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Sustainability Report 2021

Message from The Águas do SUMMARY Presentation Management Brasil Group Integrity and Transparency Fostering Universal Access to Sanitation Water Security and Climate Change Efficient Water Cycle Our Utility Companies About this Report GRI Summary Corporate Information Corporate strategy and value generation Grupo Águas do Brasil's Strategic Plan for the 2017-2022 cycle was drawn up corporately to prepare the company for sustainable growth over the period. Based on the strategic guidelines, 12 programs were developed to guide the activities in the five-year period and allow the Group to maintain its leadership in the sector with financial discipline, efficient management, and delivery of consistent results. The review of the Strategic Planning for the next cycle started in 2021. With operational excellence and low indebtedness, the company is healthy and able to take advantage of the opportunities of new concessions opened by the New Legal Framework for Basic Sanitation. The matrix structure consolidated in the period, associated with strict efficiency controls and the refinement of governance and compliance structures, enables growth with responsibility, employee appreciation, customer satisfaction, and return for shareholders. This process was recognized by the Cedae's Block 3 concession in an auction held in December 2021, which presents great synergy with the existing businesses and a model with appropriate profitability within the Group's strategy (see Operation and growth for more information). Economic-financial performance | 103-2, 103-3 | 201 | The results obtained in 2021 show the assertive execution of the budget planning for the year. After the impacts on revenue brought about by the initial period of the pandemic, the company maintained financial control and efficiency in the cost structure, with intelligent management of capital expenditures and increases in the commercial front with technology and digitalization. This allowed for a recovery in the collection, driven by actions in the commercial area to make life easier for customers and guarantee payment. These measures led to revenue and Ebitda growth and allowed Fitch Ratings to reaffirm its AAA rating, recognizing the quality of the portfolio and discipline in management. The performance reaffirms the Group's robust financial profile and conservative leverage strategy. Considering the proportional consolidation of its interests, the results recognized in 2021 totaled a gross revenue of BRL 1.6 billion, Ebitda of BRL 495.1 million, and net income of BRL 224.9 million. The Ebitda margin was 39.81%. The restated net debt is BRL 667.8 million, consistent with the size of the business. ÁGUAS DO BRASIL GROUP STRATEGIC PROGRAMS ÁGUA DE VALOR - LOSS REDUCTION OPERATIONAL EXCELLENCE BUSINESS EXCELLENCE HUMAN CAPITAL MANAGEMENT ESG MANAGEMENT INOVÁGUAS - INNOVATION Sustainability Report 2021 WWTP Camboinhas 15
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