For the third consecutive year, Aegea Saneamento e Participações S.A. is voluntarily publishing its Sustainability Report, with information on its operations and on initiatives undertaken to guarantee the sustainable development of the Company and the Company’s stakeholders. GRI G4-29 | G4-30

Like in previous editions, this publication follows the guidelines of the Global Reporting Initiative (GRI) – an international organization that is a reference in sustainability reporting; this report uses the “Core” option of the G4 version. All indicators are referenced throughout the text and may also be found in the GRI G4 Content Index, on GRI G4 Content Summary. GRI G4-32

The content – defined based on the materiality process (see the following item) – covers initiatives at the administrative headquarters and at controlled companies for the fiscal year of January 1 to December 31, 2015. The Sustainability Report was not submitted to external verification. GRI G4-28 | G4-33

With a commitment to adopt the best accountability practices, this year criteria from the following were also used: of the Brazilian Association of Publicly Traded Companies (Abrasca), International Integrated Reporting Council (IIRC) guidelines and Global Compact principles, aimed at mobilizing the business community to adopt values related to human rights, labor relations, the environment and combating corruption. By aligning with these principles, the Company is signaling its intention to become a signatory. GRI G4-23

Materiality

GRI G4-18 | G4-19 | G4-20 | G4-21

In an effort to hold a dialog on priorities, the content of this publication was defined based on the materiality process, according to GRI G4 guidelines. In 2014, Aegea gave an online survey to its stakeholders – customers and users, employees, investors and shareholders, partner financial institutions, concession grantor, suppliers, competitors and society – to identify the subjects they consider most relevant. GRI G4-24 | G4-25

Definition of the material themes for this report considers the result of this consultation. However, in light of political, social and economic changes that significantly impact the basic sanitation sector and, especially, in an effort to continually enhance the report, the Company revised the material themes and indicators to show performance in the fiscal year in an even more transparent manner.

Analysis of materiality covered the following axes: Impact, considering the Company’s industry studies and documents; and Influence, covering a survey of the competition and overriding trends as well as a study of articles published in the Brazilian press from 2014 to 2015. As a result of this process, the material themes were revised, as shown in the table below:

Theme Capitals (IIRC) Aspects (GRI) Indicators (GRI) Global Compact
Compliance, ethics and anti-corruption measures Financial Anti-corruption G4-SO4 Principle 10
Public policies G4-SO6 Principle 10
Compliance G4-EN29 Principle 8
G4-SO8 No relation
G4-PR9 No relation
Customer privacy G4-PR8 No relation
Economic and financial performance Financial Economic performance G4-EC1 No relation
Management of operational efficiency Manufactured and Intellectual Water G4-EN10 Principle 8
Customer health and safety Social and Relationship Effluents and waste G4-EN22 Principle 8
Customer health and safety G4-PR2 No relation
Product and service labeling G4-PR5 26.0%
Universalization of basic sanitation Manufactured Indirect economic impacts G4-EC7 No relation
Water G4-EN8 Principles 7 and 8
Risk management (financial, operational and impacts on communities) Financial and Intellectual Economic performance G4-EC2 No relation
Attraction and retention of talent Human Training and education G4-LA9 Principle 6
G4-LA10 No relation
Diversity and equal opportunity G4-LA12 Principle 6
Equal remuneration for women and men G4-LA13 Principle 6
Investments G4-HR2 Principle 1
Protection of water resources, the environment (spring preservation) and biodiversity Natural Biodiversity G4-EN12 Principle 8
Effluents and waste G4-EN26 Principle 8
Products and services G4-EN27 Principles 7, 8 and 9
General G4-EN31 Principles 7, 8 and 9
Energy consumption and use for operationalization Manufactured Energy G4-EN3 Principles 7 and 8
G4-EN6 Principles 8 and 9
Respect for local communities, environmental education and programs to raise awareness Social and Relationship Indigenous Rights G4-HR8 Principle 1
Assessment G4-HR9 Principle 1
Local communities G4-SO2 Principle 1

In addition to these ten themes, information on the following aspects was included in this report in order to comply with Global Compact principles:

Aspects (GRI) Indicators (GRI) Global Compact
Investments G4-HR1 Principle 2
Supplier Human Rights assessment G4-HR10 Principle 2
Forced or compulsory labor G4- HR6 Principle 4
Child labor G4-HR5 Principle 5

To respond to the indicators, the Company organized a work group with employees from different areas, which was responsible for gathering information.

During the process of validating materiality, the Executive Board also chose to cover the Regulation, policies and pricing practices theme – pertinent to the current context of sustainability in the industry. There are no GRI G4 indicators connected to this theme.

For any questions related to the content of this publication, please contact the Finance and Investor Relations Department by e-mail at ri@aegea.com.br or by phone at +55 (11) 3818-8150. GRI G4-31

Good reading!