Companhia de Saneamento de Minas Gerais - COPASA MG Report on the quarterly information review - ITR (A translation of the original report in Portuguese containing financial statements prepared in accordance with accounting practices adopted in Brazil and IFRS) KPDS 574885 Companhia de Saneamento de Minas Gerais - COPASA MG Report on the quarterly information review - ITR Contents Report on the quarterly information review - ITR 3 Statement of Financial Position - Assets 5 Statement of Financial Position - Liabilities 6 Statement of Income 8 Statement of Comprehensive Income 10 Statement of Cash Flows - Indirect Method 11 Statements of Changes in Equity 13 Statements of Added Value 15 Statement of Financial Position - Assets 16 Statement of Financial Position - Liabilities 17 Statement of Income 19 Statement of Comprehensive Income 21 Statement of Cash Flows - Indirect Method 22 Statements of Changes in Equity 24 Statements of Added Value 26 Performance Analysis 27 Notes 32 2 KPMG Auditores Independentes Rua Paraíba, 550 - 12º andar - Bairro Funcionários 30130-141 - Belo Horizonte/MG - Brasil Caixa Postal 3310 - CEP 30130-970 - Belo Horizonte/MG - Brasil Telefone +55 (31) 2128-5700 kpmg.com.br Report on the quarterly information review - ITR The Board of Directors and Shareholders Companhia de Saneamento de Minas Gerais – COPASA MG Belo Horizonte – Minas Gerais Introduction We have reviewed the interim, individual and consolidated financial statements of the company Companhia de Saneamento de Minas Gerais - COPASA MG (“Company”), contained in the Quarterly Information Form - ITR for the quarter ended September 30, 2019, consisting of the statements of financial position as of September 30, 2019 and the related statements of income and comprehensive income for the three and nine-month periods then ended, the statement of changes in equity and of cash flows for the nine-month periods then ended, in addition to the notes to the financial statements. Company Management is responsible for the preparation of the individual and consolidated interim financial statements in accordance with CPC 21 (R1) and IAS 34 – Interim Financial Reporting, issued by the International Accounting Standards Board - IASB and for the presentation of this information in due accordance with the standards issued by the Brazilian Securities Commission applicable to the preparation of Quarterly Information - ITR. Our responsibility is to express a conclusion on the interim financial statements based on our review. Review scope We conducted our review in accordance with Brazilian and international standards for reviewing interim information (NBC TR 2410 – Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 – Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information consists of making inquiries, primarily to the management responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially smaller in scope than an audit conducted in accordance with audit standards, and we cannot therefore provide assurance that we have discovered all the significant matters that could have been identified by an audit. Accordingly, we do not express an audit opinion. KPMG Auditores Independentes, uma sociedade simples brasileira e firma- KPMG Auditores Independentes, a Brazilian entity and a member firm of the membro da rede KPMG de firmas-membro independentes e afiliadas à KPMG KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), uma entidade suíça. International Cooperative (“KPMG International”), a Swiss entity. 3 Conclusion about the interim information Based on our review we are not aware of any facts that lead us to believe the individual and consolidated interim financial information included in the aforesaid quarterly information has not been prepared, in all material respects, in accordance with CPC 21 (R1) and IAS 34 issued by IASB applicable to the preparation of Quarterly Information - ITR, presented in a manner consistent with the requirements set forth by the Brazilian Securities Commission - CVM. Other matters Statements of added value The individual and consolidated interim financial information relating to statements of added value for the nine-month period ended September 30, 2019, which are the responsibility of Company Management and are presented as supplementary information for the purpose of IAS 34, was subject to review procedures conducted in conjunction with the review of the Company’s quarterly Information - ITR. To form our conclusion we evaluated whether these statements have been reconciled against the interim accounting information and accounting records, as applicable, and whether their form and content comply with the criteria set out in CPC Technical Pronouncement 09 - Statements of Added Value. Our review did not detect any facts that lead us to believe these statements of added value were not prepared, in all material respects, in accordance with the criteria established in this Standard and consistently in relation to the individual and consolidated interim financial statements information taken as a whole. Prior-year audit and interim financial information reviewed by a different auditor The figures in the individual and consolidated statements of financial position as of December 31, 2018, originally prepared before the reclassification adjustments made in note 3.2, were previously audited by other independent auditors, who issued an unmodified audit report dated February 28, 2019. Neither we nor other independent auditors audited the adjustments set out in note 3.2. We were not engaged to audit, review or apply any procedures to these figures or adjustments and are not therefore expressing any opinion or providing any assurance on them. The figures in the individual and consolidated statements of income and comprehensive income for the three and nine-month periods and the statement of changes in equity and cash flows for the nine-month period ended September 30, 2018 were previously reviewed by other independent auditors, who issued an unmodified report dated October 29, 2018. The figures in the individual and consolidated Statements of Added Value (DVA) for the nine-month period ended September 30, 2018 have been submitted to the same revision procedures by said independent auditors, and based on their review the auditors issued a report mentioning that they were not aware of any facts that lead them to believe the DVA have not been prepared, in all material respects, in accordance with the individual and consolidated interim financial information taken as a whole. Belo Horizonte, October 31, 2019 KPMG Auditores Independentes CRC SP-014428/O-6 F-MG (Original report issued is Portuguese signed by) Anderson Luiz de Menezes Contador CRC MG-070240/O-3 KPMG Auditores Independentes, uma sociedade simples brasileira e firma- KPMG Auditores Independentes, a Brazilian entity and a member firm of the membro da rede KPMG de firmas-membro independentes e afiliadas à KPMG KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), uma entidade suíça. International Cooperative (“KPMG International”), a Swiss entity. 4 ITR - Quarterly information - 9/30/2019 - CIA SANEAMENTO DE MINAS GERAIS-COPASA MG Individual Statements - Statement of Financial Position - Assets (Reais thousand) Account Account Description Current Quarter Previous Year Code 9/30/2019 12/31/2018 1 Total Assets 11,448,844 11,165,962 1.01 Current Assets 1,879,787 1,824,998 1.01.01 Cash and Cash Equivalents 482,550 297,518 1.01.03 Accounts Receivable 1,319,490 1,459,221 1.01.03.01 Receivables 1,201,519 1,150,754 1.01.03.02 Other Accounts Receivable 117,971 308,467 1.01.03.02.01 Recoverable taxes 1,505 29,928 1.01.03.02.02 Technical Cooperation Arrangement 107,635 109,142 1.01.03.02.03 Banks and Arrangements Application 8,831 8,048 1.01.03.02.04 Short-term investments redeemable after 90 days 0 161,349 1.01.04 Inventories 54,107 46,722 1.01.08 Other Current Assets 23,640 21,537 1.01.08.03 Other 23,640 21,537 1.01.08.03.01 Advances to Employees 16,035 14,623 1.01.08.03.02 Other 7,605 6,914 1.02 Noncurrent Assets 9,569,057 9,340,964 1.02.01 Long-Term Assets 2,571,249 2,372,586 1.02.01.04 Accounts Receivable 315,183 317,623 1.02.01.04.01 Receivables 0 12,994 1.02.01.04.02 Other Accounts Receivable 315,183 304,629 1.02.01.07 Deferred Taxes 195,022 159,892 1.02.01.07.01 Deferred Income and Social Contribution Taxes 195,022 159,892 1.02.01.10 Other Noncurrent Assets 2,061,044 1,895,071 1.02.01.10.03 Financial Assets - Concession Agreements 634,769 682,828 1.02.01.10.04 Financial assets measured at Fair Value through OCI 79,184 64,721 1.02.01.10.05 Lease rights of use 53,484 0 1.02.01.10.06 Contract assets 1,293,607 1,147,522 1.02.02 Investment 137,616 104,857 1.02.02.01 Equity Interests 137,616 104,857 1.02.02.01.02 Interests in Subsidiaries 137,356 104,597 1.02.02.01.04 Other Investments 260 260 1.02.03 Property, plant and equipment 1,610,588 1,675,029 1.02.03.01 Property, plant and equipment in operation 1,610,588 1,675,029 1.02.04 Intangible assets 5,249,604 5,188,492 1.02.04.01 Intangible assets 5,249,604 5,188,492 1.02.04.01.01 Concession Agreement 5,249,604 5,188,492 PAGE: 5 of 74 ITR - Quarterly information - 9/30/2019 - CIA SANEAMENTO DE MINAS GERAIS-COPASA MG Individual Statements