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Investor Presentaiton

PANORAMA OF THE PRIVATE SECTOR'S PARTICIPATION IN SANITATION 2021 São Gabriel (RS) Full Concession One of the premises of the 'São Gabriel - Saneamento concessionaire - of the Solvi Group in the bidding process period was to offer a tariff 15% lower than the one be- ing charged in the municipality. After eight years of operation, the company managed to achieve a 29% lower tariff. Comparing the two concessionaires, a thousand liters of water would cost BRL 5.91 with the old concessionaire, with annual correction, which works out at BRL 1.33 more than what the current concessionaire will apply after its correction. In one year, the city of São Gabriel alone shaved BRL 5.3 million off costs incurred with sanitation services. If we consider the eight years in which the company has been operating in the municipality, then we see that over BRL 40 million, in adjusted val- ues, have already been saved. These are savings where everyone stands to benefit, especially consumers. The concessionaire is a pioneer, having spearheaded the collection of payments using the new PIX system for electronic payments. In addition to bringing custom- in settlement of invoices for the client, this ers quality of service, and ease and speed new development also slashes the com- pany costs as incurred with bank fees and charges (the mean cost today for counter the use of PIX, these values dwindle to only payment is BRL 1.59 per transaction; with BRL 0.33 per invoice).Another benefit is the swift checking of payments, in very short this facility is of paramount importance. time periods. For commercial management, The use of the PIX system also complies with the company's policy for external communi- cation, that of encouraging "stay-at-home", as a way to avoid contamination by Covid-19. Sumaré (SP) Full Concession Five years after the concession of sani- tation services in Sumaré, a city with 280 thousand inhabitants, a total sum of over BRL 131 million has already been invested for improvement of water supply services, as well as sewage collection and treatment. The investment was necessary to solve fre- quent problems of water supply interrup- tions. The occurrences resulted in a high number of complaints from the population. For the next two years, BRK Ambiental is following an investment programme of BRL 153 million. There are plans to build two large sewage treatment plants, making the city achieve universalization of sewage ser- vices by 2026 (100%). Expansion and modernization works will also be carried out at the municipality's water treatment plant. The company is also focused on reducing the loss of wa- ter throughout the distribution system. Since the beginning of the concession, the rate has been reduced from 60% (2015) to 36.5% (average for 2020). The services provided by the concessionaire made Sumaré one of the Brazilian munic- ipalities with the best results in sanitation services. The city occupies the 50th position on the Sanitation Ranking, released in March 2021, by the Trata Brasil Institute, in partner- ship with consulting firm GO Associados. 70 A NEW SOCIAL AND ECONOMIC FRONTIER FOR BRAZIL 71
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