Sustainability r e p o r t - Sabesp

Message from theChairwoman of the BoardTo the future,sustainabilityDilma PenaChairwoman of the Board of DirectorsGRI 1.1 Sabesp, the largest sanitation company in Latin America and one ofthe largest in the world, had yet another remarkable year in 2009. The figuresdetailed herein speak for themselves. But not only the figures evidence theupward and sustainable trend of Sabesp.By acting according to clear rules, both from the service provision and accounting,economic and financial standpoint, i.e., within the sustainability principles, as wehave stated in the 2008 Report, Sabesp is taking firm steps toward its goal, thefuture of which it will be proud.Sabesp’s strategic planning establishes as a goal for 2018 “to be recognized asthe company that, within its area of operation, with a focus on the customer, hasuniversalized water and sewage services, in a competitive and sustainable way,with excellence in environmental solutions.” We are trailing the right avenue.For the third consecutive year, in 2009 Sabesp is part of the CorporateSustainability Index portfolio of the São Paulo Mercantile and Stock Exchange(BM&F Bovespa). And, once again, we conquer important awards, including theNational Quality Award, in the categories Customer and Water & Waste InnovationManagement, the Top Environmental Award and the Top Social Award, theclassification of Franca as the city with the best Sanitation Ratio of Brazil, andmedia awards, such as Best Utility in Brazil and the Climate Change Award.Five areas should be highlighted among Sabesp’s accomplishments in 2009:a) investment acceleration aiming universal services, b) market consolidation andcontractual stability, c) economic and financial sustainability, d) modernization ofmanagement, and e) strategic repositioning in view of the challenges of the newregulatory framework.The volume of investments (R$1.8 billion) was the highest in the last ten years,although 2009 was an economically difficult year. Contract and market stabilityprogressed: 40 authorization acts were passed by city councils, including theSão Paulo City Council, which reflect Sabesp’s consistent partnership withthe Cities. We took actions to cut costs and increase efficiency to ensure theeconomic and financial sustainability of Sabesp, and sustain the progress madein the recovery of receivables. Management modernization is in progress – therewas a staff qualification effort, with the first comprehensive public recruitmentprocess since 2001, to fill 1,700 vacancies. New talents renewed the team.Sabesp promoted a strategic repositioning in view of the new regulatoryframework – created an environmental function in 2007, a regulatoryaffairs function in 2008, and a new business function in 2009. Challengefor 2010: progress in the creation of a Research, Development &Innovation (RD&I) function.45