sbspr4q09_6k.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 26, 2010

(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 4Q09 and 2009 results

São Paulo, March 26, 2010 - 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 customers, announces today its results for the fourth quarter of 2009 (4Q09) and the full year 2009. 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 2008.  SBSP3: R$ 30.40 / ação 
SBS: US$ 34.10 (ADR=2 shares) 
Total shares: 227.836.623 
Market Value: R$ 6.9 billion 
Closing price: 03/26/2010 

 


 

 
 1. Financial Highlights 
R$ million  4Q08  4Q09  Chg.  %  2008  2009  Chg.  % 
(+) Gross operating revenue  1,835.6  1,964.1  128.5  7.0  6,838.8  7,236.2  397.4  5.8 
(-) COFINS and PASEP taxes  130.4  139.5  9.1  7.0  487.1  505.7  18.6  3.8 
(=) Net operating revenue  1,705.2  1,824.6  119.4  7.0  6,351.7  6,730.5  378.8  6.0 
(-) Costs and expenses  1,125.2  1,066.2  (59.0)  (5.2)  4,129.2  4,549.3  420.1  10.2 
(+) Equity Results  -  (0.1)  (0.1)  -  -  (0.2)  (0.2)  - 
(=) Earnings before financial expenses (EBIT*)  580.0  758.3  178.3  30.7  2,222.5  2,181.0  (41.5)  (1.9) 
(+) Depreciation and amortization  152.4  76.0  (76.4)  (50.1)  617.8  560.7  (57.1)  (9.2) 
(=) EBITDA**  732.4  834.3  101.9  13.9  2,840.3  2,741.7  (98.6)  (3.5) 
(%) EBITDA margin  43.0  45.7  -  -  44.7  40.7  -  - 
Net income  113.3  457.3  344.0  303.6  63.6  1,373.9  1,310.3  - 
Earnings per share (R$)  0.50  2.01  -  -  0.28  6.03  -  - 
(*) Earnings before interest and taxes
(**) Earnings before interest, taxes, depreciation and amortization

 

Sabesp registered solid results in 2009, confirming its low exposure to the global crisis that affected the markets in 2008 and 2009. Net income in 2009 was R$ 1.4 billion, a great difference when compared to the R$ 63,6 million achieved in 2008. Although, this reduction in net income was mainly due to the provision for losses of the disputed amount of the benefits paid by the Company as additional retirement payments and pensions envisaged in Law 4,819/58, in the amount of R$ 409.1 million and the respective actuarial commitment maintained with the beneficiaries, amounting to R$ 535.4 million. Disregarding this adjustment, 2008 net income would be of R$ 1.0 billion. Even considering this amount, 2009 result had a significant growth of 36.2%.

Net revenue was R$ 6.7 billion, 6.0% up year-on-year, and EBITDA was R$ 2.7 billion, 3.5% down from 2008.

2. Gross operating revenue

Gross operating revenue grew from R$ 6.8 billion in 2008 to R$ 7.2 billion in 2009, an increase of R$ 397.4 million or 5.8%, mainly due to:

This result was impacted by (i) the decline in the industrial segment's volume due to the closure and/or reduction in the production of a few industrial units and the signing of firm demand agreements; and (ii) the volume decrease in the public sector category (municipal and state governments) on account of the incentives to reduce water consumption under the Program for the Rational Use of Water (PURA).

The gross annual variation was positively impacted by 4Q09 volume performance, with billed volume growth in all customer categories.

3. Billed volume

The following tables show the billed water and sewage volume per customer category and region in 4Q08 and 4Q09, as well as in 2008 and 2009.

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BILLED WATER AND SEWAGE VOLUME (1) PER CUSTOMER CATEGORY - million m3
  Water Sewage Water + Sewage
  4Q08  4Q09  %  4Q08  4Q09  %  4Q08  4Q09  % 
Residential  347.1  358.0  3.1  279.3  289.7  3.7  626.4  647.7  3.4 
Commercial  39.2  40.2  2.6  36.1  37.1  2.8  75.3  77.3  2.7 
Industrial  9.0  9.1  1.1  8.5  9.3  9.4  17.5  18.4  5.1 
Public  12.1  12.4  2.5  9.9  10.3  4.0  22.0  22.7  3.2 
Total retail  407.4  419.7  3.0  333.8  346.4  3.8  741.2  766.1  3.4 
Wholesale  72.6  72.9  0.4  6.5  8.7  33.8  79.1  81.6  3.2 
Reused water  0.1  0.2  -  -  -  -  0.1  0.2  - 
Total  480.1  492.8  2.6  340.3  355.1  4.3  820.4  847.9  3.4 
  2008  2009  %  2008  2009  %  2008  2009  % 
Residential  1,358.7  1,393.1  2.5  1,088.8  1,124.3  3.3  2,447.5  2,517.4  2.9 
Commercial  154.0  155.5  1.0  141.8  143.8  1.4  295.8  299.3  1.2 
Industrial  35.7  34.4  (3.6)  33.9  34.8  2.7  69.6  69.2  (0.6) 
Public  47.1  47.0  (0.2)  38.0  38.6  1.6  85.1  85.6  0.6 
Total retail  1,595.5  1,630.0  2.2  1,302.5  1,341.5  3.0  2,898.0  2,971.5  2.5 
Wholesale  284.5  288.0  1.2  27.9  31.1  11.5  312.4  319.1  2.1 
Reused water  0.2  0.8  -  -  -  -  0.2  0.8  - 
Total  1,880.2  1,918.8  2.1  1,330.4  1,372.6  3.2  3,210.6  3,291.4  2.5 

 

BILLED WATER AND SEWAGE VOLUME (1) PER REGION - million m3
    Water      Sewage    Water + Sewage   
  4Q08  4Q09  %  4Q08  4Q09  %  4Q08  4Q09  % 
Metropolitan  271.6  278.7  2.6  226.4  234.9  3.8  498.0  513.6  3.1 
Regional (2)  135.8  141.0  3.8  107.4  111.5  3.8  243.2  252.5  3.8 
Total retail  407.4  419.7  3.0  333.8  346.4  3.8  741.2  766.1  3.4 
Wholesale  72.6  72.9  0.4  6.5  8.7  33.8  79.1  81.6  3.2 
Reused water  0.1  0.2  -  -  -  -  0.1  0.2  - 
Total  480.1  492.8  2.6  340.3  355.1  4.3  820.4  847.9  3.4 
  2008  2009  %  2008  2009  %  2008  2009  % 
Metropolitan  1,065.9  1,083.9  1.7  887.3  911.1  2.7  1,953.2  1,995.0  2.1 
Regional (2)  529.6  546.1  3.1  415.2  430.4  3.7  944.8  976.5  3.4 
Total retail  1,595.5  1,630.0  2.2  1,302.5  1,341.5  3.0  2,898.0  2,971.5  2.5 
Wholesale  284.5  288.0  1.2  27.9  31.1  11.5  312.4  319.1  2.1 
Reused water  0.2  0.8  -  -  -  -  0.2  0.8  - 
Total  1,880.2  1,918.8  2.1  1,330.4  1,372.6  3.2  3,210.6  3,291.4  2.5 
(1) Unaudited
(2) Including coastal and countryside

 

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4. Costs, administrative and selling expenses

In 2009, costs of products and services, administrative and selling expenses increased by 10.2% or R$ 420.1 million. As a percentage of net revenue, costs and expenses climbed from 65.0% in 2008 to 67.6% in 2009. Excluding the non-recurring effect of TAC* of R$ 146.6 million, these costs would be R$ 4,402.7 million and their share of net revenue would be 65.4%.

              R$ million 
  4Q08  4Q09  Chg.  %  2008  2009  Chg.  % 
Payroll and benefits  352.2  355.2  3.0  0.9  1,353.8  1,558.6  204.8  15.1 
Supplies  42.9  44.8  1.9  4.4  146.5  156.0  9.5  6.5 
Treatment supplies  33.1  31.5  (1.6)  (4.8)  133.1  136.7  3.6  2.7 
Services  234.9  216.9  (18.0)  (7.7)  688.6  911.1  222.5  32.3 
Electric power  116.7  125.3  8.6  7.4  459.6  485.5  25.9  5.6 
General expenses  98.2  131.4  33.2  33.8  345.0  377.5  32.5  9.4 
Tax expenses  11.2  11.6  0.4  3.6  48.5  55.0  6.5  13.4 
Sub-total  889.2  916.7  27.5  3.1  3,175.1  3,680.4  505.3  15.9 
Depreciation and amortization  152.4  76.0  (76.4)  (50.1)  617.8  560.7  (57.1)  (9.2) 
Credit write-offs  83.6  73.5  (10.1)  (12.1)  336.3  308.2  (28.1)  (8.4) 
Costs, administrative and selling expenses  1,125.2  1,066.2  (59.0)  (5.2)  4,129.2  4,549.3  420.1  10.2 
% over net revenue  66.0  58.4  65.0  67.6 

 

* TAC (Conduct Adjustment Term) that includes the dismissal of 2,250 employees from the Company’s workforce retired under the INSS regime, pursuant to the State Prosecution Office’s determination.

4.1. Payroll and Benefits

Payroll and benefits increased by R$ 204.8 million or 15.1%, from R$ 1,353.8 million in 2008 to R$ 1,558.6 million in 2009, due to the following:

In the absence of TAC, this expense would be R$ 1,412.0 million, 4.3% up in relation to 2008.

4.2. Supplies

Expenses with Supplies increased by R$ 9.5 million or 6.5%, from R$ 146.5 million in 2008 to R$ 156.0 million in 2009. The main factors were expenses with materials for water and sewage networks as well as connections, due to the increase in the volume of maintenance services under the Global Sourcing contracts in the amount of R$ 3.3 million and data processing expenses of R$ 2.4 million, due to the replacement and modernization of the IT equipment.

Supplies increased by R$ 1.9 million or 4.4% in 4Q09.

4.3. Treatment supplies

Expenses with treatment supplies increased from R$ 133.1 million in 2008 to R$ 136.7 million in 2009, an increase of R$ 3.6 million or 2.7%, mainly due to the increased consumption of iron chloride and aluminum polychloride, which increase the efficiency of the water treatment process, in the place of products such as aluminum and iron sulphate, the latter derived from ferric sulphate, which is harmful to the environment.

In 4Q09, there was a decrease of R$ 1.6 million or 4.8% due to the reduced consumption of copper sulphate at the Guarapiranga dam, thanks to the improved quality of the water at the source.

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4.4. Services

In 2009, this item increased by R$ 222.5 million or 32.3%, from R$ 688.6 million to R$ 911.1 million, with the main factors being:

In 4Q09, there was a decrease of R$ 18.0 million or 7.7%, mainly due to the revision of the provision for the commitments established in the agreement between Sabesp and the São Paulo Municipal Government.

4.5. Electric power

In 2009, this item increased by R$ 25.9 million or 5.6% to reach R$ 485.5 million, from R$ 459.6 million in 2008. The increase was due to the following factors:· Average tariff adjustment of 7.9% in the captive market, which represents 78.0% of the installed capacity, resulting in a weighted average increase of around 8.5% between the captive and free markets; and· Weighted average increase of 5.3% in the expenses between the markets.

These increases were partly compensated by the 1.6% decrease in consumption.

    Expenses  Weighted 
  Participation (%)  Variation (%)  Average (%) 
Free market  22.0  2.7  0.6 
Captive market  78.0  6.1  4.7 
      5.3 

 

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4.6. General expenses

General expenses increased by R$ 32.5 million or 9.4%, from R$ 345.0 million in 2008 to R$ 377.5 million in 2009, mainly due to:

In 4Q09, the increase was R$ 33.2 million, mainly related to the provision for contingencies.

4.7. Depreciation and Amortization

This item decreased by R$ 57.1 million or 9.2%, from R$ 617.8 million in 2008 to R$ 560.7 million, mostly due to the revision of the estimated useful life of assets in 2009.

4.8. Credit write-offs

Credit write-offs declined by R$ 28.1 million, from R$ 336.3 million in 2008 to R$ 308.2 million in 2009, due to the increased provision in 2008 for the overdue debt of the municipalities to which the Company supplies water on wholesale.

4.9. Tax expenses

In 2009, tax expenses increased by R$ 6.5 million or 13.4%, due to:

5. Other operating revenues and expenses

Other operating revenues/expenses decreased by R$ 1,013.3 million or 96.2%, mainly due to: (i) the provision for losses on the balance receivable from the GESP agreement relating to the benefits paid to retired employees and pensioners, in the amount of R$ 409.1 million, in 2008; and (ii) recognition of liabilities related to the actuarial commitment with the beneficiaries in the amount of R$ 535.4 million, in 2008.

6. Financial expenses and revenues

        R$ million 
  2008  2009  Var.  % 
Financial expenses         
Interest and charges on domestic loans and financing  423.2  390.8  (32.4)  (7.7) 
Interest and charges on international loans and financing  71.3  61.8  (9.5)  (13.3) 
Interest rate over lawsuit indemnity, net of provisions  226.7  314.5  87.8  38.7 
Other financial expenses  (30.3)  34.5  64.8  (213.9) 
Total financial expenses  690.9  801.6  110.7  16.0 
Financial revenues  150.2  163.5  13.3  8.9 
Financial expenses net of revenues  540.7  638.1  97.4  18.0 

 

6.1. Financial expenses 

Financial expenses increased by R$ 110.7 million or 16.0% in 2009, as described below:

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These increases were offset by the following:

6.2. Financial revenues

Financial revenues increased by R$ 13.3 million, mainly as a result of the returns on investments.

7. Monetary variations on assets and liabilities

        R$ million 
  2008  2009  Var.  % 
Monetary variation over loans and financing  127.9  1.4  (126.5)  (98.9) 
Currency exchange variation over loans and financing  436.2  (403.7)  (839.9)  (192.5) 
Other variations  20.5  23.5  3.0  14.6 
Variation on liabilities  584.6  (378.8)  (963.4)  (164.8) 
Variation on assets  417.6  55.7  (361.9)  (86.7) 
Net Variation  167.0  (434.5)  (601.5)  (360.2) 

 

7.1. Variations on liabilities

The net effect of the variation on liabilities in 2009 was R$ 963.4 million compared to 2008, due to:

7.2. Monetary variations on assets

Monetary variations on assets declined by R$ 361.9 million, mainly due to the update of R$ 344.6 million of the undisputed amounts regarding supplementary retirement and pension remuneration as provided by the Third Amendment to the GESP in 2008, non-recurring in 2009.

8. Operating indicators

Sabesp continues to work strenuously to reduce water loss, with a continuous reduction in loss rates, which decreased 6.8% in the period, falling from 27.9% in 2008 to 26.0% in 2009. In 2009, a sum of R$ 261 million was

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invested in the Water Loss Reduction Program, with investments totaling R$ 218 million and expenses totaling R$ 43 million, which brought significant results in the year.

This reduction is evident from the 0.3% decline in the volume of water produced, in contrast to the 2.1% growth in the water billed volume.

Operating indicators*  2008  2009  % 
Water connections (1)  6,945  7,118  2.5 
Sewage connections (1)  5,336  5,520  3.4 
Population directly served - water (2)  23.2  23.4  1.0 
Population directly served - sewage (2)  19.2  19.6  2.1 
Number of employees  16,649  15,103  (9.3) 
Number of connections per employees  738  837  13.4 
Water volume produced (3)  2,852.6  2,844.9  (0.3) 
Water losses (%)  27.9  26.0  (6.8) 
(1) In thousand units at the end of the period       
(2) In million inhabitants at the end of the period, not including wholesale       
(3) In million m3 at the end of the period       
* Not revised by the Independent Auditors       


9. Loans and financing

In 2009, the Company contracted new debts in the amount of R$2,239 million and amortized a total of R$1,896 million. Due to the amortizations and, mainly, the dollar devaluation, the total debt net balance decreased by R$305 million.

At the end of 2009, net debt was R$ 5,790.6 million, down 7.3% against 2008. At the end of 2009, debt pegged to the U.S. dollar corresponded to 26.6%, compared to 33.2% in 2008, of which 70.2% was obtained from multilateral entities, as against 69.5% in 2008. Despite the funds that the Company has been raising related to investments program and the need for debt refinancing, the Net Debt/EBITDA in 2009 remained at 2.1 times, the same as 2008.

                R$ million 
INSTITUTION  2010  2011  2012  2013  2014  2015  2016 and
onwards 		 Total 
Local market                 
Banco do Brasil  288.8  314.4  342.2  372.4  98.1  -  -  1,415.9 
Caixa Econômica Federal  78.9  85.9  94.6  95.8  57.2  34.8  311.7  758.9 
Debentures  347.1  451.5  35.0  108.9  75.9  75.9  169.6  1,263.9 
FIDC - SABESP I  55.6  13.9  -  -  -  -  -  69.5 
BNDES  42.9  43.5  54.4  21.7  17.5  17.6  74.3  271.9 
Promissory Notes / Debentures (*)  -  -  -  299.5  -  598.9  -  898.4 
Others  3.3  7.9  0.4  0.4  0.5  0.5  1.8  14.8 
Interest and charges  112.3  8.0  -  -  -  -  -  120.3 
Local market total  928.9  925.1  526.6  898.7  249.2  727.7  557.4  4,813.6 
International market                 
IDB  64.2  64.2  64.2  64.2  64.2  64.2  266.8  652.0 
Eurobonds  -  -  -  -  -  -  243.8  243.8 
JICA  -  10.8  21.7  21.7  21.7  21.7  303.4  401.0 
IDB 1983AB  -  41.4  41.4  41.4  41.4  41.4  225.1  432.1 
Interest and charges  17.5  -  -  -  -  -  -  17.5 
International market total  81.7  116.4  127.3  127.3  127.3  127.3  1,039.1  1,746.4 
Total  1,010.6  1,041.5  653.9  1,026.0  376.5  855.0  1,596.5  6,560.0 

(*) On December 1, 2009, promissory notes in the amount of R$ 900 million were issued as a bridge loan, corresponding to an advance of the 11th issue of debentures.
The net proceeds obtained with the 11th issue of debentures will be fully employed to redeem the 90 promissory notes related to the 4th issue of SABESP.

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10. Investments

In 2009 investments reached R$ 1.8 billion and, as it occurred in 2008, a significant amount was invested in sewage, as shown at the following table.

2009 Investments (R$ million)
  Water  Sewage  TOTAL 
Metropolitan Region of São Paulo  506.2  237.5  743.7 
Regional Systems (Costal and Countryside)  350.7  740.0  1,090.7 
TOTAL  856.9  977.5  1,834.4 
2009 does not include the agreement with the program contracts (R$18 million)

 

For the year 2010 a total of R$1.8 billion is expected to be invested, and the Company will use its own resources as well as financing with BNDES, CEF and international multilateral institutions, which have more suitable conditions to financing our type of investments. The highlights among the main approved and in negotiation financing are:

Program  Amount  Financing Source  Negotiation Progress 
  R$ 294 million  BNDES  Signed in January 2010 
Onda Limpa  US$ 190 million  JICA  Expected date of signature in the 2nd semester 2010 
Redução de Perdas  US$ 366 million  JICA  Expected date of signature in the 2nd semester 2010 
Projeto Tietê  US$ 600 million  BID  Expected date of signature in the 1st semester 2010 

 

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11. Upcoming Events

Conference Call in Portuguese
April 1, 2010
2:00PM (Brasília) / 1:00PM (US EST)
Dial-in access: (55 11) 2188-0188
Conference ID: Sabesp

Replay – available until 4/8/2010
Dial-in access: (55 11) 2188-0188
 Replay ID: Sabesp

Conference Call in English
April 1, 2010
4:30PM (Brasília) / 3:30PM (US EST)
Dial-in access: 1(412) 858-4600
Conference ID: Sabesp

Replay – available until 4/9/2010
 Dial-in access: 1(412) 317-0088
Replay ID: 438924#

 

Live webcast at www.sabesp.com.br

For more information, please contact:

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

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

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

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Income Statement

Corporate Law Method (Law No. 6,404/76)        R$ '000 
  PARENT COMPANY  CONSOLIDATED 
  2009  2008  2009  2008 
Gross Revenue from Sales and Services  7,236,218  6,838,803  7,236,218  6,838,803 
Water Supply - Retail  3,690,722  3,503,643  3,690,722  3,503,643 
Water Supply - Wholesale  332,975  314,952  332,975  314,952 
Sewage Collection and Treatment  3,069,870  2,891,036  3,069,870  2,891,036 
Sewage Collection and Treatment - Wholesale  21,851  16,606  21,851  16,606 
Other Services  120,800  112,566  120,800  112,566 
 
Taxes on Sales and Services - COFINS and PASEP  (505,671)  (487,131)  (505,671)  (487,131) 
 
Net Revenue from Sales and Services  6,730,547  6,351,672  6,730,547  6,351,672 
 
Costs of Sales and Services  (3,076,273)  (2,831,809)  (3,076,273)  (2,831,809) 
 
Gross Profit  3,654,274  3,519,863  3,654,274  3,519,863 
 
Operating Expenses         
Selling  (801,259)  (718,949)  (801,259)  (718,949) 
Administrative  (671,742)  (578,458)  (672,248)  (578,596) 
Other operating expenses, net  (39,500)  (1,052,984)  (39,500)  (1,052,984) 
 
Operating Income Before Shareholdings  2,141,773  1,169,472  2,141,267  1,169,334 
Equity Result  (218)  (9)  -  - 
 
Earnings Before Financial Results  2,141,555  1,169,463  2,141,267  1,169,334 
Financial, net  (598,995)  (268,790)  (598,707)  (268,661) 
Exchange gain (loss), net  395,369  (438,869)  395,369  (438,869) 
 
Earnings before Income Tax and Social Contribution  1,937,929  461,804  1,937,929  461,804 
 
Income Tax and Social Contribution         
 
Current  (748,705)  (548,373)  (748,705)  (548,373) 
Deferred  184,655  150,140  184,655  150,140 
 
Net Income (loss) for the period  1,373,879  63,571  1,373,879  63,571 
Registered common shares ('000)  227,836  227,836  227,836  227,836 
Earnings per shares - R$ (per share)  6.03  0.28  6.03  0.28 
Depreciation and Amortization  (560,687)  (617,804)  (560,689)  (617,804) 
EBITDA  2,741,742  2,840,251  2,741,456  2,840,122 
% over net revenue  40.7%  44.7%  40.7%  44.7% 

 

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Balance Sheet
 
Brazilian Corporate Law        R$ '000 
  PARENT COMPANY  CONSOLIDATED 
ASSETS  12/31/2009  12/31/2008  12/31/2009  12/31/2008 
 
Current         
Cash and Cash Equivalents  769,433  622,059  771,008  625,732 
Accounts Receivable from Clients  1,179,730  1,129,746  1,179,730  1,129,746 
Related Party Balance  135,987  210,131  135,987  210,131 
Inventory  39,877  47,678  39,877  47,678 
Recoverable Taxes  3,017  4,665  3,017  4,665 
Other Receivables  141,413  49,478  141,504  49,478 
Deferred income tax and social contribution  258,551  170,982  258,551  170,982 
Total Current Assets  2,528,008  2,234,739  2,529,674  2,238,412 
 
Non-Current         
Long Term Assets:         
Accounts Receivable from Clients  266,543  326,472  266,543  326,472 
Related Party Balance  956,648  980,756  956,648  980,756 
Indemnities Receivable  146,213  148,794  146,213  148,794 
Judicial Deposits  46,365  49,127  46,365  49,127 
Other Receivables  100,395  192,257  100,395  192,257 
Deferred income tax and social contribution  530,131  435,341  530,131  435,341 
  2,046,295  2,132,747  2,046,295  2,132,747 
 
Investments  4,334  4,552  720  720 
Permanent Assets  15,441,056  14,350,501  15,443,211  14,350,684 
Intangible Assets  1,545,303  1,391,348  1,545,303  1,391,348 
  16,990,693  15,746,401  16,989,234  15,742,752 
Total Non-Current Assets  19,036,988  17,879,148  19,035,529  17,875,499 
 
Total Assets  21,564,996  20,113,887  21,565,203  20,113,911 
 
LIABILITIES AND SHAREHOLDERS' EQUITY  12/31/2009  12/31/2008  12/31/2009  12/31/2008 
Current         
Contractors and Suppliers  195,606  187,139  195,765  187,143 
Loans and Financing  1,010,537  1,448,860  1,010,537  1,448,860 
Salaries and Payroll Charges  239,109  196,056  239,152  196,075 
Taxes and Contributions Payable  218,862  130,409  218,867  130,410 
Taxes and Contributions Deferred  37,912  64,369  37,912  64,369 
Interest on Own Capital Payable  365,442  275,007  365,442  275,007 
Provision for Contingencies  643,863  459,395  643,863  459,395 
Accounts Payable  239,494  198,511  239,494  198,511 
Other Payables  158,864  57,149  158,864  57,149 
Total Current Liabilities  3,109,689  3,016,895  3,109,896  3,016,919 
 
Non-Current         
Long Term Liabilities:         
Loans and Financing  5,549,463  5,416,248  5,549,463  5,416,248 
Taxes and Contributions Payable  85,029  114,210  85,029  114,210 
Taxes and Contributions Deferred  156,860  141,492  156,860  141,492 
Provision for Contingencies  824,957  698,253  824,957  698,253 
Provisions for actuarial liabilities Law 4819  518,027  535,435  518,027  535,435 
Pension Fund Obligations  480,103  419,871  480,103  419,871 
Other Payables  313,231  223,568  313,231  223,568 
Total Non Current Liabilities  7,927,670  7,549,077  7,927,670  7,549,077 
 
Shareholders' Equity         
Capital Stock  6,203,688  6,203,688  6,203,688  6,203,688 
Capital Reserves  124,255  124,255  124,255  124,255 
Revaluation Reserves  2,145,100  2,253,012  2,145,100  2,253,012 
Profit Reserves  2,054,594  966,960  2,054,594  966,960 
Total Shareholders' Equity  10,527,637  9,547,915  10,527,637  9,547,915 
 
Total Liabilities and Shareholders' Equity  21,564,996  20,113,887  21,565,203  20,113,911 

 

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Cash Flow
 
Brazilian Corporate Law        R$ '000 
  PARENT COMPANY  CONSOLIDATED 
Description  Jan-Dec/09 Jan-Dec/08   Jan-Dec/09  Jan-Dec/08 
Cash flow from operating activities         
Net income for the period  1,937,929  461,804  1,937,929  461,804 
Adjustments for reconciliation of net income         
Taxes and contributions payable  -  (68,878)  -  (68,878) 
Provisions for contingencies  596,543  461,654  596,543  461,654 
Provision for acturial liabilities Law 4819/58  45,104  535,435  45,104  535,435 
Provision for losses from dispute - Law 4819/58  -  409,079  -  409,079 
Reversion of provision for losses  8,183  (366)  8,183  (366) 
Other provisions  398  (492)  398  (492) 
Liabilities related to pension plans  77,793  71,704  77,793  71,704 
Write-off of property, plant and equipment  22,852  157,978  22,852  157,978 
Deferred asset write-offs  -  611  -  611 
Other write-offs  4,542  -  4,542  - 
Gain with the sale of property, plant and equipment  (9,461)  -  (9,461)  - 
Depreciation and Amortization  560,686  617,804  560,689  617,804 
Interest calculated over loans and financing payable  456,203  499,590  456,203  499,590 
Monetary and exchange variation over loans and financing  (402,329)  564,095  (402,329)  564,095 
Monetary variation over interest on own capital  -  7,338  -  7,338 
Variation on liabilities and interest  5,585  8,281  5,585  8,281 
Variation on assets and interest  (28,724)  (368,806)  (28,724)  (368,806) 
Provisions for bad debt  308,188  336,264  308,188  336,264 
Provision for TAC (Conduct Adjustment Term) retired employees  82,700  -  82,700  - 
Provision for São Paulo Municipal Government Agreement  27,748  -  27,748  - 
Equity Result  218  9  -  - 
Adjusted Net Income  3,694,158  3,693,104  3,693,943  3,693,095 
 
(Increase) decrease in assets:         
Accounts receivable from clients  (285,543)  (301,844)  (285,544)  (301,844) 
Shareholding balance  103,936  82,956  103,936  82,956 
Indemnification receivable  2,581  -  2,581  - 
Inventories  6,758  5,829  6,758  5,829 
Recoverable Taxes  1,648  4,749  1,648  4,749 
Other accounts receivable  (4,903)  (112,111)  (4,994)  (112,111) 
Judicial deposits  (34,010)  (37,933)  (34,010)  (37,933) 
Increase (decrease) in liabilities:         
Loans and financing  (15,404)  (17,986)  (15,249)  (17,982) 
Salaries and payroll charges  (39,647)  29,259  (39,620)  29,275 
Provision for actuarial liabilities - Law 4819  (62,512)  -  (62,512)  - 
Taxes and contributions payable  (60,022)  431,346  (60,021)  431,350 
Accounts payable  30,706  6,216  30,706  6,216 
Other accounts payable  181,058  16,321  181,058  16,321 
Contingencies  (240,031)  (235,573)  (240,031)  (235,573) 
Pension plan  (17,561)  (17,067)  (17,561)  (17,067) 
Variation on Assets and Liabilities  (432,946)  (145,838)  (432,855)  (145,814) 
Cash generated from operations  3,261,212  3,547,266  3,261,088  3,547,281 
Interest paid  (555,573)  (516,887)  (555,573)  (516,887) 
Income tax and contribution paid  (643,788)  (502,404)  (643,788)  (502,404) 
Net cash generated from operating activities  2,061,851  2,527,975  2,061,727  2,527,990 
 
Cash flow from investing activities:         
Acquisition of property, plant and equipment  (1,924,479)  (1,395,458)  (1,926,453)  (1,395,641) 
Increase in intangible assets  (56,014)  (159,514)  (56,014)  (159,514) 
Increase in investments  -  (3,841)  -  - 
Receivables by the permanent assets sale  29,162  -  29,162  - 
Net cash used in investing activities  (1,951,331)  (1,558,813)  (1,953,305)  (1,555,155) 
 
Cash flow from financing activities         
Loans and Financing         
Funding  2,237,056  1,043,174  2,237,056  1,043,174 
Payments  (1,896,480)  (1,146,416)  (1,896,480)  (1,146,416) 
 
Payment of interest on own capital  (303,722)  (708,858)  (303,722)  (708,858) 
Net cash generated (invested) at financing activities  36,854  (812,100)  36,854  (812,100) 
 
Increase in cash and equivalents  147,374  157,062  145,276  160,735 
Cash and cash equivalents at the beginning of the period  622,059  464,997  625,732  464,997 
Cash and cash equivalents at the end of the period  769,433  622,059  771,008  625,732 
Changes in Cash and Cash Equivalents  147,374  157,062  145,276  160,735 
 
Additional information on cash flow:         
Capitalization of interest and financial charges  (143,985)  219,430  (143,985)  219,430 
COFINS and PASEP taxes paid  503,296  515,659  503,296  515,659 
Agreements and Commitments with contract agreement  (7,550)  146,426  (7,550)  146,426 

 

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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 26, 2010

 
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.