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São Paulo, S.P., 05429-900
Federative Republic of Brazil
annual reports under cover Form 20-F or Form 40-F.
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in paper as permitted by Regulation S-T Rule 101(b)(7)__.
Indicate by check mark whether the registrant by furnishing the
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registrant in connection with Rule 12g3-2(b):
CIA. DE SANEAMENTO BÁSICO DO ESTADO DE SÃO PAULO - SABESP
Rui de Britto Álvares Affonso
Chief Financial Officer and Investor Relations Officer
Mario Azevedo de Arruda Sampaio
Head of Capital Markets and Investor Relations
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SABESP announces 3Q12 results |
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São Paulo, November 14, 2012 - Companhia de Saneamento Básico do Estado de São Paulo - SABESP (BM&FBovespa: SBSP3; NYSE: SBS), one of the largest water and sewage services providers in the world based on the number of costumers, announces today its results for the third quarter 2012 (3Q12). The Company’s operating and financial information, except when indicated otherwise is presented in Brazilian Reais, in accordance with the Brazilian Corporate Law. All comparisons in this release, unless otherwise stated, refer to the same period of 2011. |
SBSP3: R$ 83.15 / share |
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1. Financial highlights
| R$ million | ||||||||
| 3Q11 | 3Q12 | Var. (R$) | % | 9M11 | 9M12 | Var. (R$) | % | |
| (+) Gross operating revenue | 2,068.1 | 2,262.9 | 194.8 | 9.4 | 6,043.3 | 6,500.9 | 457.6 | 7.6 |
| (+) Construction revenue | 672.3 | 612.3 | (60.0) | (8.9) | 1,621.1 | 1,741.0 | 119.9 | 7.4 |
| (-) COFINS and PASEP taxes | 149.1 | 164.2 | 15.1 | 10.1 | 438.7 | 478.2 | 39.5 | 9.0 |
| (=) Net operating revenue | 2,591.3 | 2,711.0 | 119.7 | 4.6 | 7,225.7 | 7,763.7 | 538.0 | 7.4 |
| (-) Costs and expenses | 1,287.1 | 1,389.4 | 102.3 | 7.9 | 3,968.0 | 4,011.1 | 43.1 | 1.1 |
| (-) Construction costs | 656.0 | 599.2 | (56.8) | (8.7) | 1,581.8 | 1,704.1 | 122.3 | 7.7 |
| (+) Equity Results | (2.2) | (0.6) | 1.6 | (72.7) | (4.4) | (3.6) | 0.8 | (18.2) |
| (=) Earnings before financial expenses (EBIT*) | 646.0 | 721.8 | 75.8 | 11.7 | 1,671.5 | 2,044.9 | 373.4 | 22.3 |
| (+) Depreciation and amortization | 168.2 | 180.2 | 12.0 | 7.1 | 572.5 | 543.7 | (28.8) | (5.0) |
| (=) EBITDA** | 814.2 | 902.0 | 87.8 | 10.8 | 2,244.0 | 2,588.6 | 344.6 | 15.4 |
| (%) EBITDA margin | 31.4 | 33.3 | 31.1 | 33.3 | ||||
| Net income | 68.0 | 361.8 | 293.8 | 432.1 | 730.4 | 1,146.5 | 416.1 | 57.0 |
| Earnings per share (R$) | 0.30 | 1.59 | 3.21 | 5.03 | ||||
| (*) Earnings before interest and taxes (**) Earnings before interest, taxes, depreciation and amortization | ||||||||
In 3Q12, net operating revenue reached R$ 2.7 billion, a 4.6% growth compared to 3Q11. Costs and expenses, including construction costs, in the amount of R$ 2.0 billion grew 2.3% over 3Q11. EBIT grew 11.7%, from R$ 646.0 million in 3Q11 to R$ 721.8 million in 3Q12. EBITDA increased 10.8%, from R$ 814.2 million in 3Q11 to R$ 902.0 million in 3Q12. The EBITDA margin was 33.3% in 3Q12 in comparison to 31.4% in the same period of the previous year. Excluding construction revenues and construction costs, the EBITDA margin was 42.4% in 3Q12 (41.6% in 3Q11).
2. Gross operating revenue
Gross operating revenue from water supply and sewage collection grew from R$ 2.1 billion in 3Q11 to R$ 2.3 million in 3Q12, an increase of R$ 194.8 million or 9.4%. The main factors for this result were the tariff adjustment of 6.83% in 2011 and the increase of 3.2% in total billed volume.
3. Construction revenue
In 3Q12, construction revenue moved from R$ 672.3 million to R$ 612.3 million, a decrease of R$ 60.0 million or 8.9%, comparing to 3Q11. This variation was mainly due to the lower expenses with construction works in 3Q12.
4. Billed volume
The following tables show the billed water and sewage volume per customer category and region in 3Q11 and 3Q12.
Page 2 of 11
| BILLED WATER AND SEWAGE VOLUME (1) PER CUSTOMER CATEGORY - million m 3 | |||||||||
| Water | Sewage | Water + Sewage | |||||||
| Category | 3Q11 | 3Q12 | % | 3Q11 | 3Q12 | % | 3Q11 | 3Q12 | % |
| Residential | 369.1 | 380.3 | 3.0 | 304.1 | 314.6 | 3.5 | 673.2 | 694.9 | 3.2 |
| Commercial | 41.8 | 43.6 | 4.3 | 39.0 | 40.4 | 3.6 | 80.8 | 84.0 | 4.0 |
| Industrial | 9.7 | 9.5 | (2.1) | 10.1 | 10.8 | 6.9 | 19.8 | 20.3 | 2.5 |
| Public | 13.6 | 14.4 | 5.9 | 10.6 | 11.2 | 5.7 | 24.2 | 25.6 | 5.8 |
| Total retail | 434.2 | 447.8 | 3.1 | 363.8 | 377.0 | 3.6 | 798.0 | 824.8 | 3.4 |
| Wholesale | 74.1 | 74.8 | 0.9 | 6.8 | 7.5 | 10.3 | 80.9 | 82.3 | 1.7 |
| Reused water | 0.1 | 0.1 | - | - | - | - | 0.1 | 0.1 | - |
| Total | 508.4 | 522.7 | 2.8 | 370.6 | 384.5 | 3.8 | 879.0 | 907.2 | 3.2 |
| 9M11 | 9M12 | % | 9M11 | 9M12 | % | 9M11 | 9M12 | % | |
| Residential | 1,109.2 | 1,136.4 | 2.5 | 908.9 | 936.9 | 3.1 | 2,018.1 | 2,073.3 | 2.7 |
| Commercial | 124.9 | 129.1 | 3.4 | 116.6 | 119.9 | 2.8 | 241.5 | 249.0 | 3.1 |
| Industrial | 28.9 | 28.4 | (1.7) | 30.0 | 31.7 | 5.7 | 58.9 | 60.1 | 2.0 |
| Public | 39.6 | 41.6 | 5.1 | 31.0 | 32.3 | 4.2 | 70.6 | 73.9 | 4.7 |
| Total retail | 1,302.6 | 1,335.5 | 2.5 | 1,086.5 | 1,120.8 | 3.2 | 2,389.1 | 2,456.3 | 2.8 |
| Wholesale | 222.5 | 221.8 | (0.3) | 21.0 | 21.0 | - | 243.5 | 242.8 | (0.3) |
| Reused water | 0.2 | 0.3 | 50.0 | - | - | - | 0.2 | 0.3 | 50.0 |
| Total | 1,525.3 | 1,557.6 | 2.1 | 1,107.5 | 1,141.8 | 3.1 | 2,632.8 | 2,699.4 | 2.5 |
| BILLED WATER AND SEWAGE VOLUME (1) PER REGION - million m 3 | |||||||||
| Water | Sewage | Water + Sewage | |||||||
| Region | 3Q11 | 3Q12 | % | 3Q11 | 3Q12 | % | 3Q11 | 3Q12 | % |
| Metropolitan | 287.4 | 296.6 | 3.2 | 244.1 | 252.9 | 3.6 | 531.5 | 549.5 | 3.4 |
| Regional (2) | 146.8 | 151.2 | 3.0 | 119.7 | 124.1 | 3.7 | 266.5 | 275.3 | 3.3 |
| Total retail | 434.2 | 447.8 | 3.1 | 363.8 | 377.0 | 3.6 | 798.0 | 824.8 | 3.4 |
| Wholesale | 74.1 | 74.8 | 0.9 | 6.8 | 7.5 | 10.3 | 80.9 | 82.3 | 1.7 |
| Reused water | 0.1 | 0.1 | - | - | - | - | 0.1 | 0.1 | - |
| Total | 508.4 | 522.7 | 2.8 | 370.6 | 384.5 | 3.8 | 879.0 | 907.2 | 3.2 |
| 9M11 | 9M12 | % | 9M11 | 9M12 | % | 9M11 | 9M12 | % | |
| Metropolitan | 857.6 | 880.0 | 2.6 | 727.8 | 748.9 | 2.9 | 1,585.4 | 1,628.9 | 2.7 |
| Regional (2) | 445.0 | 455.5 | 2.4 | 358.7 | 371.9 | 3.7 | 803.7 | 827.4 | 2.9 |
| Total retail | 1,302.6 | 1,335.5 | 2.5 | 1,086.5 | 1,120.8 | 3.2 | 2,389.1 | 2,456.3 | 2.8 |
| Wholesale | 222.5 | 221.8 | (0.3) | 21.0 | 21.0 | - | 243.5 | 242.8 | (0.3) |
| Reused water | 0.2 | 0.3 | - | - | - | - | 0.2 | 0.3 | 50.0 |
| Total | 1,525.3 | 1,557.6 | 2.1 | 1,107.5 | 1,141.8 | 3.1 | 2,632.8 | 2,699.4 | 2.5 |
(1) Unaudited
(2) Including coastal and countryside
Page 3 of 11
5. Costs, administrative, selling and construction expenses
In 3Q12, costs of products and services, administrative, selling and construction expenses grew 2.3% (R$ 45.5 million). As a percentage of net revenue, cost and expenses moved from 75.0% in 3Q11 to 73.4% in 3Q12.
| R$ million | ||||||||
| 3Q11 | 3Q12 | Chg. (R$) | % | 9M11 | 9M12 | Chg. (R$) | % | |
| Payroll and benefits | 427.1 | 426.7 | (0.4) | (0.1) | 1,395.7 | 1,276.6 | (119.1) | (8.5) |
| Supplies | 42.5 | 46.1 | 3.6 | 8.5 | 114.2 | 129.8 | 15.6 | 13.7 |
| Treatment supplies | 37.3 | 39.1 | 1.8 | 4.8 | 118.8 | 135.1 | 16.3 | 13.7 |
| Services | 245.1 | 261.5 | 16.4 | 6.7 | 709.2 | 779.1 | 69.9 | 9.9 |
| Electric power | 143.9 | 144.8 | 0.9 | 0.6 | 436.6 | 442.8 | 6.2 | 1.4 |
| General expenses | 194.2 | 209.7 | 15.5 | 8.0 | 478.6 | 501.2 | 22.6 | 4.7 |
| Tax expenses | 11.6 | 10.7 | (0.9) | (7.8) | 49.1 | 56.8 | 7.7 | 15.7 |
| Sub-total | 1,101.7 | 1,138.6 | 36.9 | 3.3 | 3,302.2 | 3,321.4 | 19.2 | 0.6 |
| Depreciation and amortization | 168.2 | 180.2 | 12.0 | 7.1 | 572.5 | 543.7 | (28.8) | (5.0) |
| Credit write-offs | 17.2 | 70.6 | 53.4 | 310.5 | 93.3 | 146.0 | 52.7 | 56.5 |
| Sub-total | 185.4 | 250.8 | 65.4 | 35.3 | 665.8 | 689.7 | 23.9 | 3.6 |
| Construction costs | 656.0 | 599.2 | (56.8) | (8.7) | 1,581.8 | 1,704.1 | 122.3 | 7.7 |
| Costs, administrative, selling and | ||||||||
| construction expenses | 1,943.1 | 1,988.6 | 45.5 | 2.3 | 5,549.8 | 5,715.2 | 165.4 | 3.0 |
| % over net revenue | 75.0 | 73.4 | 76.8 | 73.6 |
5.1. Payroll and benefits
In 3Q12 payroll and benefits dropped R$ 0.4 million or 0.1%, from R$ 427.1 million to R$ 426.7 million, due to the following:
- Adjustment to the provision for severance pay in the amount of R$ 15.7 million in 3Q11, due to: (i) increased adhesion of employees who applied for retirement; and (ii) approval of Law 12.506/11, changing the notice period from 30 to 90 days in case of dismissal without cause; and
- Decline in the current cost based on the actuarial calculation for 2012, related to the Defined Benefit Plan, in the amount of R$ 4.1 million.
These decreases were offset by the 8.00% increase in wages since May 2011 and of 6.17% since May 2012, with an impact of approximately R$ 19.4 million.
5.2. Supplies
In 3Q12, expenses with supplies increased by R$ 3.6 million or 8.5%, when compared to the same period of the previous year, from R$ 42.5 million to R$ 46.1 million, mostly due to: (i) water and sewage systems preventive and correction maintenance, in the amount of R$ 2.4 million; and (ii) maintenance of water and sewage connections and networks totaling R$ 1.0 million.
5.3. Treatment supplies
Treatment supplies expenses in 3Q12 were R$ 1.8 million or 4.8% higher than in 3Q11, from R$ 37.3 million to R$ 39.1 million. The main factor for this variation was increase in consumption and replacement of products in order to attend the demand and maintain efficiency in the treatment of water.
5.4. Services
In 3Q12 this item increased R$ 16.4 million or 6.7%, from R$ 245.1 million to R$ 261.5 million. The main factors were:
- Advertising campaigns focused on social and environmental initiatives, such as: (i) awareness-raising initiatives related to the depollution “Tietê Project”, conscious water consumption, Sabesp’s initiatives that impacted the quality of life of the population, among others, in the amount of R$ 8.6 million;
- Increase R$ 5.9 million related to the fleet renewal program, through leasing;
Page 4 of 11
- Public and Private Partnership Agreement of the Alto Tietê Production System, with an increase of R$ 4.1 million due to the start-up in September 2011, increasing the water production capacity from 10m3/s to 15m3/s;
- Software rental in the amount of R$ 3.0 million, resulting from maintenance, technical support and training for use in Sabesp's central computer;
- Preventive and corrective maintenance in the water and sewage systems in the amount of R$ 2.5 million; and
- Property security in the amount of R$ 1.3 million, due to increased coverage of equipment and areas.
The increases mentioned above were offset by a R$ 10.1million decrease resulting from socialenvironmental activities settled with the Municipal Government of São Paulo.
5.5. Electric power
In 3Q12, this item increased R$ 0.9 million, or 0.6%, from R$ 143.9 million to R$ 144.8 million, due to the average increase of approximately 2.05% in the tariff for free and captive markets in the period. This increase was offset by a 15% discount granted, since September 2011, at the Use of Distribution System Tariff (TUSD), in the operation directly related to sanitation.
5.6. General expenses
In 3Q12 general expenses increased R$ 15.5 million or 8.0%, from R$ 194.2 million to R$ 209.7 million, due to:
- Increase of R$ 4.7 million in the provision for payment of the municipal fund pursuant to the Service Agreement with the Municipal Government of São Paulo;
- Increase in the provisions for lawsuits, amounting to R$ 2.4 million;
- Increase of R$ 1.7 million, due to the beginning of billing for the use of water from the Baixada Santista water basin since February 2012; and
- Increase of R$ 1.2 million, related to the institutional support due to the contribution to the Instituto Criança Cidadã.
5.7. Depreciation and Amortization
Depreciation and amortization increased R$ 12.0 million or 7.1%, from R$ 168.2 million to R$ 180.2 million, due to a higher transfer of works to operating intangible assets.
5.8. Credit write-offs
In 3Q12 credit write-offs increased R$ 53.4 million or 310.5%, from R$ 17.2 million to R$ 70.6 million, chiefly due to the additional provision for overdue agreements with private clients in the amount of R$ 9.6 million, municipal public entities in the amount of R$ 4.9 million and the additional provision for overdue debits with public state entities in the amount of R$26.7 million.
6. Other operating revenues and expenses
6.1. Other operating revenues
These revenues moved up by R$ 18.5 million, mainly due to: (i) accounting reclassification related to the sale of scrap material in 3Q11, in the amount of R$ 11.7 million, non-recurring for the following quarters; and (ii) transfer of funds through the Water Resource Preservation Program, for the execution of the project for the Sewage Separation System in the municipality of Itatiba and the construction of 8 sewage pumping stations, trunk sewers and pumping lines in the municipality of Piracaia, in the amount R$3.2 million.
Page 5 of 11
6.2. Other operating expenses
Other operating expenses increased R$ 63.6 million due to (i) indication of impairment with an additional R$ 35.1 million; and (ii) provision for intangible asset losses in the amount of R$ 35.1 million.
7. Financial revenues and expenses
| R$ million | ||||
| 3Q11 | 3Q12 | Var. | % | |
| Financial expenses | ||||
| Interest and charges on domestic loans and financing | 77.8 | 75.0 | (2.8) | (3.6) |
| Interest and charges on international loans and financing | 23.2 | 22.5 | (0.7) | (3.0) |
| Other financial expenses | 38.3 | 41.2 | 2.9 | 7.6 |
| Total financial expenses | 139.3 | 138.7 | (0.6) | (0.4) |
| Financial revenues | 96.1 | 54.6 | (41.5) | (43.2) |
| Financial expenses net of revenues | 43.2 | 84.1 | 40.9 | 94.7 |
7.1. Financial expenses
In 3Q12 financial expenses dropped R$ 0.6 million, or 0.4%. The main factors that influenced this result were:
- Decrease in interest by R$ 2.8 million on domestic loans and financing, mainly due to the amortization of the 9th debenture in October 2011; and
- Other financial expenses increased by R$ 2.9 million:
- Commitments with the municipalities for the formalization of program contracts, in the amount of R$ 1.0 million; and
- Higher interest related to lawsuits in the amount of R$ 1.8 million.
7.2. Financial revenues
Financial revenues decreased by R$ 41.5 million, due to the gradual reduction of the market interest rates obtained in financial investments and higher cash position.
8. Monetary variation on assets and liabilities
| R$ million | ||||
| 3Q11 | 3Q12 | Var. | % | |
| Monetary variation on loans and financing | 7.9 | 6.6 | (1.3) | (16.5) |
| Currency exchange variation on loans and financing | 466.3 | 23.1 | (443.2) | (95.0) |
| Other monetary/exchange rate variations | 11.1 | 9.1 | (2.0) | (18.0) |
| Variation on Liabilities | 485.3 | 38.8 | (446.5) | (92.0) |
| Variation on assets | 17.8 | 13.7 | (4.1) | (23.0) |
| Net Variation | 467.5 | 25.1 | (442.4) | (94.6) |
8.1. Monetary variation on liabilities
The effect on the monetary variation on liabilities in 3Q12 was R$ 446.5 million lower than in 3Q11, specially the exchange rate variation on international loans and financing, in the amount of R$ 443.2 million, due to the 0.4% depreciation of Brazilian Real versus US Dollar and of 2.8% depreciation of Brazilian Real versus the Yen in 3Q12 in comparison to a 15.8% depreciation of Brazilian Real versus US Dollar and of 19.4% depreciation of Brazilian Real versus the Yen in 3Q11.
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8.2. Monetary variation on assets
Monetary variation on assets dropped R$ 4.1 million, mainly due to the higher number of agreements with clients for the payment of bills in instalments in 3Q11.
9. Operating indicators
In 3Q12, water loss ratio was 26%, remaining steady when compared to the previous year. With the beginning of the hiring financed by JICA, scheduled for mid-2013, a more substantial decline is expected for this indicator.
| Operating indicators* | 3Q11 | 3Q12 | % |
| Water connections (1) | 7,438 | 7,627 | 2.5 |
| Sewage connections (1) | 5,877 | 6,073 | 3.3 |
| Population directly served - water (2) | 23.8 | 24.2 | 1.7 |
| Population directly served - sewage (2) | 20.4 | 20.9 | 2.5 |
| Number of employees | 15,194 | 14,666 | (3.5) |
| Water volume produced (3) | 2,241 | 2,285 | 2.0 |
| Water losses (%) | 25.7 | 25.8 | 0.4 |
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(1) In thousand units | |||
10. Loans and financing
In October, the Company’s Board of Directors approved the terms of the 16th Issue of simple, non-convertible, unsecured Debentures in a single series, for public distribution, with restricted placement efforts, for a total amount of R$ 500 million, the proceeds of which will be used to settle the Company’s maturing financial obligations.
In November, SABESP’s Board of Directors approved the 17th Issue of Simple Unsecured Debentures, not convertible into shares, totaling up to R$ 1 billion, in up to three series, whose proceeds will be used to settle the Company’s obligations in 2013, including the early redemption of its debentures and/or the payment of other debts.
| R$ million | ||||||||
| INSTITUTION | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 and onwards |
Total |
| Local market | ||||||||
| Banco do Brasil | 90.2 | 380.6 | 100.3 | - | - | - | - | 571.1 |
| Caixa Econômica Federal | 29.3 | 116.1 | 77.6 | 55.9 | 55.3 | 57.9 | 648.4 | 1,040.5 |
| Debentures | - | 472.5 | 270.0 | 360.0 | 94.8 | 96.8 | 495.8 | 1,789.9 |
| Debentures BNDES | 2.0 | 36.2 | 56.3 | 71.6 | 71.6 | 71.6 | 262.4 | 571.7 |
| Debentures FI FGTS | - | - | 22.7 | 45.5 | 45.5 | 45.5 | 340.4 | 499.6 |
| BNDES | 17.2 | 48.0 | 43.9 | 43.9 | 43.9 | 43.8 | 217.4 | 458.1 |
| Others | 0.4 | 0.7 | 0.5 | 0.6 | 0.6 | 0.7 | 146.3 | 149.8 |
| Interest and charges | 21.2 | 34.5 | - | - | - | - | - | 55.7 |
| Local market total | 160.3 | 1,088.6 | 571.3 | 577.5 | 311.7 | 316.3 | 2,110.7 | 5,136.4 |
| International market | ||||||||
| BID | 28.3 | 77.5 | 77.5 | 77.5 | 77.5 | 85.0 | 398.9 | 822.2 |
| BIRD | - | - | - | - | - | - | 30.2 | 30.2 |
| Eurobonds | - | - | - | - | 283.8 | - | 703.3 | 987.1 |
| JICA | - | 57.0 | 57.0 | 57.1 | 57.1 | 57.1 | 690.0 | 975.3 |
| BID 1983AB | - | 48.6 | 48.6 | 48.6 | 48.6 | 48.7 | 164.7 | 407.8 |
| Interest and charges | 31.6 | 4.2 | - | - | - | - | - | 35.8 |
| International market total | 59.9 | 187.3 | 183.1 | 183.2 | 467.0 | 190.8 | 1,987.1 | 3,258.4 |
| Total | 220.2 | 1,275.9 | 754.4 | 760.7 | 778.7 | 507.1 | 4,097.8 | 8,394.8 |
Page 7 of 11
11. ARSESP
On November 13, ARSESP published a technical note on the preliminary Maximum Initial Average Tariff (P0) with the preliminary Asset Base and the Efficiency Gains Factor (X) for SABESP's Second Tariff Cycle (stage B3). This technical note will be detailed during the conference call.
12. Events
| Conference Call in Portuguese | Conference Call in English |
| November 21, 2012 | November 21, 2012 |
| 08:00am (US EST) / 11:00am (Brasilia) | 11:00am (US EST) / 2:00pm (Brasilia) |
| Dial in access: 55 (11) 3127-4971 | Dial in access: 1 (412) 317-6776 |
| Conference ID: Sabesp | Conference ID: Sabesp |
| Replay available until 11/27/2012 | Replay available until 12/02/2012 |
| Dial in access: 55 (11) 3127-4999 | Dial in access: 1(412) 317-0088 |
| Replay ID: 48065503 | Replay ID: 10018665 |
Click here for live webcast and Access through the Internet at: www.sabesp.com.br
For more information, please contact:
Mario Arruda Sampaio
Phone.(55 11) 3388-8664
E-mail: maasampaio@sabesp.com.br
Angela Beatriz Airoldi
Phone.(55 11) 3388-8793
E-mail: abairoldi@sabesp.com.br
Statements contained in this press release may contain information that is forward-looking and reflects management's current view and estimates of future economic circumstances, industry conditions, SABESP performance, and financial results. Any statements, expectations, capabilities, plans and assumptions contained in this press release that do not describe historical facts, such as statements regarding the declaration or payment of dividends, the direction of future operations, the implementation of principal operating and financing strategies and capital expenditure plans, the factors or trends affecting financial condition, liquidity or results of operations are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. There is no guarantee that these 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.
Page 8 of 11
Income statement
| Corporate Law Method (Law No. 6,404/76) | R$ '000 | |||||
| PARENT COMPANY | CONSOLIDATED | |||||
| 3Q12 | 3Q11 | 3Q12 | 3Q11 | |||
| Gross Revenue from Sales and Services | 2,875,216 | 2,740,412 | 2,874,952 | 2,741,989 | ||
| Water Supply - Retail | 1,176,710 | 1,070,441 | 1,175,880 | 1,071,406 | ||
| Water Supply - Wholesale | 49,133 | 46,207 | 49,133 | 46,207 | ||
| Sewage Collection and Treatment | 990,291 | 899,674 | 990,470 | 900,221 | ||
| Sewage Collection and Treatment - Wholesale | 6,188 | 5,830 | 6,188 | 5,830 | ||
| Construction Revenue - Water | 239,681 | 323,081 | 239,762 | 323,096 | ||
| Construction Revenue - Sewage | 372,552 | 349,249 | 372,955 | 349,264 | ||
| Other Services | 40,661 | 45,930 | 40,564 | 45,965 | ||
| Taxes on Sales and Services - COFINS and PASEP | (164,231) | (149,150) | (164,279) | (149,190) | ||
| Net Revenue from Sales and Services | 2,710,985 | 2,591,262 | 2,710,673 | 2,592,799 | ||
| Costs of Sales and Services | (1,592,348) | (1,634,513) | (1,591,939) | (1,635,681) | ||
| Gross Profit | 1,118,637 | 956,749 | 1,118,734 | 957,118 | ||
| Operating Expenses | ||||||
| Selling | (188,892) | (116,219) | (188,654) | (116,307) | ||
| Administrative | (207,387) | (192,317) | (208,495) | (193,678) | ||
| Other operating revenue (expenses), net | (59,533) | (12,671) | (59,491) | (12,643) | ||
| Operating Income Before Shareholdings | 662,825 | 635,542 | 662,094 | 634,490 | ||
| Equity Result | (586) | (2,167) | - | - | ||
| Earnings Before Financial Results, net | 662,239 | 633,375 | 662,094 | 634,490 | ||
| Financial, net | (86,168) | (44,699) | (86,282) | (44,872) | ||
| Exchange gain (loss), net | (23,125) | (465,999) | (23,126) | (465,999) | ||
| Earnings before Income Tax and Social Contribution | 552,946 | 122,677 | 552,686 | 123,619 | ||
| Income Tax and Social Contribution | ||||||
| Current | (240,126) | (112,974) | (240,204) | (113,182) | ||
| Deferred | 48,944 | 58,261 | 49,282 | 57,527 | ||
| Net Income (loss) for the period | 361,764 | 67,964 | 361,764 | 67,964 | ||
| Registered common shares ('000) | 227,836 | 227,836 | 227,836 | 227,836 | ||
| Earnings per shares - R$ (per share) | 1.59 | 0.30 | 1.59 | 0.30 | ||
| Depreciation and Amortization | (180,193) | (168,191) | (180,251) | (168,216) | ||
| EBITDA | 901,965 | 814,237 | 901,836 | 815,349 | ||
| % over net revenue | 33.3% | 31.4% | 33.3% | 31.4% | ||
Page 9 of 11
Balance sheet
| Brazilian Corporate Law | R$ '000 | |||||
| PARENT COMPANY | CONSOLIDATED | |||||
| ASSETS | 09/30/2012 | 09/30/2011 | 09/30/2012 | 09/30/2011 | ||
| Current | ||||||
| Cash and Cash Equivalents | 1,766,313 | 2,227,455 | 1,777,706 | 2,265,911 | ||
| Accounts Receivable from Clients | 1,005,395 | 950,178 | 1,006,496 | 950,796 | ||
| Related Party Balance | 134,125 | 173,897 | 134,125 | 173,897 | ||
| Inventory | 39,709 | 35,791 | 39,754 | 35,820 | ||
| Restricted cash | 71,013 | 97,363 | 71,013 | 97,363 | ||
| Recoverable Taxes | 53,314 | 69,935 | 53,683 | 70,052 | ||
| Other Receivables | 100,321 | 58,975 | 86,375 | 69,594 | ||
| Total Current Assets | 3,170,190 | 3,613,594 | 3,169,152 | 3,663,433 | ||
| Non-Current | ||||||
| Long Term Assets: | ||||||
| Accounts Receivable from Clients | 321,680 | 355,079 | 321,680 | 355,079 | ||
| Related Party Balance | 146,373 | 164,381 | 146,373 | 164,381 | ||
| Indemnities Receivable | 60,295 | 146,213 | 60,295 | 146,213 | ||
| Judicial Deposits | 48,254 | 53,888 | 48,254 | 53,888 | ||
| Deferred income tax and social contribution | 187,409 | 133,956 | 191,537 | 133,651 | ||
| National Water Agencie - ANA | 106,478 | 67,368 | 106,478 | 67,368 | ||
| Other Receivables | 66,486 | 32,417 | 68,371 | 36,470 | ||
| 936,975 | 953,302 | 942,988 | 957,050 | |||
| Investments | 23,435 | 17,894 | - | - | ||
| Investment properties | 54,046 | - | 54,046 | - | ||
| Intangible Assets | 21,364,123 | 19,599,332 | 21,386,292 | 19,612,573 | ||
| Permanent Assets | 199,654 | 186,367 | 401,337 | 315,422 | ||
| 21,641,258 | 19,803,593 | 21,841,675 | 19,927,995 | |||
| Total Non-Current Assets | 22,578,233 | 20,756,895 | 22,784,663 | 20,885,045 | ||
| Total Assets | 25,748,423 | 24,370,489 | 25,953,815 | 24,548,478 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | 09/30/2012 | 09/30/2011 | 09/30/2012 | 09/30/2011 | ||
| Current | ||||||
| Contractors and Suppliers | 255,236 | 205,653 | 257,128 | 211,318 | ||
| Current portion of | ||||||
| long term loans | 1,310,039 | 1,029,104 | 1,316,504 | 1,029,274 | ||
| Salaries and Payroll Charges | 316,816 | 309,443 | 317,467 | 309,861 | ||
| Income tax and social contribution payable | 97,894 | - | 97,981 | 72 | ||
| Other taxes and contributions payable | 123,374 | 129,052 | 123,455 | 130,896 | ||
| Interest on Own Capital Payable | 142 | 92 | 142 | 92 | ||
| Provisions | 644,538 | 726,941 | 644,538 | 726,941 | ||
| Services payable | 378,682 | 340,561 | 378,682 | 340,561 | ||
| Other payables | 479,687 | 207,043 | 490,914 | 207,353 | ||
| Total Current Liabilities | 3,606,408 | 2,947,889 | 3,626,811 | 2,956,368 | ||
| - | - | |||||
| Non-Current | ||||||
| Loans and Financing | 7,084,777 | 7,477,404 | 7,269,624 | 7,646,626 | ||
| Other taxes and contributions payable | - | 27,286 | - | 27,286 | ||
| Deferred Cofins/Pasep taxes | 116,048 | 112,979 | 117,507 | 112,979 | ||
| Provisions | 711,714 | 809,090 | 711,717 | 809,090 | ||
| Pension Plan Obligations | 2,113,479 | 2,036,891 | 2,113,479 | 2,036,891 | ||
| Other Payables | 711,756 | 615,506 | 710,436 | 615,794 | ||
| Total Non Current Liabilities | 10,737,774 | 11,079,156 | 10,922,763 | 11,248,666 | ||
| Shareholders' Equity | ||||||
|
Capital Stock |
6,203,688 | 6,203,688 | 6,203,688 | 6,203,688 | ||
|
Capital Reserves |
124,255 | 124,255 | 124,255 | 124,255 | ||
|
Income reserve and accrued earnings |
5,076,298 | 4,015,501 | 5,076,298 | 4,015,501 | ||
| Total Shareholders' Equity | 11,404,241 | 10,343,444 | 11,404,241 | 10,343,444 | ||
| Total Liabilities and Shareholders' Equity | 25,748,423 | 24,370,489 | 25,953,815 | 24,548,478 | ||
Page 10 of 11
Cash flow
| Brazilian Corporate Law | R$ '000 | |||
| PARENT COMPANY | CONSOLIDATED | |||
| Description | Jan-Sep/12 | Jan-Sep/11 | Jan-Sep/12 | Jan-Sep/11 |
| Cash flow from operating activities | ||||
| Earnings before income tax and social contribution | 1,616,586 | 1,194,401 | 1,614,056 | 1,195,441 |
| Depreciation and Amortization | 543,702 | 572,514 | 543,838 | 572,556 |
| Losses from the sale of fixed and intangible assets | 2,129 | 21,162 | 2,138 | 21,162 |
| Provisions for bad debt | 304,011 | 240,883 | 304,011 | 240,883 |
| Provisions | 231,150 | 220,254 | 231,150 | 220,254 |
| Interest calculated over loans and financing payable | 306,742 | 342,528 | 318,650 | 342,528 |
| Monetary and exchange variation over loans and financing | 169,399 | 367,326 | 169,399 | 367,326 |
| Variation on liabilities and interest | 1,147 | 2,197 | 1,147 | 2,197 |
| Variation on assets and interest | (9,919) | (19,404) | (9,919) | (19,404) |
| Fair value margin on intangible assets from | (36,919) | (39,284) | (37,607) | (38,623) |
| Provision for the conduct adjustment agreement (TAC) | 24,482 | 40,561 | 24,482 | 40,561 |
| Equity result | 3,643 | 4,418 | - | - |
| São Paulo municipal goverment transfers | (4,080) | - | (4,080) | - |
| Provision for Sabesprev Mais | (6,522) | (7,432) | (6,522) | (7,432) |
| Other write-offs | 1,186 | 4,900 | 1,186 | 4,900 |
| Pension plan obligations | 161,355 | 241,285 | 161,355 | 241,285 |
| Provision for inventory loss | 35,087 | - | 35,087 | - |
| Provision for decrease in recoverable amount | 35,127 | - | 35,127 | - |
| Adjusted net income (generated by operating activities) | 3,378,306 | 3,186,309 | 3,383,498 | 3,183,634 |
| Variation on Assets and Liabilities | (771,753) | (265,960) | (752,525) | (259,660) |
| (Increase) decrease in assets: | ||||
| Accounts receivable from clients | (195,751) | (219,880) | (196,208) | (220,227) |
| Balances and transactions with related parties | 50,582 | 36,585 | 50,582 | 36,585 |
| Inventories | 4,791 | 228 | 4,781 | 205 |
| Recoverable Taxes | (27,229) | (42,159) | (27,508) | (42,484) |
| Judicial deposits | (150,326) | 3,624 | (150,326) | 3,624 |
| Other accounts receivable | (95,741) | (21,186) | (66,454) | (20,577) |
| Increase (decrease) in liabilities: | ||||
| Contractors and suppliers | (28,618) | 73,762 | (37,625) | 78,018 |
| Payment for services | (4,434) | (37,695) | (4,434) | (37,695) |
| Salaries and payroll charges | 48,832 | 22,557 | 49,109 | 22,833 |
| Other taxes and contributions payable | (76,930) | (56,672) | (77,177) | (55,038) |
| Taxes on revenues | 1,942 | 17 | 2,709 | 17 |
| Pension plan obligations | (98,573) | (8,432) | (98,573) | (8,432) |
| Other accounts payable | 85,326 | 131,608 | 84,220 | 131,828 |
| Contingencies | (285,624) | (148,317) | (285,621) | (148,317) |
| Others | (758,762) | (1,022,759) | (759,580) | (1,022,759) |
| Interest paid | (471,168) | (583,666) | (471,986) | (583,666) |
| Income tax and contribution paid | (287,594) | (439,093) | (287,594) | (439,093) |
| Net cash generated from operating activities | 1,847,791 | 1,897,590 | 1,871,393 | 1,901,215 |
| Cash flow from investing activities: | ||||
| Restricted cash | 28,716 | 205,207 | 28,716 | 205,207 |
| Increase in investment | (5,092) | (14,050) | - | - |
| Acquisition of property, plant and equipment | (12,305) | (8,174) | (39,154) | (94,006) |
| Acquisition of intangible assets | (1,342,180) | (1,337,179) | (1,347,801) | (1,345,810) |
| Net cash used in investing activities | (1,330,861) | (1,154,196) | (1,358,239) | (1,234,609) |
| Cash flow from financing activities | ||||
| Funding | 995,442 | 1,456,501 | 1,007,035 | 1,625,893 |
| Amortizations | (1,350,366) | (1,537,521) | (1,354,700) | (1,592,844) |
| Payment of interest on own capital | (537,772) | (422,923) | (537,772) | (422,923) |
| Net cash generated (invested) at financing activities | (892,696) | (503,943) | (885,437) | (389,874) |
| Increase (decrease) in cash and equivalents | (375,766) | 239,451 | (372,283) | 276,732 |
| Cash and cash equivalents at the beginning of the period | 2,142,079 | 1,988,004 | 2,149,989 | 1,989,179 |
| Cash and cash equivalents at the end of the period | 1,766,313 | 2,227,455 | 1,777,706 | 2,265,911 |
| Changes in Cash and Cash Equivalents | (375,766) | 239,451 | (372,283) | 276,732 |
Page 11 of 11
|
Companhia de Saneamento Básico do Estado de São Paulo - SABESP | ||
| By: | /s/ Rui de Britto Álvares Affonso
|
|
|
Name: Rui de Britto Álvares Affonso
Title: Chief Financial Officer and Investor Relations Officer |
||
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.