Message from the CEO
(GRI 1.1)

COPASA’s primary objective is the consolidation of a sustainable growth for which it focuses its strategic planning by emphasizing the relation with its interested parties in the economic and socio-environmental scenarios in which it is inserted. In this sense, the Organization presents a good performance in the attendance to its expansion plan, in all aspects, characterized by the realization of the established aims and by the improvement of its processes and procedures that sustain its business, looking forward for the definite acknowledgement as a reference of management excellence. The focus of this effort is the contribution to pursue the universalisation of basic sanitation services.

The results obtained with the implementation of the World Class Management Project demonstrate that the Organization is trailing the correct path. In 2011, the assurance was consolidated by being distinguished with another inedited award among the Brazilian sanitation companies, receiving from the Brazilian Association of Sanitary and Environmental Engineering the Quality National Award in Sanitation (PNQS), in the Platinum category, Level III, for the management of all the Organization. COPASA operational board was also awarded PNQS trophies. The East-Central Operation Board, created in 2011, and the Southeastern Operation Board were contemplated with the Platinum Trophy, while the Northern Operation Board, which had already received this award in 2010, received the highest of the sector’s award, the Diamond Trophy, in Level IV.

Representing these results in numbers, we can verify that in 2011 the population served with water supply was increased by 457 thousand people during 2011, representing a growth of 3.5% in relation to 2010. As for the sanitary sewage system, the development was still more significant, with a growth of 516 thousand users, summing up 8.3 million benefited habitants and representing an increase of 6.7% of the population served in the State of Minas Gerais during 2011.This year total investments were in the range of R$682.9 million, a sum applied mainly in water supply systems that received R$270.5 million, while the sewers collection and treatment systems received R$390.6 million. The

Since the adhesion, in 2006, to the highest corporate governance level of BM&FBOVESPA – the New Market – COPASA presents a considerable improvement of its operational indicators: the population served with water supply, from 11.2 million, in February 2006, grew to 13.6 million in December 2011, presenting an increase of 21.4%. As regards the sanitary sewage, the progress reached 48.2%, from 5.6 million to 8.3 million people served by this service. The sewer treated by the Company, in 2006, ranged the volume of 75.9 million cubic meters, a significant increase which raised the total of 182.2 million of cubic meters in 2011, which indicates a growth of 140.1% in treated volume.

Attentive to the population’s and other stakeholders’ needs and expectations as well as to the conditions and resources necessary to guarantee the perennial existence of its business in a sustainable way, COPASA continues to improve its processes and procedures and, for the second consecutive time, is inserted in the portfolio of the Corporate Sustainability Index (ISE) of BM&FBOVESPA. The adoption of corporate governance principles that guide the Organization resulted in the Company being a part of the BM&FBOVESPA indicator, the Corporate Governance Trade Index (IGCT), which examines the performance of papers issued by organizations that voluntarily adopt the distinct governance standards.

By maintaining the link cultivated with its collaborators, customers, shareholders, suppliers, government, and investors, COPASA follows its purpose and aim to surmount the challenges that emerge on its path, guaranteeing the quality improvement of our population’s life and contributing for the development of the State of Minas Gerais and of Brazil.