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    Luiza Candiota • Itau

    Luiza Candiota's questions to Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (SBS) leadership

    Luiza Candiota's questions to Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (SBS) leadership • Q2 2025

    Question

    Luiza Candiota of Itau BBA inquired about the drivers behind SABESP's significant Q2 reduction in operating expenses across personnel, third-party services, and materials, asking for a sustainable recurring level. She also requested details on the evolution of the social tariff and its expected financial impact in coming quarters.

    Answer

    CFO Daniel Szlak explained that the broad-based OpEx reduction is part of a crucial efficiency program to fund BRL 70 billion in CapEx over five years. He attributed the 10.3% drop in personnel costs to the voluntary dismissal plan and highlighted a BRL 200 million positive impact from a new legal claims strategy involving settlements and outsourcing. Regarding the social tariff, Szlak detailed the expansion of subsidies, including the new 'Tarifa Paulista', which created a BRL 170 million cost in H1 2025 that will be financially compensated via the tariff cycle effective January 2027.

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    Luiza Candiota's questions to Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (SBS) leadership • Q1 2025

    Question

    Luiza Candiota followed up on personnel expenses, asking for the specific Q1 impact of the recent voluntary dismissal program, its expected future savings, payback period, and the departure timeline.

    Answer

    Executive Daniel Szlak explained that the Q1 impact was minimal as most departures are scheduled for Q2. He noted headcount fell from 10,500 to 9,700 in Q1. While not providing a specific payback figure, he implied it was favorable compared to the timeline of the company's no-layoff policy, which runs until early 2026.

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