Companhia Catarinense de Águas e Saneamento (CASAN) is a mixed-capital company created on December 31, 1970, under State Law No. 4,547, and incorporated by Decree No. SSP-30.04.71/58 of July 2, 1971. Its share capital is majority-owned by the Government of the State of Santa Catarina, which uses the company as its main instrument for implementing the state policy for basic sanitation. The company operates as a concessionaire of public water supply and sewage services, serves a relevant share of the population of Santa Catarina, and has common and preferred shares traded on B3 under the tickers CASN3 and CASN4, which places the company in the Brazilian capital markets under a governance framework consistent with its nature as a mixed-capital corporation.

CASAN’s core focus is the provision of basic sanitation services, acting as the implementing agent of state policy as defined by the Santa Catarina government. Its legal responsibilities include implementing the state sanitation policy, conducting economic and financial studies, developing engineering projects, and planning, coordinating, and executing works and operations involving water supply and sewage collection systems. The company is also empowered to set, collect, and adjust tariffs for services rendered and, as ancillary activities, is authorized to operate in solid waste collection and disposal, the abstraction and bottling of different types of water for sale, and the use of the hydraulic potential of water sources for power generation, although its main activities are concentrated in treated water supply and sewage treatment.

CASAN’s operations are structured mainly into two core end-to-end processes: treated water supply, and sewage collection and treatment. In water supply, the company handles the abstraction of raw water from surface and underground sources, water conveyance, treatment, storage, and distribution of drinking water. In 2024, around 288 million cubic meters of water were made available, of which more than 287 million cubic meters were transported to serve approximately 1.3 million autonomous units with water supply, resulting in a billed volume of 185 million cubic meters and more than 862 thousand active connections. In sewage services, the company is responsible for the collection, conveyance, treatment, and final disposal of treated effluents, operating collection networks, interceptors, outfalls, and sewage treatment plants. In 2024, the volume of treated sewage was around 52 million cubic meters, with about 404 thousand autonomous units served and 165.7 thousand billed sewage connections.

CASAN’s customer base consists essentially of residential, commercial, and industrial users served by public water and sewage systems in the areas under its responsibility. In 2024, the company directly provided services to a population of over 3.5 million people across 194 municipalities, corresponding to about 65% of the municipalities in Santa Catarina, and also including the municipality of Barracão, in the state of Paraná. The company also supplies bulk water to six municipalities that operate their own systems, additionally serving around 380 thousand inhabitants. In its operating structure, CASAN had, at the end of 2024, 2,704 employees supported by 4 large regional branches, 6 medium-sized regional branches, 118 branches, and 77 operational districts, which support the operation of 285 water supply systems and 42 sewage systems.

Geographically, CASAN’s main market area is the Greater Florianópolis region, which accounts for approximately 42% of billed water volume. In addition to this region, the company operates in different parts of the state, including the West, North, Itajaí Valley, North Coast, South, and Mountain regions, with varying levels of water and sewage coverage. Urban water supply is more consolidated, while in sewage services the company reported, in 2024, an average urban coverage rate of approximately 31.37% in the regions where it operates, with variations by regional branch. Operations involve an extensive infrastructure network, including around 15.67 thousand kilometers of water mains and distribution networks and approximately 2.22 thousand kilometers of sewage networks and associated structures.

From an economic standpoint, CASAN derives most of its net operating revenue from water supply services, which accounted for 78.3% of net operating revenue in 2024, while the sewage segment represented 21.7% in the same year. This mix indicates the predominance of treated water supply activities in revenue generation. In 2024, total net operating revenue amounted to around R$ 1.95 billion, and the company reported profit of R$ 243.0 million, with no segmented results by line of business. The absence of customers accounting for more than 10% of net revenue indicates a highly diversified billing base spread across many users, a typical feature of sanitation companies focused on distribution to end consumers.

CASAN operates in a highly regulated environment, influenced by federal, state, and municipal legislation governing basic sanitation in Brazil. Although it does not depend on classic government authorizations to start its activities, its creation resulted from state legislative authorization, and its effective operation in the municipalities depends on program contracts, concession contracts, cooperation agreements for shared management, joint management agreements, or service provision contracts. These instruments define rights and obligations among the company, the municipalities, and the State of Santa Catarina, in line with legal frameworks such as the Federal Constitution of 1988, Law 11,107/2005, Law 11,445/2007, and the amendments introduced by Law 14,026/2020. In addition to contractual relationships, the company is subject to oversight by regulatory agencies and must comply with environmental and sanitary standards, including drinking water quality standards and effluent discharge requirements.

CASAN maintains technical and laboratory infrastructure to ensure the quality of the water supplied and compliance with regulatory standards. The company operates 146 water treatment plants and 191 simplified treatment units, and continuously monitors the quality of raw and treated water through ten quality control laboratories located in different regions of Santa Catarina, responsible for millions of physical-chemical and microbiological tests per year. Part of this structure already operates under a quality management system in compliance with ABNT NBR ISO/IEC 17025:2017, with units accredited for various types of tests and water matrices. Quality control of the chemicals used in treatment is also centralized, with analyses conducted on each delivered batch and periodic reporting of results to regulatory agencies.

Regarding environmental, social, and governance (ESG) aspects, CASAN publishes an annual sustainability report, structured according to the Global Reporting Initiative (GRI) guidelines, as well as a social report presented in its annual financial statements. The company prepares a materiality matrix and ESG key performance indicators, highlighting strong alignment with the UN Sustainable Development Goal 6, related to clean water and sanitation. The company compiles a greenhouse gas emissions inventory, disclosing it on its investor relations website and in a public inventory database, incorporating part of these results into the sustainability report. Although the report is not yet audited by an independent entity, the company indicates its intention to implement external assurance starting with the 2025 results, gradually aligning its transparency and governance practices with regulatory requirements and with market expectations for companies with shares traded on B3, as is the case with CASAN through the CASN3 and CASN4 tickers.