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Investor Presentaiton

PANORAMA OF THE PRIVATE SECTOR'S PARTICIPATION IN SANITATION 2021 A NEW SOCIAL AND ECONOMIC FRONTIER FOR BRAZIL Demand for investment Also according to the study by KPMG/ ABCON SINDCON, the public and private sectors need to work together to invest more than BRL 753 billion in about 12 years, in order to expand water supply and sani- tary sewage systems and cover deprecia- tion, aiming at universalization of services. Of this total, BRL 255 billion refers to the re- covery of depreciation of existing networks and assets. GRAPH 12 Population served by water and sewage services (millions of inhabitants) Source: IBGE and SNIS Population with water supply 170.8 GRAPH 11 Estimated investments for universalisation Source: KPMG / ABCON SINDCON BRL 753 billion in invest- ments through to 2033 BRL 498 BRL 255 billion for network expansion billion in de- preciation Population with sewage collection 110.3 Total population of Brazil: 211.8 million Current investment scenario and regional projections BRL 498 billion for network expan- sion, segmented by region SE 176 N 46 BRL 498 billion for network expansion, segmented by type of service Esgoto 354 BRL 354 billion for sewage, segmented by region NE 93 SE 119 BRL 144 billion, segmented by region. SE 939 56 S N NE 136 70 13 S CO CO 52 Áqua N 89 39 144 32 CO S 13 18 38 83 NE 43 The moment is one of significant national visibility for the sector. This increases the need for long-term investments, which in sanitation is a 'win-win' situation, with nu- merous positive impacts for society and the environment. Due to its capillarity, this sector has a rele- vant production chain with a potential mul- tiplier that directly benefits the local popu- lation economically. Both civil construction and the machinery and equipment manu- facturing industry, the main industrial sec- tors impacted by investments in sanitation, hire local labor and generate direct income to the municipalities where they operate. The investment pipeline of the Brazilian De- velopment Bank (BNDES) alone includes six concession projects or Public-Private Part- nerships (PPPs) for water supply and sani- tary sewage system throughout the country, giving a total of investment of BRL 16 billion. Considering this sheer potential and the urgent need for investment, the sanitation sector appears, as from the milestone, as the most robust source of economic recov- ery for the country after the pandemic. 42 33 43
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