sbs_4q14.htm - Generated by SEC Publisher for SEC Filing
 
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 

 
FORM 6-K
 
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For March 27, 2015
(Commission File No. 1-31317)
 

 
Companhia de Saneamento Básico do Estado de São Paulo - SABESP
(Exact name of registrant as specified in its charter)
 
Basic Sanitation Company of the State of Sao Paulo - SABESP
(Translation of Registrant's name into English)
 


Rua Costa Carvalho, 300
São Paulo, S.P., 05429-900
Federative Republic of Brazil
(Address of Registrant's principal executive offices)



Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.

Form 20-F ___X___ Form 40-F ______
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1)__.
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7)__.

Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.

Yes ______ No ___X___

If "Yes" is marked, indicated below the file number assigned to the
registrant in connection with Rule 12g3-2(b):

 

 

CIA. DE SANEAMENTO BÁSICO DO ESTADO DE SÃO PAULO - SABESP
Rui de Britto Álvares Affonso
Chief Financial Officer and Investor Relations Officer
Mario Azevedo de Arruda Sampaio
Head of Capital Markets and Investor Relations

 

SABESP announces 2014 results

São Paulo, March 26, 2015 - Companhia de Saneamento Básico do Estado de São Paulo - SABESP (BM&FBovespa: SBSP3; NYSE: SBS), one of the largest water and sewage services providers in the world based on the number of costumers, announces today its results for the year 2014 (2014). The Company’s operating and financial information, except when indicated otherwise is presented in Brazilian Reais, in accordance with the Brazilian Corporate Law. All comparisons in this release, unless otherwise stated, refer to the same period of 2013.

 

SBSP3: R$ 17.62/share
SBS: US$ 5.44 (ADR=1 share)
Total shares: 683,509,869
Market value: R$ 12 billion
Closing quote: 03/26/2015

R$ million

 

 


 

1 Financial highlights

               

R$ million

 

2014

2013

Chg. (R$)

%

4Q14

4Q13

Chg. (R$)

%

(+) Gross operating revenue

8,905.4

9,540.0

(634.6)

(6.7)

2,071.2

2,520.5

(449.3)

(17.8)

(+) Construction revenue

2,918.0

2,444.8

473.2

19.4

908.3

740.9

167.4

22.6

(-) COFINS and PASEP taxes

610.2

669.2

(59.0)

(8.8)

135.9

159.5

(23.6)

(14.8)

(=) Net operating revenue

11,213.2

11,315.6

(102.4)

(0.9)

2,843.6

3,101.9

(258.3)

(8.3)

(-) Costs and expenses

6,441.1

5,788.0

653.1

11.3

1,733.7

1,516.0

217.7

14.4

(-) Cunstruction costs

2,855.5

2,394.5

461.0

19.3

888.6

725.8

162.8

22.4

(+) Equity result

(2.4)

2.4

(4.8)

(200.0)

(1.0)

0.9

(1.9)

(211.1)

(+) Other operating revenue/expenses, net

(3.5)

3.3

(6.8)

(206.1)

40.5

(18.7)

59.2

(316.6)

(=) Earnings before financial result, income tax and social contribution

1,910.7

3,138.8

(1,228.1)

(39.1)

260.8

842.3

(581.5)

(69.0)

(+) Financial result

(635.9)

(483.2)

(152.7)

31.6

(304.0)

(183.4)

(120.6)

65.8

(=) Earnings before income tax and social contribution

1,274.8

2,655.6

(1,380.8)

(52.0)

(43.2)

658.9

(702.1)

(106.6)

(+) Income tax and social contribution

(371.8)

(732.0)

360.2

(49.2)

74.6

(68.2)

142.8

(209.4)

Net Income

903.0

1,923.6

(1,020.6)

(53.1)

31.4

590.7

(559.3)

(94.7)

Earnings per share* (R$)

1.32

2.81

 

 

0.05

0.86

 

 

* Total shares = 683,509,869

               

 

Adjusted EBITDA Reconciliation (Non-accounting measures)

               

R$ million

 

2014

2013

Chg. (R$)

%

4Q14

4Q13

Chg. (R$)

%

Net income

903.0

1,923.6

(1,020.6)

(53.1)

31.4

590.7

(559.3)

(94.7)

(+) Income tax and social contribution

371.8

732.0

(360.2)

(49.2)

(74.6)

68.2

(142.8)

(209.4)

(+) Financail result

635.9

483.2

152.7

31.6

304.0

183.4

120.6

65.8

(+) Other operating revenues/expenses, net

3.5

(3.3)

6.8

(206.1)

(40.5)

18.7

(59.2)

(316.6)

(=) Adjusted EBIT*

1,914.2

3,135.5

(1,221.3)

(39.0)

220.3

861.0

(640.7)

(74.4)

(+) Depreciation and amortization

1,004.5

871.1

133.4

15.3

278.4

270.8

7.6

2.8

(=) Adjusted EBITDA **

2,918.7

4,006.6

(1,087.9)

(27.2)

498.7

1,131.8

(633.1)

(55.9)

(%) Adjusted EBITDA margin

26.0

35.4

 

 

17.5

36.5

 

 

(*) Adjusted EBIT is net income before: (i) other operating revenues/expenses; (ii) financial result; and (iii) income tax and social contribution.

(**) Adjusted EBITDA is net income before: (i) depreciation and amortization expenses; (ii) income tax and social contribution; (iii) financial result; and (iv) other operating revenues/expenses, net.

In 2014, net operating revenue, including construction revenue, reached R$ 11.2 billion; a 0.9% decrease compared to 2013.

Costs and expenses, including construction costs, totaled R$ 9.3 billion, up 13.6% compared to R$ 8.2 billion in 2013.

Adjusted EBIT, in the amount of R$ 1.9 billion, dropped 39.0% from R$ 3.1 billion recorded in 2013.

Adjusted EBITDA, in the amount of R$ 2.9 billion, dropped 27.2% from R$ 4.0 billion recorded in 2013.

The adjusted EBITDA margin was 26.0% in 2014, versus 35.4% in 2013. Excluding construction revenues and construction costs, the adjusted EBITDA margin was 34.4% in 2014 (44.6% in 2013).

Net income totaled R$ 903.0 million, 53.1% lower than R$ 1.9 billion recorded in 2013.

2. Gross operating revenue

Gross operating revenue from water and sewage, not including construction revenue, totaled R$ 8.9 billion, a drop of R$ 634.6 million or 6.7%, when compared to the R$ 9.5 billion recorded in 2013.

The main factors that led to this variation were:

·    Water Consumption Reduction Incentive Program, with a R$ 376.4 million impact; and

·    Decrease of 2.2% in the Company’s total billed volume (3.1% in water and 1.1% in sewage).

The tariff adjustments applied in the period were:

·    3.1% tariff adjustment since December 2013; and

·    6.5% repositioning index since December 2014, with an impact as of January 2015.

Page 2 of 13


 

3. Construction revenue

Construction revenue increased R$ 473.2 million or 19.4%, when compared to 2013. The variation was mainly due to higher investments in 2014.

4. Billed volume

The following tables show the water and sewage billed volume, year-on-year, and quarter-on-quarter, per customer category and region.

WATER AND SEWAGE BILLED VOLUME (1) PER CUSTOMER CATEGORY - million m3

 

 

Water

 

 

Sewage

 

Water + Sewage

 

Category

2014

2013

%

2014

2013

%

2014

2013

%

Residential

1,548.6

1,565.6

(1.1)

1,292.7

1,299.1

(0.5)

2,841.3

2,864.7

(0.8)

Commercial

172.6

175.4

(1.6)

162.4

163.4

(0.6)

335.0

338.8

(1.1)

Industrial

38.9

39.4

(1.3)

43.0

44.4

(3.2)

81.9

83.8

(2.3)

Public

51.7

54.6

(5.3)

39.9

42.5

(6.1)

91.6

97.1

(5.7)

Total retail

1,811.8

1,835.0

(1.3)

1,538.0

1,549.4

(0.7)

3,349.8

3,384.4

(1.0)

Wholesale

256.8

299.0

(14.1)

24.2

29.7

(18.5)

281.0

328.7

(14.5)

Total

2,068.6

2,134.0

(3.1)

1,562.2

1,579.1

(1.1)

3,630.8

3,713.1

(2.2)

 

4Q14

4Q13

%

4Q14

4Q13

%

4Q14

4Q13

%

Residential

376.4

405.6

(7.2)

314.9

336.9

(6.5)

691.3

742.5

(6.9)

Commercial

42.4

44.8

(5.4)

40.0

41.8

(4.3)

82.4

86.6

(4.8)

Industrial

9.3

10.2

(8.8)

10.4

11.2

(7.1)

19.7

21.4

(7.9)

Public

11.8

13.9

(15.1)

9.1

10.9

(16.5)

20.9

24.8

(15.7)

Total retail

439.9

474.5

(7.3)

374.4

400.8

(6.6)

814.3

875.3

(7.0)

Wholesale

58.0

75.6

(23.3)

5.2

6.9

(24.6)

63.2

82.5

(23.4)

Total

497.9

550.1

(9.5)

379.6

407.7

(6.9)

877.5

957.8

(8.4)

 

WATER AND SEWAGE BILLED VOLUME (1) PER REGION - million m3

 

Water

 

 

Sewage

 

 

Water + Sewage

 

Region

2014

2013

%

2014

2013

%

2014

2013

%

Metropolitan

1,172.4

1,206.9

(2.9)

1,005.4

1,029.2

(2.3)

2,177.8

2,236.1

(2.6)

Regional (2)

639.4

628.1

1.8

532.6

520.2

2.4

1,172.0

1,148.3

2.1

Total retail

1,811.8

1,835.0

(1.3)

1,538.0

1,549.4

(0.7)

3,349.8

3,384.4

(1.0)

Wholesale

256.8

299.0

(14.1)

24.2

29.7

(18.5)

281.0

328.7

(14.5)

Total

2,068.6

2,134.0

(3.1)

1,562.2

1,579.1

(1.1)

3,630.8

3,713.1

(2.2)

 

4Q14

4Q13

%

4Q14

4Q13

%

4Q14

4Q13

%

Metropolitan

281.2

310.3

(9.4)

242.2

264.7

(8.5)

523.4

575.0

(9.0)

Regional (2)

158.7

164.2

(3.3)

132.2

136.1

(2.9)

290.9

300.3

(3.1)

Total retail

439.9

474.5

(7.3)

374.4

400.8

(6.6)

814.3

875.3

(7.0)

Wholesale

58.0

75.6

(23.3)

5.2

6.9

(24.6)

63.2

82.5

(23.4)

Total

497.9

550.1

(9.5)

379.6

407.7

(6.9)

877.5

957.8

(8.4)

(1) Unaudited

(2) Including coastal and interior region

 

Page 3 of 13


 

   

5. Costs, administrative and selling expenses

 

In 2014, costs, administrative and selling expenses, grew 13.6% (R$ 1,114.1 million). Excluding construction costs, total costs and expenses grew 11.3%. As a percentage of net revenue, cost and expenses was 82.9% in 2014 from 72.3% in 2013.

 

               

R$ million

 

2014

2013

Chg. (R$)

%

4Q14

4Q13

Chg. (R$)

%

Payroll and benefits

2,123.3

1,927.2

196.1

10.2

539.3

484.3

55.0

11.4

Supplies

202.1

193.4

8.7

4.5

53.4

51.0

2.4

4.7

Treatment supplies

261.2

240.7

20.5

8.5

61.3

57.1

4.2

7.4

Services

1,314.9

1,112.2

202.7

18.2

347.6

303.3

44.3

14.6

Electric power

599.1

552.9

46.2

8.4

158.2

141.9

16.3

11.5

General expenses

719.7

711.0

8.7

1.2

189.4

175.2

14.2

8.1

Tax expenses

76.7

75.6

1.1

1.5

21.2

12.5

8.7

69.6

Sub-total

5,297.0

4,813.0

484.0

10.1

1,370.4

1,225.3

145.1

11.8

Depreciation and amortization

1,004.5

871.1

133.4

15.3

278.4

270.8

7.6

2.8

Credit write-offs

139.6

103.9

35.7

34.4

84.9

19.9

65.0

326.6

Sub-total

1,144.1

975.0

169.1

17.3

363.3

290.7

72.6

25.0

Costs and expenses

6,441.1

5,788.0

653.1

11.3

1,733.7

1,516.0

217.7

14.4

Construction costs

2,855.5

2,394.5

461.0

19.3

888.6

725.8

162.8

22.4

Costs, adm., selling and construction expenses

9,296.6

8,182.5

1,114.1

13.6

2,622.3

2,241.8

380.5

17.0

% of net revenue

82.9

72.3

 

 

92.2

72.3

 

 

 

5.1. Payroll and benefits

 

In 2014 payroll and benefits grew R$ 196.1 million or 10.2%, from R$ 1,927.2 million to R$ 2,123.3 million, due to the following:

 

·    R$ 89.1 million increase due to the 6.8% increase in average wages since May 2014 and the changes from the career and wage plan;

 

·    R$ 43.5 million increase in provisions, from the higher number of employees who are entitled to request retirement (TAC), in addition to the wage increase in the period;

 

·    R$ 25.9 million upturn in the provision for the Pension Plan, arising from changes in actuarial assumptions;

 

·    R$ 14.6 million increase in overtime pay, mainly due to wage adjustment in the period, and the higher number of hours worked, as a result of the management and intensification of water systems maintenance; and

 

·    R$ 7.0 million, due to the 7.1% adjustment in healthcare expenses since July 2014.

 

In 4Q14 payroll and benefits grew R$ 55.0 million, due to:

 

·    R$ 22.7 million increase due to the 6.8% average increase in wages since May 2014 and the changes from the career and wage plan;

 

·    R$ 11.7 million increase in provisions, from the higher number of employees who are entitled to request retirement (TAC), in addition to the pay rise in the period;

 

·    R$ 8.3 million upturn in the provision for the Pension Plan, arising from changes in actuarial assumptions; and

 

·    R$ 7.5 million increase in overtime pay, mainly due to wage adjustment in the period, and the higher number of hours worked, as a result of the management and intensification of water systems maintenance.

 

5.2. Supplies

 

In 2014, expenses with supplies increased R$ 8.7 million or 4.5%, from R$ 193.4 million to R$ 202.1 million, mostly due to the increase in the consumption of diesel used in generators installed to extract water from thetechnical reserve at the Cantareira System, in the amount of R$ 6.5 million.

Page 4 of 13


 

5.3. Treatment supplies

Treatment supplies expenses in 2014 were R$ 20.5 million or 8.5% higher than in 2013, from R$ 240.7 million to R$ 261.2 million, due to the following:

·    Consumption increase in aluminum sulfate, with an impact of R$ 7.0 million, chiefly due to a 14.0% increase in production volume at the Taiaçupeba Water Treatment Station;

·    Consumptiom increase of several treatment supplies, with an impact of R$ 5.9 million, chiefly due to the beginning of the use of products that reduce the algae bloom in the São Paulo metropolitan region’s water sources since April 2014; and

·    Consumption increase of sodium hypochlorite, used to replace chlorine gas in several water treatment stations in the Regional Systems, due to higher efficiency and safety with an impact of R$5.5 million.

5.4. Services

Services, in the amount of R$ 1,314.9 million, grew R$ 202.7 million or 18.2%, in comparison to the R$ 1,112.2 million in 2013. The main factors were:

·    Advertising campaigns, in the amount of R$ 58.7 million, mainly due to the intensification of the ‘Rational Use of Watercampaign;

·    Reversal of the provision for expenses, totaling R$41.4 million, due to the end of the agreement with the São Paulo Municipal Government; non-recurring;

·    Hired Services in the amount of R$ 34.7 million, mainly due to the beginning of operations in the municipality of Diadema, in March of 2014, in the amount of R$ 28.2 million;

·    Higher expenses with the Corporate Program for Reduction of Water Loss, in the amount of R$ 19.7 million; and

·    Water metering and billing, totaling R$11.4 million, due to the expansion of services and increased information availability, pursuant to ARSESP Resolution Nº 106/09.

In 4Q14 services expenses grew R$ 44.3 million, due to:

·    Advertising campaigns, in the amount of R$ 27.1 million, mainly due to the intensification of the ‘Rational Use of Watercampaign;

·    Higher expenses with the Corporate Program for Reduction of Water Loss, in the amount of R$ 9.0 million; and

·    Hired services, in the amount of R$ 8.0 million, due to the beginning of operations in the municipality of Diadema, in March of 2014, in the amount of R$ 5.8 million.

5.5. Electric power

This item totaled R$ 599.1 million, an increase of R$ 46.2 million or 8.4% in comparison to the R$ 552.9 million in 2013, due to the average increase of 19.8% in free market tariffs and of 7.8% in regulated market tariffs.

These increases were partially offset by the average decrease of 14.5% in the Tariff for the Use of Distribution System (TUSD).

5.6. General expenses

General expenses grew R$ 8.7 million or 1.2%, totaling R$ 719.7 million, versus the R$ 711.0 million recorded in 2013 mainly due to:

·    R$ 37.1 million increase in the provision for lawsuits; and

·    Higher provision for sundry losses, in the amount of R$ 16.3 million.

 

Page 5 of 13


 

The increases above were partially offset by the R$ 43.3 million drop in the provision for the Municipal Fund for Environmental Sanitation and Infrastructure, as a result of the decrease in revenues with the municipality of São Paulo.

5.7. Depreciation and amortization

R$ 133.4 million increase or 15.3%, reaching R$ 1,004.5 million in comparison to the R$ 871.1 million recorded in 2013, largely due to the beginning of operations of intangible assets, in the amount of R$ 4,1 billion.

5.8. Credit write-offs

Credit write-offs increased R$ 35.7 million, chiefly due to the higher provision for losses with municipalities served by the Company on the wholesale basis during 2014.

6. Other operating revenues and expenses, net

Other operating revenues/expenses, net, recorded a R$ 6.8 million decrease, mainly due to:

R$ 51.9 million increase in other operating revenue, as follows:

·    Increase in fines to suppliers and service providers, totaling R$ 25.8 million; and

·    Upturn in revenue from the Program for the Rational Use of Water PURA, totaling R$ 20.9 million. R$ 58.7 million increase in other operating expenses, as follows:

·    Provision for the write-off of construction works and projects, totaling R$ 21.3 million;

·    Provision for losses with contractual payments, as a result of the agreement with the municipality of Diadema, totaling R$15.0 million;

·    Write-off of obsolete goods, in the amount of R$ 11.4 million; and

·    Provision for the write-off of hydrometers, in the amount of R$ 11.4 million.

7. Financial result

R$ million

 

2014

2013

Chg.

%

Financial expenses, net of revenues

(212.0)

(200.9)

(11.1)

5.5

Net monetary and exchange variation

(423.9)

(282.3)

(141.6)

50.2

Financial result

(635.9)

(483.2)

(152.7)

31.6

 

 

7.1. Financial revenues and expenses

 

       

R$ million

 

2014

2013

Chg.

%

Financial expenses

 

 

 

 

Interest and charges on domestic loans and financing

(272.9)

(294.7)

21.8

(7.4)

Interest and charges on international loans and financing

(92.2)

(84.6)

(7.6)

9.0

Other financial expenses

(177.7)

(122.5)

(55.2)

45.1

Total financial expenses

(542.8)

(501.8)

(41.0)

8.2

Financial revenues

330.8

300.9

29.9

9.9

Financial expenses net of revenues

(212.0)

(200.9)

(11.1)

5.5

 

 

 

Page 6 of 13


 

7.1.1. Financial expenses

Financial expenses grew R$ 41.0 million. The main reasons were:

·    R$ 21.8 million decrease in interest and charges on domestic loans and financing, mainly due to the higher interest capitalization occurred in 2014, versus 2013;

·    R$ 7.6 million increase in interest and charges on international loans and financing, due to the increase in total debt, as a result of new fundings, in the amount of R$ 458.7 million; and

·    Other financial expenses increased R$ 55.2 million, largely due to the greater recognition of interest arising from the beginning of operation of two sewage treatment plants financed through leases, in the amount of  R$ 47.9 million.

7.1.2. Financial revenues

Financial revenues increased R$ 29.9 million or 9.9%, due to financial investments indexed to CDI, held in the period, as a result of the increase in the Interbank Deposit Certificate (CDI) in 2014 (10.8%), versus 2013 (8.2%).

7.2. Monetary and exchange rate variation on assets and liabilities

 

       

R$ million

 

2014

2013

Chg.

%

Monetary variation on loans and financing

(98.3)

(72.7)

(25.6)

35.2

Exchange rate variation on loans and financing

(345.7)

(267.8)

(77.9)

29.1

Other monetary variations

(71.2)

(28.4)

(42.8)

150.7

Monetary/exchange rate variation on liabilities

(515.2)

(368.9)

(146.3)

39.7

Monetary/exchange rate variation on assets

91.3

86.6

4.7

5.4

Monetary/exchange rate variation, net

(423.9)

(282.3)

(141.6)

50.2

7.2.1. Monetary/exchange rate variation on liabilities

The effect on the monetary/currency exchange variation on liabilities in 2014 was R$ 146.3 million, higher than in 2013, especially due to:

·    An increase of R$ 25.6 million in expenses with monetary variation on domestic loans and financing, chiefly due to the increase in the IPCA and TR (6.4% and 0.9%, respectively) compared to 2013 (5.9% and 0.2%, respectively);

·    An upturn of R$ 77.9 million in expenses, considering exchange variation on loans and financing, due to the increase in the debt balance, as a result of new fundings, totaling R$458.7 million; and

·   Other monetary variations, with an increase of R$42.8 million, chiefly due to the monetary restatement of lawsuits, totaling R$38.0 million.

The US dollar appreciation recorded in 2014 and 2013 was 13.4% and 14.6%, respectively.

7.2.2. Monetary/Exchange rate variation on assets

R$ 4.7 million increase, mainly due to the monetary updates on judicial deposits.

8. Income tax and social contribution

Income tax and social contribution expenses decreased by R$ 360.2 million, due to the drop in taxable income in the period.

Page 7 of 13


 

9. Indicators

9.1. Operating

The water loss ratio has continued decreasing, closing 2014 at 21.3%. The same occurred with the measured water loss ratio which dropped from 31.2% in 2013 to 29.8% in 2014.

It is worth noting that the reduction in the water loss indicators in 2014 was influenced by the intensification in pressure management in the operation of the supply systems, an operational practice designed to manage the current water shortage, reducing its impacts on the supply of the population. This operational practice has an effect in the calculation of loss indicators in the period in which it is adopted, resulting in lower loss indicators, which should not be interpreted only as the result of initiatives to reduce losses, but as the result of an atypical and temporary situation.

 

Regarding the water volume produced there was a 7% decline, despite the 2,8% increase in the population served.

 

Operating indicators *

2014

2013

%

Water connections (1)

8,210

7,880

4.2

Sewage connections (1)

6,660

6,340

5.0

Population directly served - water (2)

25.3

24.6

2.8

Population directly served - sewage (2)

22.4

21.5

4.2

Number of employees

14,753

15,015

(1.7)

Water volume produced(3)

2,840

3,053

(7.0)

IPF - Non-revenue water loss (%)

21.3

24.4

(12.7)

IPM - Micro-measured water loss (%)

29.8

31.2

(4.5)

(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. Not including wholesale

(3) In millions of cubic meters (*) Unaudited

9.2. Financial

Economic Indexes * (year end)

2014

2013

Amplified Consumer Price Index (IPCA) - %

6.41

5.91

Referential Rate (TR) - %

0.86

0.19

Interbank Deposit Certificate (CDI) - %

10.83

8.18

US DOLAR (R$)

2.6562

2.3426

YEN (R$)

0.02223

0.02233

 

 

Page 8 of 13


 

 

10. Loans and financing

 

               

R$ million

INSTITUTION

2015

2016

2017

2018

2019

2020

2021 and onwards

Total

Local market

 

 

 

 

 

 

 

 

Caixa Econômica Federal

67.1

67.9

71.8

75.7

79.0

82.7

654.3

1,098.5

Debentures

639.1

282.9

805.8

499.8

576.5

291.6

504.2

3,599.9

Debentures BNDES

38.0

38.0

38.0

38.0

38.0

35.2

-

225.2

Debentures FI FGTS

37.0

37.0

37.0

37.0

37.0

37.0

54.0

276.0

BNDES

52.5

65.1

69.0

69.0

69.0

51.4

253.9

629.9

Commercial Leasing

9.0

21.9

22.7

23.6

24.5

26.3

354.6

482.6

Others

0.7

0.6

0.7

0.5

-

-

-

2.5

Interest and charges

125.0

-

-

-

-

-

-

125.0

Local market total

968.4

513.4

1,045.0

743.6

824.0

524.2

1,821.0

6,439.6

International market

 

 

 

 

 

 

 

 

BID

101.3

101.3

142.5

75.8

75.8

75.9

856.6

1,429.2

BIRD

-

-

-

-

4.0

8.1

109.3

121.4

Eurobonds

-

371.7

-

-

-

924.7

-

1,296.4

JICA

48.7

48.6

49.2

49.9

67.0

67.0

736.0

1,066.4

BID 1983AB

63.6

63.6

63.6

63.3

47.0

46.2

60.4

407.7

Interest and charges

25.1

-

-

-

-

-

-

25.1

International market total

238.7

585.2

255.3

189.0

193.8

1,121.9

1,762.3

4,346.2

Total

1,207.1

1,098.6

1,300.3

932.6

1,017.8

1,646.1

3,583.3

10,785.8

 

11. Capex

In 2014 the Company invested R$ 3.2 billion, R$ 2.0 billion in the São Paulo Metropolitan Region and R$ 1.2 billion in the Regional Systems.

2014 Capex

     

R$ million

Capex by segment

Water

Sewage

Total

Metropolitan Region

833.8

1,174.2

2,008.0

Regional Systems

472.9

729.7

1,202.6

Total

1,306.7

1,903.9

3,210.6

Capex Plan 2015 2019: R$ 13.5 billion

The Capex Plan for 2015 to 2019 is R$ 13.5 billion of which R$ 5.6 billion in water and R$ 7.9 billion in sewage.

           

R$ million

 

2015

2016

2017

2018

2019

Total

Water

1,518

1,919

907

711

563

5,618

Sewage Collection

587

544

1,255

1,255

1,427

5,068

Sewage Treatment

256

437

662

760

717

2,832

Total

2,361

2,900

2,824

2,726

2,707

13,518

 

Page 9 of 13


 

 

12. Conference calls

 

In Portuguese

March 31, 2015

9:30 am (US EST) / 10:30 am (Brasília)

Dial in: 55 (11) 3728-5971 ou

55 (11) 3127-4971

Code: Sabesp

 

Replay available for 7 days

Dial in: 55 (11) 3127-4999

Code: 50456607

 

Click here to access the webcast

In English

March 31, 2015

2:00 pm (Brasília) / 1:00 pm (US EST)

Dial in: 1 (412) 317-6776

Code: Sabesp

 

 

Replay available for 7 days

Dial in: 1(412) 317-0088

Code: 10056737

 

Click here to access the webcast

 

For more information, please contact:

Mario Arruda Sampaio
Phone.(55 11) 3388-8664
E-mail: maasampaio@sabesp.com.br

Angela Beatriz Airoldi
Phone.(55 11) 3388-8793
E-mail: abairoldi@sabesp.com.br

Statements contained in this press release may contain information that is forward-looking and reflects management's current view and estimates of future economic circumstances, industry conditions, SABESP performance, and financial results. Any statements, expectations, capabilities, plans and assumptions contained in this press release that do not describe historical facts, such as statements regarding the declaration or payment of dividends, the direction of future operations, the implementation of principal operating and financing strategies and capital expenditure plans, the factors or trends affecting financial condition, liquidity or results of operations are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. There is no guarantee that these results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

Page 10 of 13


 

 

Income Statement

 

Brazilian Corporate Law

 

R$ '000

 

2014

2013

Gross Operating Revenue

11,823,371

11,984,756

Water Supply - Retail

4,654,719

4,972,870

Water Supply - Wholesale

146,848

208,651

Sewage Collection and Treatment

3,936,454

4,187,274

Sewage Collection and Treatment - Wholesale

21,765

26,137

Construction Revenue - Water

1,204,380

1,011,412

Construction Revenue - Sewage

1,713,656

1,433,323

Other Services

145,549

145,089

Taxes on Sales and Services - COFINS and PASEP

(610,155)

(669,189)

Net Operating Revenue

11,213,216

11,315,567

Operating Costs

(7,635,599)

(6,816,263)

Gross Profit

3,577,617

4,499,304

Operating Expenses

 

 

Selling

(736,608)

(637,103)

Administrative

(924,359)

(729,117)

Other operating revenue (expenses), net 

(3,488)

3,296

Operating Income Before Shareholdings 

1,913,162

3,136,380

Equity Result 

(2,453)

2,465

Earnings Before Financial Results, net

1,910,709

3,138,845

Financial, net

(289,561)

(216,800)

Exchange gain (loss), net

(346,305)

(266,446)

Earnings before Income Tax and Social Contribution

1,274,843

2,655,599

Income Tax and Social Contribution

 

 

Current

(437,417)

(742,578)

Deferred

65,557

10,538

Net Income (loss) for the period

902,983

1,923,559

Registered common shares ('000)

683,509

683,509

Earnings per shares - R$ (per share)

1.32

2.81

Depreciation and Amortization

(1,004,471)

(871,073)

Adjusted EBITDA

2,918,668

4,006,622

% over net revenue

26.0%

35.4%

 

 

Page 11 of 13


 

Balance Sheet

 

Brazilian Corporate Law

   

R$ '000

ASSETS

12/31/2014

 

12/31/2013

Current assets

 

 

 

Cash and cash equivalents

1,722,991

 

1,782,001

Trade accounts receivable

1,034,820

 

1,120,053

Accounts receivable from related parties

121,965

 

134,855

Inventories

66,487

 

58,401

Restricted cash

19,750

 

10,333

Recoverable taxes

148,768

 

87,405

Other accounts receivable

100,664

 

61,039

Total current assets

3,215,445

 

3,254,087

 

 

 

 

Noncurrent assets

 

 

 

Trade accounts receivable

189,458

 

395,512

Accounts receivable from related parties

102,018

 

130,457

Escrow deposits

69,488

 

54,827

Deferred income tax and social contribution

209,478

 

114,030

Water National Agency – ANA

122,634

 

107,003

Other accounts receivable

87,286

 

94,952

 

 

 

 

Investments

21,223

 

23,660

Investment properties

54,039

 

54,039

Intangible assets

25,979,526

 

23,846,231

Property, plant and equipment

304,845

 

199,496

Total noncurrent assets

27,139,995

 

25,020,207

 

 

 

 

Total assets

30,355,440

 

28,274,294

LIABILITIES AND EQUITY

12/31/2014

 

12/31/2013

Current liabilities

 

 

 

Trade payables and contractors

323,513

 

275,051

Current portion of long-term loans and financing

1,207,126

 

640,940

Accrued payroll and related charges

387,971

 

314,926

Taxes and contributions

74,138

 

115,382

Interest on shareholders' equity payable

214,523

 

456,975

Provisions

625,092

 

631,374

Services payable

318,973

 

323,208

Public-Private Partnership – PPP

38,047

 

20,241

Program Contract Commitments

189,551

 

77,360

Other liabilities

101,642

 

116,924

Total current liabilities

3,480,576

 

2,972,381

 

 

 

 

Noncurrent liabilities

 

 

 

Loans and financing

9,578,641

 

8,809,134

Deferred Cofins and Pasep

129,351

 

129,849

Provisions

595,255

 

549,008

Pension obligations

2,729,598

 

2,327,016

Public-Private Partnership – PPP

330,236

 

322,267

Program Contract Commitments

18,208

 

88,678

Other liabilities

189,172

 

145,160

Total noncurrent liabilities

13,570,461

 

12,371,112

 

 

 

 

Total Liabilities

17,051,037

 

15,343,493

 

 

 

 

Equity

 

 

 

Capital stock

10,000,000

 

6,203,688

Capital reserve

-

 

124,255

Earnings reserves

3,694,151

 

6,736,389

Other comprehensive income

(389,748)

 

(133,531)

Total equity

13,304,403

 

12,930,801

 

 

 

 

Total equity and liabilities

30,355,440

 

28,274,294

       

 

Page 12 of 13


 

Brazilian Corporate Law

 

R$ '000

 

 

2014

2013

Cash flow from operating activities

 

 

 

Profit before income tax and social contribution

1,274,843

2,655,599

Adjustment for:

 

 

 

Depreciation and amortization

1,004,471

871,073

 

Residual value of property, plant and equipment and intangible assets written-off

48,248

28,498

 

Allowance for doubtful accounts

139,589

103,864

 

Provision and inflation adjustment

236,122

202,730

 

Interest calculated on loans and financing payable

379,489

390,039

 

Inflation adjustment and foreign exchange gains (losses) on loans and financing

443,414

340,492

 

Interest and inflation adjustment losses

17,900

18,401

 

Interest and inflation adjustment gains

(36,227)

(7,671)

 

Financial charges from customers

(195,948)

(234,138)

 

Margin on intangible assets arising from concession

(62,520)

(50,248)

 

Provision for Consent Decree (TAC)

52,008

22,518

 

Equity result

2,453

(2,465)

 

Provision from São Paulo agreement

(23,306)

3,168

 

Provision for defined contribution plan

8,395

9,167

 

Pension obligations

289,294

260,003

 

Other adjustments

43,543

(33,576)

   

3,621,768

4,577,454

Changes in assets

 

 

 

Trade accounts receivable

363,343

(11,515)

 

Accounts receivable from related parties

42,670

5,586

 

Inventories

(8,699)

(6,133)

 

Recoverable taxes

(148,578)

31,016

 

Escrow deposits

4,528

(1,669)

 

Other accounts receivable

(47,590)

(13,868)

Changes in liabilities

 

 

 

Trade payables and contractors

(85)

(15,454)

 

Services received

19,071

(65,883)

 

Accrued payroll and related charges

21,037

47,594

 

Taxes and contributions payable

28,383

(146,664)

 

Deferred Cofins/Pasep

(498)

6,118

 

Provisions

(196,157)

(211,502)

 

Pension obligations

(172,820)

(158,442)

 

Other liabilities

(6,946)

(59,211)

     

 

Cash generated from operations

3,519,427

3,977,427

     

 

 

Interest paid

(603,563)

(533,362)

 

Income tax and contribution paid

(435,612)

(666,883)

     

 

Net cash generated from operating activities

2,480,252

2,777,182

     

 

Cash flows from investing activities

 

 

 

Acquisition of intangibles

(2,658,857)

(2,305,031)

 

Restricted cash

(9,417)

54,644

 

Investment increase

(16)

(369)

 

Purchases of tangible assets

(89,451)

(30,743)

Net cash used in investing activities

(2,757,741)

(2,281,499)

     

 

Cash flow from financing activities

 

 

 

Loans and financing

 

 

 

Proceeds from loans

1,258,101

1,779,529

 

Repayments of loans

(529,535)

(1,780,673)

 

Payment of interest on shareholders'equity

(467,469)

(498,669)

 

Public-Private Partnership – PPP

(4,189)

(13,809)

 

Program Contract Commitments

(38,429)

(116,034)

Net cash generated by financing activities

218,479

(629,656)

     

 

Cash reduce and cash equivalents

(59,010)

(133,973)

     

 

Represented by:

 

 

Cash and cash equivalents at beginning of the period

1,782,001

1,915,974

Cash and cash equivalents at end of the period

1,722,991

1,782,001

Cash reduce and cash equivalents

(59,010)

(133,973)

 

 

Page 13 of 13

 

 

SIGNATURE  
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city São Paulo, Brazil.
Date: March 27, 2015
 
Companhia de Saneamento Básico do Estado de São Paulo - SABESP
By: /s/  Rui de Britto Álvares Affonso    
 
Name: Rui de Britto Álvares Affonso
Title: Chief Financial Officer and Investor Relations Officer
 

 

 
FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.