SABESP (SBSP3) Acquisition Presentation summary

Deal rationale and strategic fit

• Acquisition targets a leading hydroelectric and water management company with strategic assets in São Paulo, aligning with goals to secure and optimize water supply and resource management.

• Integration enables direct control over critical water sources, enhancing operational efficiency and resilience against drought and climate events.

• Expands water storage capacity by 52% in the São Paulo Metropolitan Region by 2029, leveraging underutilized reservoirs.

• Strengthens the ability to balance water supply, hydropower generation, and flood control, supporting urban resilience.

• Positions the acquirer as the sole operator of key water resources, consolidating governance and planning.

Financial terms and conditions

• Acquisition of 74.9% of voting shares and 66.8% of non-voting shares, totaling 70.1% of capital, settled in cash at closing.

• Funded with available proceeds, resulting in minimal impact (0.08x) on consolidated financial leverage.

Synergies and expected cost savings

• Integration of water and energy operations expected to unlock operational efficiencies and reduce service costs.

• Monetization of non-core assets and revitalization projects present additional upside potential, not included in base valuation.