SBS Companhia Sanea

COMPANHIA DE SANEAMENTO BÁSICO DO ESTADO DE SÃO PAULO - SABESP

Corporate Taxpayer’s ID (CNPJ): 43.776.517/0001-80

Company Registry (NIRE): 35.3000.1683-1

EXCERPT OF THE MINUTES OF THE EIGHT HUNDRED FORTIETH MEETING OF

THE BOARD OF DIRECTORS

On June 14, 2017, at 4:00 p.m., as convened by the Chairman of the Board of Directors, Benedito Pinto Ferreira Braga Junior, on an extraordinary basis, as provided for in paragraph 4 of Article 12 of the Bylaws, the members of the Board of Directors of Companhia de Saneamento Básico do Estado de São Paulo – SABESP, as named and signed below, met and resolved, via email, on the following agenda: “Changes to the Conditions Applicable to Sabesp’s 21st Issue of Debentures” , based on Board Resolution No. 0147/2017 of June 14, 2017, Internal Communication FI No. 026/2017, of June 13, 2017, and in the power point presentation, documents filed in the electronic folder of this meeting, which was unanimously approved, in compliance with paragraph 1 of Article 59 of Law No. 6404, of December 15, 1976, as amended (“Brazilian Corporate Law”), and in accordance with items X and XIII of Article 13 of the Bylaws, the changes in the conditions applicable to Sabesp’s 21st issue of simple debentures , of simple unsecured non-convertible debentures, in up to 2 (two) series, for public offering, with restricted placement efforts, pursuant to CVM Instruction 476, of January 16, 2009, as amended (“Debentures”), which were approved at the Eight Hundred Thirty-Ninth Meeting of the Company's Board of Directors (“839 ^th BDM”), as described below:

1. Remuneration: The Debentures will be entitled to the following remuneration:

(a)     Remuneration of First Series Debentures: First Series Debentures will be entitled to remuneration corresponding to 100% (one hundred percent) of the accumulated variation of the average daily rate of one-day over extragrupo DI interbank deposits (“DI Rate”) expressed as an annual percentage, based on 252 (two hundred and fifty-two) working days, calculated and disclosed by CETIP in the daily bulletin available on its website (http://www.cetip.com.br), plus the maximum spread or surcharge to be defined in the Book Building Process, limited to 1% (one percent) per year, based on 252 (two hundred and fifty-two) working days. The First Series Remuneration will be calculated on an exponential and cumulative pro rata temporis basis, proportionally to the number of working days elapsed since the Pay-in Date or the last date of payment of the First Series Remuneration, as applicable, based on the Nominal Unit Value of First Series Debentures, and paid at the end of each Yield Period.

(b)     Remuneration of Second Series Debentures: Second Series Debentures will be entitled to remuneration corresponding to 100% (one hundred percent) of the accumulated DI rate variation, expressed as an annual percentage, based on 252 (two hundred and fifty-two) working days, calculated and disclosed by the CETIP in the daily bulletin available on its website (http://www.cetip.com.br), plus the maximum spread or surcharge to be defined in the Book Building Process, limited to 1.3% (one point three percent) per year, based on 252 (two hundred and fifty-two) working days. The Second Series Remuneration will be calculated on an exponential and

cumulative basis, proportionally to the number of working days elapsed since the Pay-in Date or the last date of payment of the Second Series Remuneration, as applicable, based on the Nominal Unit Value of Second Series Debentures, and paid at the end of each Yield Period.

(c)      For the purposes of calculation of the Remuneration, “Yield Period” is defined as the time interval between the Pay-in Date, inclusive, in the case of the first Yield Period, or the immediately prior date of payment of Remuneration, and the date of payment of Remuneration, exclusive, corresponding to the period in question.

2. Ratification of the other conditions applicable to the Debentures: All other conditions applicable to the issue of the Debentures approved at the 839 ^th BDM are unchanged and expressly ratified.

Additionally, the Board of Directors authorized the members of the Executive Board, pursuant to the legal and statutory provisions, to perform any and all acts related to the 21 ^st issue of simple unsecured non-convertible debentures, in up to 2 (two) series, including, but not limited to, negotiating and executing the Indenture and any amendments thereto, as well as the agreement for the coordination, placement and public distribution under a firm placement guarantee; signing any and all documents and performing all acts necessary for this purpose, being also able to determine whether there will be one or two series and the number of Debentures to be allocated to each Series; and establishing the Debentures’ remuneration, pursuant to item 10 above, after the completion of the Book Building Process to be conducted by the Coordinators, within the limits and parameters established herein. Finally, the Board of Directors ratified all the acts related to the 21 ^st issue previously performed by the Executive Board.

(...)

The minutes, after being approved, will be signed by the attending members of the Board of Directors: Benedito Pinto Ferreira Braga Junior, Francisco Luiz Sibut Gomide, Francisco Vidal Luna, Jerônimo Antunes, Jerson Kelman, Luis Eduardo Alves de Assis e Reinaldo Guerreiro.

This is a free translation of the excerpt of the minutes that will be drawn up in the book of minutes of Board of Directors’ meetings.

São Paulo, June 14, 2017.

Benedito Pinto Ferreira Braga Junior

Chairman of the Board of Directors

Marialve de S. Martins

Secretary of the Board of Directors