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Investor Presentaiton

PANORAMA OF THE PRIVATE SECTOR'S PARTICIPATION IN SANITATION 2021 A NEW SOCIAL AND ECONOMIC FRONTIER FOR BRAZIL Midwest Because of higher levels of coverage, the region is the second in terms of investment needed for the universalization of sanitation services. Water services, for example, have coverage of 90% in the region and needs proportionally low investment needs - BRL 13 billion to universalize the service (simi- lar to that of the Northern region). Needs for investment are higher in the state of Goiás and in the Federal District. Regarding the investment needs for san- itary sewage systems, Goiás and Mato Grosso are the two states most in need. Needs are lowest in the Federal District, it having 85% of service coverage. GRAPH 17 Investments in the Midwest region 2018-2033 (BRL billion)* Source: KPMG Study / ABCON SINDCON Southeast Among the Southeastern states, there is the city of São Paulo, capital of the state with the same name and the most popu- lous city in Brazil, which has the highest rates of water and sewage coverage (96% and 89%, respectively) and higher external- ities (economic, social and environmental impacts) generated by investments. The investment needs for universalization in absolute values is greater than that found throughout the Northern region, especial- ly because the Southeast has the largest population in the country. The externalities of the region are also the largest to be obtained, reaching a level of more than twice the total investment. The investment needed for the universal- ization of water service in the Southeast correspond to 39% of the total investment needed for the country. All its items - except artesian wells and cisterns - have the high- est demand for resources when compared to other regions. The State of Espírito San- to has the smallest needs for investment, while São Paulo stands out with the larg- est. In terms of the amount of resources, the path trailed by the region is possibly the most challenging. Investment for the universalization of sew- age systems in the Southeast represent 34% of the total cost for the country. The greatest needs are mainly in São Paulo, due to its investment demands. GRAPH 18 Investments in the Southeast region 2018-2033 (BRL billion)* Source: KPMG Study / ABCON SINDCON MG BRL 46.6 bi MT BRL 17.0 bi GO BRL 24.0 bi Midwest BRL 52 billion MS BRL 7.9 bi * Amount required for network expansion. Does not consider the value necessary for recovery of depreciation. Note: Rounding can lead to 1 percentage point variations, for more or less. 48 DF BRL 2.7 bi SP BRL 69.6 bi Southeast BRL 176 billion ES BRL 9.6 bi RJ BRL 50.1 bi * Amount required for network expansion. Does not consider the value necessary for recovery of depreciation. Note: Rounding can lead to 1 percentage point variations, for more or less. 49
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