How can I contact the Investor Relations Department?

Aegea Saneamento e Participações S.A.

1.663, Brigadeiro Faria Lima Avenue – 1st floor

Zip code: 01452-001 – Jardim Paulistano – São Paulo/SP – Brazil

Phone: +55 11 3818-8150 / +55 11 96642-3387
E-mail: ri@aegea.com.br

Investor Relations Team:
Yaroslav Memrava Neto
Adriana Albanese
Simone Oyamada
Luísa Puccini

How and where does AEGEA disclose its information?

Aegea discloses all material facts, earnings releases and other notices to the market on the Company’s website (http://www.aegea.com.br) and subsequently sends them via e-mail to those registered to receive such information. Quarterly and annual earnings releases are also disclosed in public meetings with the market.

Other information on the Company can be obtained directly from the IR Department by calling +55 11 3818-8150 or +55 11 96642-3387.

What are the social and economic impacts of the lack of sanitation investments in Brazil?
  • Every year, 217,000 workers have to take time off work due to gastro-intestinal problems resulting from the lack of sanitation. Every such incident results in 17 hours of lost time.
  • The chances of a person with access to a sewage system missing work due to diarrhea problems is 19.2% less than that of a person without access to such a system.
  • Given Brazil’s average wage of R$5.70 per hour, time lost due to lack of basic sanitation costs R$238 million per year in hours paid but not worked.
  • According to DATASUS, in 2009, of the 462,000 patients hospitalized with gastro-intestinal infections, 2,101 died in hospital.
  • Each hospital admission costs R$350.00 on average. Universal access to sanitation would reduce the number of admissions by 25% and the mortality rate by 65%, i.e. 1,277 lives would be saved.

Source: Survey of the Economic Benefits of Expanding Sanitation in Brazil – Instituto Trata Brasil/FGV, 2010.

  • Children with access to basic sanitation do 18% better at school;
  • 11% of time off work is also related to problems caused by lack of access to sanitation;
  • Despite the substantial increase in tax revenue and income resulting from the increased flow of tourists in 20 destinations indicated by Embratur, their investments in basic sanitation are still far too low;
  • The 81 largest cities in the country, all of which with a population of more than 300,000, dispose of 5.9 billion liters of untreated sewage per day, contaminating soil, rivers, water sources and beaches, with a direct impact on the health of the population.

Source: Survey on Sanitation, Education, Work and Tourism – Trata Brasil Institute/FGV, 2008.

Why invest in sanitation in Brazil?
  • Every million reais invested in sewerage works generates 30 direct and 20 indirect jobs, in addition to the permanent jobs generated when the system becomes operational. If the annual R$11 billion needed by the sanitation sector is actually invested, around 550,000 new jobs are expected to be created in the same period;
  • Access to a sewerage system increases workers’ productivity and income by 13.3%.
  • Universal access to a sewerage system is expected to increase the real wage bill, which currently stands at R$1.1 trillion, by 3.8%, pushing up income by R$41.5 billion per year.
  • Universal access to a sewerage system could also push property prices up by an average 18%.
  • Total property appreciation could reach R$74 billion, 49% more than the cost of the sanitation works, which are estimated at R$49.8 billion (considering new connections only).
  • In the long term, access to a sewerage system would imply an increase in municipal property tax (IPTU) revenue in the same proportion as the increase in average property prices, representing an estimated gain estimated of R$385 million per year, while revenue from property transfer tax (ITBI) is expected to climb by more than R$80 million per year.

The importance of providing universal access to sanitation services goes beyond the question of supply and represents a direct impact in Brazil´s economy, public health and its management of natural resources. Given its influence over the health of the population, it has an essential role to play in formulating preventive public policies for the sector. From an environmental standpoint, the proper management of the water cycle represents one of the most important factors affecting ecological stability and the prevention of natural disasters.

Disease reduction in Campo Grande (*)

Disease 2005 2009 %
Typhoid fever 29 20 -31%
Other infections caused by Salmonella 31 24 -23%
Shigellosis 142 49 -65%
Other bacterial infections 207 91 -56%
Bacterial food poisoning 396 151 -37%
Ameobiasis 835 433 -48%
Intestinal protozoan infections 558 171 -69%
Intestinal infections 7.420 5.313 -28%
Diarrhea 32.592 24.258 -26%
Hookworm 356 167 -53%
Ascariasis 338 107 -68%
Trichuriasis 4 2 -50%
Pinworm 977 650 -33%
Other helminths 95 58 -59%
Unidentified intestinal parasitosis 14.200 6.881 -52%
Average 45%
Total disease reduction 58.180 38.475 -34%

(*) Source: Campo Grande Municipal Department of Health

Source: Survey of the Economic Benefits of Expanding Sanitation in Brazil – Instituto Trata Brasil /FGV, 2010.