Reunião com Investidores

XIII CEO Conference

BTG Pactual

February/2012

1

OVERVIEW

Present in 620 of the 853 municipalities in Minas Gerais

Water concessions : 395 municipalities

Water and sewage concessions : 225 municipalities

Not covered by COPASA: 233 municipalities

1

OVERVIEW

• Population served with water supply services

13.5 million inhabitants

98% of the population in the operated cities

3.6 million water connections

43 thousand km of network extension

• Population served with sewage services

8.1 million inhabitants

83% of the population in the operated cities

2 million of sewage connections

16.8 thousand km of network extension 2

ACCOMPLISHED RESULTS From January/2003 to September/2011

WATER

Municipalities with concessions

Population served

Number of connections

Network extension

+ 92.3 million m³ Volume of sewage collected*

+ 118.9 million m³ Volume of sewage treated*

* 2011: Total volume accumulated in the last 12 months (Oct/10 to Sep/11).

+ 3.1 million

+ 26 municipalities

+ 887 thousand

+ 9.1 thousand km

+29.5%

+4.4%

+32.7%

+26.2%

SEWAGE

+43.9%

+211.8%

+ 3.3 million

+ 85 municipalities

+ 925 thousand

+ 6.9 thousand km

+68.2%

+61.6%

+82.8%

+69.6%

3

OWNERSHIP STRUCTURE

Number of shareholders: 2,533 in 38 countries

Volume¹: R$ 7.5 million

Transactions¹: 1,224 Appreciation last 12 months: 49.6%

PRE-IPO (March/2006)

Minas Gerais State (85.5%)

Belo Horizonte Municipality (13.8%)

Free Float (0.7%)

Minas Gerais State (53%)

Free Float (47%)

TODAY

4 ¹ Period 02/14/2011 to 02/13/2012.

IBOVESPA: 3.9%

protection, recovery and conservation of watersheds

118 in operation and 76 under construction

25 thousand hectares preserved in 14 reserves

58% in September 2011

ENVIRONMENTAL COMMITMENT

Treated sewage index

Environmental reserves

Watershed Protection Program

Sewage treatment stations

5

REGULATION

6

Minas Gerais State Water and Sewage Services

Regulatory Agency ARSAE MG

Methodology for annual tariff adjustment already defined –

Normative Resoultion 003/2011;

7.02% - Tariff adjustment for 2011 calculated according to

the methodology;

TARIFF ADJUSTMENT METHODOLOGY

7

VPB = PORTION-B

Manageable

costs

VPA = PORTION-A

Non-manageable

costs = +

AUTHORIZED

REVENUE

(RA)

RA (Authorized Revenue) is the tariff at moment 0 (T0),

considering the Market of Reference (MR), which is the

market as seen between the adjustments.

Portion A (VPA): Non-Manageable Costs

Item

Eletric Power

Chemical products

Fuel and lubricants

Telecomunication

Taxes and fees

Portion B (VPB): Manageable Costs

Item Index Personnel INPC/IBGE

Material IGP-DI/FGV

General IPCA/IBGE

Amortization and depreciation INCC-DI/FGV Services IPCA/IBGE

Unit costs.

Portion-A variantion account.

TARIFF ADJUSTMENT METHODOLOGY

Tariff Adjustment Breakdown

Portion Weight Adjustment Index

Portion-A: Non-Manageable Costs 18% 6.24%

Portion-B: Manageable Costs 82% 7.19%

AUTHORIZED ADJUSTMENT 7.02%

8

STRENGTHS

Revenue Guaranteed by Concession Agreements

Diversified Customer Basis

Availability of Water Resources

Strong Growth Potential

9

Operating Efficiency

Solid Financial Position

concession agreements with formal authorization laws from the municipality;

78% of revenues guaranteed by concession agreements expiring after 2028.

Revenue Guaranteed by Concession Agreements

GUARANTEED REVENUES

10

Residential (88.8%)

Public (1.4%)

Commercial (9.2%)

Industrial (0.6%)

Residential (68.3%)

Public (10.3%)

Commercial (15.3%)

Industrial (6.1%)

Consumer Units (water+sewage) Revenue by Category (water+sewage)

10 biggest clients represent 6.1% of our total revenue

50 biggest clients represent 8.4% of our total revenue

DIVERSIFIED CUSTOMER BASIS

11

OPERATING EFFICIENCY

12

1,9

65

1,4

71

1,2

62

1,1

70

86

5

68

9

67

3

65

8

65

4

61

5

61

3

61

3

48

4

47

3

44

2

40

1

39

4

33

1

33

0

29

8

29

3

29

1

27

5

23

7

23

1

21

9

20

4

Average (State Sanitation Companies)

COPASA

Source: SNIS 2009 (National Sanitation Data System)

1.29% Default Ratio one of the lowest in the sector

(liters per connection/day) Loss Index one of the lowest in the sector

231.2 liters per connection/day in September 2011

13

AVAILABILITY OF WATER RESOURCES

Minas Gerais 27.6* Espírito Santo

Rio de Janeiro 5.3*

São Paulo 6.3*

Comparison with the main States in Brazil (m³/inhab./day)*

Demand x Availability Granted (m³/s)

Current demand

53.8

25.4

28.4

Additional capacity of 89.4% over current demand for hydric resources

Availability granted

North Region

Center-West Region Southeast

Region

South Region

Northeast Region

5.3 6.3

27.6

STRONG GROWTH POTENTIAL

10 14

853

233

395

225

Municipalities 2003

260

453

140

2011

Coverage expansion: Obtaining sewage concessions in cities where COPASA supplies water; Obtaining new concessions where COPASA not yet operates; Expansion of service in cities where COPASA already operates.

Strategies

Includes cities operated by COPANOR.

EXPANSION PLAN 2011-2013

15

4 concessions signed – 391,000 inhabitants

2 authorizing laws voted

25 concessions in negotiation

4 concessions signed – 32,000 inhabitants

23 authorizing laws voted

66 concessions in negotiation

31 concessions in negotiation

Obtain sewage concessions in cities where COPASA owns water concessions

Obtain water and sewage concessions in cities where COPASA doesn’t own concessions

POPULATION OVER 15,000 INHABITANTS

Nº of municipalities 31

Population (thousands) 1,500

POPULATION UNDER 15,000 INHABITANTS

Nº of municipalities 93

Population (thousands) 600

POPULATION OVER 15,000 INHABITANTS

Nº of municipalities 31

Population (thousands) 1,400

STRONG GROWTH POTENTIAL

Results

Water Connections (thousand)

2,718 2,780 2,855 2,928 3,036 3,174 3,290 3,385 3,501 3,471 3,597

2002 2003 2004 2005 2006 2007 2008 2009 2010 - 3T10 3T11 3Q11C

Sewage Connections (thousand)

1,132 1,164 1,285 1,330 1,392 1,519 1,668

1,857 1,956 1,932 2,043

2002 2003 2004 2005 2006 2007 2008 2009 2010 - 3T10 3T11 3Q10 3Q11

16

3Q10 3Q11

STRONG GROWTH POTENTIAL

CAPEX (R$ million)

Average 1992/2002

Average 2003/2005

Average Post IPO

2006/2010

Water 107 181 407

Sewage 68 207 437

Others 9 51 29

Total 184 439 870

17

INVESTMENTS

STRONG GROWTH POTENTIAL

18

CAPEX ( R$ million)

Forecast Accomplished

2011 9M11

Water 271 201

Sewage 462 270

Others 17 15

Total 750 486

2012: R$ 850 million

INVESTMENTS

STRONG GROWTH POTENTIAL

Financial Performance

3Q11

CASH GENERATION

20

Net Operating Revenue (R$ million)¹

878

1,109 1,194 1,476 1,682 1,863 2,060 2,201 2,321

599 662

2002 2003 2004 2005 2006 2007 2008 2009 2010 - 3Q10 3Q11

1. Does not include Construction Revenues arising from the convergence into IFRS (Financial Statements from

2008 onwards) or Revenues from Finished Products.

2. EBITDA adjusted to non-recurring items.

285 400 466

586 656 666 608

935

253 277

2002 2003 2004 2005 2006 2007 2008 2009 2010 - 3Q10 3Q11

763 825 923

2

1,236

929

EBITDA (R$ million)

2 2 2

INCOME

1. Amount reported in 2008 and subsequently changed to recognize tax debts.

94

253 289 356 329

274

525

677

119 120

2003 2004 2005 2006 2007 2008 2009 2010 - 3Q10 3Q11

6.8 13.3

14.0 11.0 9.4 8.1

14.0 16.2

Net Income

ROE (%)

Net Income (R$ million)

407¹

21

R$ 123 million (R$ 1.07 per share). Up to 3Q11

Dividends paid as Interest on Equity – IOE:

35% of Net Income for the year 2011.

INDEBTEDNESS

22

Short Term Long Term

Net Debt (R$ million)

872

1,000 1,065

383

645

1,022

1,647

2,170 2,284

2003 2004 2005 2006 2007 2008 2009 2010 Sep/11

2.2 2.1 1.8

0.6 0.8 1.3 1.5 1.8 1.7

Net Debt / EBITDA

89 105 111 129 166 202 227 278 558

796 921 1,017

1,084 1,468

1,612 1,835

1,970

2,036

2003 2004 2005 2006 2007 2008 2009 2010 Sep/11

Gross Indebtedness (R$ million)

INDEBTEDNESS

23

Amortization Schedule (R$ million)¹ and Debt Indexes

Average rate: 8.6% p.a³

32%

2% 53%

2% 5% 6% TR

USD TJLP

IGPM INPC CDI

Debt Indexes

1. As of September 30th, the Company had R$ 1,272 million of funds contracted from the Government Severance Indemnity Fund (FGTS) and the Brazilian

Development Bank (BNDES) to be disbursed and recorded in liabilities as investments are made. The average grace period remaining of these funds is 10 and 36 months respectively, with amortization terms of 240 and 180 months respectively, therefore they are not displayed in the chart. Additionally, the Board of Directors approved, on October 21st, 2011, the contracting of a long-term operation in the amount of R$ 400 million.

2. Including debentures convertible into shares, in the amount of R$ 140 million, 50% of which maturing by the end of May 2012, and the remaining by the end of May 2013. In the year 2012 are also included promissory notes in the amount of R$ 148 million, maturing in July 2012. Additionally, the Board of Directors approved, on October 21st, 2011, the contracting of a long-term operation in the amount of R$ 400 million.

3. With the exception of contracts with BNDES, all loans still have their remaining balances pegged to specific indexes, such as TR, IGP-M, INPC, CDI, and USD forex.

www.copasa.com.br/ir

ir@copasa.com.br

Rio das Velhas Production System

Disclaimer: This document may contain future considerations on COPASA’s business prospects. These are mere projections, being, therefore, entirely based on COPASA’s management expectations regarding the future of the business. Such forward-looking statements are subject to risks and uncertainties which depend on factors including economic, political, financial and commercial conditions in the markets where we operate. Investors are hereby advised that these forecasts are no guarantee of future performance since they involve risks and uncertainties.