Manila Water Co. Inc. · PSE:MWC
Manila Water — Q1 2023 Earnings Presentation
21 slides from Manila Water's earnings presentation, May 11, 2023
Slide 1: 1Q Analysts' Briefing
1Q ANALYSTS’ BRIEFING May 11, 2023
Slide 2: For questions and comments, e-mail us
For questions and comments, you may send us an e-mail at: invrel@manilawater.com
Slide 3: 1Q 2023 Financial and Operating Highlights
1Q 2023 Financial and Operating Highlights Billed Consolidated EBITDA NIAT Capital Volume Revenues +55% +108% Expenditures NIAT Margin +5% +44% EBITDA Margin +5 ppts +10 ppts -50% • Strong topline performance in EZ and NEZ-PH businesses driven by robust tariff increases and continued billed volume r
Slide 4: Consolidated Financial Performance
Consolidated Financial Performance Consolidated NIAT up 108% with significant (in Million Php) 1Q 2022 1Q 2023 % Change topline recovery; NIAT margin up 10 ppts Operating Revenues 5,138 7,383 44% • Consolidated revenues up 44% with robust tariff COS and Operating Expenses (2,197) (2,778) 26% increas
Slide 5: Consolidated Financial Performance
Consolidated Financial Performance Consolidated NIAT up 108% with significant (in Million Php) 1Q 2022 1Q 2023 % Change topline recovery; NIAT margin up 10 ppts Operating Revenues 5,138 7,383 44% • Interest expense – net, up 33% driven by loans fully COS and Operating Expenses (2,197) (2,778) 26% ca
Slide 6: Net income contribution per SBU
Consolidated Financial Performance Net income contribution per SBU 2,286 2,077 (in million Php) 1,027 1,097 -52 141 93 77 Parent NEZ - Philippines NEZ - International Conso YTD Mar 2022 YTD Mar 2023 • Parent Company: NIAT up 102% driven by higher revenues from tariff increase and 6% BV growth • MWPV
Slide 7: Capital Expenditures
Capital Expenditures YTD Mar 2022 YTD Mar 2023 NEZ-PH NEZ-PH Php301 million (5%) Php479 million (16%) Php6.1 billion Php3.0 billion EZ Php5,752 million EZ (95%) Php2,526 million (84%) EZ NEZ EZ NEZ • Relative decrease in CAPEX largely due to purchase of land (Php2.5 billion) in EZ during same period
Slide 8: Capital Expenditures: East Zone
Capital Expenditures: East Zone Ongoing Major Water Supply and Source Projects Continuous investment in wastewater system projects Manda West – San Mateo – East Bay Ph. 1 SJ South – QC South Rodriguez System 92% Completed 56% Completed 25% Completed Hinulugang Taktak North and South Wawa-Calawis Ph.
Slide 9: Capital Expenditures: Non-East Zone
Capital Expenditures: Non-East Zone Ongoing Water Supply Projects Across the Country Continuous investments in wastewater infrastructure for Compliance Water Treatment Plant, Ilagan Water Deepwell, Calasiao Water BNR STP Upgrade (20MLD), Clark Water 33% Completed Completed 60% Completed Cabuyao Expa
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights Dec 1Q 2023 2022 ASSETS LIABILITIES AND EQUITY Key Balance Sheet Items (in Mn Php) Cash & Cash Equivalents 8,812 9,260 194,803 197,091 194,803 197,091 CAPEX 22,415 3,005 8,812 9,260 Bank Debt 84,923 85,328 Cash and Cash 33,272 33,762 Equivalents 73,452 73,888 Debt Profile Ot
Slide 11: Parent Company (East Zone Concession)
Parent Company (East Zone Concession)
Slide 12: Parent Company: Operating Highlights
Parent Company: Operating Highlights • Increased consumption across all segments, with noted 1Q 2022 1Q 2023 % Change recovery in commercial + industrial accounts in line with continued recovery of businesses Billed Volume (in MCM) 117.6 124.8 6% • NRW remained steady with continued leak repairs and
Slide 13: Parent Company: Financial Highlights
Parent Company: Financial Highlights Parent NIAT up 102% driven by higher tariff and (in Million Php) 1Q 2022 1Q 2023 % Change billed volume recovery, NIAT Margin at 36% Operating Revenues 3,911 5,756 47% • Higher revenues with increased consumption across all COS and Operating Expenses (1,355) (1,8
Slide 14: Non-East Zone Philippines
Non-East Zone Philippines
Slide 15: NEZ-PH: Consolidated Financial Highlights
NEZ-PH: Consolidated Financial Highlights NEZ-PH NIAT better than LY driven by tariff (in Million Php) 1Q 2022 1Q 2023 % Change increases in several BUs and 3% increase in BV Operating Revenues 1,256 1,654 32% COS and Operating Expenses (819) (930) 14% • Consolidated revenues increased 32% driven by
Slide 16: Non-East Zone International
Non-East Zone International
Slide 17: NEZ-INTL: Operating & Financial Highlights
NEZ-INTL: Operating & Financial Highlights NEZ-INTL NIAT down 18% due to lower share in net (in Million Php) 1Q 2022 1Q 2023 % Change income of associates Equity share in net income of 171 159 7% • Improved performance in key Vietnam businesses offset by associates lower BV from East Water COS and O
Slide 18: ESG Highlights Q1 2023
ESG Highlights Q1 2023 REINFORCING PRESERVING WATER SPREADING SUSTAINABILITY SECURITY TO ENSURE 24/7 AWARENESS ON WATER SUPPLY DURING EL ENVIRONMENTAL The revised policy reflects our NIÑO STEWARDSHIP commitments to our Secured 28% raw water buffer group-wide in sustainability agenda : 2022 + impleme
Slide 19: ESG Commitments to 2025
ESG Commitments to 2025 ESG COMMITMENTS TO 20251 ADDITIONAL ESG COMMITMENTS TO 20252 Target: At least 15% raw water PROTECT THE ENVIRONMENT supply buffer Progress: 28% water buffer enterprise-wide providing enough raw water to the business units Target: 60% reduction and avoidance through renewable
Slide 20: Summary
Summary • Strong topline performance in EZ and NEZ-PH businesses driven by robust tariff increases and continued recovery from COVID restrictions • EBITDA up 55% to Php4.8 billion. EBITDA margin improves 5 ppts to 65% • NIAT up 108% at Php2.3 billion with higher revenues. NIAT margin improves 10 ppt
Slide 21: Manila Water - Care in Every Drop
a \ MANILA WATER CARE IN EVERY DROP