Infranext
Soluções em Pavimentação. Although SABESP has no majority interest in the capital stock of these companies,
the shareholders’ agreements provide for the power of veto and casting votes on certain issues jointly with associates, indicating
the shared control in the management of these investees, except for Saneaqua Mairinque, which, as of August 2020, no longer has a shared
control.
| · | Privatization
and Proposal of New Concession Agreements |
As of September 18, 2023, the Board of the State Privatization
Program (CDPED) resolved to recommend that:
(i) the Investment Partnerships Secretariat
and the Environment, Infrastructure, and Logistics Secretariat take the necessary steps to submit the draft of the Company’s privatization
law to the Governor’s office; and
(ii) SABESP, under article 5, II combined
with article 7, paragraph 2 and paragraph 4 of Law 9,361/96, starts the procedure for the selection and hiring of coordinating banks
and other services required for the future public offering.
As of September 30, 2023, as provided for in paragraph
2 of article 14 of Federal Law 14,026/2020 (“New Legal Sanitation Framework”), the State of São Paulo send Official
Letters to the municipalities operated by the Company with proposals to change the conditions of the concession agreements in effect
(“Communication”).
The Communication highlights general aspects of the
proposal for a new concession agreement (“New Agreement”) aiming at replacing the existing agreements, under article 14 of
the New Legal Sanitation Framework, indicating that the following guidelines will be observed under the New Agreement to be executed
with these municipalities:
(a) the anticipation of achieving the universalization
goals established in the New Sanitation Framework for 2029, subject to any shorter deadlines contractually outlined;
(b) the extension of the concession agreement
for 2060;
(c) the obligation of SABESP to serve the
population residing in consolidated informal urban settlements and rural areas, covering the entire municipal territory; and
(d) the detailing of investments to be made
in each municipality.
As of December 11, 2023, State Law 17,853 was enacted.
It authorized the Executive Branch of the São Paulo State to promote privatization measures of Companhia de Saneamento Básico
do Estado de São Paulo – SABESP. Among other aspects, as provided for in article 2, the model adopted for the privatization
of SABESP must observe the following guidelines:
(i) compliance with the universalization goals
of water supply and sewage services in all municipalities of the State served by the Company, considering the inclusion of rural areas
and consolidated informal urban centers, under Federal Law 14,026, of July 15, 2020;
(ii) anticipation, to December 31, 2029, of
the achievement of the universalization goals, subject to any shorter deadlines contractually agreed upon;
(iii) tariff reduction, preferably considering
the most vulnerable population;
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Notes to the Quarterly Information
| |
| |
(iv) provision for the creation of an annual
control to monitor compliance with the goals, with indications of investment requirements for the next few years;
(v) provision of quality services, aiming
at improving the quality of treated water and reducing its loss;
(vi) guarantee, in the contractual instruments
resulting from the privatization, to the employees listed in SABESP’s permanent staff at the time of the publication of this law,
of stability, with the maintenance of their employment contract for 18 (eighteen) months from the date of effective completion of the
Company’s privatization process.
As of December 21, 2023, the Company concluded the selection
of financial institutions that will be the global coordinators of the financial institutions union responsible for structuring the Company’s
potential follow-on. The selected Global Coordinators are i) BTG Pactual; ii) Bank of America; iii) CITI; and iv) UBS - BB.
As of February 15, 2024, as reported by the Company
in a Material Fact, the São Paulo State opened a public consultation regarding the following documents:
(a) the draft of the Concession Agreement
to be executed between the Regional Unit of Drinking Water Supply and Sewage Services 1 ("URAE-1") Southeast and SABESP, with
the indication of the involvement of the São Paulo State Utility Services Regulatory Agency, along with the specific technical
exhibits of the Municipalities comprising URAE-1, in addition to other contractual exhibits;
(b) the draft of the charter of URAE-1’s
Decision-Making Board; and
(c) the draft of the Regional Sanitation Plan,
under article 17 of Federal Law 11,445, of 2007.
The aforementioned Public Consultation on the privatization
of SABESP was concluded on March 15, 2024, with a significant number of suggestions submitted by the public. A total of 976 contributions
were received through the Internet, in addition to 135 oral statements made at the eight public hearings held by the São Paulo
State on the matter.
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| |
Notes to the Quarterly Information
| |
| |
As informed by the Company in a Material Fact released
to its shareholders on April 30, 2024, the São Paulo State Government, through the Secretariat of Environment, Infrastructure,
and Logistics (SEMIL), together with the Investment Partnerships Secretariat (SPI), published the result of Public Consultation 01/2024/GS
regarding the documents made available within the scope of the Company's Privatization process.
In this context, the São Paulo São Paulo
State Government submitted the final versions of the following documents to the municipalities comprising URAE1-Southeast: (a) Draft
of the Concession Agreement between URAE 1 - Southeast and the Company and respective exhibits; (b) Draft of the Charter of URAE 1 -
Southeast’s Decision-Making Board; and (c) Draft of the Regional Basic Sanitation Plan under Article 17 of Federal Law 11,445/2007.
The next steps of the privatization process consist
of the approval and signing of said documents within the scope of URAE 1 - Southeast, followed by approval from the Board of the State
Privatization Program (CDPED) of the final conditions of the public offering.
Management expects that the funds raised with the improved
water security from the works carried out, the generation of operational cash, and credit lines available for investments, will be sufficient
to meet the Company’s commitments and not compromise the necessary investments.
Approvals
The quarterly information was approved by the Board
of Directors on May 09, 2024.
| 2 | Basis
of preparation and presentation of the quarterly information |
Presentation of the Quarterly Information
The quarterly information as of March 31, 2024, was
prepared based on the provisions of CPC 21 (R1) – Interim Financial Information and the international standard IAS 34 – Interim
Financial Reporting, issued by the International Accounting Standards Board (IASB), applicable to the preparation of the Quarterly Information
Form – ITR, and is fairly presented consistent with the rules issued by the Brazilian Securities and Exchange Commission (CVM).
Accordingly, this Quarterly Information takes into consideration the Official Letter CVM/SNC/SEP 003 of April 28, 2011, which allows
the entities to present selected notes to the financial statements in cases of redundant information already disclosed in the Annual
Financial Statements. Therefore, the quarterly information as of March 31, 2024, does not include all the notes and reporting required
by the standards for the annual financial statements, and accordingly, shall be read jointly with the Annual Financial Statements as
of December 31, 2023, prepared under the International Financial Reporting Standards – IFRS, issued by the International Accounting
Standards Board – IASB, and according to the accounting practices adopted in Brazil, which observe the pronouncements issued by
the Brazilian Accounting Pronouncements Committee - CPC. Therefore, in this quarterly information, the notes below were either not presented
or are not as detailed as and/or have the same references as those in the annual financial statements (according to numerical references):
| i. | Summary
of significant accounting policies (Note 3); |
| ii. | Changes
in accounting practices and disclosures (Note 4); |
| iii. | Risk
management – Financial instruments (Note 5.4); |
| iv. | Key
accounting estimates and judgments (Note 6); |
| v. | Related-party
balances and transactions (Note 11); |
| vi. | Investments
(Note 12); |
| vii. | Intangible
assets (Note 15); |
| viii. | Borrowings
and financing (Note 17); |
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| |
Notes to the Quarterly Information
| |
| |
| ix. | Deferred
taxes and contributions (Note 19); |
| xi. | Pension
plan obligations (Note 22); |
| xiii. | Insurance
(Note 27); |
All material information related to the quarterly information,
and this information alone, is being disclosed and corresponds to the information used by the Company’s Management in its administration.
The amounts disclosed in the Notes to the quarterly
information are in thousands of Brazilian reais, unless otherwise stated.
| 3 | Summary
of material information on accounting policies |
The significant accounting policy information used in
the preparation of the quarterly information as of March 31, 2024, are consistent with those used to prepare the Annual Financial Statements
for the year ended December 31, 2023, disclosed in Note 3 of such financial statements.
| 4.1 | Financial
Risk Management |
Financial risk factors
The Company's activities are affected by the Brazilian
economic scenario, making it exposed to market risk (exchange rate and interest rate), credit risk, and liquidity risk. Financial risk
management is focused on the unpredictability of financial markets and seeks to minimize potential adverse effects on financial performance.
The Company has not utilized derivative instruments
in any of the reported periods.
Foreign currency risk
Foreign currency exposure implies market risks associated
with currency fluctuations, since the Company has foreign currency-denominated liabilities, arising from long-term funding, in development
institutions, at more attractive interest rates, in U.S. dollars and Yen.
The management of currency exposure considers several
current and projected economic factors, besides market conditions.
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Notes to the Quarterly Information
| |
| |
This risk arises from the possibility that the Company
may incur losses due to exchange rate fluctuations that would impact liability balances of foreign currency-denominated borrowings and
financing and related financial expenses. The Company does not maintain hedge or swap contracts or any derivative financial instrument
to hedge against this risk.
Part of the financial debt, totaling R$ 2,671,887 as
of March 31, 2024 (R$ 2,785,853 as of December 31, 2023), is indexed to the U.S. dollar and Yen. The exposure to exchange risk is as
follows:
|
Parent
Company and Consolidated |
|
March 31,
2024 |
December
31, 2023 |
|
Foreign currency
(in thousands)
|
R$ |
Foreign currency
(in thousands)
|
R$ |
|
|
|
|
|
Borrowings
and financing – US$ |
272,009 |
1,359,011 |
280,188 |
1,356,474 |
Borrowings
and financing – Yen |
39,077,331 |
1,289,943 |
41,078,385 |
1,405,702 |
Interest
and charges from borrowings and financing – US$ |
|
20,264 |
|
15,510 |
Interest
and charges from borrowings and financing – Yen |
|
2,669 |
|
8,167 |
Total exposure |
|
2,671,887 |
|
2,785,853 |
Borrowing
cost – US$ |
|
(38,404) |
|
(37,520) |
Borrowing
cost – Yen |
|
(2,391) |
|
(2,442) |
Total foreign
currency-denominated borrowings (Note 16) |
|
2,631,092 |
|
2,745,891 |
The 4.2% decrease in the balance of the foreign currency-denominated
debt from March 31, 2024, compared to December 31, 2023, was mainly impacted by the depreciation of the Yen against the Brazilian real
and amortizations in the period. The table below shows the prices and exchange variations in the period:
|
March 31, 2024 |
December 31,
2023 |
Var. |
US$ |
R$ 4.9962 |
R$ 4.8413 |
3.2% |
Yen |
R$ 0.03301 |
R$ 0.03422 |
-3.5% |
Borrowings and financing fell by R$ 6,335 from
January to March 2024 (a decrease of R$ 83,825 from January to March 2023), due to exchange rate changes. See Note 16 (ii). As of
March 31, 2024, if the Brazilian real had depreciated or appreciated by 10 percentage points, in addition to the impacts already mentioned
above, against the US dollar and Yen with all other variables held constant, the effects on the result before funding costs and taxes
on the three-month period ended March 31, 2024 would have been R$ 267,189 (R$ 266,878 for the three-month period ended March 31, 2023),
lower or higher.
The probable scenario below presents the effect on the
income statements for the next 12 months, considering the projected rates of the U.S. dollar and the Yen.
The Company understands that the scenario presented
is reasonable, given the instability of the Brazilian real against the U.S. dollar and the Yen.
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
|
Parent Company
and Consolidated |
|
Probable scenario |
|
(*) |
Net currency
exposure as of March 31, 2024 in US$ - Liabilities |
272,009 |
|
|
US$ rate as of March 31, 2024 |
4.9962 |
Exchange rate estimated according
to the scenario |
4.9700 |
Difference between the rates |
0.0262 |
|
|
Effect on net financial result
R$ - (gain) |
7,127 |
|
|
Net currency exposure as
of March 31, 2024 in Yen - Liabilities |
39,077,331 |
|
|
Yen rate as of March 31, 2024 |
0.03301 |
Exchange rate estimated according
to the scenario |
0.03446 |
Difference between the rates |
(0.00145) |
|
|
Effect on the net financial
result R$ - (loss) |
(56,662) |
|
|
Total effect on the net financial
result in R$ - (loss) |
(49,535) |
|
|
(*)
For the probable scenario in U.S. dollars and Yen, the exchange rates estimated for March 31, 2025 were used, according to the Focus-BACEN
and B3’s Benchmark Rate report, of March 31, 2024, respectively. |
Interest rate risk
This risk arises from the possibility that the Company
could incur losses due to fluctuations in interest rates, increasing the financial expenses related to borrowings and financing.
The Company has not entered into any derivative contract
to hedge against this risk; however, it continually monitors market interest rates, to evaluate the possible need to replace its debt.
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| |
Notes to the Quarterly Information
| |
| |
The table below provides the borrowings and financing
subject to different inflation adjustment indices:
|
Parent
Company and Consolidated |
|
March 31,
2024 |
December
31, 2023 |
CDI
(i) |
12,672,245 |
9,966,111 |
TR
(ii) |
1,656,774 |
1,684,711 |
IPCA
(iii) |
2,927,406 |
3,038,378 |
TJLP
(iv) |
1,290,064 |
1,365,806 |
SOFR
(v) |
1,359,011 |
1,356,473 |
Interest
and charges |
399,957 |
392,906 |
Total
|
20,305,457 |
17,804,385 |
(i) CDI - (Certificado
de Depósito Interbancário), an interbank deposit certificate
(ii) TR –
Interest Benchmark Rate
(iii) IPCA
- (Índice Nacional de Preços ao Consumidor Amplo), a consumer price index
(iv) TJLP -
(Taxa de Juros a Longo Prazo), a long-term interest rate index
(v) SOFR -
Secured Overnight Financing Rate
Another risk to which the Company is exposed is the
mismatch of inflation adjustment indices of its debts with those of its service revenues. Tariff adjustments of services provided do
not necessarily follow the increases in the inflation indexes to adjust borrowings, financing and interest rates affecting indebtedness.
As of March 31, 2024, if interest rates on borrowings
and financing had been 1 percentage point higher or lower with all other variables held constant, the effects on profit before taxes
for the three-month period ended March 31, 2024 would have been R$ 203,055 (R$ 163,164 for the three-month period ended March 31, 2023),
lower or higher, mainly as a result of lower or higher interest expense on floating rate borrowings and financing.
Credit risk is related to cash and cash equivalents,
financial investments, as well as credit exposures of customers, including accounts receivable, restricted cash, and accounts receivable
from related parties. Credit risk exposure to customers is mitigated by sales to a dispersed base.
The maximum exposure to credit risk as of March 31,
2024 is the carrying amount of instruments classified as cash and cash equivalents, financial investments, restricted cash, trade receivables,
and accounts receivable from related parties on the balance sheet date. See Notes 6, 7, 8, 9, and 10.
Regarding the financial assets held with financial institutions,
the credit quality was assessed by reference to external credit ratings (if available) or historical information about the bank’s
default rates. For the credit quality of the banks, such as deposits and financial investments, the Company assesses the rating published
by three main international agencies (Fitch, Moody's and S&P), as follows:
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| |
Notes to the Quarterly Information
| |
| |
Banks |
Fitch |
Moody's |
Standard Poor's |
Banco do Brasil S/A |
AAA(bra) |
AAA.br |
- |
Banco Santander Brasil S/A |
- |
AAA.br |
brAAA |
Brazilian Federal Savings Bank |
AAA(bra) |
AAA.br |
brAAA |
Banco Bradesco S/A |
AAA(bra) |
AAA.br |
brAAA |
Banco Itaú Unibanco S/A |
AAA(bra) |
AAA.br |
- |
Banco BV |
- |
AA.br |
brAAA |
Banco BTG Pactual S/A |
AAA(bra) |
AAA.br |
brAAA |
The rating assessment disclosed by Fitch for deposit
transactions and financial investments in local currency is as follows:
|
Parent Company |
|
March 31, 2024 |
December 31,
2023 |
Cash and
cash equivalents and financial investments |
|
|
AAA(bra) |
5,857,583 |
2,939,713 |
Others
(*) |
331,544 |
324,546 |
|
6,189,127 |
3,264,259 |
|
Consolidated |
|
March 31, 2024 |
December 31,
2023 |
Cash and
cash equivalents and financial investments |
|
|
AAA(bra) |
5,859,198 |
2,940,690 |
Others
(*) |
332,784 |
324,546 |
|
6,191,982 |
3,265,236 |
(*) As of March 31, 2024, this category includes R$
329,381 (R$ 322,241 as of December 31, 2023) referring to Banco BV, current accounts, and financial investments, which are not rated
by Fitch.
Liquidity is primarily reliant upon cash provided by
operating activities and borrowings and financing obtained in the local and international capital markets, as well as the payment of
debts. The management of this risk considers the assessment of its liquidity requirements to ensure it has sufficient cash to meet its
operating and capital expenditure requirements.
The funds held are invested in interest-bearing current
accounts, time deposits, and securities, with instruments with appropriate maturity or liquidity sufficient to provide margin as determined
by the projections mentioned above.
The table below shows the financial liabilities, by
maturity, including the installments of principal and future interest. For agreements with floating interest rates, the interest rates
used correspond to the base date of March 31, 2024.
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| |
Notes to the Quarterly Information
| |
| |
|
Parent
Company |
|
2024 |
2025 |
2026 |
2027 |
2028 |
2029 onwards |
Total |
As of March 31, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Borrowings and financing |
3,051,567 |
3,773,001 |
3,368,294 |
3,278,126 |
2,418,568 |
13,595,562 |
29,485,118 |
Trade payables and contractors |
491,038 |
- |
- |
- |
- |
- |
491,038 |
Services payable |
836,294 |
- |
- |
- |
- |
- |
836,294 |
Public-Private Partnership -
PPP |
432,216 |
446,524 |
461,438 |
476,850 |
492,777 |
6,057,282 |
8,367,087 |
Program Contract Commitments |
20,310 |
1,232 |
1,232 |
1,232 |
1,232 |
11,702 |
36,940 |
Total |
4,831,425 |
4,220,757 |
3,830,964 |
3,756,208 |
2,912,577 |
19,664,546 |
39,216,477 |
|
Consolidated |
|
2024 |
2025 |
2026 |
2027 |
2028 |
2029
onwards |
Total |
As of March 31, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Borrowings and financing |
3,051,567 |
3,773,001 |
3,368,294 |
3,278,126 |
2,418,568 |
13,595,562 |
29,485,118 |
Trade payables and contractors |
490,494 |
- |
- |
- |
- |
- |
490,494 |
Services payable |
838,703 |
- |
- |
- |
- |
- |
838,703 |
Public-Private Partnership -
PPP |
432,216 |
446,524 |
461,438 |
476,850 |
492,777 |
6,057,282 |
8,367,087 |
Program Contract Commitments |
20,310 |
1,232 |
1,232 |
1,232 |
1,232 |
11,702 |
36,940 |
Total |
4,833,290 |
4,220,757 |
3,830,964 |
3,756,208 |
2,912,577 |
19,664,546 |
39,218,342 |
Cross default
The Company has borrowings and financing agreements
including cross-default clauses, i.e., the early maturity of any debt may imply the early maturity of these agreements. The indicators
are continuously monitored to avoid the execution of these clauses, and the most restrictive ones are shown in Note 16 (c).
| (d) | Sensitivity
analysis on interest rate risk |
The table below shows the sensitivity analysis of the
financial instruments, prepared under CPC 40 (R1). To evidence the balances of main financial assets and liabilities, calculated at a
rate projected for the twelve-month period after March 31, 2024, or until the final settlement of each contract, whichever occurs first,
considering a probable scenario.
The purpose of the sensitivity analysis is to measure
the impact of changes in the market on the financial instruments, considering constant all other variables. At the time of settlement,
the amounts may be different from those presented, due to the estimates used in the measurement.
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| |
Notes to the Quarterly Information
| |
| |
Parent
Company and Consolidated |
March 31,
2024 |
Indicators |
Exposure |
Probable
scenario |
|
|
|
Assets |
|
|
CDI |
6,162,220 |
9.8500%(**) |
Financial
income |
|
606,979 |
|
|
|
Liabilities |
|
|
CDI
|
(12,672,245) |
9.8500%(**) |
Interest
to be incurred |
|
(1,248,216) |
|
|
|
CDI
net exposure |
(6,510,025) |
(641,237) |
|
|
|
Liabilities |
|
|
TR |
(1,656,774) |
0.0048%(**) |
Expenses
to be incurred |
|
(80) |
|
|
|
IPCA |
(2,927,406) |
3.4600%(*) |
Expenses
to be incurred |
|
(101,288) |
|
|
|
TJLP |
(1,290,064) |
6.3800%(*) |
Interest
to be incurred |
|
(82,306) |
|
|
|
SOFR
(***) |
(1,359,011) |
5.0397%(***) |
Interest
to be incurred |
|
(68,490) |
|
|
|
Total
expenses to be incurred, net |
|
(893,401) |
|
|
|
(*) Source:
BACEN and LCA as of March 31, 2024 |
(**) Source:
B3 of March 31, 2024 |
(***) Source:
Bloomberg |
The Company’s objectives when managing capital
are to ensure the Company’s ability to continue increasing investments in infrastructure, provide returns for shareholders and
benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital.
Capital is monitored based on the leverage ratio, which
corresponds to net debt divided by total capital (shareholders and providers of capital). Net debt corresponds to total borrowings and
financing less cash and cash equivalents and financial investments. Total capital is calculated as total equity plus net debt, as shown
in the statement of financial position.
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| |
Notes to the Quarterly Information
| |
| |
|
Parent Company |
|
March 31, 2024 |
December 31, 2023 |
|
|
|
Total borrowings and financing
(Note 16) |
22,024,307 |
19,536,350 |
(-) Cash and cash equivalents
(Note 6) |
(2,019,256) |
(838,338) |
(-) Financial investments
(Note 7) |
(4,169,871) |
(2,425,921) |
|
|
|
Net debt |
15,835,180 |
16,272,091 |
Total equity |
30,680,671 |
29,857,376 |
|
|
|
Total (shareholders plus providers
of capital) |
46,515,851 |
46,129,467 |
|
|
|
Leverage ratio |
34% |
35% |
|
Consolidated |
|
March 31, 2024 |
December 31, 2023 |
|
|
|
Total borrowings and financing
(Note 16) |
22,024,307 |
19,536,350 |
(-) Cash and cash equivalents
(Note 6) |
(2,019,391) |
(838,484) |
(-) Financial investments
(Note 7) |
(4,172,591) |
(2,426,752) |
|
|
|
Net debt |
15,832,325 |
16,271,114 |
Total equity |
30,680,671 |
29,857,376 |
|
|
|
Total (shareholders plus providers
of capital) |
46,512,996 |
46,128,490 |
|
|
|
Leverage ratio |
34% |
35% |
The Company considers that balances from trade receivables
(current) and trade payables by carrying amount less impairment approximate their fair values, considering the short maturity. Long-term
trade receivables also approximate their fair values, as they are adjusted by inflation and/or will bear contractual interest rates over
time.
The Company did not have financial assets classified
as fair value through other comprehensive income and fair value through profit or loss. The financial instruments included in the amortized
cost category comprise cash and cash equivalents, financial investments, restricted cash, trade receivables, balances with related parties,
other assets and balances receivable from the Water National Agency (ANA), accounts payable to suppliers, borrowings and financing, services
payable, balances payable deriving from the Public-Private Partnership (PPP) and program contract commitments, which are non-derivative
financial assets and liabilities with fixed or determinable payments, not quoted in an active market, except for cash equivalents and
financial investments.
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| |
Notes to the Quarterly Information
| |
| |
The estimated fair values of the financial instruments
were as follows:
Financial Assets
|
Parent Company |
|
March 31, 2024 |
December 31,
2023 |
|
Carrying amount |
Fair value |
Carrying amount |
Fair value |
Cash and cash equivalents |
2,019,256 |
2,019,256 |
838,338 |
838,338 |
Financial investments |
4,169,871 |
4,169,871 |
2,425,921 |
2,425,921 |
Restricted cash |
45,694 |
45,694 |
54,944 |
54,944 |
Trade receivables |
3,930,690 |
3,930,690 |
3,853,398 |
3,853,398 |
ANA |
1,879 |
1,879 |
2,673 |
2,673 |
Other assets |
319,144 |
319,144 |
274,924 |
274,924 |
|
Consolidated |
|
March 31, 2024 |
December 31,
2023 |
|
Carrying amount |
Fair value |
Carrying amount |
Fair value |
Cash and cash equivalents |
2,019,391 |
2,019,391 |
838,484 |
838,484 |
Financial investments |
4,172,591 |
4,172,591 |
2,426,752 |
2,426,752 |
Restricted cash |
45,694 |
45,694 |
54,944 |
54,944 |
Trade receivables |
3,936,233 |
3,936,233 |
3,856,723 |
3,856,723 |
ANA |
1,879 |
1,879 |
2,673 |
2,673 |
Other assets |
237,270 |
237,270 |
196,065 |
196,065 |
Additionally, SABESP has financial assets receivable
from related parties, totaling R$ 1,198,932 as of March 31, 2024 (R$ 1,196,545 as of December 31, 2023), which were calculated under
the conditions negotiated between the related parties. The conditions and additional information related to these financial instruments
are disclosed in Note 10. Part of this balance, totaling R$ 1,081,079 (R$ 1,076,174 as of December 31, 2023), refers to reimbursement
of additional retirement and pension plan - G0, indexed by IPCA plus simple interest of 0.5% p.m. On the transaction date, this interest
rate approximated that of National Treasury Notes (NTN-b), with a term similar to the terms of related-party transactions.
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| |
Notes to the Quarterly Information
| |
| |
Financial Liabilities
|
Parent Company |
|
March 31, 2024 |
December 31,
2023 |
|
Carrying amount |
Fair value |
Carrying amount |
Fair value |
Borrowings and financing |
22,024,307 |
22,444,692 |
19,536,350 |
19,950,055 |
Trade payables and contractors |
491,038 |
491,038 |
456,064 |
456,064 |
Services payable |
836,294 |
836,294 |
749,226 |
749,226 |
Program Contract Commitment |
33,035 |
33,035 |
34,016 |
34,016 |
Public-Private Partnership
- PPP |
3,222,703 |
3,222,703 |
3,286,614 |
3,286,614 |
|
Consolidated |
|
March 31, 2024 |
December 31,
2023 |
|
Carrying amount |
Fair value |
Carrying amount |
Fair value |
Borrowings and financing |
22,024,307 |
22,444,692 |
19,536,350 |
19,950,055 |
Trade payables and contractors |
490,494 |
490,494 |
456,215 |
456,215 |
Services payable |
838,703 |
838,703 |
750,732 |
750,732 |
Program Contract Commitment |
33,035 |
33,035 |
34,016 |
34,016 |
Public-Private Partnership
- PPP |
3,222,703 |
3,222,703 |
3,286,614 |
3,286,614 |
The criteria adopted to obtain the fair values of borrowings
and financing, in preparing the quarterly information as of March 31, 2024, are consistent with those used in the preparation of the
Annual Financial Statements for the fiscal year ended December 31, 2023.
Financial instruments referring to financial investments
and borrowings and financing are classified as Level 2 in the fair value hierarchy.
Considering the nature of other financial instruments,
assets and liabilities, the balances recognized in the statement of financial position approximate the fair values, except for borrowings
and financing, considering the maturities close to the end of the reporting date of this quarterly information, comparison of contractual
interest rates with market rates in similar operations at the end of the reporting periods, their nature, and maturity terms.
| 5 | Key
accounting estimates and judgments |
The preparation of the quarterly information requires
Management to disclose judgments (except for those that involve estimates) that have a significant impact on the amounts recognized based
on experience and other factors deemed as relevant, which affect the values of assets and liabilities and present results that may differ
from the actual results.
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
The Company establishes estimates and assumptions regarding
the future, which are reviewed on a timely basis. Such accounting estimates, by definition, may differ from the actual results. The effects
arising from the reviews of the accounting estimates are recognized in the period in which the estimates are reviewed.
The Company assessed the main accounting policies that
involve judgments, except for those that involve estimates, and concluded that none of them have a significant effect.
The areas that require a higher level of judgment and
greater complexity, as well as assumptions and estimates that are significant for the quarterly information, are: (i) allowance for doubtful
accounts; (ii) intangible assets arising from concession agreements and program contracts; (iii) pension plan obligations; (iv) deferred
income tax and social contribution; (v) provisions; and (vi) unbilled revenue.
| 6 | Cash
and cash equivalents |
|
Parent Company |
|
March 31, 2024 |
December 31,
2023 |
|
|
|
Cash and banks |
26,907 |
31,041 |
Cash equivalents |
1,992,349 |
807,297 |
Total |
2,019,256 |
838,338 |
|
Consolidated |
|
March 31, 2024 |
December 31,
2023 |
|
|
|
Cash and banks |
27,042 |
31,187 |
Cash equivalents |
1,992,349 |
807,297 |
Total |
2,019,391 |
838,484 |
Cash and cash equivalents include cash, bank deposits,
and high-liquidity short-term financial investments, mainly represented by repurchase agreements, fund shares (accruing CDI interest
rates), and CDBs, whose original maturities or intention of realization are lower than three months, which are convertible into a cash
amount and subject to an insignificant risk of change in value.
As of March 31, 2024, the average yield of cash equivalents
corresponded to 96.67% of CDI (96.25% as of December 31, 2023).
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
The Company has financial investments in CDB, with daily
liquidity, which it does not intend to use in the next three months, as shown below:
|
Parent
Company |
|
March 31,
2024 |
December
31, 2023 |
Banco
BV |
329,380 |
322,240 |
Banco
Bradesco S/A |
657,631 |
643,445 |
Banco
BTG Pactual S/A |
459,170 |
449,241 |
Banco
do Brasil S/A |
2,723,690 |
1,010,995 |
|
4,169,871 |
2,425,921 |
|
Consolidated |
|
March 31,
2024 |
December
31, 2023 |
Banco
BV |
329,380 |
322,240 |
Banco
Bradesco S/A |
657,631 |
643,445 |
Banco
BTG Pactual S/A |
459,170 |
449,241 |
Banco
do Brasil S/A |
2,726,410 |
1,011,826 |
|
4,172,591 |
2,426,752 |
As of March 31, 2024, the average yield of the financial investments corresponded
to 103.3% of CDI (103.3% as of December 31, 2023).
|
Parent Company
and Consolidated |
|
March 31, 2024 |
December 31,
2023 |
|
|
|
Agreement with the São
Paulo Municipal Government (i) |
38,690 |
47,749 |
Brazilian Federal Savings
Bank – escrow deposits |
442 |
365 |
Other |
6,562 |
6,830 |
|
45,694 |
54,944 |
| (i) | Refers to the amount deducted from the transfer
of 7.5% of the revenue earned in the municipality to the Municipal Fund for Environmental
Sanitation and Infrastructure, corresponding to eventual amounts unpaid by direct management
bodies, foundations and government agencies, as established in the agreement entered into
with São Paulo Municipal Government (PMSP). |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
| (a) | Statement of financial position
details |
|
Parent
Company |
|
March 31,
2024 |
December
31, 2023 |
Private sector: |
|
|
General (i) and special customers
(ii) |
2,684,286 |
2,199,475 |
Agreements (iii) |
177,638 |
839,010 |
|
|
|
|
2,861,924 |
3,038,485 |
Government entities: |
|
|
Municipal |
598,456 |
623,434 |
Federal |
9,937 |
8,036 |
Agreements (iii) |
658,021 |
374,372 |
|
|
|
|
1,266,414 |
1,005,842 |
Wholesale customers –
Municipal governments: (iv) |
|
|
Mogi das Cruzes |
4,134 |
4,343 |
São Caetano do Sul |
8,109 |
45,333 |
São Caetano do Sul
Agreement |
76,502 |
- |
|
|
|
Total wholesale customers
– Municipal governments |
88,745 |
49,676 |
|
|
|
Unbilled supply |
1,090,469 |
1,136,604 |
|
|
|
Subtotal |
5,307,552 |
5,230,607 |
Allowance for doubtful accounts |
(1,376,862) |
(1,377,209) |
|
|
|
Total |
3,930,690 |
3,853,398 |
|
|
|
Current |
3,584,889 |
3,580,962 |
Noncurrent |
345,801 |
272,436 |
|
|
|
Total |
3,930,690 |
3,853,398 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
|
Consolidated |
|
March 31,
2024 |
December
31, 2023 |
Private sector: |
|
|
General (i) and special customers
(ii) |
2,687,984 |
2,200,921 |
Agreements (iii) |
177,638 |
839,010 |
|
|
|
|
2,865,622 |
3,039,931 |
Government entities: |
|
|
Municipal |
598,602 |
623,601 |
Federal |
9,938 |
8,036 |
Agreements (iii) |
658,021 |
374,372 |
|
|
|
|
1,266,561 |
1,006,009 |
Wholesale customers –
Municipal governments: (iv) |
|
|
Mogi das Cruzes |
4,134 |
4,343 |
São Caetano do Sul |
8,109 |
45,333 |
São Caetano do Sul
Agreement |
76,502 |
- |
|
|
|
Total wholesale customers
– Municipal governments |
88,745 |
49,676 |
|
|
|
Unbilled supply |
1,092,167 |
1,138,316 |
|
|
|
Subtotal |
5,313,095 |
5,233,932 |
Allowance for doubtful accounts |
(1,376,862) |
(1,377,209) |
|
|
|
Total |
3,936,233 |
3,856,723 |
|
|
|
Current |
3,590,432 |
3,584,287 |
Noncurrent |
345,801 |
272,436 |
|
|
|
Total |
3,936,233 |
3,856,723 |
| (i) | General customers - residential and small
and mid-sized companies; |
| (ii) | Special customers – large consumers,
commercial industries, condominiums and special billing customers (fixed demand agreements,
industrial waste, wells, among others); |
| (iii) | Agreements - installment payments of past-due
receivables, plus inflation adjustment and interest, according to the agreements; and |
| (iv) | Wholesale basis customers - municipal governments.
This balance refers to the sale of treated water to municipalities, which are responsible
for distributing to, billing, and charging final customers. |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
| (b) | The aging of trade receivables
is as follows: |
|
Parent
Company |
|
March 31,
2024 |
December
31, 2023 |
|
|
|
Current |
2,849,440 |
2,635,280 |
Past-due: |
|
|
Up to 30
days |
572,195 |
627,472 |
From 31
to 60 days |
265,334 |
271,476 |
From 61
to 90 days |
189,486 |
181,639 |
From 91
to 120 days |
142,824 |
127,421 |
From 121
to 180 days |
304,359 |
290,610 |
From 181
to 360 days |
179,209 |
57,289 |
Over 360
days |
804,705 |
1,039,420 |
|
|
|
Total
past-due |
2,458,112 |
2,595,327 |
|
|
|
Total |
5,307,552 |
5,230,607 |
|
Consolidated |
|
March 31,
2024 |
December
31, 2023 |
|
|
|
Current |
2,852,858 |
2,723,975 |
Past-due: |
|
|
Up to 30
days |
573,435 |
627,986 |
From 31
to 60 days |
265,847 |
271,476 |
From 61
to 90 days |
189,807 |
181,639 |
From 91
to 120 days |
142,875 |
127,421 |
From 121
to 180 days |
304,359 |
290,610 |
From 181
to 360 days |
179,209 |
57,289 |
Over 360
days |
804,705 |
953,536 |
|
|
|
Total
past-due |
2,460,237 |
2,509,957 |
|
|
|
Total |
5,313,095 |
5,233,932 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
| (c) | Allowance for doubtful accounts
|
|
Parent
Company and Consolidated |
Parent
Company |
Changes
in assets |
January
to March 2024 |
January
to March 2023 |
|
|
|
Balance
at the beginning of the period |
1,377,209 |
1,428,517 |
Creation/(reversal)
of losses |
40,097 |
(8,449) |
Recoveries |
(40,444) |
(19,627) |
|
|
|
Balance
at the end of the period |
1,376,862 |
1,400,441 |
|
Parent Company
and Consolidated |
Parent Company |
Reconciliation of estimated/historical losses
at the result |
January to March
2024 |
January to March
2023 |
|
|
|
Write-offs |
(190,285) |
(190,138) |
(Losses)/reversal with state
entities – related parties |
(580) |
(743) |
(Losses)/reversal with the private
sector/government entities |
(40,097) |
8,449 |
Recoveries |
40,444 |
19,627 |
|
|
|
Amount recorded as expense (Note
27) |
(190,518) |
(162,805) |
The Company does not have customers individually representing
10% or more of its total revenues.
The Company has registered warrants issued as a result
of final and unappealable lawsuits for the collection of unpaid water and sewage bills from public entities. These bills are considered
allowance for doubtful accounts ('PECLD') in their entirety, and the updated values of said bills, calculated according to the respective
registered warrants, are not recognized due to uncertainties regarding their realization.
As of March 31, 2024, the Company has registered warrants
issued in its favor, currently totaling R$ 3,232,377 (R$ 3,085,265 as of December 31, 2023), which, as mentioned above, are fully provisioned
at their original value and do not have their respective updates recognized in the quarterly information.
The reversal of the PECLD for the original bills and
their update are recognized when uncertainties regarding their realization are mitigated, i.e. when the realization value becomes determinable
due to the predictability of the commencement of its receipt or when negotiated with third parties.
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
The Company did not negotiate its registered warrants
in the current period or in the comparative year and period, and there are no ongoing negotiations, as follows:
|
Parent Company
and Consolidated |
Debtor |
March 31, 2024 |
December 31,
2023 |
Municipality of São
Paulo |
3,139,801 |
3,042,927 |
São Paulo State Government |
41,359 |
- |
Municipality of Cachoeira
Paulista |
15,871 |
15,456 |
Municipality of Agudos |
13,061 |
14,964 |
Other |
22,285 |
11,918 |
Total |
3,232,377 |
3,085,265 |
Additionally, the Company negotiated registered warrants
for overdue bills with the municipalities of Guarulhos, Santo André, and Mauá in previous fiscal years, which are currently
suspended as they serve as collateral for the fulfillment of contracts entered into with the municipalities.
As of May 09, 2024, the Board of Directors approved
the adherence to the notice for agreement 1/2024 from the São Paulo Municipal Government (PMSP), whose adherence deadline ends
on June 30, 2024. The objective of said Notice is the presentation of direct agreement proposals by holders of registered warrants.
For the adherence to be effective, approval by the Registered
Warrants Conciliation Chamber of the Municipal Attorney General Office (PGM) and other subsequent procedures according to the Notice
are required, the accuracies of which are still considered uncertain. SABESP may withdraw the proposal at any time, provided it is before
the payment made by the Board of Registered Warrants Executions and Calculations of the São Paulo State Court of Justice (Depre),
as provided in the Notice.
The Company does not expect changes in the recognition
method of the municipality of São Paulo's registered warrants until such adherence becomes effective.
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
| 10 | Related-party
balances and transactions |
| (i) | Accounts
receivable, interest on capital, revenue, and expenses |
|
Parent Company |
|
March 31, 2024 |
December 31,
2023 |
Accounts receivable |
|
|
Current: |
|
|
Sanitation services |
167,570 |
169,508 |
Allowance
for losses |
(51,078) |
(50,498) |
Reimbursement
of additional retirement and pension benefits paid (G0): |
|
|
-
Monthly flow |
41,929 |
36,241 |
-
GESP Agreement – 2015 |
108,203 |
106,022 |
|
|
|
Total current |
266,624 |
261,273 |
|
|
|
Noncurrent: |
|
|
Agreement for the installment
payment of sanitation services |
1,361 |
1,361 |
Reimbursement of additional
retirement and pension benefits paid (G0): |
|
|
- GESP Agreement –
2015 |
930,947 |
933,911 |
|
|
|
Total noncurrent |
932,308 |
935,272 |
|
|
|
Total receivables |
1,198,932 |
1,196,545 |
|
|
|
Assets: |
|
|
Sanitation services |
117,853 |
120,371 |
Reimbursement of additional
retirement and pension benefits paid (G0) |
1,081,079 |
1,076,174 |
|
|
|
Total |
1,198,932 |
1,196,545 |
|
|
|
Liabilities: |
|
|
Interest on capital payable
|
420,564 |
420,564 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
|
Consolidated |
|
March 31, 2024 |
December 31,
2023 |
Accounts receivable |
|
|
Current: |
|
|
Sanitation services |
167,608 |
169,515 |
Allowance
for losses |
(51,078) |
(50,498) |
Reimbursement
of additional retirement and pension benefits paid (G0): |
|
|
-
Monthly flow |
41,929 |
36,241 |
-
GESP Agreement – 2015 |
108,203 |
106,022 |
|
|
|
Total current |
266,662 |
261,280 |
|
|
|
Noncurrent: |
|
|
Agreement for the installment
payment of sanitation services |
1,361 |
1,361 |
Reimbursement of additional
retirement and pension benefits paid (G0): |
|
|
- GESP Agreement –
2015 |
930,947 |
933,911 |
|
|
|
Total noncurrent |
932,308 |
935,272 |
|
|
|
Total receivables |
1,198,970 |
1,196,552 |
|
|
|
Assets: |
|
|
Sanitation services |
117,891 |
120,378 |
Reimbursement of additional
retirement and pension benefits paid (G0) |
1,081,079 |
1,076,174 |
|
|
|
Total |
1,198,970 |
1,196,552 |
|
|
|
Liabilities: |
|
|
Interest on capital payable
|
420,564 |
420,564 |
|
Parent Company |
Consolidated |
|
|
|
|
|
|
|
|
Revenue
from sanitation services |
186,115 |
162,966 |
186,144 |
Payments from related parties |
(186,205) |
(167,612) |
(186,205) |
|
|
|
|
Payment
received from reimbursement referring to Law 4,819/1958 |
(47,816) |
(52,593) |
(47,816) |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
As of March 31, 2024 and December 31, 2023, the disputed
amounts between SABESP and the São Paulo State, referring to additional retirement and pension benefits paid (Law 4,819/1958),
totaled R$ 1,605,832 and R$ 1,583,449, respectively, for which allowances for doubtful accounts were created for the total
amount.
The Company recognized an actuarial liability corresponding
to additional retirement and pension benefits paid to employees, retired employees, and pensioners of the G0 Plan. As of Marcy 31, 2024
and December 31, 2023, the amounts corresponding to such actuarial liability were R$ 2,095,517 and R$ 2,098,622, respectively.
For detailed information on additional retirement and pension benefits, see Note 21.
| (b) | Use
of Reservoirs – EMAE |
Empresa Metropolitana de Águas e Energia S.A.
(EMAE) planned to receive the credit and obtain financial compensation for alleged past and future losses in electricity generation arising
from water collection, and compensation for costs already incurred and to be incurred with the operation, maintenance, and inspection
of the Guarapiranga and Billings reservoirs used by SABESP in its operations.
As of October 28, 2016, the Company entered into an
agreement based on a Private Transaction Agreement and Other Covenants to fully and completely settle the disputes and SABESP will continue
using the reservoirs.
As of March 31, 2024, the balance of the agreement totaled
R$ 9,197 and R$ 103,572 (R$ 8,876 and R$ 99,279 as of December 31, 2023), recorded in Other liabilities, under current and noncurrent
liabilities, respectively.
| (c) | Agreements
with reduced tariffs for State Entities that join the Rational Water Use Program (PURA) |
The Company has agreements with government entities
related to the São Paulo State Government that benefit them with a 25% discount on water supply and sewage services tariffs when
they are not in default. These agreements provide for the implementation of the rational water use program, which provides for water
consumption reduction.
The São Paulo State provides guarantees for some
of the Company’s borrowings and financing and does not charge any related fees. See Note 16.
| (e) | Personnel
assignment agreement among entities related to the São Paulo State Government |
The Company has personnel assignment agreements with
entities related to the State Government, whose expenses are fully charged.
From January to March 2024, expenses with employees
assigned to other state entities totaled R$ 3,518 (R$ 672 from January to March 2023).
No expenses with employees from other entities assigned
to the Company were recorded from January to March 2024 and in the same period in 2023.
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
As of March 31, 2024 and December 31, 2023, the Company’s
land and lent structures totaled R$ 3,613.
The Company sponsors a defined benefit plan (G1 Plan),
which is operated and administered by SABESPREV. The net actuarial liability recognized until March 31, 2024, totaled R$ 35,713 (R$ 44,249
as of December 31, 2023). See Note 21.
| (h) | Compensation
of the Fiscal Council and Management |
From January to March 2024, expenses related to the
compensation of the members of the Fiscal Council appointed by the controlling shareholder and Management members totaled R$ 2,470
(R$ 1,658 from January to March 2023).
From January to March 2024, additional amounts of R$ 540,
referring to the executive officers’ bonus, were recorded (R$ 285 from January to March 2023).
| (i) | Loan
agreement through credit facility |
The Company holds interest in certain Special Purpose
Entities (SPEs), in which it does not hold the majority interest but has cast vote and power of veto in some matters but cannot use such
power of veto in a way to affect the returns of its investments. Therefore, these SPEs are considered for accounting purposes as joint
arrangements.
Águas de Andradina
The Company entered into a loan agreement through a
credit facility with SPE Águas de Andradina S/A to finance the operations of that company.
As of March 31, 2024, the balance of principal and interest
of this agreement totaled R$ 812 and R$ 2,814, which was recorded in “Other assets” under current and noncurrent assets (R$
694 and R$ 2,814, respectively, as of December 31, 2023), at CDI + 3% p.a.
This agreement was executed on August 17, 2021. The
amount of principal, adjustment, accrued interest, and any other taxes must be paid in full by August 31, 2025.
Sabesp Olímpia
The Company formalized a loan agreement through a credit
facility with Sabesp Olímpia S/A, making available the necessary funds for the payment of the first installment of the Fixed Concession
Fee to the Municipality of Estância Turística de Olímpia, which was a prerequisite for the signing of the water and
sewage concession agreement.
As of March 31, 2024, the balance of principal and interest
of this agreement totaled R$ 81,059, which was recorded in “Other assets” under noncurrent assets, at CDI + 2% p.a.
This agreement was executed on September 26, 2023. The
principal and the accumulated interest on the principal must be fully repaid by September 2040.
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
The Company has financing agreements under the State
Fund for Water Resources (FEHIDRO). These funds will be aimed at the execution of works and sewage services. As of March 31, 2024, the
balance of these financings totaled R$ 1,136 (R$ 1,278 as of December 31, 2023).
The Company holds interests in certain Special Purpose
Entities (SPE). Although SABESP has no majority shares of its investees, the shareholders’ agreement provides for the power of
veto in certain management matters, however, it cannot use such power of veto in a way to affect the returns over the investments, implying
a mutually shared control (joint venture – CPC 19 (R2)), except when SABESP Olímpia, in which the Company holds a stake
of 100% and meets the control requirements, consolidated this SPE, according to the Accounting Policy described in Note 2023 to the Annual
Financial Statements as of December 31, 2023.
The Company holds equity interest valued by the equity
accounting in the following investees:
|
Equity |
Contribution |
Profit
(loss) for the period |
|
|
|
January
to March 2024 |
January
to March 2024 |
(*) |
January
to March 2023 |
|
|
|
|
|
|
|
Sesamm |
65,511 |
61,275 |
- |
4,236 |
- |
4,630 |
Águas
de Andradina |
35,582 |
34,088 |
- |
1,494 |
- |
389 |
Águas
de Castilho |
13,384 |
12,784 |
- |
600 |
- |
402 |
Attend
Ambiental |
47,823 |
43,263 |
- |
4,560 |
- |
4,016 |
Aquapolo
Ambiental |
112,297 |
102,442 |
- |
9,855 |
- |
8,610 |
Paulista
Geradora de Energia - PGE (**) |
42,917 |
42,307 |
590 |
20 |
- |
(28) |
Cantareira
SP Energia |
10,711 |
10,650 |
- |
61 |
- |
(258) |
FOXX
URE-BA Ambiental |
62,430 |
63,309 |
- |
(295) |
(584) |
(6,549) |
Infranext
Soluções em Pavimentação (***) |
4,699 |
4,699 |
- |
- |
- |
(340) |
Sabesp
Olímpia |
(3,121) |
(3,066) |
- |
(55) |
- |
- |
(*) The amount presented refers to changes in the equity
of the investee, as its financial statements for the year ended December 31, 2023 were issued after the disclosure of SABESP’s
financial statements.
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
(**) In 2023, a contribution of R$ 20,600 was defined,
with Servtec and Tecniplan paying R$ 14,860 of this amount in the same year. In 2024, Servtec and Tecniplan paid the remaining amount
of R$ 590, with the total paid-in amount corresponding to a 75% equity interest. As of March 31, 2024, SABESP had an outstanding
payable amount of R$ 5,150.
(****) Infranext’s share capital will be R$ 12,000.
As of December 31, 2023, SABESP had an outstanding payable amount of R$ 4,950. The information presented refers to the position as of
December 31, 2023, the last balance sheet received.
|
Parent Company |
|
Investments |
Reclassification
(***) |
Equity results of
investments |
Interest percentage |
|
March 31,
2024 |
December 31,
2023 |
January
to March 2024 |
January
to March 2024 |
(*) |
January
to March 2023 |
March 31,
2024 |
December 31,
2023 |
Sesamm |
23,584 |
22,059 |
- |
1,525 |
- |
1,667 |
36% |
36% |
Águas de Andradina |
10,673 |
10,225 |
- |
448 |
- |
116 |
30% |
30% |
Águas de Castilho |
4,015 |
3,835 |
- |
180 |
- |
121 |
30% |
30% |
Attend Ambiental |
21,521 |
19,469 |
- |
2,052 |
- |
1,807 |
45% |
45% |
Aquapolo Ambiental |
55,025 |
50,196 |
- |
4,829 |
- |
4,219 |
49% |
49% |
Paulista Geradora de Energia |
6,866 |
6,861 |
- |
5 |
- |
(7) |
25% |
25% |
Cantareira SP Energia |
5,242 |
5,212 |
- |
30 |
- |
(126) |
49% |
49% |
FOXX URE-BA Ambiental |
12,486 |
12,663 |
- |
(60) |
(117) |
(1,310) |
20% |
20% |
Infranext Soluções
em Pavimentação |
- |
- |
- |
- |
- |
(153) |
45% |
45% |
Sabesp Olímpia |
- |
- |
55 |
(55) |
- |
- |
100% |
100% |
Total |
139,412 |
130,520 |
55 |
8,954 |
(117) |
6,334 |
|
|
FOXX URE-BA Ambiental – Fair value (**) |
25,018 |
25,244 |
|
|
|
|
|
|
Other investments |
6,099 |
6,099 |
|
|
|
|
|
|
Overall total |
170,529 |
161,863 |
|
|
|
|
|
|
(*) The amount presented refers to changes in the equity
of the investee, as its financial statements for the year ended December 31, 2023 were issued after the disclosure of SABESP’s
financial statements.
(**) The amount presented refers to the fair value adjustment
in the acquisition of FOXX URE-BA in 2024.
(***) The amount of the investee’s loss exceeding
the investment was reclassified to Noncurrent Liabilities.
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
|
Consolidated |
|
Investments |
Equity results of
investments |
Interest percentage |
|
|
December 31,
2023 |
|
(*) |
|
December 31,
2023 |
Sesamm |
23,584 |
22,059 |
1,525 |
- |
36% |
36% |
Águas de Andradina |
10,673 |
10,225 |
448 |
- |
30% |
30% |
Águas de Castilho |
4,015 |
3,835 |
180 |
- |
30% |
30% |
Attend Ambiental |
21,521 |
19,469 |
2,052 |
- |
45% |
45% |
Aquapolo Ambiental |
55,025 |
50,196 |
4,829 |
- |
49% |
49% |
Paulista Geradora de Energia |
6,866 |
6,861 |
5 |
- |
25% |
25% |
Cantareira SP Energia |
5,242 |
5,212 |
30 |
- |
49% |
49% |
FOXX URE-BA Ambiental |
12,486 |
12,663 |
(60) |
(117) |
20% |
20% |
Infranext Soluções
em Pavimentação |
- |
- |
- |
- |
45% |
45% |
Total |
139,412 |
130,520 |
9,009 |
(117) |
|
|
FOXX URE-BA Ambiental – Fair value (**) |
25,018 |
25,244 |
|
|
|
|
Other investments |
6,099 |
6,099 |
|
|
|
|
Overall total |
170,529 |
161,863 |
|
|
|
|
(*) The amount presented refers to changes in the equity
of the investee, as its financial statements for the year ended December 31, 2023 were issued after the disclosure of SABESP’s
financial statements.
(**) The amount presented refers to the fair value adjustment
in the acquisition of FOXX URE-BA in 2024.
(***) The amount of the investee’s loss exceeding
the investment was reclassified to Noncurrent Liabilities.
|
Parent Company
and Consolidated |
|
December 31,
2023 |
Depreciation |
March 31, 2024 |
|
|
|
|
Investment
properties |
46,678 |
(12) |
46,666 |
|
Parent Company |
|
December 31,
2022 |
Depreciation |
March 31, 2023 |
|
|
|
|
Investment
properties |
46,726 |
(12) |
46,714 |
As of March 31, 2024, the market value of these properties
was approximately R$ 393,600 (R$ 393,600 as of December 31, 2023).
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
|
Parent Company
|
|
December 31,
2023 |
Additions (i) |
Transfers |
Transfers of
works to intangible assets (ii) |
|
|
|
|
|
|
|
Total contract
asset |
7,393,096 |
1,270,307 |
1,952 |
(1,082,990) |
7,582,365 |
|
Consolidated |
|
December 31,
2023 |
Additions (i) |
Transfers |
Transfers of
works to intangible assets (ii) |
|
|
|
|
|
|
|
Total contract
asset |
7,393,096 |
1,270,667 |
1,952 |
(1,082,990) |
7,582,725 |
As of March 31, 2024 and December 31, 2023, the contract
asset had no amounts recognized as leases. Leases were part of construction costs and, since June 2020, additional works had been executed
by the Company.
|
Parent Company |
|
December 31,
2022 |
Additions |
Transfers |
Transfers of
works to intangible assets |
|
|
|
|
|
|
|
Total contract
asset |
8,613,968 |
1,204,867 |
280 |
(1,105,061) |
8,714,054 |
As of March 31, 2023, the contract asset included R$
175,145, recorded as a lease (R$ 276,893 as of December 31, 2022). Leases were part of construction costs and, since June 2020, additional
works had been executed by the Company.
| (i) | The
largest additions in the period were located in the municipalities of São Paulo, Guarulhos,
and Itanhaém, totaling R$ 558 million, R$ 110 million, and R$ 43 million, respectively.
|
| (ii) | The
largest transfers in the period were located in the municipalities of São Paulo, Cajamar,
and Arujá, totaling R$ 403 million, R$ 95 million, and R$ 63 million, respectively. |
| (iii) | The
largest works were located in the municipalities of São Paulo, Guarulhos, and Francisco
Morato, totaling R$ 2,207 million, R$ 320 million, and R$ 260 million, respectively. |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
| (a) | Capitalization
of interest and other finance charges |
The Company capitalizes interest, inflation adjustments,
and exchange variations in the contract asset during the construction period. From January to March 2024, the Company capitalized R$
154,395 (R$ 167,802 from January to March 2023).
The Company is primarily responsible for the construction
and installation of the concession infrastructure, either by using its employees or contracting third parties, and is significantly exposed
to its risks and benefits. Accordingly, the Company recognizes revenue from construction services corresponding to construction costs
increased by gross margin.
Constructions related to the concessions are usually
performed by third parties. In such a case, the margin is lower to cover administration costs and the assumption of responsibility for
primary risks. As of March 31, 2024 and 2023, the margin was 2.3%.
From January to March 2024, the construction margin
was R$ 30,046 (R$ 26,519 from January to March 2023).
As a result of the construction
of priority projects related to water and sewage systems, the Company is required to expropriate third-party properties, whose owners
are compensated either amicably or through court.
The costs of such expropriations are recorded in the
contract asset during the execution of the works. From January to March 2024, expropriations totaled R$ 6,750 (R$ 4,015 from
January to March 2023).
| (a) | Statement
of financial position details |
|
Parent
Company |
|
March 31,
2024 |
December
31, 2023 |
|
Cost |
Accumulated
amortization |
Net |
Cost |
Accumulated
amortization |
Net |
Intangible
right arising from: |
|
|
|
|
|
|
Concession
agreements – equity value |
754,555 |
(247,159) |
507,396 |
747,925 |
(241,808) |
506,117 |
Concession
agreements – economic value |
1,687,440 |
(1,085,649) |
601,791 |
1,686,384 |
(1,048,624) |
637,760 |
Program
contracts |
30,924,633 |
(9,874,351) |
21,050,282 |
30,267,977 |
(9,583,480) |
20,684,497 |
Program
contracts – commitments |
1,709,757 |
(510,973) |
1,198,784 |
1,709,757 |
(497,731) |
1,212,026 |
Service
contracts – São Paulo |
29,557,680 |
(9,318,616) |
20,239,064 |
29,161,286 |
(8,967,701) |
20,193,585 |
Software
license of use |
1,310,942 |
(822,184) |
488,758 |
1,300,504 |
(787,280) |
513,224 |
Right of
use – Other assets |
291,027 |
(64,336) |
226,691 |
217,204 |
(99,144) |
118,060 |
Total |
66,236,034 |
(21,923,268) |
44,312,766 |
65,091,037 |
(21,225,768) |
43,865,269 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
|
Consolidated |
|
March 31,
2024 |
December
31, 2023 |
|
Cost |
Accumulated
amortization |
Net |
Cost |
Accumulated
amortization |
Net |
Intangible
right arising from: |
|
|
|
|
|
|
Concession
agreements – equity value |
754,555 |
(247,159) |
507,396 |
747,925 |
(241,808) |
506,117 |
Concession
agreements – economic value |
1,687,440 |
(1,085,649) |
601,791 |
1,686,384 |
(1,048,624) |
637,760 |
Concession
agreements – new contracts |
148,000 |
(1,644) |
146,356 |
148,000 |
(411) |
147,589 |
Program
contracts |
30,924,633 |
(9,874,351) |
21,050,282 |
30,267,977 |
(9,583,480) |
20,684,497 |
Program
contracts – commitments |
1,709,757 |
(510,973) |
1,198,784 |
1,709,757 |
(497,731) |
1,212,026 |
Service
contracts – São Paulo |
29,557,680 |
(9,318,616) |
20,239,064 |
29,161,286 |
(8,967,701) |
20,193,585 |
Software
license of use |
1,310,942 |
(822,184) |
488,758 |
1,300,504 |
(787,280) |
513,224 |
Right of
use – Other assets |
291,027 |
(64,336) |
226,691 |
217,204 |
(99,144) |
118,060 |
Total |
66,384,034 |
(21,924,912) |
44,459,122 |
65,239,037 |
(21,226,179) |
44,012,858 |
|
Parent Company |
|
|
Additions |
Transfer of
contract asset |
Transfers |
Write-offs and
disposals |
Amortization |
|
Intangible
right arising from: |
|
|
|
|
|
|
|
Concession
agreements – equity value (*) |
506,117 |
- |
6,587 |
39 |
(20) |
(5,327) |
507,396 |
Concession
agreements – economic value |
637,760 |
- |
1,089 |
(4) |
- |
(37,054) |
601,791 |
Program
contracts (*) |
20,684,497 |
181 |
663,509 |
(930) |
(606) |
(296,369) |
21,050,282 |
Program
contracts – commitments |
1,212,026 |
- |
- |
- |
- |
(13,242) |
1,198,784 |
Service
contracts – São Paulo |
20,193,585 |
- |
404,279 |
(3,949) |
(132) |
(354,719) |
20,239,064 |
Software
license of use |
513,224 |
2,911 |
7,526 |
1 |
- |
(34,904) |
488,758 |
Right
of use – Other assets |
118,060 |
130,667 |
- |
- |
(46) |
(21,990) |
226,691 |
Total
|
43,865,269 |
133,759 |
1,082,990 |
(4,843) |
(804) |
(763,605) |
44,312,766 |
(*) As of March 31, 2024, Concession agreements –
equity value, and Program contracts included leases totaling R$ 41,160 and R$ 324,416 (R$ 43,738 and R$ 330,941 as of December 31, 2023),
respectively.
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
|
Consolidated |
|
|
Additions |
Transfer of
contract asset |
Transfers |
Write-offs and
disposals |
Amortization |
|
Intangible
right arising from: |
|
|
|
|
|
|
|
Concession
agreements – equity value (*) |
506,117 |
- |
6,587 |
39 |
(20) |
(5,327) |
507,396 |
Concession
agreements – economic value |
637,760 |
- |
1,089 |
(4) |
- |
(37,054) |
601,791 |
Concession
agreements – new contracts |
147,589 |
- |
- |
- |
- |
(1,233) |
146,356 |
Program
contracts (*) |
20,684,497 |
181 |
663,509 |
(930) |
(606) |
(296,369) |
21,050,282 |
Program
contracts – commitments |
1,212,026 |
- |
- |
- |
- |
(13,242) |
1,198,784 |
Service
contracts – São Paulo |
20,193,585 |
- |
404,279 |
(3,949) |
(132) |
(354,719) |
20,239,064 |
Software
license of use |
513,224 |
2,911 |
7,526 |
1 |
- |
(34,904) |
488,758 |
Right
of use – Other assets |
118,060 |
130,667 |
- |
- |
(46) |
(21,990) |
226,691 |
Total
|
44,012,858 |
133,759 |
1,082,990 |
(4,843) |
(804) |
(764,838) |
44,459,122 |
|
Parent Company |
|
|
Additions |
Transfer of
contract asset |
Transfers |
Write-offs and
disposals |
Amortization |
|
Intangible
right arising from: |
|
|
|
|
|
|
|
Concession
agreements - equity value (*) |
499,326 |
- |
4,098 |
(955) |
(6) |
(4,994) |
497,469 |
Concession
agreements – economic value |
652,039 |
- |
2,589 |
331 |
(85) |
(30,249) |
624,625 |
Program
contracts (*) |
18,337,459 |
2 |
569,717 |
(288) |
(2,055) |
(252,011) |
18,652,824 |
Program
contracts – commitments |
1,264,992 |
- |
- |
- |
- |
(13,242) |
1,251,750 |
Service
contracts – São Paulo |
17,870,451 |
- |
513,453 |
(1,720) |
(1,056) |
(299,179) |
18,081,949 |
Software
license of use |
595,404 |
- |
15,204 |
- |
- |
(33,105) |
577,503 |
Right
of use – Other assets |
75,052 |
320 |
- |
- |
(30) |
(17,261) |
58,081 |
Right
of use – Investments |
26,148 |
- |
- |
(26,148) |
- |
- |
- |
Total
|
39,320,871 |
322 |
1,105,061 |
(28,780) |
(3,232) |
(650,041) |
39,744,201 |
(*) As of March 31, 2023,
Concession agreements – equity value, and Program contracts included leases totaling R$ 51,692 and R$ 165,104 (R$
54,356 and R$ 168,216 as of December 31, 2022), respectively.
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
As of June 30, 2020, a contract was signed for the provision
of treatment services and final disposal of solid waste and collection of garbage tax in the Municipality of Diadema for 40 years. This
contract is in the process of termination due to the interest of the Granting Authority in closing it.
| (c) | Intangible
right arising from concession agreements |
As of March 31, 2024, the amounts not yet disbursed
were recorded in “Program contract commitments” under current and noncurrent liabilities, totaling R$ 20,986 and R$ 12,139
(R$ 21,969 and R$ 12,047 as of December 31, 2023), respectively.
| (d) | Public-Private
Partnership - PPP |
SABESP carries out operations related to the São
Lourenço PPP. Such transactions, along with their corresponding guarantees and obligations, are supported by a contract established
based on Law 11,079/2004.
In June 2008, SABESP and Alto Tietê PPP (SPAT
Saneamento S/A) executed a service agreement for 15 years, with operations ending in October 2011 after conclusion of the works. The
end of the obligations related to this PPP occurred in February 2024.
The amounts recorded in intangible assets are as follows:
|
Parent Company
and Consolidated |
|
March 31,
2024 |
December 31,
2023 |
Alto Tietê |
231,146 |
235,224 |
São
Lourenço |
2,513,527 |
2,556,002 |
Total |
2,744,673 |
2,791,226 |
As of March 31, 2024 and December 31, 2023, the obligations
assumed by the Company are as follows:
|
Parent Company
and Consolidated |
|
March 31, 2024 |
December 31,
2023 |
|
Current liabilities |
Noncurrent liabilities |
Total liabilities |
Current liabilities |
Noncurrent liabilities |
Total liabilities |
|
|
|
|
|
|
|
Alto Tietê |
- |
- |
- |
52,762 |
- |
52,762 |
São
Lourenço |
435,671 |
2,787,032 |
3,222,703 |
435,164 |
2,798,688 |
3,233,852 |
Total |
435,671 |
2,787,032 |
3,222,703 |
487,926 |
2,798,688 |
3,286,614 |
| (e) | Amortization
of Intangible Assets |
The average amortization rate totaled 5.1% and 5.0%
as of March 31, 2024 and 2023, respectively.
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
| (f) | Leases
and right of use |
|
Parent
Company and Consolidated |
Parent
Company |
Nature |
|
|
|
|
|
Leases
- Concession and Program Contract |
|
|
Cost |
582,617 |
588,600 |
Accumulated
amortization |
(217,041) |
(213,921) |
(=)
Net |
365,576 |
374,679 |
|
|
|
Right
of use – Other assets |
|
|
Vehicles |
232,477 |
205,593 |
Properties |
58,505 |
11,566 |
Equipment |
45 |
45 |
Accumulated
amortization |
(64,336) |
(99,144) |
(=)
Net |
226,691 |
118,060 |
|
|
|
Total
- Leases and Right of use |
592,267 |
492,739 |
The lease liability corresponds to total future fixed
lease payments, adjusted to present value, considering an incremental rate on borrowings. For further information, see Note 16.
The table below shows the impact on the Company’s
result:
Impact on
the result |
|
Parent Company
and Consolidated |
Parent Company |
|
|
|
|
|
|
Right of use amortization |
(25,110) |
(23,037) |
Financial result – interest
expense and inflation adjustment |
(31,298) |
(18,127) |
Expenses of short-term leases
with low value |
(3,151) |
(8,518) |
Reduction
of profit for the period |
(59,559) |
(49,682) |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
| (g) | Performance
Agreements |
As of March 31, 2024, the accounting balances of the
agreements in force recorded in contract asset and intangible assets were R$ 182,365 and R$ 2,209,196 (R$ 183,876 and R$ 2,191,361 as
of December 31, 2023), respectively.
| 15 | Property,
plant and equipment |
| (a) | Statement
of financial position details |
|
Parent
Company and Consolidated |
|
March 31,
2024 |
December
31, 2023 |
|
Cost |
Accumulated
depreciation |
Net |
Annual
average depreciation rate |
Cost |
Accumulated
depreciation |
Net |
Annual
average depreciation rate |
Land |
94,228 |
- |
94,228 |
- |
94,228 |
- |
94,228 |
- |
Buildings |
126,959 |
(45,197) |
81,762 |
2.2% |
125,672 |
(44,726) |
80,946 |
2.2% |
Equipment |
452,917 |
(318,950) |
133,967 |
14.1% |
443,380 |
(313,193) |
130,187 |
14.2% |
Transportation
equipment |
14,904 |
(10,810) |
4,094 |
9.9% |
14,625 |
(10,384) |
4,241 |
9.9% |
Furniture
and fixtures |
41,123 |
(16,328) |
24,795 |
6.7% |
41,049 |
(15,876) |
25,173 |
6.8% |
Other |
147,120 |
(1,654) |
145,466 |
6.5% |
140,548 |
(764) |
139,784 |
6.5% |
Total |
877,251 |
(392,939) |
484,312 |
9.6% |
859,502 |
(384,943) |
474,559 |
9.7% |
|
Parent Company
and Consolidated |
|
December 31,
2023 |
Additions |
Transfers |
Write-offs and
disposals |
Depreciation |
|
Land |
94,228 |
- |
- |
- |
- |
94,228 |
Buildings |
80,946 |
603 |
692 |
- |
(479) |
81,762 |
Equipment |
130,187 |
9,147 |
1,740 |
(109) |
(6,998) |
133,967 |
Transportation
equipment |
4,241 |
- |
- |
- |
(147) |
4,094 |
Furniture
and fixtures |
25,173 |
382 |
(223) |
(5) |
(532) |
24,795 |
Other |
139,784 |
5,779 |
682 |
- |
(779) |
145,466 |
Total |
474,559 |
15,911 |
2,891 |
(114) |
(8,935) |
484,312 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
|
Parent Company |
|
December 31,
2022 |
Additions |
Transfers |
Write-offs and
disposals |
Depreciation |
|
Land |
94,228 |
- |
- |
- |
- |
94,228 |
Buildings |
47,968 |
1,037 |
(85) |
- |
(296) |
48,624 |
Equipment |
120,865 |
16,881 |
87 |
(243) |
(6,235) |
131,355 |
Transportation
equipment |
2,495 |
- |
2,059 |
- |
(149) |
4,405 |
Furniture
and fixtures |
23,496 |
3,027 |
291 |
(40) |
(391) |
26,383 |
Other |
49,887 |
10,009 |
- |
- |
(21) |
59,875 |
Total |
338,939 |
30,954 |
2,352 |
(283) |
(7,092) |
364,870 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
| 16 | Borrowings
and financing |
|
Parent Company
and Consolidated |
Borrowings
and financing outstanding balance |
March 31,
2024 |
December 31,
2023 |
Financial
institution |
|
Noncurrent
|
|
|
Noncurrent
|
|
Local
currency |
|
|
|
|
|
|
12th
issue debentures |
56,517 |
- |
56,517 |
45,450 |
22,385 |
67,835 |
18th
issue debentures |
40,975 |
- |
40,975 |
46,962 |
- |
46,962 |
22nd
issue debentures |
174,245 |
- |
174,245 |
170,957 |
170616 |
341,573 |
23rd
issue debentures |
490,841 |
374,303 |
865,144 |
490,810 |
374,279 |
865,089 |
24th
issue debentures |
- |
523,163 |
523,163 |
- |
512,122 |
512,122 |
26th
issue debentures |
- |
1,330,768 |
1,330,768 |
- |
1,302,042 |
1,302,042 |
27th
issue debentures |
200,000 |
498,704 |
698,704 |
200,000 |
498,634 |
698,634 |
28th
issue debentures |
127,745 |
1,070,548 |
1,198,293 |
127,715 |
1,070,457 |
1,198,172 |
29th
issue debentures |
- |
1,332,090 |
1,332,090 |
- |
1,314,136 |
1,314,136 |
30th
issue debentures |
124,988 |
748,275 |
873,263 |
125,000 |
873,231 |
998,231 |
31st
issue debentures |
- |
2,933,677 |
2,933,677 |
- |
- |
- |
Brazilian
Federal Savings Bank |
110,235 |
1,489,676 |
1,599,911 |
108,210 |
1,508,275 |
1,616,485 |
Brazilian Development
Bank - BNDES PAC II 9751 |
7,295 |
14,519 |
21,814 |
7,286 |
16,316 |
23,602 |
Brazilian Development
Bank - BNDES PAC II 9752 |
4,943 |
9,885 |
14,828 |
4,936 |
11,107 |
16,043 |
Brazilian Development
Bank - BNDES ONDA LIMPA |
27,223 |
- |
27,223 |
27,219 |
6,766 |
33,985 |
Brazilian
Development Bank – BNDES TIETÊ III |
200,947 |
602,767 |
803,714 |
200,693 |
652,175 |
852,868 |
Brazilian
Development Bank - BNDES 2015 |
34,189 |
351,960 |
386,149 |
34,146 |
360,021 |
394,167 |
Brazilian
Development Bank - BNDES 2014 |
6,646 |
8,471 |
15,117 |
6,638 |
10,107 |
16,745 |
Inter-American
Development Bank – IDB 2202 |
181,349 |
1,893,180 |
2,074,529 |
181,349 |
1,983,615 |
2,164,964 |
Inter-American
Development Bank – IDB INVEST |
41,760 |
794,125 |
835,885 |
39,550 |
814,840 |
854,390 |
Inter-American
Development Bank – IDB INVEST 2022 |
14,100 |
438,305 |
452,405 |
14,100 |
438,241 |
452,341 |
Inter-American
Development Bank – IDB INVEST 2023 |
14,100 |
447,808 |
461,908 |
14,100 |
447,791 |
461,891 |
International
Finance Corporation - IFC 2022 |
22,800 |
714,139 |
736,939 |
22,800 |
713,910 |
736,710 |
International
Finance Corporation - IFC 2023 |
- |
987,006 |
987,006 |
- |
986,651 |
986,651 |
Leases
(Concession Agreements, Program Contracts, and Contract Asset) |
106,362 |
206,075 |
312,437 |
49,884 |
259,326 |
309,210 |
Leases
(others) |
100,102 |
151,548 |
251,650 |
68,499 |
73,801 |
142,300 |
Other |
3,006 |
2,161 |
5,167 |
3,003 |
2,910 |
5,913 |
Interest
and other charges |
379,694 |
- |
379,694 |
377,398 |
- |
377,398 |
Total
in local currency |
2,470,062 |
16,923,153 |
19,393,215 |
2,366,705 |
14,423,754 |
16,790,459 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
|
Parent Company
and Consolidated |
Borrowings
and financing outstanding balance |
March 31,
2024 |
December 31,
2023 |
Financial
institution |
|
Noncurrent
|
|
|
Noncurrent
|
|
Foreign
currency |
|
|
|
|
|
|
Inter-American Development
Bank - IDB 1212 – US$ 15,417 thousand (US$ 20,556 thousand in December 2023) |
51,351 |
25,676 |
77,027 |
49,759 |
49,759 |
99,518 |
Inter-American Development
Bank - IDB 4623 – US$ 152,187 thousand (US$ 152,187 thousand in December 2023) |
- |
736,321 |
736,321 |
- |
712,449 |
712,449 |
International Bank
for Reconstruction and Development (IBRD) – IBRDs 7662 and 8916 - US$ 104,405 thousand (US$ 78,197 thousand in December 2023) |
30,375 |
476,883 |
507,258 |
29,433 |
477,554 |
506,987 |
JICA 15 – ¥
6,338,365 thousand (¥ 6,914,580 thousand in December 2023) |
38,042 |
171,188 |
209,230 |
39,437 |
197,180 |
236,617 |
JICA 18 – ¥
5,698,880 thousand (¥ 6,216,960 thousand in December 2023) |
34,204 |
153,803 |
188,007 |
35,457 |
177,168 |
212,625 |
JICA 17 – ¥
3,464,352 thousand (¥ 3,464,352 thousand in December 2023) |
9,530 |
104,054 |
113,584 |
9,879 |
107,880 |
117,759 |
JICA 19 – ¥
23,575,734 thousand (¥ 24,482,493 thousand in December 2023) |
59,864 |
716,868 |
776,732 |
62,059 |
774,200 |
836,259 |
Interest and other
charges |
22,933 |
- |
22,933 |
23,677 |
- |
23,677 |
Total
in foreign currency |
246,299 |
2,384,793 |
2,631,092 |
249,701 |
2,496,190 |
2,745,891 |
|
|
|
|
|
|
|
Total borrowings and
financing |
2,716,361 |
19,307,946 |
22,024,307 |
2,616,406 |
16,919,944 |
19,536,350 |
Exchange rates as of March 31, 2024: US$ 4.9962; ¥ 0.03301
(as of December 31, 2023: US$ 4.8413; ¥ 0.03422).
As of March 31, 2024, the Company did not have balances of borrowings
and financing raised during the year, maturing within 12 months. |
|
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
Local currency |
Guarantees |
Maturity |
Annual interest
rate |
Inflation
adjustment |
|
|
|
|
|
12th
issue debentures |
Own
funds |
2025 |
TR
+ 9.5% |
|
17th
issue debentures |
Own
funds |
2023 |
CDI
+ 0.75% (series 1), 4.5% (series 2), and 4.75% (series 3) |
IPCA
(series 2 and 3) |
18th
issue debentures |
Own
funds |
2024 |
TJLP
+ 1.92 % (series 1 and 3) and 8.25% (series 2) |
IPCA
(series 2) |
22nd
issue debentures |
Own
funds |
2025 |
CDI
+ 0.58% (series 1) and CDI+ 0.90% (series 2) and 6.0% (series 3) |
IPCA
(series 3) |
23rd
issue debentures |
Own
funds |
2027 |
CDI
+ 0.49% (series 1) and CDI+ 0.63% (series 2) |
|
24th
issue debentures |
Own
funds |
2029 |
3.20%
(series 1) and 3.37% (series 2) |
IPCA
(series 1 and 2) |
26th
issue debentures |
Own
funds |
2030 |
4.65%
(series 1) and 4.95% (series 2) |
IPCA
(series 1 and 2) |
27th
issue debentures |
Own
funds |
2027 |
CDI
+ 1.60% (series 1) and CDI+ 1.80% (series 2) and 2.25% (series 3) |
|
28th
issue debentures |
Own
funds |
2028 |
CDI + 1.20% (series 1) and CDI+ 1.44% (series 2)
and
1.60% (series 3) |
|
29th
issue debentures |
Own
funds |
2036 |
CDI + 1.29% (series 1), 5.3058% (series 2), and
5.4478% (series 3) |
IPCA
(series 2 and 3) |
30th
issue debentures |
Own
funds |
2029 |
CDI
+ 1.30% (series 1) and CDI+ 1.58% (series 2) |
|
31st
issue debentures |
Own
funds |
2034 |
CDI
+0.49 (series 1) and CDI+1.10% (series 2) and CDI+1.31% (series 3) |
|
Brazilian
Federal Savings Bank |
Own
funds |
2024/2042 |
5% to
9.5% |
TR |
Brazilian Development Bank
- BNDES PAC II 9751 |
Own
funds |
2027 |
TJLP
+ 1.72% |
|
Brazilian Development Bank
- BNDES PAC II 9752 |
Own
funds |
2027 |
TJLP
+ 1.72% |
|
Brazilian Development Bank
- BNDES ONDA LIMPA |
Own
funds |
2025 |
TJLP
+ 1.92% |
|
Brazilian Development Bank
– BNDES TIETÊ III |
Own
funds |
2028 |
TJLP
+ 1.66% |
|
Brazilian Development Bank
- BNDES 2015 |
Own
funds |
2035 |
TJLP
+ 2.18% |
|
Brazilian Development Bank
- BNDES 2014 |
Own
funds |
2026 |
TJLP
+ 1.76% |
|
Inter-American Development
Bank – IDB 2202 |
Government |
2035 |
CDI
+ 0.86% |
|
Inter-American Development
Bank – IDB INVEST |
Own
funds |
2034 |
CDI+
1.90% and CDI 2.70% |
|
Inter-American Development
Bank – IDB INVEST 2022 |
Own
funds |
2036 |
CDI
+ 2.50% |
|
Inter-American Development
Bank – IDB INVEST 2023 |
Own
funds |
2036 |
CDI
+ 0.50% |
|
International Finance Corporation
- IFC |
Own
funds |
2032 |
CDI
+ 2.00% |
|
Leases (Concession
Agreements, Program Contracts, and Contract Asset) |
|
2035 |
7.73%
to 10.12% |
IPC |
Leases (others) |
|
2042 |
9.74%
to 15.24% |
|
Other |
Own
funds |
2025 |
3% (FEHIDRO);
TJLP + 1.5% (FINEP) |
|
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
Foreign currency |
Guarantees |
Maturity |
Annual interest
rate |
Exchange variation |
|
|
|
|
|
Inter-American Development
Bank - IDB 1212 – US$ 15,417 thousand |
Government |
2025 |
SOFR
+5.13% |
US$ |
Inter-American
Development Bank - IDB 4623 – US$ 152,187 thousand |
Government |
2044 |
SOFR
+ 6.55055% |
US$ |
International
Bank for Reconstruction and Development (IBRD) – IBRDs 7662 and 8916 - US$
104,405 thousand |
Government |
2034 |
SOFR
+ 6.06% and 7.16% |
US$ |
JICA 15 –
¥ 6,338,365 thousand |
Government |
2029 |
1.8%
and 2.5% |
Yen |
JICA 18 –
¥ 5,698,880 thousand |
Government |
2029 |
1.8%
and 2.5% |
Yen |
JICA 17 –
¥ 3,464,352 thousand |
Government |
2035 |
1.2%
and 0.01% |
Yen |
JICA 19 –
¥ 23,575,734 thousand |
Government |
2037 |
1.7%
and 0.01% |
Yen |
|
|
|
|
|
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
(i) Payment schedule – accounting
balances as of March 31, 2024
|
Parent Company
and Consolidated |
|
2024 |
2025 |
2026 |
2027 |
2028 |
2029 |
2030 to 2044
|
TOTAL |
LOCAL
CURRENCY |
|
|
|
|
|
|
|
|
Debentures |
905,061 |
1,328,730 |
1,217,890 |
1,387,314 |
665,375 |
1,304,027 |
3,218,442 |
10,026,839 |
Brazilian
Federal Savings Bank |
82,048 |
115,356 |
122,556 |
130,195 |
138,177 |
143,481 |
868,098 |
1,599,911 |
BNDES |
210,955 |
260,803 |
250,860 |
238,124 |
84,351 |
34,189 |
189,563 |
1,268,845 |
IDBs
- National |
139,754 |
260,899 |
330,209 |
315,069 |
420,959 |
385,919 |
1,971,918 |
3,824,727 |
IFCs |
22,800 |
44,200 |
61,800 |
80,800 |
123,600 |
181,600 |
1,209,145 |
1,723,945 |
Leases
(Concession Agreements, Program Contracts, Contract Asset, and others) |
151,818 |
133,170 |
64,062 |
22,899 |
58,917 |
19,012 |
114,209 |
564,087 |
Other |
2,254 |
2,771 |
142 |
- |
- |
- |
- |
5,167 |
Interest
and other charges |
304,965 |
74,729 |
- |
- |
- |
- |
- |
379,694 |
TOTAL
IN LOCAL CURRENCY |
1,819,655 |
2,220,658 |
2,047,519 |
2,174,401 |
1,491,379 |
2,068,228 |
7,571,375 |
19,393,215 |
FOREIGN
CURRENCY |
|
|
|
|
|
|
|
|
IDB |
25,676 |
71,361 |
40,019 |
40,019 |
40,019 |
40,019 |
556,235 |
813,348 |
IBRD |
15,188 |
30,375 |
30,375 |
30,375 |
30,375 |
41,525 |
329,045 |
507,258 |
JICA |
75,585 |
141,639 |
141,639 |
141,639 |
141,639 |
141,526 |
503,886 |
1,287,553 |
Interest
and other charges |
19,741 |
3,192 |
- |
- |
- |
- |
- |
22,933 |
TOTAL
IN FOREIGN CURRENCY |
136,190 |
246,567 |
212,033 |
212,033 |
212,033 |
223,070 |
1,389,166 |
2,631,092 |
Total |
1,955,845 |
2,467,225 |
2,259,552 |
2,386,434 |
1,703,412 |
2,291,298 |
8,960,541 |
22,024,307 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
(II) Changes
|
Parent Company
and Consolidated |
|
|
Addition
(lease) |
Funding |
Borrowing
costs |
Inflation
adjustment and exchange rate changes |
Inflation
adjustment / exchange rate change and incorporated interest- Capitalized |
Interest
paid |
Amortization |
Accrued
interest |
Provision
for interest and fees - Capitalized |
Expenses
with borrowing costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOCAL
CURRENCY |
|
|
|
|
|
|
|
|
|
|
|
|
Debentures |
7,534,818 |
- |
2,940,478 |
(7,319) |
51,281 |
10,953 |
(166,538) |
(316,082) |
151,082 |
36,657 |
2,731 |
10,238,061 |
Brazilian
Federal Savings Bank |
1,621,014 |
- |
7,857 |
- |
1,653 |
412 |
(31,269) |
(26,495) |
25,167 |
6,056 |
- |
1,604,395 |
BNDES |
1,341,472 |
- |
- |
- |
1,096 |
553 |
(24,734) |
(70,274) |
16,743 |
8,191 |
59 |
1,273,106 |
IDB
2202 |
2,252,742 |
- |
- |
- |
- |
- |
(132,871) |
(90,674) |
34,753 |
27,317 |
239 |
2,091,506 |
IDB
INVEST 2020 |
900,367 |
- |
- |
- |
- |
- |
(61,148) |
(18,670) |
- |
28,095 |
165 |
848,809 |
IFC
2022 |
757,297 |
- |
- |
- |
- |
- |
- |
- |
8,217 |
15,647 |
229 |
781,390 |
IFC
2023 |
1,006,642 |
- |
- |
- |
- |
- |
- |
- |
10,690 |
20,362 |
355 |
1,038,049 |
IDB
INVEST 2022 |
454,543 |
- |
- |
- |
- |
- |
- |
- |
14,842 |
- |
64 |
469,449 |
IDB
INVEST 2023 |
464,131 |
- |
- |
- |
- |
- |
- |
- |
15,038 |
- |
17 |
479,186 |
Leases
(Concession Agreements, Program Contracts, and Contract Asset) |
309,210 |
- |
- |
- |
- |
- |
(27,329) |
- |
30,556 |
- |
- |
312,437 |
Leases
(others) |
142,300 |
130,666 |
- |
- |
- |
- |
|
(30,193) |
8,877 |
- |
- |
251,650 |
Other |
5,923 |
- |
- |
- |
6 |
- |
(92) |
(751) |
90 |
1 |
- |
5,177 |
TOTAL
IN LOCAL CURRENCY |
16,790,459 |
130,666 |
2,948,335 |
(7,319) |
54,036 |
11,918 |
(443,981) |
(553,139) |
316,055 |
142,326 |
3,859 |
19,393,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
FOREIGN
CURRENCY |
|
|
|
|
|
|
|
|
|
|
|
|
IDBs |
819,455 |
- |
- |
- |
26,441 |
- |
(2,457) |
(25,359) |
13,639 |
- |
298 |
832,017 |
IBRD |
515,015 |
- |
- |
(1,321) |
16,589 |
- |
(16,507) |
(15,133) |
10,076 |
3 |
139 |
508,861 |
JICA |
1,411,421 |
- |
- |
- |
(49,365) |
- |
(10,651) |
(66,395) |
5,005 |
148 |
51 |
1,290,214 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
IN FOREIGN CURRENCY |
2,745,891 |
- |
- |
(1,321) |
(6,335) |
- |
(29,615) |
(106,887) |
28,720 |
151 |
488 |
2,631,092 |
Total |
19,536,350 |
130,666 |
2,948,335 |
(8,640) |
47,701 |
11,918 |
(473,596) |
(660,026) |
344,775 |
142,477 |
4,347 |
22,024,307 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
|
Parent Company |
|
|
Addition
(lease) |
Funding |
Borrowing
costs |
Inflation
adjustment and exchange rate changes |
Inflation
adjustment / exchange rate change and incorporated interest- Capitalized |
Interest
paid |
Amortization |
Accrued
interest |
Provision
for interest and fees - Capitalized |
Expenses
with borrowing costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOCAL
CURRENCY |
|
|
|
|
|
|
|
|
|
|
|
|
Debentures |
8,166,366 |
- |
- |
(516) |
60,883 |
5,463 |
(206,330) |
(363,123) |
162,197 |
46,336 |
2,859 |
7,874,135 |
Brazilian
Federal Savings Bank |
1,526,185 |
- |
50,852 |
- |
6,250 |
1,718 |
(29,853) |
(27,891) |
23,539 |
6,393 |
- |
1,557,193 |
BNDES |
1,380,993 |
- |
- |
- |
3,354 |
984 |
(25,753) |
(61,940) |
19,891 |
5,670 |
65 |
1,323,264 |
IDB
2202 |
2,450,550 |
- |
- |
- |
- |
- |
(165,514) |
(90,674) |
26,253 |
58,942 |
239 |
2,279,796 |
IDB
INVEST |
943,619 |
- |
- |
- |
- |
- |
(71,521) |
(18,670) |
22,661 |
12,244 |
166 |
888,499 |
IFC |
774,525 |
- |
- |
- |
- |
- |
- |
- |
- |
29,484 |
228 |
804,237 |
IDB
INVEST 2022 |
469,327 |
- |
- |
- |
- |
- |
- |
- |
18,405 |
- |
64 |
487,796 |
Leases
(Concession Agreements, Program Contracts, and Contract Asset) |
357,844 |
- |
- |
- |
- |
- |
(13,603) |
(10,873) |
13,603 |
- |
- |
346,971 |
Leases
(others) |
101,374 |
320 |
- |
- |
- |
- |
(4,523) |
(20,389) |
9,047 |
- |
- |
85,829 |
Other |
12,130 |
- |
3,629 |
- |
22 |
- |
(161) |
(1,581) |
160 |
2 |
- |
14,201 |
TOTAL
IN LOCAL CURRENCY |
16,182,913 |
320 |
54,481 |
(516) |
70,509 |
8,165 |
(517,258) |
(595,141) |
295,756 |
159,071 |
3,621 |
15,661,921 |
|
|
|
|
|
|
|
|
|
|
|
|
|
FOREIGN
CURRENCY |
|
|
|
|
|
|
|
|
|
|
|
|
IDBs |
532,693 |
- |
50,342 |
- |
(15,365) |
- |
(2,474) |
(26,343) |
5,062 |
- |
237 |
544,152 |
IBRD |
399,762 |
- |
18,892 |
(1,588) |
(10,585) |
- |
(10,061) |
(16,014) |
8,691 |
56 |
106 |
389,259 |
JICA |
1,803,109 |
- |
- |
- |
(56,819) |
- |
(14,057) |
(78,741) |
6,635 |
289 |
51 |
1,660,467 |
IDB
1983AB |
40,194 |
- |
- |
- |
(1,056) |
- |
- |
- |
661 |
221 |
104 |
40,124 |
TOTAL
IN FOREIGN CURRENCY |
2,775,758 |
- |
69,234 |
(1,588) |
(83,825) |
- |
(26,592) |
(121,098) |
21,049 |
566 |
498 |
2,634,002 |
Total |
18,958,671 |
320 |
123,715 |
(2,104) |
(13,316) |
8,165 |
(543,850) |
(716,239) |
316,805 |
159,637 |
4,119 |
18,295,923 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
| (a) | Main
events in the three-month period ended March 31, 2024 |
Debentures
As of March 05, 2024, the Company raised
R$ 2,940.5 billion from the 31st issue of simple, unsecured debentures, not convertible into shares, in three series, with the following
characteristics:
|
Value |
Rate |
Maturity |
Series
1 |
507,000 |
CDI
+ 0.49% p.a. |
2029 |
Series
2 |
1,734,467 |
CDI
+ 1.10% p.a. |
2031 |
Series
3 |
699,011 |
CDI
+ 1.31% p.a. |
2034 |
Total |
2,940,478 |
|
|
| · | The
covenants agreed upon for the 31st issue are: |
Calculated every quarter, when disclosing
the quarterly information or annual financial statements:
- Net debt/adjusted EBITDA lower
than or equal to 3.50;
- Adjusted EBITDA/financial expenses
equal to or higher than 1.5;
Failure to comply with the financial
indices above for at least two consecutive quarters, or for two non-consecutive quarters within twelve months (in which case the 30-day
cure period does not apply), constitutes a default event that may lead to the early maturity of the Debentures.- Disposal of operating
assets, termination of licenses, loss of concession or loss of the Company’s ability to execute and operate public sanitation services
in areas of the São Paulo State which, individually or jointly during the term of the agreement, lead to a reduction of the Company’s
net sales and/or service revenue of more than twenty- five percent (25%). The above limit will be calculated every quarter, taking into
consideration the Company’s net operating income during the twelve (12) months before the end of each quarter and using the financial
information disclosed by the Company. Failure to comply with the limit above constitutes a default event that may lead to the early maturity
of the Debentures.
The contract has a cross acceleration
clause, i.e. the early maturity of any of the Company’s debts, in an individual or aggregate amount equal to or higher than R$
198 million, adjusted by the IPCA inflation index as of the issue date, constitutes a default event and may result in the early maturity
of the Debentures.
The proceeds from the issue will
be used to refinance financial commitments falling due in 2024 and to recompose and reinforce the cash position. The Debentures are characterized
as “ESG bonds for the use of sustainable and blue resources”, based on the Company’s commitment to allocate the equivalent
amount in projects described in the Sustainable Finance Framework.
The Company has lease agreements signed
as Assets Lease. During the construction period, work costs are capitalized to contract assets and the lease amount is recorded in the
same proportion.
After startup, the lease payment period
starts (240 monthly installments), and the amount is periodically restated by the contracted price index.
The amounts payable for the right of
use of assets are also recorded in this line. See Note 14 (f).
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
The table below shows the most restrictive
covenants ratios as of March 31, 2024.
|
Covenants |
Adjusted EBITDA / Adjusted
Financial Expenses |
Equal
to or higher than 2.80 |
EBITDA / Financial Expenses
Paid |
Equal
to or higher than 2.35 |
Adjusted Net Debt / Adjusted
EBITDA |
Equal
to or lower than 3.80 |
Net Debt / Adjusted EBITDA |
Equal
to or lower than 3.50 |
Other Onerous Debt (1)
/ Adjusted EBITDA |
Equal
to or lower than 1.30 |
Adjusted Current Ratio |
Higher
than 1.00 |
(1)
The contractual definition of “Other Onerous Debts” corresponds to the sum of pension plan obligations and healthcare
plan, installment payments of tax debts, and installment payments of debts with the electricity supplier. |
As of March 31, 2024, and December 31,
2023, the Company met the requirements set forth by its borrowings and financing agreements.
| (d) | Borrowings
and financing – Credit limited |
|
Parent
Company and Consolidated |
Agent |
March 31,
2024 |
|
(in millions
of reais (*)) |
Brazilian
Federal Savings Bank |
926 |
Brazilian
Development Bank (BNDES) |
30 |
Inter-American
Development Bank (IDB) |
739 |
International
Bank for Reconstruction and Development (IBRD) |
1,032 |
Other |
7 |
TOTAL |
2,734 |
(*) Brazilian Central Bank’s exchange
rate as of March 31, 2024 (US$ 1.00 = R$ 4.9962; ¥ 1.00 = R$ 0.03301).
Financing resources contracted have
specific purposes and are released for the execution of their respective investments, according to the progress of the works.
| 17 | Taxes
and contributions |
|
Parent
Company |
|
March 31,
2024 |
December
31, 2023 |
Recoverable
taxes |
|
|
Income
tax and social contribution |
272,364 |
462,642 |
Withheld
income tax (IRRF) on financial investments |
53,572 |
29,953 |
Other
federal taxes |
2,222 |
2,050 |
Total |
328,158 |
494,645 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
|
Consolidated |
|
March 31,
2024 |
December
31, 2023 |
Recoverable
taxes |
|
|
Income
tax and social contribution |
272,364 |
462,642 |
Withheld
income tax (IRRF) on financial investments |
53,587 |
29,955 |
Other
federal taxes |
2,222 |
2,050 |
Total |
328,173 |
494,647 |
|
Parent
Company |
|
March 31,
2024 |
December
31, 2023 |
Taxes
and contributions payable |
|
|
Income
tax and social contribution |
388,734 |
205,587 |
Cofins
and Pasep |
136,927 |
141,576 |
INSS (social
security contribution) |
42,136 |
44,556 |
IRRF (withholding
income tax) |
5,512 |
64,770 |
Other |
44,614 |
54,979 |
Total |
617,923 |
511,468 |
|
Consolidated |
|
March 31,
2024 |
December
31, 2023 |
Taxes
and contributions payable |
|
|
Income
tax and social contribution |
389,712 |
205,964 |
Cofins
and Pasep |
137,048 |
141,703 |
INSS (social
security contribution) |
42,136 |
44,556 |
IRRF (withholding
income tax) |
5,512 |
64,770 |
Other |
44,620 |
54,979 |
Total |
619,028 |
511,972 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
| 18 | Deferred
taxes and contributions |
| (a) | Statement
of financial position details |
|
Parent Company
and Consolidated |
|
March 31, 2024 |
December 31,
2023 |
Deferred
income tax assets |
|
|
Provisions |
678,996 |
666,131 |
Pension
plan obligations - G1 |
132,543 |
135,231 |
Donations
of underlying assets on concession agreements |
44,594 |
45,140 |
Allowance
for doubtful accounts |
190,726 |
182,519 |
Other |
376,281 |
382,767 |
Total
deferred tax asset |
1,423,140 |
1,411,788 |
|
|
|
Deferred
income tax liabilities |
|
|
Temporary
difference on concession of intangible asset |
(325,461) |
(329,060) |
Capitalization
of borrowing costs |
(466,374) |
(465,510) |
Profit
on supply to government entities |
(347,379) |
(348,514) |
Actuarial
gain – G1 Plan |
(121,425) |
(121,425) |
Construction
margin |
(39,893) |
(40,579) |
Borrowing
costs |
(7,323) |
(8,624) |
Total
deferred tax liabilities |
(1,307,855) |
(1,313,712) |
|
|
|
Deferred
tax asset, net |
115,285 |
98,076 |
|
Parent
Company and Consolidated |
Deferred
income tax assets |
|
|
|
Provisions |
666,131 |
12,865 |
678,996 |
Pension plan obligations -
G1 |
135,231 |
(2,688) |
132,543 |
Donations of underlying assets
on concession agreements |
45,140 |
(546) |
44,594 |
Allowance for doubtful accounts |
182,519 |
8,207 |
190,726 |
Other |
382,767 |
(6,486) |
376,281 |
Total |
1,411,788 |
11,352 |
1,423,140 |
|
|
|
|
Deferred
income tax liabilities |
|
|
|
Temporary difference on concession
of intangible asset |
(329,060) |
3,599 |
(325,461) |
Capitalization of borrowing
costs |
(465,510) |
(864) |
(466,374) |
Profit on supply to government
entities |
(348,514) |
1,135 |
(347,379) |
Actuarial gain – G1 |
(121,425) |
- |
(121,425) |
Construction margin |
(40,579) |
686 |
(39,893) |
Borrowing costs |
(8,624) |
1,301 |
(7,323) |
Total |
(1,313,712) |
5,857 |
(1,307,855) |
|
|
|
|
Deferred
tax asset, net |
98,076 |
17,209 |
115,285 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
|
Parent
Company |
Deferred
income tax assets |
|
|
|
Provisions |
560,404 |
12,715 |
573,119 |
Pension plan obligations -
G1 |
141,606 |
(4,774) |
136,832 |
Donations of underlying assets
on concession agreements |
46,088 |
(288) |
45,800 |
Allowance for doubtful accounts |
199,363 |
(6,693) |
192,670 |
Other |
171,798 |
(2,221) |
169,577 |
Total |
1,119,259 |
(1,261) |
1,117,998 |
|
|
|
|
Deferred
income tax liabilities |
|
|
|
Temporary difference on concession
of intangible asset |
(353,817) |
3,498 |
(350,319) |
Capitalization of borrowing
costs |
(457,669) |
(7,785) |
(465,454) |
Profit on supply to government
entities |
(346,650) |
1,390
|
(345,260) |
Actuarial gain – G1 |
(93,561) |
- |
(93,561) |
Construction margin |
(43,323) |
686 |
(42,637) |
Borrowing costs |
(13,517) |
1,227 |
(12,290) |
Total |
(1,308,537) |
(984) |
(1,309,521) |
|
|
|
|
Deferred
tax liability, net |
(189,278) |
(2,245) |
(191,523) |
| (c) | Reconciliation
of the effective tax rate |
The amounts recorded as income tax and
social contribution expenses in the financial statements are reconciled to the statutory rates, as shown below:
|
Parent
Company |
|
Consolidated |
|
|
|
|
|
|
|
|
Profit
before income taxes |
1,322,882 |
1,132,945 |
1,323,860 |
Statutory
rate |
34% |
34% |
34% |
|
|
|
|
Estimated
expense at statutory rate |
(449,780) |
(385,201) |
(450,112) |
Permanent
differences: |
|
|
|
Provision
Law 4,819/1958 – G0 (i) |
(6,555) |
(10,772) |
(6,555) |
Donations |
(1,093) |
(1,065) |
(1,093) |
Agreement
with AAPS |
(55,212) |
- |
(55,212) |
Other
differences |
13,053 |
11,305 |
12,407 |
|
|
|
|
Income
tax and social contribution |
(499,587) |
(385,733) |
(500,565) |
|
|
|
|
Current
income tax and social contribution |
(516,796) |
(383,488) |
(517,774) |
Deferred
income tax and social contribution |
17,209 |
(2,245) |
17,209 |
Effective
rate |
38% |
34% |
38% |
(i) Permanent
difference related to the provision for the actuarial liability. See Note 21 (ii) and (v).
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
| (a) | Lawsuits
and proceedings that resulted in provisions |
| (I) | Statement
of financial position details |
The Company is a party to several legal
claims and administrative proceedings arising from the normal course of business, including civil, tax, labor, and environmental matters.
Management recognizes provisions consistently with the recognition and measurement criteria established in Note 3.16 to the Annual Financial
Statements as of December 31, 2023. The terms and payment amounts are defined based on the outcome of these lawsuits.
|
Parent
Company and Consolidated |
|
March
31, 2024 |
|
December
31, 2023 |
|
Provisions |
Escrow
deposits |
Provisions
net of deposits |
|
Provisions |
Escrow
deposits |
Provisions
net of deposits |
Customer
claims (i) |
169,058 |
(6,003) |
163,055 |
|
175,255 |
(6,060) |
169,195 |
Supplier
claims (ii) |
338,580 |
(93,833) |
244,747 |
|
334,273 |
(90,973) |
243,300 |
Other
civil claims (iii) |
140,447 |
(1,301) |
139,146 |
|
128,036 |
(1,229) |
126,807 |
Tax claims
(iv) |
114,215 |
(18,577) |
95,638 |
|
101,770 |
(18,223) |
83,547 |
Labor
claims (v) |
723,968 |
(14,077) |
709,891 |
|
727,133 |
(16,235) |
710,898 |
Environmental
claims (vi) |
510,781 |
(57) |
510,724 |
|
492,740 |
(55) |
492,685 |
Total |
1,997,049 |
(133,848) |
1,863,201 |
|
1,959,207 |
(132,775) |
1,826,432 |
|
|
|
|
|
|
|
|
Current |
1,085,976 |
- |
1,085,976 |
|
1,064,367 |
- |
1,064,367 |
Noncurrent |
911,073 |
(133,848) |
777,225 |
|
894,840 |
(132,775) |
762,065 |
|
Parent
Company and Consolidated |
|
|
Additional
provisions |
Interest
and inflation adjustment |
Use of
the accrual |
Amounts not used
(reversal)
|
|
Customer
claims (i) |
175,255 |
965 |
5,043 |
(12,189) |
(16) |
169,058 |
Supplier
claims (ii) |
334,273 |
2,027 |
8,957 |
(2,741) |
(3,936) |
338,580 |
Other
civil claims (iii) |
128,036 |
23,512 |
5,480 |
(15,564) |
(1,017) |
140,447 |
Tax claims
(iv) |
101,770 |
11,967 |
4,805 |
(101) |
(4,226) |
114,215 |
Labor
claims (v) |
727,133 |
18,517 |
13,098 |
(16,498) |
(18,282) |
723,968 |
Environmental
claims (vi) |
492,740 |
10,667 |
21,650 |
- |
(14,276) |
510,781 |
Subtotal |
1,959,207 |
67,655 |
59,033 |
(47,093) |
(41,753) |
1,997,049 |
Escrow
deposits |
(132,775) |
(1,899) |
(2,580) |
1,816 |
1,590 |
(133,848) |
Total |
1,826,432 |
65,756 |
56,453 |
(45,277) |
(40,163) |
1,863,201 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
|
Parent
Company |
|
|
Additional
provisions |
Interest
and inflation adjustment |
Use of
the accrual |
Amounts not used
(reversal)
|
|
Customer
claims (i) |
151,023 |
1,918 |
3,790 |
(21,540) |
(1,158) |
134,033 |
Supplier
claims (ii) |
257,080 |
1,992 |
5,552 |
(1,042) |
- |
263,582 |
Other
civil claims (iii) |
99,462 |
5,701 |
7,154 |
(3,478) |
(3,793) |
105,046 |
Tax claims
(iv) |
79,532 |
11,039 |
1,658 |
(7) |
(455) |
91,767 |
Labor
claims (v) |
654,277 |
9,894 |
13,486 |
(5,799) |
(14,450) |
657,408 |
Environmental
claims (vi) |
406,872 |
22,400 |
18,655 |
- |
(14,117) |
433,810 |
Subtotal |
1,648,246 |
52,944 |
50,295 |
(31,866) |
(33,973) |
1,685,646 |
Escrow
deposits |
(37,462) |
(271) |
(696) |
533 |
1,461 |
(36,435) |
Total |
1,610,784 |
52,673 |
49,599 |
(31,333) |
(32,512) |
1,649,211 |
| (b) | Lawsuits
deemed as contingent liabilities |
The Company is a party to lawsuits and
administrative proceedings relating to environmental, tax, civil, and labor claims, which are assessed as contingent liabilities in the
financial statements, since it either does not expect outflows to be required or the amount of the obligations cannot be reliably measured.
Contingent liabilities, net of deposits, are represented as follows:
|
Parent
Company and Consolidated |
|
March
31, 2024 |
December
31, 2023 |
Customer claims (i) |
161,784 |
158,584 |
Supplier claims (ii) |
1,005,785 |
968,752 |
Other civil claims (iii) |
644,852 |
695,097 |
Tax claims (iv) |
1,156,487 |
1,067,350 |
Labor claims (v) |
3,332,929 |
3,093,735 |
Environmental claims (vi) |
4,316,366 |
4,158,504 |
Total |
10,618,203 |
10,142,022 |
| (c) | Explanation
of the nature of main classes of lawsuits |
Refer mainly to lawsuits from customers
claiming that their tariffs should be equal to those of other consumer categories, lawsuits for reduction of sewage tariff due to system
losses, consequently requiring the refund of amounts charged by the Company, and lawsuits for reduction of tariff for being eligible
to the Social Welfare Entity category.
Include lawsuits filed by some suppliers
alleging underpayment of inflation adjustments and economic and financial imbalance of the agreements, and are in progress at different
courts.
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| |
Notes to the Quarterly Information
| |
| |
Refer mainly to indemnities for property
damage, pain and suffering, and loss of profits allegedly caused to third parties, such as vehicle accidents, claims, and challenges
on the methodology to collect tariffs, among others, filed at different court levels.
(iv)
Tax claims
Tax claims refer mainly to tax collections
and fines in general challenged due to disagreements regarding notification or differences in the interpretation of legislation by the
Company's Management.
(v)
Labor claims
The Company is a party to several labor
lawsuits, involving issues such as overtime, shift schedule, health hazard premium and hazardous duty premium, prior notice, change of
function, salary equalization, service outsourcing, and others, which are at various court levels.
(vi)
Environmental claims
These refer to several administrative
proceedings and lawsuits filed by government entities, including Companhia Ambiental do Estado de São Paulo (CETESB) and the Public
Prosecution Office of the São Paulo State, which aim at certain obligations to do and not to do, with the provision of fines for
non-compliance and imposition of compensation for environmental damages allegedly caused by the Company.
The main objects in which the Company
is involved are: a) blame SABESP for discharging or releasing sewage without proper treatment; b) invest in the water and sewage treatment
system of the municipality, under penalty of paying a fine; c) pay compensation for environmental damages; amongst others.
As of May 24, 2023, the Company executed
an agreement effective for one year for the issue of policies under several types of guarantee insurance. The limit that can be used
is R$ 600 million. The guarantee insurance for escrow deposit is used in legal claims, where instead of immediately disbursing cash,
the Company uses the guarantee provided by the insurance until the end of these proceedings, limited to up to five years. As of March
31, 2024, R$ 199.7 million was available for use.
| 20 | Labor
liabilities and pension plan obligations |
|
Parent Company
and Consolidated |
|
March 31, 2024 |
December 31,
2023 |
Salaries
and payroll charges |
37,337 |
69,885 |
Provision
for vacation |
245,218 |
256,415 |
Provision
for Christmas bonus |
21,325 |
- |
Healthcare
plan (i) |
117,551 |
86,147 |
Provision
for profit sharing (ii) |
122,353 |
97,514 |
Incentivized
Dismissal Program - IDP (iii) |
192,626 |
290,202 |
Consent
Decree (TAC) |
5,161 |
6,093 |
Knowledge
Retention Program (KRP) |
1,016 |
1,184 |
Total |
742,587 |
807,440 |
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| |
Notes to the Quarterly Information
| |
| |
(i) Healthcare plan
Benefits granted are paid after the
event, free of choice, and are sponsored by the contributions of SABESP and the employees. In the first quarter of 2024, the Company
contributed 8.7%, on average, of gross payroll, totaling R$ 66,605 (9.8% in the first quarter of 2023, totaling R$ 75,505).
The agreement entered into between SABESP
and AAPS (Sabesp’s Association of Retirees and Pensioners) regarding financial compensation for 60 months for the VIVEST health
plan operator regarding the migration of retirees, former employees, pensioners, and dependents between health plans is recorded in this
line.
Until the ratification of the agreement,
SABESP was responsible for transferring to VIVEST the amounts referring to deficits in the health plans of retirees, former employees,
pensioners, and dependents, and for ensuring that each individual reimbursed the Company for the deficit.
In the first quarter of 2024, the Company
recognized the obligations related to the agreement, considering the entire population migrated or those in negotiations for migration,
with a total impact of R$ 162,388 on the period’s result, under the general expenses line. Of this amount, R$ 10,237
was paid by March 31, 2024, of which R$ 31,206 was recorded under current liabilities and R$ 120,945 under noncurrent liabilities
in “Other Obligations”.
(ii)
Provision for profit sharing
Based on an agreement with the labor
union, the Profit Sharing Program corresponds to up to one month’s salary for each employee, depending on the achievement of the
goals established, from January to December, and should be paid in the subsequent year.
(iii)
Incentivized Dismissal Program - IDP
In June 2023, the Company implemented
the Incentivized Dismissal Program (PDI or Program) to pacifically reduce the workforce and provide gains in efficiency, increase of
competitiveness, and optimization of costs (further details in Note 21 to the Annual Financial Statements as of December, 31, 2023).
As of March 31, 2024, R$ 250,054
was recorded due to the provision for compensation incentives for employees who joined the program, of which R$ 192,626 in current
liabilities and R$ 57,428 in noncurrent liabilities under “Labor Obligations”.
| 21 | Pension
plan obligations |
The Company has Post-Employment Benefit Plans
in the following modalities: Defined Benefit (BD) – G1 (i) and G0 (ii); and Defined Contribution (CD) – Sabesprev Mais (iii)
and VIVEST (iv), whereby only the latter is open for new adhesions. See the reconciliation of expenses with such plans in item (v).
Defined benefit plans
Summary of pension plan obligations- Liabilities
|
Parent
Company and Consolidated |
|
G1 Plan |
G0 Plan |
Total |
Pension
plan obligations as of December 31, 2023 |
(44,249) |
(2,098,622) |
(2,142,871) |
(Expenses)
recognized in 2024 |
(1,560) |
(47,319) |
(48,879) |
Payments
made in 2024 |
10,096 |
50,424 |
60,520 |
Pension
plan obligations as of March 31, 2024 |
(35,713) |
(2,095,517) |
(2,131,230) |
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| |
Notes to the Quarterly Information
| |
| |
|
Parent
Company |
|
G1 Plan |
G0 Plan |
Total |
Pension
plan obligations as of December 31, 2022 |
(148,116) |
(2,002,075) |
(2,150,191) |
(Expenses)
/ revenues recognized in 2023 |
4,384 |
(56,305) |
(51,921) |
Payments
made in 2023 |
10,124 |
48,200 |
58,324 |
Pension
plan obligations as of March 31, 2023 |
(133,608) |
(2,010,180) |
(2,143,788) |
The defined benefit plan (“G1
Plan”) managed by SABESPREV receives similar contributions established in a plan of subsidy of actuarial study of SABESPREV, as
follows:
| · | 0.99%
of the portion of the salary of participation up to 20 salaries; and |
| · | 8.39%
of the surplus, if any, of the portion of the salary of participation over 20 salaries. |
According to State Law 4,819/1958,
employees who started providing services before May 1974 acquired a legal right to receive supplemental pension payments, which rights
are referred to as "G0 Plan". The Company pays supplemental retirement and pension amounts on behalf of the São Paulo
State and seeks reimbursements of such amounts, which are recorded in the “Balances with related parties” line, limited to
the amounts considered virtually certain to be reimbursed by the São Paulo State.
Managed by SABESPREV, the sponsor's
contributions correspond to the result obtained by applying a percentage of 100% to the basic contribution made by the participant.
Managed by VIVEST, the sponsor's contributions
correspond to the result obtained by applying a percentage of 100% to the basic contribution made by the participant.
| (v) | Reconciliation of expenditures
with pension plan obligations |
|
Parent
Company and Consolidated |
Parent
Company |
|
March 31,
2024 |
March 31,
2023 |
|
|
|
G1
Plan (i) |
1,560 |
(4,384) |
G0
Plan (ii) |
47,319 |
56,305 |
Sabesprev
Mais Plan (iii) |
6,750 |
6,603 |
VIVEST
Plan (iv) |
189 |
84 |
Subtotal |
55,818 |
58,608 |
Capitalized |
(1,150) |
(764) |
Reimbursement
of additional retirement and pension benefits paid (G0) |
(28,040) |
(24,622) |
Other |
1,508 |
1,441 |
|
|
|
Pension
plan obligations (Note 27) |
28,136 |
34,663 |
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| |
Notes to the Quarterly Information
| |
| |
This line records the balances payable, mainly
from services received from third parties, such as the supply of electric power, reading of hydrometers and delivery of water and sewage
bills, cleaning, surveillance and security services, collection, legal counsel services, audit, marketing, and advertising and consulting
services, among others. The amounts payable to the municipal governments related to transfers provided for in the concession agreements
are also recorded. The parent company’s balances as of March 31, 2024, and December 31, 2023, were R$ 836,294 and R$ 749,226, respectively.
The consolidated balances as of March 31, 2024, and December 31, 2023, were R$ 838,703 and R$ 750,732, respectively.
As of March 31, 2024, and December 31, 2023,
the authorized, subscribed, and paid-in capital, totaling R$ 15,000,000, was composed of 683,509,869 registered, book-entry common shares
with no par value, as follows:
|
March
31, 2024 |
December
31, 2023 |
|
Number
of shares |
% |
Number
of shares |
% |
São
Paulo State |
343,506,664 |
50.3 |
343,506,664 |
50.3 |
Other
shareholders |
|
|
|
|
In
Brazil (1) |
266,922,203 |
39.0 |
257,339,417 |
37.6 |
Abroad
(2) |
73,081,002 |
10.7 |
82,663,788 |
12.1 |
|
|
|
|
|
Total |
683,509,869 |
100.0 |
683,509,869 |
100.0 |
| (1) | As
of March 31, 2024, the common shares traded in Brazil were held by 49,847 shareholders. It
includes six shares held by Cia Paulista de Parcerias – CPP, a company controlled by
the São Paulo State Government. |
| (2) | Shares
traded as American Depositary Receipts (ADR) on the New York Stock Exchange, through The
Bank New York Mellon, the depositary bank of the Company’s ADRs. |
The Annual Shareholders’ Meeting
of April 25, 2024, approved the distribution of dividends as interest on capital totaling R$ 836,839, corresponding to a minimum mandatory
dividends and R$ 147,689 as minimum supplementary dividends, totaling R$ 984,528, to be paid on June 24, 2024.
Basic and diluted
Basic earnings per share are calculated
by dividing the equity attributable to owners by the weighted average number of outstanding common shares during the period. The Company
does not have potentially dilutive common shares outstanding or debts convertible into common shares. Accordingly, basic and diluted
earnings per share are equal.
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
|
Parent Company
and Consolidated |
Parent Company |
|
January to March
2024 |
January to March
2023 |
|
|
|
Profit attributable
to the Company’s owners |
823,295 |
747,212 |
Weighted
average number of common shares issued |
683,509,869 |
683,509,869 |
|
|
|
Basic and
diluted earnings per share (reais per share) |
1.20451 |
1.09320 |
| 25 | Operating
segment information |
The Company’s Management, composed
of the Board of Directors and the Executive Board, has determined the operating segment used to make strategic decisions, such as sanitation
services.
Result
|
Parent Company |
|
January to March
2024 |
|
Sanitation (i) |
Reconciliation
to the income statement (ii) |
Balance according
to the financial statements |
Gross
operating revenue |
5,652,574 |
1,336,418 |
6,988,992 |
Gross
sales deductions |
(437,279) |
- |
(437,279) |
Net
operating revenue |
5,215,295 |
1,336,418 |
6,551,713 |
Costs,
selling, general, and administrative expenses |
(3,602,590) |
(1,306,372) |
(4,908,962) |
Income
from operations before other operating expenses, net and equity accounting |
1,612,705 |
30,046 |
1,642,751 |
Other
operating income (expenses), net |
|
|
7,086 |
Equity
results of investments |
|
|
8,837 |
Financial
result, net |
|
|
(335,792) |
Income
from operations before taxes |
|
|
1,322,882 |
Depreciation
and amortization |
(772,552) |
- |
(772,552) |
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| |
Notes to the Quarterly Information
| |
| |
|
Parent Company |
|
January to March
2023 |
|
Sanitation (i) |
Reconciliation
to the income statement (ii) |
Balance according
to the financial statements |
Gross
operating revenue |
4,909,274 |
1,179,534 |
6,088,808 |
Gross
sales deductions |
(390,439) |
- |
(390,439) |
Net
operating revenue |
4,518,835 |
1,179,534 |
5,698,369 |
Costs,
selling, general, and administrative expenses |
(3,173,849) |
(1,153,015) |
(4,326,864) |
Income
from operations before other operating expenses, net and equity accounting |
1,344,986 |
26,519 |
1,371,505 |
Other
operating income (expenses), net |
|
|
14,634 |
Equity
results of investments |
|
|
6,334 |
Financial
result, net |
|
|
(259,528) |
Income
from operations before taxes |
|
|
1,132,945 |
Depreciation
and amortization |
(657,145) |
- |
(657,145) |
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| |
Notes to the Quarterly Information
| |
| |
|
Consolidated |
|
January to March
2024 |
|
Sanitation (i) |
Reconciliation
to the income statement (ii) |
Balance according
to the financial statements |
Gross
operating revenue |
5,661,099 |
1,336,778 |
6,997,877 |
Gross
sales deductions |
(437,631) |
- |
(437,631) |
Net
operating revenue |
5,223,468 |
1,336,778 |
6,560,246 |
Costs,
selling, general, and administrative expenses |
(3,607,447) |
(1,306,723) |
(4,914,170) |
Income
from operations before other operating expenses, net and equity accounting |
1,616,021 |
30,055 |
1,646,076 |
Other
operating income (expenses), net |
|
|
7,086 |
Equity
results of investments |
|
|
8,893 |
Financial
result, net |
|
|
(338,195) |
Income
from operations before taxes |
|
|
1,323,860 |
Depreciation
and amortization |
(773,785) |
- |
(773,785) |
| (i) | See Note 31
for further information about non-cash items, other than depreciation and amortization that
impact segment results, and for additional information on long-lived assets. |
| (ii) | Construction
revenue and related costs are not reported to the CODM. Revenue from construction is recognized
under ICPC 01 (R1) / IFRIC 12 (Concession Agreements) and CPC 47/IFRS 15 (Revenue from Contracts
with Customers), as all performance obligations are met over time. See Note 13 (b) for further
information. |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
Reconciliation
from gross operating revenue to net operating revenue:
|
Parent Company |
Consolidated |
|
|
|
|
|
|
|
|
Revenue
from sanitation services (i) |
5,652,574 |
4,909,274 |
5,661,099 |
Construction
revenue |
1,336,418 |
1,179,534 |
1,336,778 |
Sales
tax |
(410,462) |
(370,298) |
(410,786) |
Regulation,
Control and Oversight Fee (TRCF) |
(26,817) |
(20,141) |
(26,845) |
Net
revenue |
6,551,713 |
5,698,369 |
6,560,246 |
(i) Includes R$ 28,406 from the
TRCF charged from customers from January to March 2024 (R$ 24,019 from January to March 2023), referring to the municipalities regulated
by ARSESP.
| 27 | Operating
costs and expenses |
|
Parent Company |
Consolidated |
|
|
|
|
Operating
costs |
|
|
|
Salaries,
payroll charges, and benefits |
(505,486) |
(583,855) |
(505,690) |
Pension
plan obligations |
(5,810) |
(1,656) |
(5,810) |
Construction
costs (Note 25) |
(1,306,372) |
(1,153,015) |
(1,306,723) |
General
supplies |
(113,013) |
(85,831) |
(113,440) |
Treatment
supplies |
(141,302) |
(164,899) |
(141,370) |
Outsourced
services |
(503,428) |
(435,484) |
(504,745) |
Electricity |
(393,222) |
(395,026) |
(393,822) |
General
expenses |
(283,516) |
(227,169) |
(283,516) |
Depreciation
and amortization |
(719,078) |
(606,788) |
(720,311) |
|
(3,971,227) |
(3,653,723) |
(3,975,427) |
|
|
|
|
Selling
expenses |
|
|
|
Salaries,
payroll charges, and benefits |
(62,062) |
(70,517) |
(62,115) |
Pension
plan obligations |
(840) |
(185) |
(840) |
General
supplies |
(1,813) |
(1,067) |
(1,859) |
Outsourced
services |
(100,969) |
(109,177) |
(101,066) |
Electricity |
(210) |
(191) |
(210) |
General
expenses |
(26,580) |
(27,626) |
(26,628) |
Depreciation
and amortization |
(17,369) |
(16,894) |
(17,369) |
|
(209,843) |
(225,657) |
(210,087) |
|
|
|
|
Bad
debt expense, net of recoveries (Note 9 (c)) |
(190,518) |
(162,805) |
(190,518) |
|
|
|
|
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| |
Notes to the Quarterly Information
| |
| |
Administrative
expenses |
|
|
|
Salaries,
payroll charges, and benefits |
(112,279) |
(55,142) |
(112,499) |
Pension
plan obligations |
(21,486) |
(32,822) |
(21,486) |
General
supplies |
24,560
|
(601) |
24,510
|
Outsourced
services |
(76,602) |
(80,267) |
(77,011) |
Electricity |
(372) |
(583) |
(372) |
General
expenses |
(294,740) |
(60,011) |
(294,810) |
Depreciation
and amortization |
(36,105) |
(33,463) |
(36,105) |
Tax
expenses |
(20,350) |
(21,790) |
(20,365) |
|
(537,374) |
(284,679) |
(538,138) |
|
|
|
|
Operating
costs and expenses |
|
|
|
Salaries,
payroll charges, and benefits |
(679,827) |
(709,514) |
(680,304) |
Pension
plan obligations (Note 21 (v)) |
(28,136) |
(34,663) |
(28,136) |
Construction
costs (Note 25) |
(1,306,372) |
(1,153,015) |
(1,306,723) |
General
supplies |
(90,266) |
(87,499) |
(90,789) |
Treatment
supplies |
(141,302) |
(164,899) |
(141,370) |
Outsourced
services |
(680,999) |
(624,928) |
(682,822) |
Electricity |
(393,804) |
(395,800) |
(394,404) |
General
expenses |
(604,836) |
(314,806) |
(604,954) |
Depreciation
and amortization |
(772,552) |
(657,145) |
(773,785) |
Tax
expenses |
(20,350) |
(21,790) |
(20,365) |
Bad
debt expense, net of recoveries (Note 9 (c)) |
(190,518) |
(162,805) |
(190,518) |
|
(4,908,962) |
(4,326,864) |
(4,914,170) |
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| |
Notes to the Quarterly Information
| |
| |
| 28 | Financial
income (expenses) |
|
Parent
Company |
Consolidated |
|
|
|
|
Financial
expenses |
|
|
|
Interest
and charges on borrowings and financing – local currency |
(276,622) |
(273,106) |
(276,622) |
Interest
and charges on borrowings and financing – foreign currency |
(28,720) |
(21,049) |
(28,720) |
Other
financial expenses |
(175,155) |
(101,732) |
(175,160) |
Inflation
adjustment on borrowings and financing |
(54,035) |
(70,509) |
(54,036) |
Other inflation
adjustments |
(13,265) |
(50,463) |
(13,265) |
Interest
and inflation adjustment on provisions |
(44,300) |
(45,612) |
(44,300) |
Total
financial expenses |
(592,097) |
(562,471) |
(592,103) |
|
|
|
|
Financial
revenue |
|
|
|
Inflation
adjustment gains |
55,881 |
60,314 |
55,881 |
Income
on financial investments |
112,772 |
103,217 |
110,375 |
Interest
income |
92,932 |
66,560 |
92,932 |
Cofins
and Pasep |
(11,615) |
(10,788) |
(11,615) |
Other
|
2 |
17 |
2 |
Total
financial income |
249,972 |
219,320 |
247,575 |
|
|
|
|
Financial
income (expenses), net of exchange rate changes |
(342,125) |
(343,151) |
(344,528) |
|
|
|
|
Exchange
gain (losses) |
|
|
|
Exchange
rate changes on borrowings and financing |
6,335 |
83,825 |
6,335 |
Exchange
rate changes on assets |
1 |
(201) |
1 |
Other
exchange rate changes |
(3) |
(1) |
(3) |
Exchange
rate changes, net |
6,333 |
83,623 |
6,333 |
|
|
|
|
Financial
income (expenses) |
(335,792) |
(259,528) |
(338,195) |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
| 29 | Other
operating income (expenses), net |
|
Parent Company |
Consolidated |
|
|
|
|
|
|
|
|
Other operating income, net
|
10,291 |
20,352 |
10,291 |
Other operating expenses |
(3,205) |
(5,718) |
(3,205) |
|
|
|
|
Other operating income (expenses),
net |
7,086 |
14,634 |
7,086 |
Other operating income includes revenue
from the sale of property, plant and equipment, contracts awarded in public bids, right to sell electricity, indemnities and reimbursement
of expenses, fines and guarantees, property leases, reuse water, PURA projects and services, net of Cofins and Pasep.
Other operating expenses usually record
the derecognition of concession assets due to obsolescence, discontinued construction works, unproductive wells, projects considered
economically unfeasible, losses on property, plant and equipment, estimated losses, and operational assets indemnification.
The Company has agreements to manage
and maintain its activities, as well as to build new projects aiming at achieving the objectives proposed in its target plan. The main
unrecognized committed amounts as of March 31, 2024 are as follows:
|
1 year |
1-3 years |
3-5 years |
|
Total |
Contractual
obligations – Expenses |
1,854,851 |
2,319,376 |
1,377,556 |
4,349,060 |
9,900,843 |
Contractual
obligations - Investments |
4,174,937 |
2,719,760 |
1,136,509 |
82,392 |
8,113,598 |
Total |
6,029,788 |
5,039,136 |
2,514,065 |
4,431,452 |
18,014,441 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
| 31 | Supplemental
cash flow information |
|
Parent
Company |
Consolidated |
|
January
to March 2024 |
January
to March 2023 |
January
to March 2024 |
|
|
|
|
Total additions
to contract assets (Note 13) |
1,270,307 |
1,204,867 |
1,270,667 |
Total additions
to intangible assets (Note 14 (b)) |
133,759 |
322 |
133,759 |
|
|
|
|
Items not
affecting cash (see breakdown below) |
(833,007) |
(634,857) |
(833,016) |
|
|
|
|
Total additions
to intangible and contract assets according to the statement of cash flows |
571,059 |
570,332 |
571,410 |
|
|
|
|
Investments
and financing operations affecting intangible assets but not cash: |
|
|
|
Interest
capitalized in the period (Note 13 (a)) |
154,395 |
167,802 |
154,395 |
Contractors
payable |
453,671 |
240,833 |
453,671 |
Performance agreements |
64,229 |
199,383 |
64,229 |
Right of use |
130,666 |
320 |
130,666 |
Construction margin (Note 25) |
30,046 |
26,519 |
30,055 |
Total |
833,007 |
634,857 |
833,016 |
| 32 | Events
after the reporting period |
As of April 08,
2024, the São Paulo State Utility Services Regulatory Agency (ARSESP) disclosed Resolution 1,514/2024, authorizing the Company
to apply the tariff adjustment of 6.4469%, regarding the tariffs in effect.
| · | Methodology
and criteria for asset reversal |
As of April 15,
2024, ARSESP disclosed Resolution 1,515/2024, which included the methodology and criteria for reversal and possible indemnification of
assets at the end of the concessions of the Basic Sanitation sector.
As of April 17, 2024,
the Board of the State Privatization Program (CDPED), together with the Management Council of the State Public-Private Partnership (CGPPP)
approved the final model for the partial divestment of movable assets directly and indirectly held by the State, with authorization to
proceed with the divestment through a Public Offering for Distribution of Shares on the stock exchange, according to Article 1 of Decree
67,759/2023, including:
(a) Schedule of the privatization
process;
(b) Structure of the offering
with the participation of strategic investors and criteria for judging the winner of the secondary public offering;
(c) Changes to the Company’s
Bylaws;
(d) Execution of the Investment
Agreement, Lock-up, and other agreements with strategic investors;
(e) Guarantee of stability
to employees under Law 17,853/2023, for 18 months from the effective completion date of the privatization process;
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Notes to the Quarterly Information
| |
| |
(f) Recommendation of the
offering of common shares held by the São Paulo State Government to Company employees;
(g) Submission of the following
documents to the representatives of URAE - 1 Southwest’s Decision-Making Board for the 1st Board meeting:
• Draft of the concession agreement and
exhibits
• Draft of the charter of URAE-1’s
Decision-Making Board
• Draft of the Regional Basic Sanitation
Plan
The definition
of the minimum price and the percentage of the State’s equity interest to be divested, as well as the details of the Investment
Agreement, Lock-up, and other conditions will be subject to a resolution at a future Board meeting.
| · | Financial
derivative agreements |
As of April 17,
2024, the Company executed derivative financial agreements with selected financial institutions to reduce the exposure of the balance
in foreign currency of existing debts, totaling US$ 534 million, against fluctuations in the foreign exchange market and mitigate the
impacts of these fluctuations on the Company’s economic and financial results. The agreements are valid from April 2024 to December
2024.
| · | Annual
and Extraordinary Shareholders’ Meeting |
The General Annual
Shareholders’ Meeting was held on April 25, 2024.
The São
Paulo Municipal Chamber approved, and the Mayor sanctioned Municipal Law 18.107 of May 02, 2024, authorizing the Municipal Executive
Power to execute contracts through a regionalized arrangement aimed at providing water supply and sanitation services in the Municipality
of São Paulo.
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Comments on the Company’s
Projections
The projections presented in the Reference
Form are annual and not on a quarterly basis. Therefore, the quarterly comparison between information disclosed in the Reference Form
and quarterly results shall not apply.
Projections are monitored every year and disclosed
in the Reference Form.
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
1.
CHANGES IN INTEREST HELD BY THE CONTROLLING SHAREHOLDER, BOARD MEMBERS, AND EXECUTIVE OFFICERS
CONSOLIDATED SHAREHOLDING
POSITION OF CONTROLLING SHAREHOLDERS AND MANAGEMENT, AND OUTSTANDING SHARES
Position as of 03/31/2024 |
Shareholder |
Number
of Common Shares (Units) |
% |
Total Number of Shares
(Units) |
% |
Controlling
Shareholder |
|
|
|
|
Treasury
Department |
343,506,664 |
50.3% |
343,506,664 |
50.3% |
Companhia Paulista de Parcerias
- CPP |
6 |
0% |
6 |
0% |
Management |
|
|
|
|
Board
of Directors |
5,100 |
0.0% |
5,100 |
0.0% |
Executive
Board |
1,300 |
0.0% |
1,300 |
0.0% |
|
|
|
|
|
Fiscal
Council |
110 |
0.0% |
110 |
0.0% |
|
|
|
|
|
Treasury
Shares |
- |
- |
- |
- |
|
|
|
|
|
Other
Shareholders |
|
|
|
|
|
|
|
|
|
Total |
343,513,180 |
50.3% |
343,513,180 |
50.3% |
|
|
|
|
|
|
|
|
|
|
Outstanding
Shares |
339,996,689 |
49.7% |
339,996,689 |
49.7% |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
CONSOLIDATED SHAREHOLDING
POSITION OF CONTROLLING SHAREHOLDERS AND MANAGEMENT, AND OUTSTANDING SHARES
Position as of 03/31/2023 |
Shareholder |
Number
of Common Shares (Units) |
% |
Total Number of Shares
(Units) |
% |
Controlling
Shareholder |
|
|
|
|
Treasury
Department |
343,506,664 |
50.3% |
343,506,664 |
50.3% |
Companhia Paulista de Parcerias
- CPP |
6 |
0% |
6 |
0% |
Management |
|
|
|
|
Board
of Directors |
100 |
0.0% |
100 |
0.0% |
Executive
Board |
1,300 |
0.0% |
1,300 |
0.0% |
|
|
|
|
|
Fiscal
Council |
- |
- |
- |
- |
|
|
|
|
|
Treasury
Shares |
- |
- |
- |
- |
|
|
|
|
|
Other
Shareholders |
- |
- |
- |
- |
|
|
|
|
|
Total |
343,508,070 |
50.3% |
343,508,070 |
50.3% |
|
|
|
|
|
|
|
|
|
|
Outstanding
Shares |
340,001,799 |
49.7% |
340,001,799 |
49.7% |
SHAREHOLDING
POSITION OF HOLDERS OF MORE THAN 5% OF EACH TYPE AND CLASS OF COMPANY SHARES, UP TO THE INDIVIDUAL LEVEL |
Company:
CIA SANEAMENTO BÁSICO ESTADO SÃO PAULO |
Position
as of 03/31/2023 (Number of shares) |
|
Common
Shares |
Total |
Shareholder |
Number
of Shares |
% |
Number
of Shares |
% |
Treasury
Department |
343,506,664 |
50.3 |
343,506,664 |
50.3 |
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Reports and Statements / Unqualified Report on Special Review
(Free translation from the original issued in Portuguese. In the
event of any discrepancies, the Portuguese language version shall prevail.)
INDEPENDENT
AUDITOR’S REVIEW REPORT ON THE INDIVIDUAL AND CONSOLIDATED INTERIM FINANCIAL INFORMATION
To the
Shareholders and Management of
Companhia de Saneamento
Básico do Estado de São Paulo - SABESP
São Paulo - SP
Introduction
We have reviewed the individual and consolidated
interim financial information of Companhia de Saneamento Básico do Estado de São Paulo (“Company”),
included in the Quarterly Information, for the quarter ended March 31, 2024, which comprise the individual and consolidated statements
of financial position as at March 31, 2024, and the respective individual and consolidated statements of income, comprehensive income,
the statements of changes in equity and cash flows for the three-month period then ended, as well as the corresponding notes.
The Company’s Management is responsible
for the preparation of this individual and consolidated interim financial information, in accordance with NBC TG 21 (R4) and International
Accounting Standard (IAS) 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), and for its
presentation in accordance with standards issued by the Brazilian Securities and Exchange Commission (CVM) applicable to Quarterly Information.
Our responsibility is to express a conclusion on this individual and consolidated interim financial information based on our review.
Scope of the review
We conducted our review
in accordance with Brazilian and international standards on review engagements (NBC TR 2410 and ISRE 2410 - Review of Interim Financial
Information Performed by the Independent Auditor of the Entity). A review of interim financial information consists principally of applying
analytical and other review procedures and making enquiries of and having discussions with persons responsible for financial and accounting
matters. An interim review is substantially less in scope than an audit conducted in accordance with auditing standards, and has not
provided us assurance that we would become aware of any or all significant matters that might be identified in an audit. Accordingly,
we do not express such an audit opinion.
Conclusion on the individual
and consolidated interim financial information
Based on our review, we
are not aware of any fact that would lead us to believe that the individual and consolidated interim financial information included in
the quarterly information referred to above has not been prepared, in all material respects, in accordance with NBC TG 21 (R4) and IAS
34, applicable to Quarterly Information (ITR), and presented in accordance with the standards issued by CVM.
Other matters
Review of corresponding amounts
The individual and consolidated interim financial
information for the quarter ended March 31, 2023, presented for comparison purposes, was reviewed by other independent auditors, whose
report thereon dated May 11, 2023, was unmodified.
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Individual and Consolidated Interim statements
of value added (DVA) – supplementary information
We also reviewed the individual and consolidated
interim statements of value added for the three-month period ended March 31, 2024, prepared under the responsibility of the Company’s
Management, whose disclosure in the interim financial information is required in accordance with the standards issued by CVM and considered
as supplementary information for the purposes of IAS 34. These statements were submitted to review procedures executed with the
review of the quarterly information, with the purpose of concluding whether they are reconciled with the individual and consolidated
interim financial information and accounting records, as applicable, and if its form and contents meet the criteria defined in Technical
Pronouncement CPC 09 – Statement of Value Added. Based on our review, we are not aware of any fact that would lead us to believe
that these individual and consolidated interim statements of value added were not prepared, in all material respects, in accordance with
the criteria established in this technical pronouncement and consistently with the individual and consolidated interim financial information
taken as a whole.
The accompanying financial information have
been translated into English for the convenience of readers outside Brazil.
São Paulo, May 9, 2024.
|
BDO RCS Auditores Independentes SS
Ltda.
CRC
2 SP 013846/O-1 |
|
Dário Vieira de Lima
Accountant CRC 1 SP 238754/O-6
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Reports and Statements / Executive Officers’ Statement
on the Financial Statements
Executive Officers’ Statement on the Quarterly
Information STATEMENT
The Executive Officers of
Companhia de Saneamento Básico do Estado de São Paulo - SABESP, with Corporate Taxpayers’ ID (CNPJ/MF) number 43.776.517/0001-80,
headquartered at Rua Costa Carvalho, nº 300, Pinheiros, São Paulo, declare that, according to paragraph 1 of article 27,
item VI of CVM Resolution 80, of March 29, 2022, that:
They reviewed, discussed,
and agreed with the quarterly information for the period ended March 31, 2024. São Paulo, May 09, 2024.
Companhia de Saneamento Básico
do Estado de São Paulo - SABESP
André Gustavo Salcedo Teixeira Mendes Chief
Executive Officer
Catia Cristina Teixeira Pereira
Chief Economic, Financial, and Investor Relations Officer
Sabrina de Menezes Correa Furstenau Sabino People
and Corporate Management Officer
Paula Alessandra Bonin Costa Violante Engineering
and Innovation Officer
Roberval Tavares de Souza
Operation and Maintenance Officer
Bruno Magalhães D’Abadia
Regulation and New Businesses Officer
Caio Marcelo de Medeiros Melo Customers Officer
ITR - Quarterly Information Form - 03/31/2024 - CIA SANEAMENTO BASICO EST SAO PAULO | Version : 1 |
| |
Reports and Statements / Executive Officers’
Statement on the Report of Independent Registered Public Accounting Firm
Executive Officers’ Statement on the Report
of Independent Registered Public Accounting Firm STATEMENT
The Executive Officers of Companhia
de Saneamento Básico do Estado de São Paulo - SABESP, with Corporate Taxpayers’ ID (CNPJ/MF) number 43.776.517/0001-80,
headquartered at Rua Costa Carvalho, nº 300, Pinheiros, São Paulo, declare that, according to paragraph 1 of article 27,
item V of CVM Resolution 80, of March 29, 2022, that:
They reviewed, discussed, and agreed with the Report
of Independent Registered Public Accounting Firm on the quarterly information for the period ended March 31, 2024.
São Paulo, May 09, 2024.
Companhia de Saneamento Básico do Estado de São
Paulo - SABESP André Gustavo Salcedo Teixeira Mendes
CEO
Catia Cristina Teixeira Pereira
Chief Economic, Financial, and Investor Relations Officer
Sabrina de Menezes Correa Furstenau Sabino People
and Corporate Management Officer
Paula Alessandra Bonin Costa Violante Engineering
and Innovation Officer
Roberval Tavares de Souza
Operation and Maintenance Officer
Bruno Magalhães D’Abadia
Regulation and New Businesses Officer
Caio Marcelo de Medeiros Melo Customers Officer
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized,
in the city São Paulo, Brazil.
Date: June 7, 2024
Companhia de Saneamento Básico
do Estado de São Paulo - SABESP |
|
|
|
By: |
/s/ Catia Cristina Teixeira Pereira
|
|
|
Name: Catia Cristina Teixeira Pereira
Title: Chief Financial Officer and
Investor Relations Officer |
|
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking
statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of
future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates",
"expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements
regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure
plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations
are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks
and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on
many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes
in such assumptions or factors could cause actual results to differ materially from current expectations.
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