05/30/2023 | Press release | Distributed by Public on 05/30/2023 06:27
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___
ITR - Quarterly Information Form - 03/31/2023 - 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 | |
01/01/2023 to 03/31/2023 | 9 |
01/01/2022 to 03/31/2022 | 10 |
Statement of Value Added | 11 |
Comments on the Company's Performance | 12 |
Notes to the Financial Statements | 22 |
Comments on the Company's Projections | 78 |
Other Information Deemed as Relevant by the Company | 79 |
Reports and Statements | |
Unqualified Reports on Special Review | 81 |
Executive Officers' Statement on the Financial Statements | 82 |
Executive Officers' Statement on the Report of Independent Registered Public Accounting Firm | 83 |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Company Information / Capital Breakdown
Number of Shares | Current Quarter |
(Unit) | 03/31/2023 |
Paid-in Capital | |
Common | 683,509,869 |
Preferred | 0 |
Total | 683,509,869 |
Treasury Shares | |
Common | 0 |
Preferred | 0 |
Total | 0 |
ITR - Quarterly Information Form - 03/31/2023 - 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 |
03/31/2023 | 12/31/2022 | ||
1 | Total Assets | 56,926,791 | 57,207,765 |
1.01 | Current Assets | 6,403,756 | 7,284,664 |
1.01.01 | Cash and Cash Equivalents | 836,450 | 1,867,485 |
1.01.02 | Financial Investments | 1,649,313 | 1,677,873 |
1.01.02.03 | Financial Investments Valued at Amortized Cost | 1,649,313 | 1,677,873 |
1.01.03 | Accounts Receivable | 3,392,786 | 3,268,367 |
1.01.03.01 | Trade Receivables | 3,194,099 | 3,062,574 |
1.01.03.02 | Other Receivables | 198,687 | 205,793 |
1.01.03.02.01 | Related-Party Balances | 198,687 | 205,793 |
1.01.04 | Inventories | 117,296 | 124,247 |
1.01.06 | Recoverable Taxes | 266,437 | 242,906 |
1.01.06.01 | Current Recoverable Taxes | 266,437 | 242,906 |
1.01.08 | Other Current Assets | 141,474 | 103,786 |
1.01.08.03 | Other | 141,474 | 103,786 |
1.01.08.03.01 | Restricted Cash | 48,301 | 37,474 |
1.01.08.03.20 | Other Assets | 93,173 | 66,312 |
1.02 | Noncurrent Assets | 50,523,035 | 49,923,101 |
1.02.01 | Long-Term Assets | 10,217,699 | 10,105,800 |
1.02.01.04 | Accounts Receivable | 213,390 | 215,234 |
1.02.01.04.01 | Trade Receivables | 213,390 | 215,234 |
1.02.01.09 | Receivables from Related Parties | 958,670 | 950,950 |
1.02.01.09.03 | Receivables from Controlling Shareholders | 958,670 | 950,950 |
1.02.01.10 | Other Noncurrent Assets | 9,045,639 | 8,939,616 |
1.02.01.10.04 | Escrow Deposits | 175,872 | 170,093 |
1.02.01.10.05 | Water and Basic Sanitation National Agency - ANA | 9,168 | 9,193 |
1.02.01.10.06 | Contract Asset | 8,714,054 | 8,613,968 |
1.02.01.10.20 | Other Assets | 146,545 | 146,362 |
1.02.02 | Investments | 196,265 | 157,491 |
1.02.02.01 | Equity Interest | 149,551 | 110,765 |
1.02.02.01.03 | Equity Interest in Jointly-Owned Subsidiaries | 117,304 | 104,666 |
1.02.02.01.04 | Other Investments | 32,247 | 6,099 |
1.02.02.02 | Investment Properties | 46,714 | 46,726 |
1.02.03 | Property, Plant and Equipment | 364,870 | 338,939 |
1.02.04 | Intangible Assets | 39,744,201 | 39,320,871 |
1.02.04.01 | Intangible Assets | 39,744,201 | 39,320,871 |
1.02.04.01.01 | Concession Agreements | 1,122,094 | 1,151,365 |
1.02.04.01.02 | Program Contracts | 19,904,574 | 19,602,451 |
1.02.04.01.03 | Service Contracts | 18,081,949 | 17,870,451 |
1.02.04.01.04 | Software License of Use | 577,503 | 595,404 |
1.02.04.01.05 | Right of Use | 58,081 | 75,052 |
1.02.04.01.06 | Right of Use - Investments | 0 | 26,148 |
ITR - Quarterly Information Form - 03/31/2023 - 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 |
03/31/2023 | 12/31/2022 | ||
2 | Total Liabilities | 56,926,791 | 57,207,765 |
2.01 | Current Liabilities | 6,163,795 | 6,657,342 |
2.01.01 | Labor and Social Obligations | 495,529 | 498,504 |
2.01.01.01 | Social Obligations | 34,205 | 64,801 |
2.01.01.02 | Labor Obligations | 461,324 | 433,703 |
2.01.02 | Suppliers | 257,746 | 430,946 |
2.01.02.01 | Domestic Suppliers | 257,746 | 430,946 |
2.01.03 | Tax Obligations | 338,254 | 293,461 |
2.01.03.01 | Federal Tax Obligations | 332,110 | 282,820 |
2.01.03.01.01 | Income Tax and Social Contribution Payable | 122,165 | 0 |
2.01.03.01.02 | Pis-Pasep and Cofins Payable | 110,329 | 134,624 |
2.01.03.01.03 | INSS (Social Security Contribution) Payable | 43,921 | 44,515 |
2.01.03.01.20 | Other Federal Taxes | 55,695 | 103,681 |
2.01.03.03 | Municipal Tax Obligations | 6,144 | 10,641 |
2.01.04 | Borrowings and Financing | 1,976,816 | 2,245,960 |
2.01.04.01 | Borrowings and Financing | 1,308,566 | 1,389,864 |
2.01.04.01.01 | In Local Currency | 1,009,732 | 1,077,277 |
2.01.04.01.02 | In Foreign Currency | 298,834 | 312,587 |
2.01.04.02 | Debentures | 562,407 | 739,534 |
2.01.04.03 | Financing through Lease | 105,843 | 116,562 |
2.01.05 | Other Liabilities | 2,184,402 | 2,264,433 |
2.01.05.01 | Payables to Related Parties | 1,694 | 1,694 |
2.01.05.01.03 | Payables to Controlling Shareholders | 1,694 | 1,694 |
2.01.05.02 | Other | 2,182,708 | 2,262,739 |
2.01.05.02.01 | Dividends and Interest on Capital Payable | 741,725 | 741,725 |
2.01.05.02.04 | Services Payable | 604,532 | 723,242 |
2.01.05.02.05 | Refundable Amounts | 30,256 | 30,885 |
2.01.05.02.06 | Program Contract Commitments | 62,601 | 100,188 |
2.01.05.02.07 | Public-Private Partnership - PPP | 225,982 | 222,413 |
2.01.05.02.09 | Indemnities | 9,272 | 8,556 |
2.01.05.02.20 | Other Liabilities | 508,340 | 435,730 |
2.01.06 | Provisions | 911,048 | 924,038 |
2.01.06.01 | Tax, Social Security, Labor, and Civil Provisions | 523,686 | 510,807 |
2.01.06.01.01 | Tax Provisions | 35,365 | 34,382 |
2.01.06.01.02 | Labor Liabilities and Pension Plan Obligations | 402,266 | 385,580 |
2.01.06.01.04 | Civil Provisions | 86,055 | 90,845 |
2.01.06.02 | Other Provisions | 387,362 | 413,231 |
2.01.06.02.03 | Provisions for Environmental Liabilities and Decommissioning | 2,983 | 15,289 |
2.01.06.02.04 | Provisions for Customers | 121,510 | 141,491 |
2.01.06.02.05 | Provisions for Suppliers | 262,869 | 256,451 |
2.02 | Noncurrent Liabilities | 22,682,251 | 23,216,890 |
2.02.01 | Borrowings and Financing | 16,319,107 | 16,712,711 |
2.02.01.01 | Borrowings and Financing | 8,907,163 | 9,167,759 |
2.02.01.01.01 | In Local Currency | 6,571,995 | 6,704,588 |
2.02.01.01.02 | In Foreign Currency | 2,335,168 | 2,463,171 |
2.02.01.02 | Debentures | 7,084,987 | 7,202,296 |
ITR - Quarterly Information Form - 03/31/2023 - 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 |
03/31/2023 | 12/31/2022 | ||
2.02.01.03 | Financing through Lease | 326,957 | 342,656 |
2.02.02 | Other Liabilities | 5,433,458 | 5,628,155 |
2.02.02.02 | Other | 5,433,458 | 5,628,155 |
2.02.02.02.04 | Pension Plan Obligations | 2,143,788 | 2,150,191 |
2.02.02.02.05 | Program Contract Commitments | 12,322 | 12,197 |
2.02.02.02.06 | Public-Private Partnership - PPP | 2,647,480 | 2,736,768 |
2.02.02.02.07 | Indemnities | 17,199 | 17,508 |
2.02.02.02.08 | Labor Liabilities | 1,619 | 1,620 |
2.02.02.02.09 | Deferred Cofins/Pasep | 161,314 | 159,723 |
2.02.02.02.20 | Other Liabilities | 449,736 | 550,148 |
2.02.03 | Deferred Taxes | 191,523 | 189,278 |
2.02.03.01 | Deferred Income Tax and Social Contribution | 191,523 | 189,278 |
2.02.03.01.01 | Deferred Income Tax and Social Contribution | 191,523 | 189,278 |
2.02.04 | Provisions | 738,163 | 686,746 |
2.02.04.01 | Tax, Social Security, Labor, and Civil Provisions | 300,537 | 291,317 |
2.02.04.01.01 | Tax Provisions | 40,041 | 29,113 |
2.02.04.01.02 | Labor Liabilities and Pension Plan Obligations | 242,639 | 254,718 |
2.02.04.01.04 | Civil Provisions | 17,857 | 7,486 |
2.02.04.02 | Other Provisions | 437,626 | 395,429 |
2.02.04.02.03 | Provisions for Environmental Liabilities and Decommissioning | 430,791 | 391,547 |
2.02.04.02.04 | Provisions for Customers | 6,176 | 3,306 |
2.02.04.02.05 | Provisions for Suppliers | 659 | 576 |
2.03 | Equity | 28,080,745 | 27,333,533 |
2.03.01 | Paid-Up Capital | 15,000,000 | 15,000,000 |
2.03.04 | Profit Reserves | 12,155,890 | 12,155,890 |
2.03.04.01 | Legal Reserve | 1,688,428 | 1,688,428 |
2.03.04.08 | Additional Dividend Proposed | 76,927 | 76,927 |
2.03.04.10 | Reserve for Investments | 10,390,535 | 10,390,535 |
2.03.05 | Retained Earnings/Accumulated Losses | 747,212 | 0 |
2.03.06 | Equity Valuation Adjustments | 177,643 | 177,643 |
ITR - Quarterly Information Form - 03/31/2023 - 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 |
01/01/2023 to 03/31/2023 | 01/01/2022 to 03/31/2022 | ||
3.01 | Revenue from Sales and/or Services | 5,698,369 | 4,870,390 |
3.02 | Cost of Sales and/or Services | -3,653,723 | -3,116,386 |
3.02.01 | Cost of Sales and/or Services | -2,500,708 | -2,248,865 |
3.02.02 | Construction Costs | -1,153,015 | -867,521 |
3.03 | Gross Profit | 2,044,646 | 1,754,004 |
3.04 | Operating Income/Expenses | -652,173 | -619,926 |
3.04.01 | Selling Expenses | -388,462 | -374,281 |
3.04.01.01 | Selling Expenses | -225,657 | -196,587 |
3.04.01.02 | Allowance for Doubtful Accounts | -162,805 | -177,694 |
3.04.02 | General and Administrative Expenses | -284,679 | -253,792 |
3.04.04 | Other Operating Income | 20,352 | 10,308 |
3.04.04.01 | Other Operating Income | 23,045 | 11,405 |
3.04.04.02 | Cofins and Pasep | -2,693 | -1,097 |
3.04.05 | Other Operating Expenses | -5,718 | -7,744 |
3.04.06 | Equity Results of Investments in Affiliates | 6,334 | 5,583 |
3.05 | Income before Financial Result and Taxes | 1,392,473 | 1,134,078 |
3.06 | Financial Result | -259,528 | 340,124 |
3.06.01 | Financial Revenue | 219,119 | 199,013 |
3.06.01.01 | Financial Revenue | 230,108 | 210,043 |
3.06.01.02 | Exchange Variation Gains | -201 | -1,263 |
3.06.01.03 | Cofins and Pasep | -10,788 | -9,767 |
3.06.02 | Financial Expenses | -478,647 | 141,111 |
3.06.02.01 | Financial Expenses | -562,471 | -453,018 |
3.06.02.02 | Exchange Variation Losses | 83,824 | 594,129 |
3.07 | Profit before Taxes on Income | 1,132,945 | 1,474,202 |
3.08 | Income Tax and Social Contribution | -385,733 | -498,663 |
3.08.01 | Current | -383,488 | -489,505 |
3.08.02 | Deferred | -2,245 | -9,158 |
3.09 | Net Result from Continued Operations | 747,212 | 975,539 |
3.11 | Profit/Loss for the Period | 747,212 | 975,539 |
3.99 | Earnings per Share - (Reais/Share) | ||
3.99.01 | Basic Earnings per Share | ||
3.99.01.01 | Common | 1.0932 | 1.42725 |
3.99.02 | Diluted Earnings per Share | ||
3.99.02.01 | Common | 1.0932 | 1.42725 |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Parent Company's Financial Statements / Statement of Comprehensive Income
(R$ thousand)
Code | Description |
YTD Current Year |
YTD Previous Year |
01/01/2023 to 03/31/2023 | 01/01/2022 to 03/31/2022 | ||
4.01 | Net Income for the Period | 747,212 | 975,539 |
4.02 | Comprehensive Income for the Period | 747,212 | 975,539 |
ITR - Quarterly Information Form - 03/31/2023 - 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 |
01/01/2023 to 03/31/2023 | 01/01/2022 to 03/31/2022 | ||
6.01 | Net Cash from Operating Activities | 395,306 | 616,843 |
6.01.01 | Cash from Operations | 2,513,490 | 2,161,586 |
6.01.01.01 | Profit before Income Tax and Social Contribution | 1,132,945 | 1,474,202 |
6.01.01.02 | Provision and Inflation Adjustments on Provisions | 70,031 | 78,415 |
6.01.01.04 | Finance Charges from Customers | -95,653 | -81,830 |
6.01.01.05 | Residual Value of Property, Plant and Equipment, Intangible Assets, and Investment Properties Written-off | 3,515 | 2,406 |
6.01.01.06 | Depreciation and Amortization | 657,145 | 589,746 |
6.01.01.07 | Interest on Borrowings and Financing Payable | 316,805 | 219,454 |
6.01.01.08 | Inflation Adjustment and Exchange Gains (Losses) on Borrowings and Financing | -13,316 | -523,312 |
6.01.01.09 | Interest and Inflation Adjustments on Liabilities | 6,915 | 7,604 |
6.01.01.10 | Interest and Inflation Adjustments on Assets | -28,976 | -63,518 |
6.01.01.11 | Allowance for Doubtful Accounts | 162,805 | 177,694 |
6.01.01.12 | Provision for Consent Decree (TAC) and Knowledge Retention Program (PRC) | -345 | -743 |
6.01.01.13 | Equity Results of Investments in Affiliates | -6,334 | -5,583 |
6.01.01.14 | Interest and Inflation Adjustment (Public-Private Partnership) | 123,045 | 122,150 |
6.01.01.15 | Other Adjustments | 4,119 | 3,451 |
6.01.01.16 | Transfer to the São Paulo Municipal Government | 155,387 | 134,962 |
6.01.01.17 | Construction Margin on Intangible Assets Arising from Concession Agreements | -26,519 | -20,685 |
6.01.01.18 | Pension Plan Obligations | 51,921 | 47,173 |
6.01.02 | Changes in Assets and Liabilities | -1,460,999 | -897,725 |
6.01.02.01 | Trade Receivables | -183,680 | -299,418 |
6.01.02.02 | Related-Party Balances and Transactions | 10,172 | -10,415 |
6.01.02.03 | Inventories | 6,951 | -4,000 |
6.01.02.04 | Recoverable Taxes | -23,531 | 12,978 |
6.01.02.05 | Other Assets | -33,323 | -36,990 |
6.01.02.06 | Escrow Deposits | -742 | -13,378 |
6.01.02.08 | Trade Payables and Contractors | -414,033 | -218,600 |
6.01.02.09 | Labor and Social Obligations | -2,630 | -73,155 |
6.01.02.10 | Pension Plan Obligations | -58,324 | -53,476 |
6.01.02.11 | Taxes and Contributions Payable | -225,360 | -64,184 |
6.01.02.12 | Services Payable | -274,097 | -55,564 |
6.01.02.13 | Other Obligations | -232,389 | 4,652 |
6.01.02.14 | Provisions | -31,604 | -86,310 |
6.01.02.15 | Deferred Cofins/Pasep | 1,591 | 135 |
6.01.03 | Other | -657,185 | -647,018 |
6.01.03.01 | Interest Paid | -543,850 | -347,631 |
6.01.03.02 | Income Tax and Social Contribution Paid | -113,335 | -299,387 |
6.02 | Net Cash from Investing Activities | -583,553 | -1,102,680 |
6.02.01 | Acquisition of Contract Asset and Intangible Assets | -570,332 | -651,660 |
6.02.02 | Acquisition of Property, Plant and Equipment | -30,954 | -8,566 |
6.02.04 | Restricted Cash | -10,827 | 1,261 |
6.02.07 | Financial Investments | 28,560 | -443,715 |
ITR - Quarterly Information Form - 03/31/2023 - 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 |
01/01/2023 to 03/31/2023 | 01/01/2022 to 03/31/2022 | ||
6.03 | Net Cash from Financing Activities | -842,788 | 259,400 |
6.03.01 | Funding | 121,611 | 1,084,506 |
6.03.02 | Amortization | -716,239 | -661,268 |
6.03.04 | Public-Private Partnership - PPP | -208,764 | -156,364 |
6.03.05 | Program Contract Commitments | -39,396 | -7,474 |
6.05 | Increase (Decrease) in Cash and Cash Equivalents | -1,031,035 | -226,437 |
6.05.01 | Opening Balance of Cash and Cash Equivalents | 1,867,485 | 717,929 |
6.05.02 | Closing Balance of Cash and Cash Equivalents | 836,450 | 491,492 |
ITR - Quarterly Information Form - 03/31/2023 - 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 |
5.03 | Restated Opening Balances | 15,000,000 | 0 | 12,155,890 | 0 | 177,643 | 27,333,533 |
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 |
5.07 | Closing Balances | 15,000,000 | 0 | 12,155,890 | 747,212 | 177,643 | 28,080,745 |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Parent Company's Financial Statements / Statement of Changes in Equity / 01/01/2022 to 03/31/2022
(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 | 9,885,485 | 0 | 46,374 | 24,931,859 |
5.03 | Restated Opening Balances | 15,000,000 | 0 | 9,885,485 | 0 | 46,374 | 24,931,859 |
5.05 | Total Comprehensive Income | 0 | 0 | 0 | 975,539 | 0 | 975,539 |
5.05.01 | Net Income for the Period | 0 | 0 | 0 | 975,539 | 0 | 975,539 |
5.07 | Closing Balances | 15,000,000 | 0 | 9,885,485 | 975,539 | 46,374 | 25,907,398 |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Parent Company's Financial Statements / Statement of Value Added
(R$ thousand)
Code | Description |
YTD Current Year |
YTD Previous Year |
01/01/2023 to 03/31/2023 | 01/01/2022 to 03/31/2022 | ||
7.01 | Revenue | 5,949,048 | 5,020,137 |
7.01.01 | Goods, Products and Services Sold | 4,909,274 | 4,298,220 |
7.01.02 | Other Revenue | 23,045 | 11,405 |
7.01.03 | Revenue from Construction of Own Assets | 1,179,534 | 888,206 |
7.01.04 | Allowance for/Reversal of Doubtful Accounts | -162,805 | -177,694 |
7.02 | Inputs Acquired from Third Parties | -2,502,821 | -2,109,805 |
7.02.01 | Costs of Goods, Products and Services Sold | -2,151,327 | -1,815,325 |
7.02.02 | Materials, Electricity, Outsourced Services, and Others | -345,776 | -286,735 |
7.02.04 | Other | -5,718 | -7,745 |
7.03 | Gross Value Added | 3,446,227 | 2,910,332 |
7.04 | Retentions | -657,145 | -589,746 |
7.04.01 | Depreciation, Amortization, and Depletion | -657,145 | -589,746 |
7.05 | Net Value Added Produced | 2,789,082 | 2,320,586 |
7.06 | Wealth Received in Transfer | 236,241 | 214,363 |
7.06.01 | Equity Results of Investments in Affiliates | 6,334 | 5,583 |
7.06.02 | Financial Revenue | 229,907 | 208,780 |
7.07 | Total Value Added to Distribute | 3,025,323 | 2,534,949 |
7.08 | Value Added Distribution | 3,025,323 | 2,534,949 |
7.08.01 | Personnel | 663,868 | 592,898 |
7.08.01.01 | Salaries and Wages | 453,047 | 423,433 |
7.08.01.02 | Benefits | 172,881 | 134,812 |
7.08.01.03 | Government Severance Indemnity Fund for Employees (FGTS) | 37,940 | 34,653 |
7.08.02 | Taxes and Contributions | 959,120 | 980,831 |
7.08.02.01 | Federal | 898,314 | 922,600 |
7.08.02.02 | State | 43,235 | 42,331 |
7.08.02.03 | Municipal | 17,571 | 15,900 |
7.08.03 | Value Distributed to Providers of Capital | 655,123 | -14,319 |
7.08.03.01 | Interest | 646,449 | -20,789 |
7.08.03.02 | Rentals | 8,674 | 6,470 |
7.08.04 | Value Distributed to Shareholders | 747,212 | 975,539 |
7.08.04.03 | Retained Earnings/Accumulated Losses for the Period | 747,212 | 975,539 |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Comments on the Company's Performance |
|
Highlights
The Company recorded a net income of R$ 747.2 million in 1Q23, compared to the R$ 975.6 million reported in 1Q22, a decrease of R$ 228.4 million (-23.4%).
Adjusted EBITDA totaled R$ 2,035.0 million, up by R$ 313.7 million (+18.2%) over the R$ 1,721.3 million reported in 1Q22.
Revenue from sanitation services
Increase of R$ 611.1 million, impacted by (i) an average tariff adjustment of 12.8% since May 2022; (ii) a 1.4% increase in total billed volume; and (iii) a higher average tariff due to the increase in the billed volume in the non-residential category.
Costs, administrative & selling expenses (excluding construction costs)
Growth of R$ 296.9 million, mainly due to the (i) R$ 112.8 million increase in services; (ii) R$ 76.1 million increase in salaries, payroll charges, benefits, and pension plan obligations; (iii) R$ 67.4 million increase in depreciation and amortization; and (iv) R$ 35.7 million increase with general expenses.
Impacts from the exchange variation
Exchange variation income on borrowings and financing fell by R$ 510.4 million, due to the lower appreciation of the Brazilian real against the U.S. dollar and the Japanese yen in 1Q23, compared to the appreciation of 1Q22, as shown in the table below:
1Q23 | 1Q22 | |
Foreign currency debt - R$ million | 2,634.0 | 2,603.7 |
Foreign currency debt as a percentage of total debt | 14.0% | 15.0% |
U.S. dollar variation in the quarter | (2.6%) | (15.1%) |
Yen variation in the quarter | (3.3%) | (19.5%) |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
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Comments on the Company's Performance |
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1. | Result for the period |
R$ million | ||||
Var. | ||||
1Q23 | 1Q22 | R$ | % | |
Revenue from sanitation services | 4,909.3 | 4,298.2 | 611.1 | 14.2 |
Construction revenue | 1,179.5 | 888.2 | 291.3 | 32.8 |
COFINS and PASEP/TRCF taxes | (390.4) | (316.0) | (74.4) | 23.5 |
(=) Net operating income | 5,698.4 | 4,870.4 | 828.0 | 17.0 |
Costs and expenses | (3,173.8) | (2,876.9) | (296.9) | 10.3 |
Construction costs | (1,153.0) | (867.5) | (285.5) | 32.9 |
Equity pickup | 6.3 | 5.6 | 0.7 | 12.5 |
Other operating income (expenses), net | 14.6 | 2.6 | 12.0 | 461.5 |
(=) Earnings before financial result, income tax, and social contribution | 1,392.5 | 1,134.2 | 258.3 | 22.8 |
Financial result | (259.5) | 340.1 | (599.6) | (176.3) |
(=) Earnings before income tax and social contribution | 1,133.0 | 1,474.3 | (341.3) | (23.1) |
Income tax and social contribution | (385.8) | (498.7) | 112.9 | (22.6) |
(=) Net income | 747.2 | 975.6 | (228.4) | (23.4) |
Earnings per share (R$)* | 1.09 | 1.43 |
*Number of shares = 683,509,869
Adjusted EBITDA Reconciliation (Non-accounting measures)
R$ million | ||||
Var. | ||||
1Q23 | 1Q22 | R$ | % | |
Net income | 747.2 | 975.6 | (228.4) | (23.4) |
Income tax and social contribution | 385.8 | 498.7 | (112.9) | (22.6) |
Financial result | 259.5 | (340.1) | 599.6 | (176.3) |
Other operating income (expenses), net | (14.6) | (2.6) | (12.0) | 461.5 |
(=) Adjusted EBIT* | 1,377.9 | 1,131.6 | 246.3 | 21.8 |
Depreciation and amortization | 657.1 | 589.7 | 67.4 | 11.4 |
(=) Adjusted EBITDA** | 2,035.0 | 1,721.3 | 313.7 | 18.2 |
(%) Adjusted EBITDA margin | 35.7 | 35.3 |
* Adjusted EBIT corresponds to income before: (i) other operating income (expenses), net; (ii) financial result; and (iii) income tax and social contribution.
** Adjusted EBITDA corresponds to income before: (i) other operating income (expenses), net; (ii) financial result; (iii) income tax and social contribution; and (iv) depreciation and amortization expenses.
The net operating revenue, which considers construction revenue, totaled R$ 5,698.4 million in 1Q23, up by 17.0% over 1Q22.
Costs and expenses, which consider construction costs, totaled R$ 4,326.8 million, up by 15.6% over 1Q22.
Adjusted EBIT, of R$ 1,377.9 million, increased by 21.8% over the R$ 1,131.6 million recorded in 1Q22.
Adjusted EBITDA, of R$ 2,035.0 million, increased by 18.2% over the R$ 1,721.3 million recorded in 2022 (R$ 7,401.4 million in the last 12 months).
The Adjusted EBITDA margin was 35.7% in 1Q23, compared to 35.3% in 1Q22 (32.3% in the last 12 months).
Excluding the effects of revenue and construction costs, the adjusted EBITDA margin reached 44.5% in 1Q23, compared to 42.7% in 1Q22 (41.1% in the last 12 months).
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
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The Company recorded a net income of R$ 747.2 million in 1Q23, compared to R$ 975.6 million in 1Q22.
2. | Revenue from sanitation services |
The gross operating revenue from sanitation services, which excludes construction revenue, totaled R$ 4,909.3 million in 1Q23, an increase of R$ 611.1 million (+14.2%) over the R$ 4,298.2 million recorded in 1Q22.
The main factors that led to the increase were:
· | Average tariff adjustment of 12.8% since May 2022; and |
· | Increase of 1.4% in the total billed volume. |
3. | Construction revenue |
Construction revenue increased by R$ 291.3 million (+32.8%), due to higher investments made.
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4. | Billed volume |
The following tables show the water and sewage billed volumes, on a quarter-over-quarter basis, per customer category and region.
WATER AND SEWAGE BILLED VOLUME 1 PER CUSTOMER CATEGORY - million m3 | |||||||||
Water | Sewage | Water + Sewage | |||||||
Category | 1Q23 | 1Q22 | Var. % | 1Q23 | 1Q22 | Var. % | 1Q23 | 1Q22 | Var. % |
Residential | 472.2 | 472.6 | (0.1) | 412.8 | 409.5 | 0.8 | 885.0 | 882.1 | 0.3 |
Commercial | 46.7 | 41.4 | 12.8 | 43.9 | 40.3 | 8.9 | 90.6 | 81.7 | 10.9 |
Industrial | 8.6 | 8.1 | 6.2 | 9.3 | 9.1 | 2.2 | 17.9 | 17.2 | 4.1 |
Public | 10.0 | 9.5 | 4.9 | 9.2 | 8.5 | 8.1 | 19.1 | 18.0 | 6.4 |
Total retail | 537.5 | 531.6 | 1.1 | 475.2 | 467.4 | 1.7 | 1,012.6 | 999.0 | 1.4 |
Wholesale3 | 12.2 | 11.9 | 2.5 | 5.6 | 5.8 | (3.4) | 17.8 | 17.7 | 0.6 |
Overall Total | 549.7 | 543.5 | 1.1 | 480.8 | 473.2 | 1.6 | 1,030.4 | 1,016.7 | 1.4 |
Water | Sewage | Water + Sewage | |||||||
WATER AND SEWAGE BILLED VOLUME 1 PER REGION - million m3 | |||||||||
Water | Sewage | Water + Sewage | |||||||
Region | 1Q23 | 1Q22 | Var. % | 1Q23 | 1Q22 | Var. % | 1Q23 | 1Q22 | Var. % |
Metropolitan | 358.8 | 354.3 | 1.3 | 316.5 | 311.0 | 1.8 | 675.2 | 665.3 | 1.5 |
Regional2 | 178.7 | 177.3 | 0.8 | 158.7 | 156.4 | 1.5 | 337.4 | 333.7 | 1.1 |
Total retail | 537.5 | 531.6 | 1.1 | 475.2 | 467.4 | 1.7 | 1,012.6 | 999.0 | 1.4 |
Wholesale3 | 12.2 | 11.9 | 2.5 | 5.6 | 5.8 | (3.4) | 17.8 | 17.7 | 0.6 |
Overall Total | 549.7 | 543.5 | 1.1 | 480.8 | 473.2 | 1.6 | 1,030.4 | 1,016.7 | 1.4 |
1 Unaudited by external auditors
2 Including coastal and interior regions
3 Wholesale includes volumes of reuse water and non-domestic sewage
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5. | Costs, administrative & selling expenses, and construction costs |
Costs, administrative and selling expenses, and construction costs increased by R$ 582.4 million in 1Q23 (+15.6%). Excluding construction costs, the increase was R$ 296.9 million (+10.3%).
Costs, administrative and selling expenses, and construction costs as a percentage of net revenue were 75.9% in 1Q23 compared to 76.9% in 1Q22.
R$ million | ||||
Var. | ||||
1Q23 | 1Q22 | R$ | % | |
Salaries, payroll charges and benefits, and Pension plan obligations | 744.2 | 668.1 | 76.1 | 11.4 |
General supplies | 87.5 | 71.9 | 15.6 | 21.7 |
Treatment supplies | 164.9 | 147.3 | 17.6 | 11.9 |
Services | 624.9 | 512.1 | 112.8 | 22.0 |
Electricity | 395.8 | 412.0 | (16.2) | (3.9) |
General expenses | 314.8 | 279.1 | 35.7 | 12.8 |
Tax expenses | 21.8 | 19.0 | 2.8 | 14.7 |
Depreciation and amortization | 657.1 | 589.7 | 67.4 | 11.4 |
Allowance for doubtful accounts | 162.8 | 177.7 | (14.9) | (8.4) |
Costs, administrative & selling expenses | 3,173.8 | 2,876.9 | 296.9 | 10.3 |
Construction costs | 1,153.0 | 867.5 | 285.5 | 32.9 |
Costs, adm & selling expenses, and construction costs | 4,326.8 | 3,744.4 | 582.4 | 15.6 |
% of net revenue | 75.9 | 76.9 |
Salaries, payroll charges and benefits, and Pension plan obligations
The R$ 76.1 million increase (+11.4%) recorded in 1Q23 was mainly due to:
· | The average salary adjustment of 12.9% (R$ 54.1 million) in May 2022 and the application of 1% referring to the Career and Salary Plan in February 2023, partially offset by the 1.8% decline in the average number of employees; and |
· | R$ 16.4 million in health care expenses. |
General supplies
Increase of R$ 15.6 million (+21.7%), mostly with the maintenance of water and sewage systems, networks, and connections, totaling R$ 16.1 million.
Treatment supplies
Increase of R$ 17.6 million (+11.9%), due to (i) the increase in product prices, some of which were impacted by the international market, such as aluminum polychloride; and (ii) the higher use of algaecides, coagulants, and disinfectants in several water treatment stations to maintain the quality of raw water.
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Services
Service expenses totaled R$ 624.9 million, an increase of R$ 112.8 million (+22.0%) over the R$ 512.1 million recorded in 1Q22. The main increases were:
· | R$ 38.2 million paid to technical services, mainly IT consulting, maintenance, and support; |
· | R$ 19.9 million for the maintenance of water and sewage networks, connections, and systems; |
· | R$ 18.5 million with meter reading and bill delivery; |
· | R$ 10.4 million with paving and replacing of sidewalks; |
·R$ 9.1 million with advertising; and
·R$ 8.6 million with surveillance.
Electricity
Electricity expenses totaled R$ 395.8 million in 1Q23, a decrease of R$ 16.2 million (-3.9%) from the R$ 412.0 million recorded in 1Q22. Of the total, the Free Market Tariffs (ACL) accounted for 55.1% of total expenses in 1Q23 (52.0% in 1Q22) while the Regulated Market Tariffs (ACR) accounted for 44.9% (48.0% in 1Q22).
The main factors that contributed to this variation were:
· | An average decrease of 2.2% in ACL prices (including Grid Market Tariffs - TUSD), with a 4.8% increase in consumption; and |
· | An average decrease of 14.0% in ACR tariffs, with a decrease of 2.1% in consumption. |
Electricity tariffs were impacted, among others, by (i) the tariff flag from water shortage in 1Q22; and (ii) the lower tax burden on electricity bills since June 2022, as a consequence of Supplementary Law 194/2022.
General expenses
Increase of R$ 35.7 million (+12.8%), totaling R$ 314.8 million in 1Q23, compared to the R$ 279.1 million recorded in 1Q22, mainly from the higher provision for transfer to the Municipal Funds for Environmental Sanitation and Infrastructure, of R$ 23.5 million.
Expenses with municipal transfers totaled R$ 186.5 million in 1Q23, compared to the R$ 163.0 million reported in 1Q22 (+14.4%), mainly due to higher operating revenue.
Depreciation and amortization
The R$ 67.4 million increase (+11.4%) was mainly due to the beginning of operations of intangible assets, totaling R$ 5.3 billion.
Allowance for doubtful accounts
Decrease of R$ 14.9 million, from R$ 177.7 million in 1Q22 to R$ 162.8 million in 1Q23, due to the higher number of overdue bills received in 1Q23.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
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6. | Financial result |
R$ million | ||||
Var. | ||||
1Q23 | 1Q22 | R$ | % | |
Financial expenses, net of revenue | (257.2) | (171.9) | (85.3) | 49.6 |
Monetary and exchange variations, net | (2.3) | 512.0 | (514.3) | (100.4) |
Financial Result | (259.5) | 340.1 | (599.6) | (176.3) |
Financial expenses, net of revenue
R$ million | ||||
Var. | ||||
1Q23 | 1Q22 | R$ | % | |
Financial expenses | ||||
Interest and charges on domestic borrowings and financing | (273.1) | (189.6) | (83.5) | 44.0 |
Interest and charges on international borrowings and financing | (21.0) | (8.6) | (12.4) | 144.2 |
Other financial expenses | (122.1) | (114.3) | (7.8) | 6.8 |
Total financial expenses | (416.2) | (312.5) | (103.7) | 33.2 |
Financial revenue | 159.0 | 140.6 | 18.4 | 13.1 |
Financial expenses, net of revenue | (257.2) | (171.9) | (85.3) | 49.6 |
The main impacts resulted from:
· | Increase of R$ 83.5 million in interest and charges on domestic borrowings and financing, mainly due to (i) higher interest on debentures, of R$ 49.5 million, including the effect from the amortization of the 17th and 21st issues, as well as the proceeds of the 30th issue, totaling R$ 32.2 million in financial expenses; and (ii) a rise in the average DI rate (from 10.27% in 1Q22 to 13.65% in 1Q23), which impacted interest on domestic borrowings; |
· | Increase of R$ 12.4 million in interest and charges on international borrowings and financing, mainly the lower appreciation of the Brazilian real against the U.S. dollar and the Yen in 1Q23 (2.63% and 3.29%, respectively), compared to the appreciation observed in 1Q22 (15.10% and 19.50%, respectively); |
· | Increase of R$ 18.4 million in financial revenues, mainly on financial investments in 1Q23, as a result of the higher average DI rate. |
Monetary and exchange variations, net
R$ million | ||||
Var. | ||||
1Q23 | 1Q22 | R$ | % | |
Monetary and exchange variations on liabilities | ||||
Monetary variations on borrowings and financing | (70.5) | (70.7) | 0.2 | (0.3) |
Exchange variations on borrowings and financing | 83.8 | 594.2 | (510.4) | (85.9) |
Other monetary variations | (75.7) | (69.9) | (5.8) | 8.3 |
Total monetary and exchange variations on liabilities | (62.4) | 453.6 | (516.0) | (113.8) |
Monetary and exchange variations on assets | 60.1 | 58.4 | 1.7 | 2.9 |
Monetary and exchange variations, net | (2.3) | 512.0 | (514.3) | (100.4) |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
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Comments on the Company's Performance |
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The effect on the net monetary and exchange variations in 1Q23 was R$ 514.3 million, featuring the negative variation of R$ 510.4 million in exchange variations on borrowings and financing, due to the lower appreciation of the Brazilian real against the U.S. dollar and the Yen in 1Q23 (2.63% and 3.29%, respectively), compared to the appreciation observed in 1Q22 (15.10% and 19.50%, respectively).
7. | Income tax and social contribution |
The R$ 112.9 million decrease in 1Q23 was mainly due to:
· | Higher costs and expenses, of R$ 582.4 million; and |
· | Lower gains with exchange variation, of R$ 510.4 million. |
The factors above were mitigated by higher net operating revenue, of R$ 828.0 million.
8. | Indicators |
a) | Operating |
Information* | 1Q23 | 1Q22 | % |
Water Connections1 | 10,206 | 9,872 | 3.4 |
Sewage connections1 | 8,684 | 8,451 | 2.8 |
Population directly served - water2 | 28.1 | 27.8 | 1.1 |
Population directly served - sewage2 | 24.8 | 24.6 | 0.8 |
Number of employees | 12,211 | 12,435 | -1.8 |
Volume of water produced3 | 733.0 | 714.5 | 2.6 |
IPM - Measured Water Loss (%)4 | 29.5 | 27.9 | 5.7 |
IPDt (liters/connection x day)4 | 255 | 248 | 2.8 |
1. Total connections, active and inactive, in thousand units at the end of the period.
2. In million inhabitants, at the end of the period. Does not include wholesale.
3. Millions of m3. Excludes volumes produced in the municipalities of Aguaí, Tapiratiba, and Tejupá in 1Q22.
4. Excludes volumes and connections in Mauá, Aguaí, and Tapiratiba in 1Q22.
* Unaudited by external auditors
b) | Economic |
Economic variables at the close of the quarter * | 1Q23 | 1Q22 |
Amplified Consumer Price Index (1) | 2.09 | 3.20 |
National Consumer Price Index (1) | 1.88 | 3.42 |
Consumer Price Index (1) | 1.46 | 2.95 |
DI (2) | 13.65 | 10.27 |
U.S. dollar (3) | 5.0804 | 4.7378 |
Yen (3) | 0.03827 | 0.03902 |
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 - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
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9. | Borrowings and financing |
R$ thousand
DEBT PROFILE | |||||||||
2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 onwards | TOTAL | % of total | |
Local currency | |||||||||
Debentures | 377,852 | 1,077,166 | 1,207,210 | 1,085,512 | 1,720,562 | 651,547 | 1,527,548 | 7,647,397 | 42 |
Brazilian Federal Savings Bank | 74,079 | 101,891 | 108,253 | 115,014 | 122,187 | 129,675 | 901,743 | 1,552,842 | 9 |
BNDES | 179,344 | 234,620 | 214,281 | 204,396 | 191,790 | 72,559 | 221,836 | 1,318,826 | 7 |
IDB 2202 | 90,674 | 181,349 | 181,349 | 181,349 | 181,349 | 181,349 | 1,257,504 | 2,254,923 | 12 |
IDB INVEST | 32,770 | 53,650 | 82,575 | 144,821 | 147,159 | 182,022 | 695,813 | 1,338,810 | 7 |
IFC | 80,000 | 80,000 | 80,000 | 80,000 | 80,000 | 80,000 | 271,224 | 751,224 | 4 |
Lease (Concession Agreements, Program Contracts, and Contract Asset) 1 | 55,373 | 16,401 | 9,518 | 4,061 | 476 | 0 | 0 | 85,829 | 1 |
Leases (others) 2 | 0 | 44,849 | 47,149 | 36,931 | 30,224 | 33,411 | 154,407 | 346,971 | 2 |
Other | 8,296 | 2,986 | 2,753 | 141 | 0 | 0 | 0 | 14,176 | 0 |
Interest and other charges | 348,622 | 2,301 | 0 | 0 | 0 | 0 | 0 | 350,923 | 2 |
Total in local currency | 1,247,010 | 1,795,213 | 1,933,088 | 1,852,225 | 2,473,747 | 1,330,563 | 5,030,075 | 15,661,921 | 86 |
Foreign currency | |||||||||
IDB | 26,108 | 52,217 | 63,444 | 22,455 | 22,455 | 22,455 | 328,061 | 537,195 | 3 |
IBRD | 15,444 | 30,887 | 30,887 | 30,887 | 30,887 | 30,887 | 218,304 | 388,183 | 2 |
JICA | 87,629 | 164,209 | 164,209 | 164,209 | 164,209 | 164,209 | 748,430 | 1,657,104 | 9 |
IDB 1983AB | 39,010 | 0 | 0 | 0 | 0 | 0 | 0 | 39,010 | 0 |
Interest and other charges | 12,510 | 0 | 0 | 0 | 0 | 0 | 0 | 12,510 | 0 |
Total in foreign currency | 180,701 | 247,313 | 258,540 | 217,551 | 217,551 | 217,551 | 1,294,795 | 2,634,002 | 14 |
TOTAL | 1,427,711 | 2,042,526 | 2,191,628 | 2,069,776 | 2,691,298 | 1,548,114 | 6,324,870 | 18,295,923 | 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 1Q23:
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 |
Total Adjusted Debt / Adjusted EBITDA | Lower than 3.65 |
Other Onerous Debt 1 / Adjusted EBITDA | Equal to or lower than 1.30 |
Adjusted Current Ratio | Higher than 1.00 |
1 "Other Onerous Debt" corresponds 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 1Q23, the Company met the requirements of its borrowings and financing agreements.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
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Comments on the Company's Performance |
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10. | Investments |
Investments totaled R$ 1,236.1 million in 1Q23, presented as additions in the notes to the quarterly information under Contract Asset, Intangible Assets, and Property, Plant and Equipment, of R$ 1,204.8 million, R$ 0.4 million, and R$ 30.9 million, respectively. Cash disbursed in 1Q23 referring to investments, including from previous periods, totaled R$ 601.3 million.
The table below shows investments broken down by water, sewage, and region:
R$ million | |||
Investments per Region | Water | Sewage | Total |
Metropolitan Region | 315.8 | 568.4 | 884.2 |
Regional Systems (coastal and interior regions) | 188.0 | 163.9 | 351.9 |
Total | 503.8 | 732.3 | 1,236.1 |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
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Notes to the Financial Statements |
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1 | Operations |
Companhia de Saneamento Básico do Estado de São Paulo (SABESP or Company) is a mixed-capital company headquartered in the municipality 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, 2023, the Company operated water and sewage services in 375 municipalities of the São Paulo State, 351 of which 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:
March 31, 2023 |
December 31, 2022 |
March 31, 2022 |
|
Total municipalities that have already signed contracts | 351 | 351 | 342 |
Balance - intangible and contract assets | 45,931,674 | 45,292,307 | 42,639,277 |
Percentage of intangible and contract assets | 94.79% | 94.49% | 93.83% |
Revenue from sanitation services (excluding construction revenue) | 4,678,421 | 17,767,561 | 4,084,343 |
Percentage of revenue from sanitation services (excluding construction revenue) | 95.30% | 95.37% | 95.02% |
Municipalities with expired contracts: | 1 | 1 | 8 |
Balance - intangible and contract assets | 11,443 | 11,519 | 211,225 |
Percentage of intangible and contract assets | 0.02% | 0.02% | 0.46% |
Revenue from sanitation services (excluding construction revenue) | 3,822 | 15,236 | 11,316 |
Percentage of revenue from sanitation services (excluding construction revenue) | 0.08% | 0.08% | 0.26% |
Municipalities with concession agreements due by 2030: | 23 | 23 | 25 |
Balance - intangible and contract assets | 1,064,090 | 1,072,138 | 1,110,000 |
Percentage of intangible and contract assets | 2.20% | 2.24% | 2.44% |
Revenue from sanitation services (excluding construction revenue) | 189,704 | 711,452 | 170,205 |
Percentage of revenue from sanitation services (excluding construction revenue) | 3.86% | 3.82% | 3.96% |
Municipality of São Paulo: | |||
Percentage of intangible and contract assets | 43.21% | 43.33% | 43.15% |
Percentage of revenue from sanitation services (excluding construction revenue) | 44.53% | 45.14% | 44.12% |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
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Notes to the Financial Statements |
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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.
Management expects that the funds raised with the gradual recovery of the economic activities, 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 11, 2023.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
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Notes to the Financial Statements |
|
2 | Basis of preparation and presentation of the quarterly information |
Presentation of the Quarterly Information
The quarterly information as of March 31, 2023, 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, 2023, 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, 2022, 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); |
ix. | Deferred taxes and contributions (Note 19); |
x. | Provisions (Note 20); |
xi. | Pension plan obligations (Note 22); |
xii. | Equity (Note 24); |
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.
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Notes to the Financial Statements |
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3 | Summary of significant accounting policies |
The significant accounting policies used in the preparation of the quarterly information as of March 31, 2023, are consistent with those used to prepare the Annual Financial Statements for the year ended December 31, 2022, disclosed in Note 3 of such financial statements.
4 | Risk management |
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.
(a) | Market risk |
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.
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.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
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Notes to the Financial Statements |
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Part of the financial debt, totaling R$ 2,668,775 as of March 31, 2023 (R$ 2,809,441 as of December 31, 2022), is indexed to the U.S. dollar and Yen. The exposure to exchange risk is as follows:
March 31, 2023 |
December 31, 2022 |
|||
Foreign currency (in thousands) |
R$ |
Foreign currency (in thousands) |
R$ |
|
Borrowings and financing - US$ | 196,159 | 996,566 | 191,022 | 996,695 |
Borrowings and financing - Yen | 43,368,135 | 1,659,699 | 45,369,189 | 1,795,259 |
Interest and charges from borrowings and financing - US$ | 9,142 | 6,985 | ||
Interest and charges from borrowings and financing - Yen |
3,368 |
10,502 |
||
Total exposure | 2,668,775 | 2,809,441 | ||
Borrowing cost - US$ | (32,178) | (31,037) | ||
Borrowing cost - Yen |
(2,595) |
(2,646) |
||
Total foreign currency-denominated borrowings (Note 16) |
2,634,002 |
2,775,758 |
The 5.1% decrease in the balance of the foreign currency-denominated debt from March 31, 2023, compared to December 31, 2022, was mainly impacted by the depreciation of the US dollar and Yen against the Brazilian real. The table below shows the prices and exchange variations in the period:
March 31, 2023 |
December 31, 2022 |
Variation |
|
US$ | R$ 5.0804 | R$ 5.2177 | -2.6% |
Yen | R$ 0.03827 | R$ 0.03957 | -3.3% |
Borrowings and financing fell by R$ 83,825 from January to March 2023 (a decrease of R$ 692,434 from January to March 2022), due to exchange rare changes. See Note 16 (ii). As of March 31, 2023, if the Brazilian real had depreciated or appreciated by 10 percentage points, in addition to the impacts already mentioned above, against the U.S. dollar and Yen with all other variables held constant, the effects on the result before taxes on the three-month period ended March 31, 2023, would have been R$ 266,878 (R$ 263,032 for the three-month period ended March 31, 2022), 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 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 - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
Probable scenario |
|
(*) | |
Net currency exposure as of March 31, 2023 in US$ - Liabilities | 196,159 |
US$ rate as of March 31, 2023 | 5.0804 |
Exchange rate estimated according to the scenario |
5.2500 |
Difference between the rates | (0.1696) |
Effect on the net financial result R$ - (loss) | (33,269) |
Net currency exposure as of March 31, 2023 in Yen - Liabilities | 43,368,135 |
Yen rate as of March 31, 2023 | 0.03827 |
Exchange rate estimated according to the scenario |
0.04047 |
Difference between the rates | (0.0022) |
Effect on the net financial result R$ - (loss) |
(95,410) |
Total effect on the net financial result in R$ - (loss) |
(128,679) |
(*) For the probable scenario in U.S. dollars and Yen, the exchange rates estimated for March 31, 2024, were used, according to the Focus-BACEN and B3's Benchmark Rate report, of March 31, 2023, 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.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
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The table below provides the borrowings and financing subject to variable interest rates:
March 31, 2023 |
December 31, 2022 |
||
CDI (i) | 8,941,806 | 9,251,150 | |
TR (ii) | 1,655,154 | 1,635,587 | |
IPCA (iii) | 2,994,354 | 3,073,435 | |
TJLP (iv) | 1,368,508 | 1,433,029 | |
SOFR (v) | 996,567 | 996,697 | |
Interest and charges |
360,055 |
424,856 |
|
Total |
16,316,444 |
16,814,754 |
(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, 2023, 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, 2022 would have been R$ 163,164 (R$ 153,698 for the three-month period ended March 31, 2022), lower or higher, mainly as a result of lower or higher interest expense on floating rate borrowings and financing.
(b) | Credit risk |
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, 2023 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.
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Notes to the Financial Statements |
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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:
Banks |
Fitch |
Moody's |
Standard Poor's |
Banco do Brasil S/A | AA(bra) | AAA.br | - |
Banco Santander Brasil S/A | - | AAA.br | brAAA |
Brazilian Federal Savings Bank | AA(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 | AA(bra) | AAA.br | brAAA |
The rating assessment disclosed by Fitch for deposit transactions and financial investments in local currency is as follows:
March 31, 2023 |
December 31, 2022 |
|
Cash and cash equivalents and financial investments | ||
AA(bra) | 1,156,298 | 2,237,629 |
AAA(bra) | 1,017,191 | 1,011,685 |
Others (*) |
312,274 |
296,044 |
2,485,763 |
3,545,358 |
(*) As of March 31, 2023, this category includes R$ 297,858 (R$ 289,908 as of December 31, 2022) referring to Banco BV, current accounts, and financial investments, which are not rated by Fitch.
(c) | Liquidity risk |
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, 2023.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
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April to December 2023 |
2024 |
2025 |
2026 |
2027 |
2028 onwards |
Total |
|
As of March 31, 2023 | |||||||
Liabilities | |||||||
Borrowings and financing | 2,470,033 | 3,756,930 | 3,808,172 | 3,528,549 | 3,853,172 | 13,740,507 | 31,157,363 |
Trade payables and contractors | 257,746 | - | - | - | - | - | 257,746 |
Services payable | 604,532 | - | - | - | - | - | 604,532 |
Public-Private Partnership - PPP | 377,136 | 459,463 | 419,969 | 419,969 | 419,969 | 3,617,986 | 5,714,492 |
Program Contract Commitments |
61,996 |
1,192 |
1,192 |
1,192 |
1,192 |
12,529 |
79,293 |
Total |
3,771,443 |
4,217,585 |
4,229,333 |
3,949,710 |
4,274,333 |
17,371,022 |
37,813,426 |
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, 2023, 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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Version : 1 |
Notes to the Financial Statements |
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March 31, 2023 |
||
Indicators |
Exposure |
Probable scenario |
Assets | ||
CDI | 1,735,296 | 12.8900%(**) |
Financial income | 223,680 | |
Liabilities | ||
CDI | (8,941,806) | 12.8900%(**) |
Interest to be incurred | (1,152,599) | |
CDI net exposure | (7,206,510) | (928,919) |
Liabilities | ||
TR | 1,655,154 | 0.0174%(**) |
Expenses to be incurred | (288) | |
IPCA | (2,994,354) | 5.9559%(*) |
Expenses to be incurred | (178,341) | |
TJLP | (1,368,508) | 6.5800%(*) |
Interest to be incurred | (90,048) | |
SOFR (***) | (996,567) | 0.0435%(**) |
Interest to be incurred | (434) | |
Total expenses to be incurred, net |
(1,198,030) |
|
(*) Source: BACEN of March 31, 2023 | ||
(**) Source: B3 of March 31, 2023 | ||
(***) Source: Bloomberg |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
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Notes to the Financial Statements |
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4.2 | Capital management |
The Company's objectives when managing capital are to ensure its ability to increase 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.
March 31, 2023 |
December 31, 2022 |
|
Total borrowings and financing (Note 16) | 18,295,923 | 18,958,671 |
(-) Cash and cash equivalents (Note 6) | (836,450) | (1,867,485) |
(-) Financial investments (Note 7) |
(1,649,313) |
(1,677,873) |
Net debt | 15,810,160 | 15,413,313 |
Total equity |
28,080,745 |
27,333,533 |
Total (shareholders plus providers of capital) |
43,890,905 |
42,746,846 |
Leverage ratio |
36% |
36% |
4.3 | Fair value estimates |
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 will be adjusted by inflation and/or will bear contractual interest rates over time.
4.4 | Financial instruments |
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 Financial Statements |
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The estimated fair values of the financial instruments are as follows:
Financial Assets
March 31, 2023 |
December 31, 2022 |
|||
Carrying amount |
Fair value |
Carrying amount |
Fair value |
|
Cash and cash equivalents | 836,450 | 836,450 | 1,867,485 | 1,867,485 |
Financial investments | 1,649,313 | 1,649,313 | 1,677,873 | 1,677,873 |
Restricted cash | 48,301 | 48,301 | 37,474 | 37,474 |
Trade receivables | 3,407,489 | 3,407,489 | 3,277,808 | 3,277,808 |
ANA | 9,168 | 9,168 | 9,193 | 9,193 |
Other assets | 239,718 | 239,718 | 212,674 | 212,674 |
Additionally, SABESP has financial assets receivable from related parties, totaling R$ 1,157,357 as of March 31, 2023 (R$ 1,156,743 as of December 31, 2022), 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$ 1,067,536 (R$ 1,060,040 as of December 31, 2022), 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.
Financial Liabilities
March 31, 2023 |
December 31, 2022 |
|||
Carrying amount |
Fair value |
Carrying amount |
Fair value |
|
Borrowings and financing | 18,295,923 | 18,348,334 | 18,958,671 | 19,260,133 |
Trade payables and contractors | 257,746 | 257,746 | 430,946 | 430,946 |
Services payable | 604,532 | 604,532 | 723,242 | 723,242 |
Program Contract Commitment | 74,923 | 74,923 | 112,385 | 112,385 |
Public-Private Partnership - PPP | 2,873,462 | 2,873,462 | 2,959,181 | 2,959,181 |
The criteria adopted to obtain the fair values of borrowings and financing, in preparing the quarterly information as of March 31, 2023, are consistent with those used in the preparation of the Annual Financial Statements for the fiscal year ended December 31, 2022.
Financial instruments referring to financial investments and borrowings and financing are classified as Level 2 in the fair value hierarchy.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
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Notes to the Financial Statements |
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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 period, 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.
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 |
March 31, 2023 |
December 31, 2022 |
|
Cash and banks | 56,149 | 139,844 |
Cash equivalents |
780,301 |
1,727,641 |
Total |
836,450 |
1,867,485 |
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, 2023, the average yield of cash equivalents corresponded to 95.83% of CDI (95.69% as of December 31, 2022).
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
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Notes to the Financial Statements |
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7 | Financial investments |
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:
March 31, 2023 |
December 31, 2022 |
|
Banco BV | 297,858 | 289,909 |
Banco Itaú Unibanco S/A | 340,461 | 403,732 |
Banco Bradesco S/A | 594,689 | 578,752 |
Banco BTG Pactual S/A | 415,160 | 404,363 |
Banco do Brasil S/A |
1,145 |
1,117 |
1,649,313 |
1,677,873 |
As of March 31, 2023, the average yield of the financial investments corresponded to 102.90% of CDI (102.90% as of December 31, 2022).
8 | Restricted cash |
March 31, 2023 |
December 31, 2022 |
|
Agreement with the São Paulo Municipal Government (i) | 41,432 | 30,231 |
Brazilian Federal Savings Bank - escrow deposits | 512 | 433 |
Other |
6,357 |
6,810 |
48,301 |
37,474 |
(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 - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
9 | Trade receivables |
(a) | Statement of financial position details |
March 31, 2023 |
December 31, 2022 |
|
Private sector: | ||
General (i) and special customers (ii) | 2,400,402 | 2,287,782 |
Agreements (iii) |
432,196 |
416,550 |
2,832,598 |
2,704,332 |
|
Government entities: | ||
Municipal | 596,384 | 609,731 |
Federal | 4,220 | 10,644 |
Agreements (iii) |
361,425 |
372,943 |
962,029 |
993,318 |
|
Wholesale customers - Municipal governments: (iv) | ||
Mogi das Cruzes | 3,758 | 4,048 |
São Caetano do Sul |
45,145 |
45,367 |
Total wholesale customers - Municipal governments |
48,903 |
49,415 |
Unbilled supply |
964,400 |
959,260 |
Subtotal | 4,807,930 | 4,706,325 |
Allowance for doubtful accounts |
(1,400,441) |
(1,428,517) |
Total |
3,407,489 |
3,277,808 |
Current | 3,194,099 | 3,062,574 |
Noncurrent |
213,390 |
215,234 |
Total |
3,407,489 |
3,277,808 |
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Notes to the Financial Statements |
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(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. |
(b) | The aging of trade receivables is as follows: |
March 31, 2023 |
December 31, 2022 |
|
Current | 2,397,133 | 2,244,754 |
Past-due: | ||
Up to 30 days | 504,992 | 489,709 |
From 31 to 60 days | 268,663 | 248,128 |
From 61 to 90 days | 171,855 | 165,306 |
From 91 to 120 days | 143,411 | 150,941 |
From 121 to 180 days | 265,634 | 281,530 |
From 181 to 360 days | 73,728 | 58,702 |
Over 360 days |
982,514 |
1,067,255 |
Total past-due |
2,410,797 |
2,461,571 |
Total |
4,807,930 |
4,706,325 |
(c) | Allowance for doubtful accounts |
Changes in assets |
January to March 2023 |
January to March 2022 |
Balance at the beginning of the period | 1,428,517 | 1,280,088 |
Reversal of losses | (8,449) | (10,516) |
Recoveries |
(19,627) |
(18,265) |
Balance at the end of the period |
1,400,441 |
1,251,307 |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
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Notes to the Financial Statements |
|
Reconciliation of estimated/historical losses at the result |
January to March 2023 |
January to March 2022 |
Write-offs | (190,138) | (205,069) |
(Losses) with state entities - related parties | (743) | (1,406) |
Reversal of losses with the private sector/government entities | 8,449 | 10,516 |
Recoveries |
19,627 |
18,265 |
Amount recorded as expense (Note 27) |
(162,805) |
(177,694) |
The Company does not have customers individually representing 10% or more of its total revenues.
As of March 31, 2023, the Company has registered warrants issued in its favor, currently totaling R$ 2,869,198
(R$ 2,807,318 as of December 31, 2022), which are not recognized in the Financial Statements because of the difficulty to obtain a reasonable estimate to measure such assets, due to uncertainties related to the beginning and end of their realization. Register warrants are recognized upon the beginning of their receipt or when they are traded.
Debtor |
March 31, 2023 |
December 31, 2022 |
Municipality of São Paulo | 2,716,516 | 2,656,113 |
Municipality of Cotia | 105,845 | 103,729 |
Municipality of Cachoeira Paulista | 13,951 | 13,672 |
Other |
32,886 |
33,804 |
TOTAL |
2,869,198 |
2,807,318 |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
10 | Related-party balances and transactions |
(a) | São Paulo State |
(i) | Accounts receivable, interest on capital, revenue, and expenses |
March 31, 2023 |
December 31, 2022 |
|
Accounts receivable | ||
Current: | ||
Sanitation services | 138,798 | 144,937 |
Allowance for losses | (50,338) | (49,595) |
Reimbursement of additional retirement and pension benefits paid (G0): | ||
- Monthly flow | 8,767 | 13,376 |
- GESP Agreement - 2015 |
101,460 |
97,075 |
Total current |
198,687 |
205,793 |
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 |
957,309 |
949,589 |
Total noncurrent |
958,670 |
950,950 |
Total receivables |
1,157,357 |
1,156,743 |
Assets: | ||
Sanitation services | 89,821 | 96,703 |
Reimbursement of additional retirement and pension benefits paid (G0) |
1,067,536 |
1,060,040 |
Total |
1,157,357 |
1,156,743 |
Liabilities: | ||
Interest on capital payable | 372,550 | 372,550 |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
January to March 2023 |
January to March 2022 |
|
Revenue from sanitation services | 162,966 | 143,699 |
Payments from related parties | (167,612) | (131,301) |
Payment received from reimbursement referring to Law 4,819/1958 | (52,593) | (36,632) |
(ii) | Disputed amounts |
As of March 31, 2023 and December 31, 2022, the disputed amounts between SABESP and the São Paulo State, referring to additional retirement and pension benefits paid (Law 4,819/1958), totaled R$ 1,505,719 and R$ 1,482,140, respectively, for which allowances for doubtful accounts were created for the total amount.
(iii) | Actuarial Liability |
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, 2023 and December 31, 2022, the amounts corresponding to such actuarial liability were R$ 2,010,180 and R$ 2,002,075, 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, 2023, the balance of the agreement totaled R$ 8,786 and R$ 99,686 (R$ 8,456 and R$ 95,033 as of December 31, 2022), 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.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
(d) | Guarantees |
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 2023, expenses with employees assigned to other state entities totaled R$ 672 (R$ 164 from January to March 2022).
No expenses with employees from other entities assigned to the Company were recorded from January to March 2023 and in the same period in 2022.
(f) | Non-operating assets |
As of March 31, 2023 and December 31, 2022, the Company's land and lent structures totaled R$ 3,613.
(g) | SABESPREV |
The Company sponsors a defined benefit plan (G1 Plan), which is operated and administered by SABESPREV. The net actuarial liability recognized until March 31, 2023, totaled R$ 133,608 (R$ 148,116 as of December 31, 2022). See Note 21.
(h) | Compensation of the Fiscal Council and Management Key Personnel |
From January to March 2023, expenses related to the compensation of the members of the Fiscal Council appointed by the controlling shareholder and Management members totaled R$ 1,658 (R$ 1,597 from January to March 2022).
From January to March 2023, additional amounts of R$ 285, referring to the executive officers' bonus, were recorded (R$ 360 from January to March 2022).
(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.
Aquapolo Ambiental
The Company entered into a loan agreement through a credit facility with SPE Aquapolo Ambiental S/A to finance the operations of that company, until the borrowings and financing requested with financial institutions are granted.
As of March 31, 2023, the balance of principal and interest of this agreement totaled R$ 7,351 recorded in current assets under "Other assets" (R$ 12,953 as of December 31, 2022), at CDI + 1.2% p.a.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
The loan originally matured on April 30, 2015, but was extended to October 30, 2015. On November 25, 2015, a new amendment changed the payment schedule for three annual installments, the first of which mature on December 30, 2021, and the last on December 30, 2023.
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, 2023, the balance of principal and interest of this agreement totaled R$ 321 and R$ 2,814, which was recorded in "Other assets" under current and noncurrent assets (R$ 242 and R$ 2,814, respectively, as of December 31, 2022), 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.
(j) | FEHIDRO |
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, 2023, the balance of these financings totaled R$ 7.8 million (R$ 5.1 million as of December 31, 2022).
11 | Investments |
The Company holds interest 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)).
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
The Company holds equity interest valued by the equity accounting in the following investees:
Equity |
Contribution |
Profit (loss) for the period |
||||
March 31, 2023 |
December 31, 2022 |
January to March 2023 |
January to March 2023 |
(*) |
January to March 2022 |
|
Sesamm | 64,001 | 59,371 | - | 4,630 | - | 1,289 |
Águas de Andradina | 31,166 | 30,777 | - | 389 | - | (2) |
Águas de Castilho | 11,189 | 10,787 | - | 402 | - | 267 |
Attend Ambiental | 33,745 | 29,729 | - | 4,016 | - | 2,922 |
Aquapolo Ambiental | 82,536 | 73,926 | - | 8,610 | - | 7,677 |
Paulista Geradora de Energia (**) | 15,535 | 10,486 | - | (28) | - | (148) |
Cantareira SP Energia (***) | 6,181 | 1,000 | 5,439 | (258) | - | - |
FOXX URE-BA Ambiental | 67,034 | 69,258 | 4,325 | (122) | (6,427) | - |
Infranext Soluções em Pavimentação (****) | 6,710 | 7,050 | - | (340) | - | - |
(*) The amount presented refers to changes in the equity of the investee, as its financial statements for the year ended December 31, 2022 were issued after the disclosure of SABESP's financial statements.
(**) SABESP contributed R$ 5,077 as of December 2022, corresponding to 25% of the interest in the PGE. As of March 31, 2023, Servitec and Tecniplan had an outstanding payable amount of R$ 10,156 related to the remaining interest of 75% in PGE.
(***) SABESP contributed R$ 5,439 as of January 2023, corresponding to 49% of the interest in Cantareira SP Energia. As of March 31, 2023, Pacto SP Energia had an outstanding payable amount of R$ 5,661 related to the remaining interest of 51% in Cantareira.
(****) Infranext's share capital will be R$ 12,000. As of March 31, 2023, SABESP had an outstanding payable amount of R$ 4,950.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
Investments |
Contribution |
Equity accounting |
Interest percentage |
|||||
March 31, 2023 |
December 31, 2022 |
January to March 2023 |
January to March 2023 |
(*) |
January to March 2022 |
March 31, 2023 |
December 31, 2022 |
|
Sesamm | 23,041 | 21,374 | - | 1,667 | - | 464 | 36% | 36% |
Águas de Andradina | 9,349 | 9,233 | - | 116 | - | (1) | 30% | 30% |
Águas de Castilho | 3,357 | 3,236 | - | 121 | - | 80 | 30% | 30% |
Attend Ambiental | 15,186 | 13,379 | - | 1,807 | - | 1,315 | 45% | 45% |
Aquapolo Ambiental | 40,442 | 36,223 | - | 4,219 | - | 3,762 | 49% | 49% |
Paulista Geradora de Energia | 6,422 | 6,429 | - | (7) | - | (37) | 25% | 25% |
Cantareira SP Energia | 5,803 | 490 | 5,439 | (126) | - | - | 49% | 49% |
FOXX URE-BA Ambiental | 13,407 | 13,852 | 865 | (24) | (1,286) | - | 20% | 20% |
Infranext Soluções em Pavimentação |
297 |
450 |
- |
(153) |
- |
- |
45% | 45% |
Total | 117,304 | 104,666 | 6,304 | 7,620 | (1,286) | 5,583 | ||
FOXX URE-BA Ambiental - Fair value (**) |
26,148 | - | ||||||
Other investments |
6,099 |
6,099 |
||||||
Overall total |
149,551 |
110,765 |
(*) Refers to changes in the equity of investees, as their financial statements for the year ended December 31, 2022 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 2022.
12 | Investment Properties |
December 31, 2022 |
Depreciation |
March 31, 2023 |
|
Investment properties |
46,726 |
(12) |
46,714 |
December 31, 2021 |
Depreciation |
March 31, 2022 |
|
Investment properties | 46,126 | (12) | 46,114 |
As of March 31, 2023, the market value of these properties was approximately R$ 393,600 (R$ 386,000 as of December 31, 2022).
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
13 | Contract asset |
December 31, 2022 |
Additions (i) |
Transfers |
Transfers of works to intangible assets (ii) |
March 31, 2023 (iii) |
|
Total contract asset |
8,613,968 |
1,204,867 |
280 |
(1,105,061) |
8,714,054 |
December 31, 2021 |
Additions |
Transfers |
Transfers of works to intangible assets |
March 31, 2022 |
|
Total contract asset |
8,550,102 |
958,070 |
193 |
(973,984) |
8,534,381 |
(i) | The largest additions of the period are located in the municipalities of São Paulo, Guarulhos, and São Bernardo do Campo, totaling R$ 521 million, R$ 61 million, and R$ 31 million, respectively. |
(ii) | The largest transfers of the period are located in the municipalities of São Paulo, Franca, and São Bernardo do Campo, totaling R$ 533 million, R$ 103 million, and R$ 99 million, respectively. |
(iii) |
The largest works are located in the municipalities of São Paulo, Francisco Morato, and Franca, totaling R$ 2,818 million, R$ 229 million, and R$ 227 million, respectively. |
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 are part of construction costs and, since June 2020, additional works are being executed by the Company.
(a) | Capitalization of interest and other finance charges |
The Company capitalizes interest, and inflation adjustments, and exchange rate changes in the contract asset during the construction period. From January to March 2023, the Company capitalized R$ 167,802 (R$ 120,324 from January to December 2022).
(b) | Construction margin |
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, 2023 and 2022, the margin was 2.3%.
From January to March 2023, the construction margin was R$ 26,519 (R$ 20,685 from January to March 2022).
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
(c) | Expropriations |
As a result of the construction of priority projects related to water and sewage systems, the Company was required to expropriate third-party properties, whose owners will be 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 2023, expropriations totaled R$ 4,015 (R$ 29,863 from January to March 2022).
14 | Intangible assets |
(a) | Statement of financial position details |
March 31, 2023 |
December 31, 2022 |
|||||
Cost |
Accumulated amortization |
Net |
Cost |
Accumulated amortization |
Net |
|
Intangible right arising from: | ||||||
Concession agreements - equity value | 725,410 | (227,941) | 497,469 | 722,730 | (223,404) | 499,326 |
Concession agreements - economic value | 1,573,971 | (949,346) | 624,625 | 1,585,271 | (933,232) | 652,039 |
Program contracts | 27,415,393 | (8,762,569) | 18,652,824 | 26,875,408 | (8,537,949) | 18,337,459 |
Program contracts - commitments | 1,709,757 | (458,007) | 1,251,750 | 1,709,757 | (444,765) | 1,264,992 |
Service contracts - São Paulo | 26,086,961 | (8,005,012) | 18,081,949 | 25,584,703 | (7,714,252) | 17,870,451 |
Software license of use | 1,265,086 | (687,583) | 577,503 | 1,249,881 | (654,477) | 595,404 |
Right of use - Other assets | 169,465 | (111,384) | 58,081 | 170,921 | (95,869) | 75,052 |
Right of use - Investments |
- |
- |
- |
26,148 |
- |
26,148 |
Total |
58,946,043 |
(19,201,842) |
39,744,201 |
57,924,819 |
(18,603,948) |
39,320,871 |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
(b) | Changes |
December 31, 2022 |
Additions |
Transfer of contract asset |
Transfers |
Write-offs and disposals |
Amortization |
March 31, 2023 |
|
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.
December 31, 2021 |
Additions |
Transfer of contract asset |
Transfers |
Write-offs and disposals |
Amortization |
March 31, 2022 |
|
Intangible right arising from: | |||||||
Concession agreements - equity value (*) | 491,057 | - | - | - | - | (4,657) | 486,400 |
Concession agreements - economic value | 681,441 | - | 5,948 | 46 | - | (27,004) | 660,431 |
Program contracts (*) | 17,152,021 | 5,189 | 769,541 | (107) | (1,255) | (231,923) | 17,693,466 |
Program contracts - commitments | 1,317,957 | - | - | - | - | (13,241) | 1,304,716 |
Service contracts - São Paulo | 16,158,771 | 181 | 176,705 | 3,640 | (976) | (260,765) | 16,077,556 |
Software license of use | 598,734 | - | 21,790 | - | - | (27,899) | 592,625 |
Right of use - Other assets |
103,853 |
8,730 |
- |
- |
(1) |
(17,696) |
94,886 |
Total |
36,503,834 |
14,100 |
973,984 |
3,579 |
(2,232) |
(583,185) |
36,910,080 |
(*) As of March 31, 2022, the lines Concession agreements - equity value and Program contracts included leases in the amounts of R$ 62,359 and R$ 2021 (R$ 65,012 and R$ 180,669 as of December 31, 2022), respectively.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
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. To reach the best operationalization format, treatment services and final disposal of solid waste are in the study phase and, based on the contractual provision, are subject to a partnership between SABESP and a private party, which will occur through a public call.
(c) | Intangible right arising from concession agreements |
As of March 31, 2023, the amounts not yet disbursed were recorded in "Program contract commitments" under current and noncurrent liabilities, totaling R$ 62,601 and R$ 12,322 (R$ 100,188 and R$ 12,197 as of December 31, 2022), respectively.
(d) | Public-Private Partnership - PPP |
SABESP carries out operations related to the PPPs mentioned below. These operations and their respective guarantees are supported by agreements executed according to Law 11,079/2004.
The amounts recorded in intangible assets are as follows:
March 31, 2023 |
December 31, 2022 |
|
Alto Tietê | 247,467 | 251,545 |
São Lourenço |
2,683,425 |
2,725,900 |
Total |
2,930,892 |
2,977,445 |
The obligations assumed by the Company are as follows:
March 31, 2023 |
December 31, 2022 |
|||||
Current liabilities |
Noncurrent liabilities |
Total liabilities |
Current liabilities |
Noncurrent liabilities |
Total liabilities |
|
Alto Tietê | 98,809 | - | 98,809 | 91,782 | 36,645 | 128,427 |
São Lourenço |
127,173 |
2,647,480 |
2,774,653 |
130,631 |
2,700,123 |
2,830,754 |
Total |
225,982 |
2,647,480 |
2,873,462 |
222,413 |
2,736,768 |
2,959,181 |
(e) | Amortization of Intangible Assets |
The average amortization rate totaled 5.0% and 4.8% as of March 31, 2023 and 2022, respectively.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
(f) | Right of use |
Nature |
March 31, 2023 |
December 31, 2022 |
Leases - Contract asset | 175,145 | 276,893 |
Leases - Concession and Program Contract | ||
Cost | 405,431 | 405,431 |
Accumulated amortization |
(188,635) |
(182,859) |
(=) Net | 216,796 | 222,572 |
Other assets (*) | ||
Vehicles | 152,501 | 153,384 |
Properties | 11,138 | 11,711 |
Equipment | 5,826 | 5,826 |
Accumulated amortization |
(111,384) |
(95,869) |
(=) Net |
58,081 |
75,052 |
Right of use |
450,022 |
574,517 |
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 |
||
March 31, 2023 |
March 31, 2022 |
|
Right of use amortization | (23,037) | (23,461) |
Financial result - interest expense and inflation adjustment | (18,127) | (17,398) |
Expenses of short-term leases with low value |
(8,518) |
(6,322) |
Reduction of profit for the period |
(49,682) |
(47,181) |
(g) | Performance Agreements |
As of March 31, 2023, the accounting balances of the agreements in force recorded in contract asset and intangible assets were R$ 107,882 and R$ 2,284,215 (R$ 138,550 and R$ 2,126,106 as of December 31, 2022), respectively.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
15 | Property, plant and equipment |
(a) | Statement of financial position details |
March 31, 2023 |
December 31, 2022 |
|||||||
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 | 91,262 | (42,638) | 48,624 | 2.1% | 90,311 | (42,343) | 47,968 | 2.1% |
Equipment | 427,609 | (296,254) | 131,355 | 14.6% | 412,828 | (291,963) | 120,865 | 15.3% |
Transportation equipment | 14,323 | (9,918) | 4,405 | 10.1% | 12,578 | (10,083) | 2,495 | 9.9% |
Furniture and fixtures | 41,640 | (15,257) | 26,383 | 6.7% | 38,528 | (15,032) | 23,496 | 6.7% |
Other |
60,199 |
(324) |
59,875 |
5.0% |
50,189 |
(302) |
49,887 |
5.0% |
Total |
729,261 |
(364,391) |
364,870 |
11.0% |
698,662 |
(359,723) |
338,939 |
11.2% |
(b) | Changes |
December 31, 2022 |
Additions |
Transfers |
Write-offs and disposals |
Depreciation |
March 31, 2023 |
|
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 |
December 31, 2021 |
Additions |
Transfers |
Write-offs and disposals |
Depreciation |
March 31, 2022 |
|
Land | 94,213 | - | - | - | - | 94,213 |
Buildings | 45,498 | 35 | (272) | (12) | (290) | 44,959 |
Equipment | 115,154 | 7,579 | (2,946) | (143) | (5,728) | 113,916 |
Transportation equipment | 2,472 | - | (80) | - | (151) | 2,241 |
Furniture and fixtures | 22,079 | 899 | (576) | (19) | (358) | 22,025 |
Other |
11,741 |
53 |
102 |
- |
(22) |
11,874 |
Total |
291,157 |
8,566 |
(3,772) |
(174) |
(6,549) |
289,228 |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
16 | Borrowings and financing |
Borrowings and financing outstanding balance |
March 31, 2023 |
December 31, 2022 |
||||
Financial institution |
Current |
Noncurrent |
Total |
Current |
Noncurrent |
Total |
Local currency | ||||||
12th issue debentures | 45,450 | 56,350 | 101,800 | 45,450 | 67,681 | 113,131 |
17th issue debentures | - | - | - | 144,632 | - | 144,632 |
18th issue debentures | 50,581 | 39,750 | 90,331 | 49,937 | 45,649 | 95,586 |
22nd issue debentures | 166,684 | 167,090 | 333,774 | 199,901 | 326,433 | 526,334 |
23rd issue debentures | - | 864,948 | 864,948 | - | 864,910 | 864,910 |
24th issue debentures | - | 499,772 | 499,772 | - | 488,478 | 488,478 |
26th issue debentures | - | 1,269,022 | 1,269,022 | - | 1,239,645 | 1,239,645 |
27th issue debentures | 299,692 | 698,405 | 998,097 | 299,614 | 698,339 | 997,953 |
28th issue debentures | - | 1,197,849 | 1,197,849 | - | 1,197,756 | 1,197,756 |
29th issue debentures | - | 1,293,662 | 1,293,662 | - | 1,275,295 | 1,275,295 |
30th issue debentures | - | 998,139 | 998,139 | - | 998,110 | 998,110 |
Brazilian Federal Savings Bank | 98,979 | 1,453,866 | 1,552,845 | 99,767 | 1,422,145 | 1,521,912 |
Brazilian Development Bank - BNDES PAC | 3,379 | - | 3,379 | 6,736 | - | 6,736 |
Brazilian Development Bank - BNDES PAC II 9751 | 7,237 | 21,616 | 28,853 | 7,214 | 23,344 | 30,558 |
Brazilian Development Bank - BNDES PAC II 9752 | 4,903 | 14,709 | 19,612 | 4,887 | 15,884 | 20,771 |
Brazilian Development Bank - BNDES ONDA LIMPA | 27,036 | 26,974 | 54,010 | 26,949 | 33,617 | 60,566 |
Brazilian Development Bank - BNDES TIETÊ III | 154,934 | 619,647 | 774,581 | 154,437 | 656,264 | 810,701 |
Brazilian Development Bank - BNDES 2015 | 33,916 | 382,938 | 416,854 | 33,807 | 390,127 | 423,934 |
Brazilian Development Bank - BNDES 2014 | 6,593 | 14,944 | 21,537 | 6,572 | 16,525 | 23,097 |
Inter-American Development Bank - IDB 2202 | 181,349 | 2,073,574 | 2,254,923 | 181,349 | 2,164,009 | 2,345,358 |
Inter-American Development Bank - IDB INVEST | 37,340 | 835,221 | 872,561 | 37,340 | 853,725 | 891,065 |
Inter-American Development Bank - IDB Invest 2022 | 14,100 | 452,149 | 466,249 | 14,100 | 452,085 | 466,185 |
International Finance Corporation - IFC | 80,000 | 671,224 | 751,224 | 80,000 | 670,996 | 750,996 |
Leases (Concession Agreements, Program Contracts, and Contract Asset) | 44,849 | 302,122 | 346,971 | 44,453 | 313,391 | 357,844 |
Leases (others) | 60,994 | 24,835 | 85,829 | 72,109 | 29,265 | 101,374 |
Other | 9,043 | 5,133 | 14,176 | 6,241 | 5,867 | 12,108 |
Interest and other charges |
350,923 |
- |
350,923 |
417,878 |
- |
417,878 |
Total in local currency |
1,677,982 |
13,983,939 |
15,661,921 |
1,933,373 |
14,249,540 |
16,182,913 |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
Borrowings and financing outstanding balance |
March 31, 2023 |
December 31, 2022 |
||||
Financial institution |
Current |
Noncurrent |
Total |
Current |
Noncurrent |
Total |
Foreign currency | ||||||
Inter-American Development Bank - IDB 1212 - US$ 25,695 thousand (US$ 30,834 thousand in December 2022) | 52,217 | 78,325 | 130,542 | 53,628 | 107,256 | 160,884 |
Inter-American Development Bank - IDB 4623 - US$ 83,978 thousand (US$ 74,299 thousand in December 2022) | - | 406,653 | 406,653 | - | 367,441 | 367,441 |
International Bank for Reconstruction and Development (IBRD) - IBRDs 7662 and 8916 - US$ 78,794 thousand (US$ 78,197 thousand in December 2022) | 30,888 | 357,295 | 388,183 | 31,722 | 365,648 | 397,370 |
JICA 15 - ¥ 7,490,795 thousand (¥ 8,067,010 thousand in December 2022) | 44,104 | 242,569 | 286,673 | 45,602 | 273,610 | 319,212 |
JICA 18 - ¥ 6,735,040 thousand (¥ 7,253,120 thousand in December 2022) | 39,654 | 217,962 | 257,616 | 41,001 | 245,865 | 286,866 |
JICA 17 - ¥ 3,753,048 thousand (¥ 3,753,048 thousand in December 2022) | 11,048 | 131,740 | 142,788 | 11,424 | 136,227 | 147,651 |
JICA 19 - ¥ 25,389,252 thousand (¥ 26,296,011 thousand in December 2022) | 69,403 | 900,624 | 970,027 | 71,761 | 967,124 | 1,038,885 |
IDB 1983AB - US$ 7,692 thousand (US$ 7,692 thousand in December 2022) | 39,010 | - | 39,010 | 39,962 | - | 39,962 |
Interest and other charges |
12,510 |
- |
12,510 |
17,487 |
- |
17,487 |
Total in foreign currency |
298,834 |
2,335,168 |
2,634,002 |
312,587 |
2,463,171 |
2,775,758 |
Total borrowings and financing |
1,976,816 |
16,319,107 |
18,295,923 |
2,245,960 |
16,712,711 |
18,958,671 |
Exchange rates as of March 31, 2023: US$ 5.0804; ¥ 0.03827 (as of December 31, 2022: US$ 5.2177; ¥ 0.03957). As of March 31, 2023, the Company did not have balances of borrowings and financing raised during the year, maturing within 12 months. |
||||||
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
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), 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), 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) | |
Brazilian Federal Savings Bank | Own funds | 2023/2042 | 5% to 9.5% | TR |
Brazilian Development Bank - BNDES PAC | Own funds | 2023 | TJLP + 1.82% | |
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% | |
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) | 2027 | 5.20% to 15.39% | ||
Other | Own funds | 2025 | 3% (FEHIDRO) TJLP + 1.5% (FINEP) |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
Foreign currency |
Guarantees |
Maturity |
Annual interest rate |
Exchange variation |
Inter-American Development Bank - IDB 1212 - US$ 25,695 thousand | Government | 2025 | 3.31% (*) | US$ |
Inter-American Development Bank - IDB 4623 - US$ 83,978 thousand | Government | 2044 | 1.12% (*) | US$ |
International Bank for Reconstruction and Development (IBRD) - IBRDs 7662 and 8916 - US$ 78,794 thousand | Government | 2034 | 2.85% (*) | US$ |
JICA 15 - ¥ 7,490,795 thousand | Government | 2029 | 1.8% and 2.5% | Yen |
JICA 18 - ¥ 6,735,040 thousand | Government | 2029 | 1.8% and 2.5% | Yen |
JICA 17 - ¥ 3,753,048 thousand | Government | 2035 | 1.2% and 0.01% | Yen |
JICA 19 - ¥ 25,389,252 thousand | Government | 2037 | 1.7% and 0.01% | Yen |
IDB 1983AB - US$ 7,692 thousand | - | 2023 | 2.08% to 2.38% (*) | US$ |
(*) Rates comprising SOFR + contractually defined spread.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
(i) Payment schedule - accounting balances as of March 31, 2023
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2029 to 2044 |
TOTAL |
|
LOCAL CURRENCY | ||||||||
Debentures | 377,852 | 1,077,166 | 1,207,210 | 1,085,512 | 1,720,562 | 651,547 | 1,527,545 | 7,647,394 |
Brazilian Federal Savings Bank | 74,079 | 101,891 | 108,253 | 115,014 | 122,187 | 129,675 | 901,746 | 1,552,845 |
BNDES | 179,344 | 234,620 | 214,281 | 204,396 | 191,790 | 72,559 | 221,836 | 1,318,826 |
IDB 2202 | 90,674 | 181,349 | 181,349 | 181,349 | 181,349 | 181,349 | 1,257,504 | 2,254,923 |
IDB INVEST | 18,670 | 39,550 | 44,300 | 106,390 | 108,728 | 143,591 | 411,332 | 872,561 |
IDB INVEST 2022 | 14,100 | 14,100 | 38,275 | 38,431 | 38,431 | 38,431 | 284,481 | 466,249 |
IFC | 80,000 | 80,000 | 80,000 | 80,000 | 80,000 | 80,000 | 271,224 | 751,224 |
Leases (Concession Agreements, Program Contracts, and Contract Asset) | - | 44,849 | 47,149 | 36,931 | 30,224 | 33,411 | 154,407 | 346,971 |
Leases (others) | 55,373 | 16,401 | 9,518 | 4,061 | 476 | - | - | 85,829 |
Other | 8,296 | 2,986 | 2,753 | 141 | - | - | - | 14,176 |
Interest and other charges |
348,622 |
2,301 |
- |
- |
- |
- |
- |
350,923 |
TOTAL IN LOCAL CURRENCY |
1,247,010 |
1,795,213 |
1,933,088 |
1,852,225 |
2,473,747 |
1,330,563 |
5,030,075 |
15,661,921 |
FOREIGN CURRENCY | ||||||||
IDB | 26,108 | 52,217 | 63,444 | 22,455 | 22,455 | 22,455 | 328,061 | 537,195 |
IBRD | 15,444 | 30,887 | 30,887 | 30,887 | 30,887 | 30,887 | 218,304 | 388,183 |
JICA | 87,629 | 164,209 | 164,209 | 164,209 | 164,209 | 164,209 | 748,430 | 1,657,104 |
IDB 1983AB | 39,010 | - | - | - | - | - | - | 39,010 |
Interest and other charges |
12,510 |
- |
- |
- |
- |
- |
- |
12,510 |
TOTAL IN FOREIGN CURRENCY |
180,701 |
247,313 |
258,540 |
217,551 |
217,551 |
217,551 |
1,294,795 |
2,634,002 |
Total |
1,427,711 |
2,042,526 |
2,191,628 |
2,069,776 |
2,691,298 |
1,548,114 |
6,324,870 |
18,295,923 |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
(II) Changes
December 31, 2022 |
Addition (lease) |
Funding |
Borrowing costs |
Inflation adjustment and exchange rate changes |
Inflation adjustment / exchange rate changes and incorporated interest- Capitalized |
Interest paid |
Amortization |
Accrued interest |
Provision for interest and fees - Capitalized |
Expenses with borrowing costs |
March 31, 2023 |
|
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 | ||||||||||||
IDB | 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 - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
December 31, 2021 |
Addition (lease) |
Funding |
Borrowing costs |
Inflation adjustment and exchange rate changes |
Inflation adjustment / exchange rate changes and incorporated interest- Capitalized |
Interest paid |
Amortization |
Accrued interest |
Provision for interest and fees - Capitalized |
Expenses with borrowing costs |
March 31, 2022 |
|
LOCAL CURRENCY | ||||||||||||
Debentures | 7,467,968 | - | 1,000,000 | (2,733) | 69,242 | - | (100,409) | (311,166) | 112,677 | 45,709 | 2,696 | 8,283,984 |
Brazilian Federal Savings Bank | 1,483,113 | - | 39,320 | - | 1,360 | 941 | (28,947) | (24,385) | 17,152 | 11,845 | - | 1,500,399 |
BNDES | 1,392,844 | - | - | - | 114 | 123 | (25,644) | (52,463) | 12,737 | 12,890 | 64 | 1,340,665 |
IDB 2202 | 2,589,442 | - | - | - | - | - | (108,419) | (90,674) | 19,752 | 47,473 | 239 | 2,457,813 |
IDB INVEST | 956,942 | - | - | - | - | - | (44,803) | (16,130) | 27,039 | - | 166 | 923,214 |
Leases (Concession Agreements, Program Contracts, and Contract Asset) | 397,311 | - | - | - | - | - | (13,451) | (10,834) | 13,451 | - | - | 386,477 |
Leases (others) | 125,969 | 8,730 | - | - | - | - | (3,947) | (21,370) | 7,894 | - | - | 117,276 |
Other |
14,094 |
- |
1,715 |
- |
2 |
- |
(202) |
(1,269) |
196 |
7 |
- |
14,543 |
TOTAL IN LOCAL CURRENCY |
14,427,683 |
8,730 |
1,041,035 |
(2,733) |
70,718 |
1,064 |
(325,822) |
(528,291) |
210,898 |
117,924 |
3,165 |
15,024,371 |
FOREIGN CURRENCY | ||||||||||||
IDB | 387,837 | - | 32,205 | - | (60,014) | - | (3,277) | (28,316) | 1,739 | - | 55 | 330,229 |
IBRD | 420,881 | - | - | (1,547) | (63,833) | - | (944) | (15,214) | 398 | - | 76 | 339,817 |
JICA | 2,401,887 | - | 15,546 | - | (457,218) | - | (17,588) | (89,447) | 6,116 | 1,214 | 51 | 1,860,561 |
IDB 1983AB |
85,548 |
- |
- |
- |
(12,965) |
- |
- |
- |
303 |
122 |
104 |
73,112 |
TOTAL IN FOREIGN CURRENCY |
3,296,153 |
- |
47,751 |
(1,547) |
(594,030) |
- |
(21,809) |
(132,977) |
8,556 |
1,336 |
286 |
2,603,719 |
Total |
17,723,836 |
8,730 |
1,088,786 |
(4,280) |
(523,312) |
1,064 |
(347,631) |
(661,268) |
219,454 |
119,260 |
3,451 |
17,628,090 |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
(a) | Main events in the three-month period ended March 31, 2023 |
Debentures
In the first quarter of 2023, the Company paid the final amortization of the 17th issue debentures, totaling R$ 152,157 million, of which R$ 145,284 million in principal and R$ 6,873 million in interest.
In the first quarter of 2023, the Company paid the final amortization of the 2nd series of the 22nd issue debentures, totaling R$ 214,404 million, of which R$ 200,000 million in principal and R$ 14,404 million in interest.
(b) | Lease |
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).
(c) | Covenants |
The table below shows the covenants as of March 31, 2023.
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 |
Total Adjusted Debt / Adjusted EBITDA | Lower than 3.65 |
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 installments payments of debts with the electricity supplier. |
As of March 31, 2023, and December 31, 2022, the Company met the requirements set forth by its borrowings and financing agreements.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
(d) | Borrowings and financing - Credit limited |
Agent |
March 31, 2023 |
|
(in millions of reais (*)) | ||
Brazilian Federal Savings Bank | 1,042 | |
Brazilian Development Bank (BNDES) | 279 | |
Inter-American Development Bank (IDB) | 1,097 | |
International Bank for Reconstruction and Development (IBRD) | 1,210 | |
Other |
14 |
|
TOTAL |
3,642 |
(*) Brazilian Central Bank's exchange rate as of March 31, 2023 (US$ 1.00 = R$ 5.0804; ¥ 1.00 = R$ 0.03827).
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 |
(a) | Current assets |
March 31, 2023 |
December 31, 2022 |
|
Recoverable taxes | ||
Income tax and social contribution | 216,462 | 206,517 |
Withheld income tax (IRRF) on financial investments | 41,879 | 33,283 |
Other federal taxes |
8,096 |
3,106 |
Total |
266,437 |
242,906 |
(b) | Current liabilities |
March 31, 2023 |
December 31, 2022 |
|
Taxes and contributions payable | ||
Income tax and social contribution | 122,165 | - |
Cofins and Pasep | 110,329 | 134,624 |
INSS (social security contribution) | 43,921 | 44,515 |
IRRF (withholding income tax) | 6,314 | 63,361 |
Other |
55,525 |
50,961 |
Total |
338,254 |
293,461 |
On February 08, 2023, the Federal Supreme Court (STF) unanimously decided that a final decision favorable to companies on taxes paid on a continuous base would lose its effects if the STF later rules against it.
The Company analyzed the matter judged in this decision, which covers Social Contribution on Net Profit, as well as other taxes that fit into the decision granted and did not identify any impact on the Financial Statements.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
18 | Deferred taxes and contributions |
(a) | Statement of financial position details |
March 31, 2023 |
December 31, 2022 |
|
Deferred income tax assets | ||
Provisions | 573,119 | 560,404 |
Pension plan obligations - G1 | 136,832 | 141,606 |
Donations of underlying assets on concession agreements | 45,800 | 46,088 |
Allowance for doubtful accounts | 192,670 | 199,363 |
Other |
169,577 |
171,798 |
Total deferred tax asset |
1,117,998 |
1,119,259 |
Deferred income tax liabilities | ||
Temporary difference on concession of intangible asset | (350,319) | (353,817) |
Capitalization of borrowing costs | (465,454) | (457,669) |
Profit on supply to government entities | (345,260) | (346,650) |
Actuarial gain - G1 Plan | (93,561) | (93,561) |
Construction margin | (42,637) | (43,323) |
Borrowing costs |
(12,290) |
(13,517) |
Total deferred tax liabilities |
(1,309,521) |
(1,308,537) |
Deferred tax liability, net |
(191,523) |
(189,278) |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
(b) | Changes |
Deferred income tax assets |
December 31, 2022 |
Net change |
March 31, 2023 |
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) |
Deferred income tax assets |
December 31, 2021 |
Net change |
March 31, 2022 |
Provisions | 503,374 | (537) | 502,837 |
Pension plan obligations - G1 | 150,577 | (2,131) | 148,446 |
Donations of underlying assets on concession agreements | 47,589 | 118 | 47,707 |
Allowance for doubtful accounts | 183,963 | (7,207) | 176,756 |
Other |
127,092 |
(668) |
126,424 |
Total |
1,012,595 |
(10,425) |
1,002,170 |
Deferred income tax liabilities | |||
Temporary difference on concession of intangible asset | (368,235) | 3,930 | (364,305) |
Capitalization of borrowing costs | (404,931) | (6,590) | (411,521) |
Profit on supply to government entities | (353,262) | 2,311 | (350,951) |
Actuarial gain - G1 | (109,271) | - | (109,271) |
Construction margin | (46,079) | 690 | (45,389) |
Borrowing costs |
(14,556) |
926 |
(13,630) |
Total |
(1,296,334) |
1,267 |
(1,295,067) |
Deferred tax liability, net |
(283,739) |
(9,158) |
(292,897) |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
(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:
January to March 2023 |
January to March 2022 |
|
Profit before income taxes | 1,132,945 | 1,474,202 |
Statutory rate |
34% |
34% |
Estimated expense at statutory rate | (385,201) | (501,229) |
Permanent differences: | ||
Provision Law 4,819/1958 - G0 (i) | (10,772) | (7,972) |
Donations | (1,065) | (2,377) |
Other differences |
11,305 |
12,915 |
Income tax and social contribution |
(385,733) |
(498,663) |
Current income tax and social contribution | (383,488) | (489,505) |
Deferred income tax and social contribution | (2,245) | (9,158) |
Effective rate | 34% | 34% |
(i) Permanent difference related to the provision for the actuarial liability. See Note 21 (ii) and (v).
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
19 | Provisions |
(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 3.15 to the Annual Financial Statements as of December 31, 2022. The terms and payment amounts are defined based on the outcome of these lawsuits.
March 31, 2023 |
December 31, 2022 |
||||||
Provisions |
Escrow deposits |
Provisions net of deposits |
Provisions |
Escrow deposits |
Provisions net of deposits |
||
Customer claims (i) | 134,033 | (6,346) | 127,687 | 151,023 | (6,226) | 144,797 | |
Supplier claims (ii) | 263,582 | (54) | 263,528 | 257,080 | (53) | 257,027 | |
Other civil claims (iii) | 105,046 | (1,134) | 103,912 | 99,462 | (1,131) | 98,331 | |
Tax claims (iv) | 91,767 | (16,361) | 75,406 | 79,532 | (16,037) | 63,495 | |
Labor claims (v) | 657,408 | (12,503) | 644,905 | 654,277 | (13,979) | 640,298 | |
Environmental claims (vi) |
433,810 |
(37) |
433,773 |
406,872 |
(36) |
406,836 |
|
Total |
1,685,646 |
(36,435) |
1,649,211 |
1,648,246 |
(37,462) |
1,610,784 |
|
Current | 911,048 | - | 911,048 | 924,038 | - | 924,038 | |
Noncurrent | 774,598 | (36,435) | 738,163 | 724,208 | (37,462) | 686,746 |
(II) | Changes |
December 31, 2022 |
Additional provisions |
Interest and inflation adjustment |
Use of the accrual |
Amounts not used (reversal) |
March 31, 2023 |
|
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 |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
December 31, 2021 |
Additional provisions |
Interest and inflation adjustment |
Use of the accrual |
Amounts not used (reversal) |
March 31, 2022 |
|
Customer claims (i) | 168,258 | 7,053 | 8,247 | (8,595) | (3,238) | 171,725 |
Supplier claims (ii) | 477,854 | 1,459 | 13,032 | (60,604) | (10) | 431,731 |
Other civil claims (iii) | 95,601 | 3,048 | 3,540 | (2,973) | (1,151) | 98,065 |
Tax claims (iv) | 57,509 | 11,928 | 3,582 | (703) | (204) | 72,112 |
Labor claims (v) | 349,962 | 10,077 | 8,889 | (7,467) | (12,241) | 349,220 |
Environmental claims (vi) |
331,326 |
10,440 |
14,651 |
(300) |
(39) |
356,078 |
Subtotal | 1,480,510 | 44,005 | 51,941 | (80,642) | (16,883) | 1,478,931 |
Escrow deposits |
(32,017) |
(13,349) |
(3,041) |
7,325 |
2,749 |
(38,333) |
Total |
1,448,493 |
30,656 |
48,900 |
(73,317) |
(14,134) |
1,440,598 |
(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:
March 31, 2023 |
December 31, 2022 |
|
Customer claims (i) | 205,668 | 200,966 |
Supplier claims (ii) | 1,187,990 | 1,147,606 |
Other civil claims (iii) | 1,183,563 | 1,146,048 |
Tax claims (iv) | 1,946,987 | 1,869,583 |
Labor claims (v) | 2,540,106 | 1,471,423 |
Environmental claims (vi) |
3,870,028 |
3,302,843 |
Total |
10,934,342 |
9,138,469 |
(c) | Explanation of the nature of main classes of lawsuits |
(i) | Customer claims |
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.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
(ii) | Supplier claims |
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.
(iii) | Other civil claims |
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, 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.
(d) | Guarantee insurance |
As of May 25, 2022, 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, 2023, R$ 390.4 million was available for use.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
20 | Labor liabilities and pension plan obligations |
March 31, 2023 |
December 31, 2022 |
|
Salaries and payroll charges | 40,707 | 70,089 |
Provision for vacation | 251,709 | 254,469 |
Provision for Christmas bonus | 20,421 | - |
Healthcare plan (i) | 72,745 | 70,136 |
Provision for profit sharing (ii) | 103,028 | 96,227 |
Consent Decree (TAC) | 5,501 | 6,114 |
Knowledge Retention Program (PRC) |
1,418 |
1,469 |
Total |
495,529 |
498,504 |
(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 2023, the Company contributed 9.8%, on average, of gross payroll, totaling
R$ 75,505 (8.3% in the first quarter of 2022, totaling R$ 57,102).
(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.
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
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 obligatinos as of March 31, 2023 |
(133,608) |
(2,010,180) |
(2,143,788) |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
G1 Plan |
G0 Plan |
Total |
|
Pension plan obligations as of December 31, 2021 | (129,600) | (2,192,062) | (2,321,662) |
(Expenses) recognized in 2022 | (2,935) | (44,238) | (47,173) |
Payments made in 2022 |
9,501 |
43,975 |
53,476 |
Pension plan obligations as of March 31, 2022 |
(123,034) |
(2,192,325) |
(2,315,359) |
(i) | G1 Plan |
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. |
(ii) | G0 Plan |
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.
(iii) | Sabesprev Mais Plan |
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.
(ii) | VIVEST Plan |
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.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
(v) | Reconciliation of expenditures with pension plan obligations |
January to March 2023 |
January to March 2022 |
|
G1 Plan (i) | (4,384) | 2,935 |
G0 Plan (ii) | 56,305 | 44,238 |
Sabesprev Mais Plan (iii) | 6,603 | 5,878 |
VIVEST Plan (iv) |
84 |
58 |
Subtotal | 58,608 | 53,109 |
Capitalized | (764) | (771) |
Reimbursement of additional retirement and pension benefits paid (G0) | (24,622) | (20,791) |
Other |
1,441 |
1,245 |
Pension plan obligations (Note 27) |
34,663 |
32,792 |
22 | Services payable |
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 balances as of March 31, 2023, and December 31, 2022, were R$ 604,532 and R$ 723,242, respectively.
23 | Equity |
(a) | Share capital |
As of March 31, 2023, and December 31, 2022, 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, 2023 |
December 31, 2022 |
|||
Number of shares |
% |
Number of shares |
% |
|
São Paulo State | 343,506,664 | 50.3 | 343,506,664 | 50.3 |
Other shareholders | ||||
In Brazil (1) | 257,305,517 | 37.6 | 257,339,417 | 37.6 |
Abroad(2) |
82,697,688 |
12.1 |
82,663,788 |
12.1 |
Total |
683,509,869 |
100.0 |
683,509,869 |
100.0 |
(1) | As of March 31, 2023, the common shares traded in Brazil were held by 33,511 shareholders. It includes six shares held by Cia Paulista de Parcerias - CPP, a company controlled by the São Paulo State. |
(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. |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
(b) | Interest on capital |
The Annual Shareholders' Meeting of April 28, 2023, approved the distribution of dividends as interest on capital totaling R$ 741,301, corresponding to minimum mandatory dividends and R$ 130,857 as supplementary minimum dividends, totaling R$ 872,158, to be paid on June 26, 2023.
24 | Earnings per share |
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.
January to March 2023 |
January to March 2022 |
|
Profit attributable to the Company's owners | 747,212 | 975,539 |
Weighted average number of common shares issued |
683,509,869 |
683,509,869 |
Basic and diluted earnings per share (reais per share) |
1.09320 |
1.42725 |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
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
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 accounting | 6,334 | ||
Financial result, net |
(259,528) |
||
Income from operations before taxes |
1,132,945 |
||
Depreciation and amortization | (657,145) | - | (657,145) |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
January to March 2022 |
|||
Sanitation (i) |
Reconciliation to the income statement (ii) |
Balance according to the financial statements |
|
Gross operating revenue | 4,298,220 | 888,206 | 5,186,426 |
Gross sales deductions |
(316,036) |
- |
(316,036) |
Net operating revenue |
3,982,184 |
888,206 |
4,870,390 |
Costs, selling, general, and administrative expenses |
(2,876,938) |
(867,521) |
(3,744,459) |
Income from operations before other operating expenses, net and equity accounting |
1,105,246 |
20,685 |
1,125,931 |
Other operating income (expenses), net | 2,564 | ||
Equity accounting | 5,583 | ||
Financial result, net |
340,124 |
||
Income from operations before taxes |
1,474,202 |
||
Depreciation and amortization | (589,746) | - | (589,746) |
(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 - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
26 | Operating revenue |
(a) | Revenue from sanitation services: |
January to March 2023 |
January to March 2022 |
|
Metropolitan Region of São Paulo | 3,475,670 | 3,048,853 |
Regional Systems |
1,433,604 |
1,249,367 |
Total |
4,909,274 |
4,298,220 |
(b) | Reconciliation from gross operating revenue to net operating revenue: |
January to March 2023 |
January to March 2022 |
|
Revenue from sanitation services (i) | 4,909,274 | 4,298,220 |
Construction revenue | 1,179,534 | 888,206 |
Sales tax | (370,298) | (297,585) |
Regulation, Control and Oversight Fee (TRCF) |
(20,141) |
(18,451) |
Net revenue |
5,698,369 |
4,870,390 |
(i) Includes R$ 24,019 from the TRCF charged from customers from January to March 2023 (R$ 20,961 from January to March 2022), referring to the municipalities regulated by ARSESP.
27 | Operating costs and expenses |
January to March 2023 |
January to March 2022 |
|
Operating costs | ||
Salaries, payroll charges, and benefits | (583,855) | (508,873) |
Pension plan obligations | (1,656) | (7,057) |
Construction costs (Note 25) | (1,153,015) | (867,521) |
General supplies | (85,831) | (66,490) |
Treatment supplies | (164,899) | (147,308) |
Outsourced services | (435,484) | (365,892) |
Electricity | (395,026) | (411,084) |
General expenses | (227,169) | (198,626) |
Depreciation and amortization |
(606,788) |
(543,535) |
(3,653,723) | (3,116,386) | |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
Selling expenses | ||
Salaries, payroll charges, and benefits | (70,517) | (67,909) |
Pension plan obligations | (185) | (959) |
General supplies | (1,067) | (1,130) |
Outsourced services | (109,177) | (84,363) |
Electricity | (191) | (414) |
General expenses | (27,626) | (25,127) |
Depreciation and amortization |
(16,894) |
(16,685) |
(225,657) | (196,587) | |
Bad debt expense, net of recoveries (Note 9 (c)) | (162,805) | (177,694) |
Administrative expenses | ||
Salaries, payroll charges, and benefits | (55,142) | (58,521) |
Pension plan obligations | (32,822) | (24,776) |
General supplies | (601) | (4,299) |
Outsourced services | (80,267) | (61,833) |
Electricity | (583) | (445) |
General expenses | (60,011) | (55,387) |
Depreciation and amortization | (33,463) | (29,526) |
Tax expenses |
(21,790) |
(19,005) |
(284,679) | (253,792) | |
Operating costs and expenses | ||
Salaries, payroll charges, and benefits | (709,514) | (635,303) |
Pension plan obligations (Note 21 (v)) | (34,663) | (32,792) |
Construction costs (Note 25) | (1,153,015) | (867,521) |
General supplies | (87,499) | (71,919) |
Treatment supplies | (164,899) | (147,308) |
Outsourced services | (624,928) | (512,088) |
Electricity | (395,800) | (411,943) |
General expenses | (314,806) | (279,140) |
Depreciation and amortization | (657,145) | 589,746 |
Tax expenses | (21,790) | (19,005) |
Bad debt expense, net of recoveries (Note 9 (c)) |
(162,805) |
(177,694) |
(4,326,864) |
(3,744,459) |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
28 | Financial income (expenses) |
January to March 2023 |
January to March 2022 |
|
Financial expenses | ||
Interest and charges on borrowings and financing - local currency | (273,106) | (189,553) |
Interest and charges on borrowings and financing - foreign currency | (21,049) | (8,556) |
Other financial expenses | (101,732) | (91,244) |
Inflation adjustment on borrowings and financing | (70,509) | (70,718) |
Other inflation adjustments | (50,463) | (48,365) |
Interest and inflation adjustment on provisions |
(45,612) |
(44,582) |
Total financial expenses |
(562,471) |
(453,018) |
Financial income | ||
Inflation adjustment gains | 60,314 | 59,684 |
Income on financial investments | 103,217 | 79,662 |
Interest income | 66,560 | 70,684 |
Cofins and Pasep | (10,788) | (9,767) |
Other |
17 |
13 |
Total financial income |
219,320 |
200,276 |
Financial income (expenses), net of exchange variation |
(343,151) |
(252,742) |
Exchange gain (losses) | ||
Exchange rate changes on borrowings and financing | 83,825 | 594,030 |
Exchange rate changes on assets | (201) | (1,263) |
Other exchange rate changes |
(1) |
99 |
Exchange rate changes, net |
83,623 |
592,866 |
Financial income (expenses), net |
(259,528) |
340,124 |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Notes to the Financial Statements |
|
29 | Other operating income (expenses), net |
January to March 2023 |
January to March 2022 |
|
Other operating income, net | 20,352 | 10,308 |
Other operating expenses |
(5,718) |
(7,744) |
Other operating income (expenses), net |
14,634 |
2,564 |
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 derecognition of concessions 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.
30 | Commitments |
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, 2023 are as follows:
1 year |
1-3 years |
3-5 years |
More than 5 years |
Total |
|
Contractual obligations - Expenses | 1,305,561 | 1,310,451 | 278,540 | 643,643 | 3,538,195 |
Contractual obligations - Investments |
3,426,343 |
2,992,419 |
1,947,122 |
140,005 |
8,505,889 |
Total |
4,731,904 |
4,302,870 |
2,225,662 |
783,648 |
12,044,084 |
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Notes to the Financial Statements |
|
31 | Supplemental cash flow information |
January to March 2023 |
January to March 2022 |
|
Total additions to contract assets (Note 13) | 1,204,867 | 958,070 |
Total additions to intangible assets (Note 14 (b)) | 322 | 14,100 |
Items not affecting cash (see breakdown below) |
(634,857) |
(320,510) |
Total additions to intangible and contract assets according to the statement of cash flows | 570,332 | 651,660 |
Investments and financing operations affecting intangible assets but not cash: | ||
Interest capitalized in the period (Note 13 (a)) | 167,802 | 120,324 |
Contractors payable | 240,833 | 233,889 |
Performance agreements | 199,383 | (63,118) |
Right of use | 320 | 8,730 |
Construction margin (Note 25) |
26,519 |
20,685 |
Total |
634,857 |
320,510 |
32 | Events after the reporting period |
· | Result of the Extraordinary Tariff Review and Annual Tariff Adjustment |
As of April 6, 2023, further to the Material Facts disclosed on December 21, 2022 and February 16, 2023, SABESP informed its shareholders and the market in general that ARSESP disclosed Resolution 1,394/2023, referring to the Extraordinary Tariff Review, and Resolution 1,395/2023, which provides for the new tariff amounts, authorizing the Company to apply the total tariff adjustment of 9.5609%, regarding the tariffs in effect, resulting from:
· | IPCA (February 2022 to February 2023) of 5,5964%; |
· | Efficiency factor (X Factor) of 0.2142%; |
· | General Quality Index (GQI 2023) to be discounted, of 0.1280%; |
· | Result of the Extraordinary Tariff Review, of 5.5532%; |
· | Compensatory adjustment (referring to 2021), of 1.4040%, to be discounted. |
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Notes to the Financial Statements |
|
· | Contract with the International Finance Corporation - IFC |
On April 7, 2023, SABESP informed its shareholders and the market in general about the ratification of the unenforceability of the bidding process for the contracting of specialized technical services to provide support and consultancy services to the State regarding the studies on the Privatization of SABESP.
Accordingly, the contract with the International Finance Corporation - IFC was executed on April 10, 2023. IFC is an agency linked to the World Bank that will act as an advisor to this process.
· | Separation Incentive Program - PDI |
On May 11, 2023, further to the Company's restructuring and in the context of the new strategic guideline for efficiency and process simplification, the final approval stage for the implementation of the Separation Incentive Program (PDI) was concluded. The Program will focus on preserving knowledge and ensuring the continuity of the Company's activities, with adhesions occurring in June 2023 and a schedule of dismissals between July 2023 and June 2024. The Company expects 2,000 employees to adhered to the Program.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
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Comments on the Company's Projections
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 with quarterly results shall not apply.
Projections are monitored every year and disclosed in the Reference Form.
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
Version : 1 |
Other Information Deemed as Relevant by the Company
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 03/31/2023 |
||||
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% | 100 | 0% |
Executive Board | 1,300 | 0% | 1,300 | 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% |
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
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CONSOLIDATED SHAREHOLDING POSITION OF CONTROLLING SHAREHOLDERS AND MANAGEMENT, AND OUTSTANDING SHARES Position as of 03/31/2022 |
||||
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 | - | - | - | - |
Executive Board | 200 | 0.0% | 200 | 0.0% |
Fiscal Council | - | - | - | - |
Treasury Shares | - | - | - | - |
Other Shareholders | - | - | - | - |
Total | 343,506,870 | 50.3% | 343,506,870 | 50.3% |
Outstanding Shares | 340,002,999 | 49.7% | 340,002,999 | 49.7% |
2. SHAREHOLDING POSITION
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 - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
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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.)
Report on Review of Interim Financial Information
To the Shareholders, Directors and Management of
Companhia de Saneamento Básico do Estado de São Paulo - SABESP
São Paulo - SP
Introduction
We have reviewed the accompanying interim financial information of Companhia de Saneamento Básico do Estado de São Paulo ("Company"), included in the Interim Financial Information Form (ITR) for the quarter ended March 31, 2023, which comprises the Statement of financial position as of March 31, 2023 and the related income statement, statement of comprehensive income, the statements of changes in equity and cash flows for the three months then ended, including a summary of significant accounting policies and other explanatory notes.
Management is responsible for the preparation of the interim financial information in accordance with Technical Pronouncement NBC TG - 21- Interim Financial Reporting and IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), as well as for the presentation of such information in accordance with the standards issued by the Brazilian Securities and Exchange Commission (CVM) applicable to the preparation of Interim Financial Information (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review.
Scope of Review
We conducted our review in accordance with Brazilian and international standards on review of interim financial information (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 of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the standards on auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion on the interim financial information
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information included in the Interim Financial Information Form (ITR) referred to above is not prepared, in all material respects, in accordance with NBC TG - 21 and IAS 34 applicable to the preparation of interim financial information and presented in accordance with the standards issued by the Brazilian Securities and Exchange Commission (CVM).
Other matters
Statement of value added
The quarterly information referred to above includes statements of value added for the period of three months ended March 31, 2023, prepared under the responsibility of the Company's management and presented as supplementary information for the purposes of IAS 34. These statements were submitted to the same review procedures in conjunction with the review of the Company's interim financial information in the order to conclude they are reconciliated to the interim financial information and to the accounting records, as applicable, and whether the structure and content are in accordance with the criteria established in the NBC TG 09 - Statement of Value Added. Based on our review, nothing has come to our attention that causes us to believe that the accompanying statements of value added were not prepared, in all material respects, in accordance with the interim financial information taken as a whole.
São Paulo, May 11, 2023
Élica Daniela da Silva Martins
Accountant CRC 1SP-223.766/O-0
Grant Thornton Auditores Independentes Ltda.
CRC 2SP-025.583/O-1
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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 25, item VI of CVM Instruction 480, of December 7, 2009, that:
They reviewed, discussed, and agreed with the quarterly information for the period ended March 31, 2023. São Paulo, May 11, 2023.
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
Operations and Maintenance Officer
Bruno Magalhães D'Abadia
Regulation and New Businesses Officer
ITR - Quarterly Information Form - 03/31/2023 - CIA SANEAMENTO BASICO EST SAO PAULO |
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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 25, item V of CVM Instruction 480, of December 7, 2009:
They reviewed, discussed, and agreed with the Report of Independent Registered Public Accounting Firm on the quarterly information for the period ended March 31, 2023.
São Paulo, May 11, 2023.
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
Operations and Maintenance Officer
Bruno Magalhães D'Abadia
Regulation and New Businesses Officer
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
|
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.