Manila Water Co. Inc. · PSE:MWC
Manila Water — Investor Presentation (August 2019)
33 slides from Manila Water's investor presentation, August 2019
Slide 1: Investor Presentation August 2019
Slide 2: Our mission
é rik der inthe | LE rand@ | . ices Whic Willernpower ~= — m = Our miéssio! : ae fal a CUSTOM fee the a sustainable solutio |to health and life. = ; MANILA WATER CARE IN EVERY DROP
Slide 3: Our Businesses
OUR BUSINESSES We build businesses consisting of water, used water and related assets across the Philippines and the ASEAN region Geographic Concessions and Partnerships Products and Services Manila Concession Manila Water Manila Water Manila Water (East Zone) Philippine Ventures Asia Pacific Total
Slide 4: Leading regional Philippine water utility
\ ’ ~~ —_— et 7 :. Leading regional Philippine water utility "CARE IN-EVERY DROP
Slide 5: Estate Water
ESTATE WATER as operating Division 6
Slide 6: Currently serving a population with an addressable market of 27.5 million
CURRENTLY SERVING A POPULATION OF 26 MILLION WITH AN ADDRESSABLE MARKET OF 27.5 MILLION CLARK Population: MANILA CONCESSION 107,000 Population: one + BORACAY ISLAND Population: 35,000 locals and 2 million tourists rif METRO CEBU Population: 2.8 million rif EASTERN R THAILAND Population: 4.6 million
Slide 7: Domestic Water Rates and Total Water Charge comparison
Domestic Water Rates (30 m3) Total Water Charge (per 15cum) Baguio City 1,237 Singapore 1.42 San Jose Del Monte 930 Tokyo 1.05 Cagayan de Oro City 842 Beijing 0.55 MAYNILAD 705 Jakarta* 0.43 Batangas City 677 MAYNILAD* 0.41 Bacolod City 650 Hanoi 0.30 Cabanatuan City 646 MANILA WATER* 0.27 Angeles C
Slide 8: Care in Every Drop
"CARE IN-EVERY DROP
Slide 9: Non-Revenue Water (NRW) Reduction
NON-REVENUE WATER (NRW) REDUCTION CAPASBILITY IS BEST-IN-CLASS CARE IN EVERY DROP Manila Concession Sail Clark >| 56% Yangon City 1997 1H19 || 2071 1HI19 | Feb 2016 Jan 2017 *Refers to pilot project with Yangon City Development Council | 48% Laguna 2 2 CséBoracay >| HoChiMinh city Ea 2009 1HI9. | 20
Slide 10: Ability to Improve Water Service Coverage
ABILITY TO IMPROVE WATER SERVICE COVERAGE UPON ACQUISITION Manila Concession P| 67% 1997 1H19 Boracay > _| Laguna | 2009 1HI9 2009 1H19 \, MANILA WATER CARE IN EVERY DROP 1
Slide 11: Care in Every Drop
"CARE IN-EVERY DROP
Slide 12: Strong Strategic Partnerships with Government and Private Sector
STRONG STRATEGIC PARTNERSHIPS WITH THE GOVERNMENT AND PRIVATE SECTOR IN THE PHILIPPINES Government Private Partners Agencies = CLARK WATER LAGUNA WATER uIP VENTURES COMPANY Metropolitan @) Waterworks and Sewerage System . BORACAY WATER Tourism Infrastructure and ‘A MANILA WATER a Enterprise Zone Aut
Slide 13: With Reputable Partners in Penetrating Foreign Markets
WITH REPUTABLE PARTNERS IN PENETRATING FOREIGN MARKETS ‘ i r G ‘ HFcocct a S| CONG TY CO PHAN CAP NU KENH DONG SRBE”, = Ls _— KENH DONG WATER SUPPLY JOINT-STOCK COMPANY iG MANILA WATER CARE IN EVERY DROP VO! (S) Saigon Water Yangon City Pilot NRW Development . . Committee Reduction Project NRW Demon
Slide 14: 2018 MWSS Rate Rebasing Determination
2018 MWSS RATE REBASING DETERMINATION ¢ On27 September 2018, the Metropolitan Waterworks and Sewerage System (MWSS) has approved Manila Water’s Rebasing Adjustment for the Fourth Rate Rebasing Period (2018 to 2022). To mitigate the impact of the tariff increase, Manila Water will stagger its impleme
Slide 15: Metro Manila Water Supply System
METRO MANILA WATER SUPPLY SYSTEM a= \ MANILA WATER CARE IN EVERY DROP 1,600 mld TREATMENT PLANT ste Water Rights Allocation HOUSEHOLDS = bed a) Mafnilad WEST ZONE 2,400 mld Water Rights Allocation \, MANILA WATER CARE IN EVERY DROP 16
Slide 16: Manila Concession Service Recovery Update
MANILA CONCESSION SERVICE RECOVERY UPDATE Manila Water Company has restored 24/7 through the successful implementation of its Water Supply Augmentation Program Hy MARCH 6 HA INCIDENT : : : : : : ‘Avgrage ve" & allability since March 19 to Present : * 2279 2260 2304 _ 2333. 2834 232 “ _ 2165 po? My 2
Slide 17: Manila Concession 2018-2037
MANILA CONCESSION 2018-2037 MWSS Water Supply Master Pian: = Agreement with MWSS on Water Source Road Map =" MWSS approved implementation of 250MLD East Bay 2400 4 2019 2020 2021 2022 100MLD Cardona | | 20MLD New Wells 80MLD Calawis 250MLD East Bay L, 2.200 94MLD Deepwell 50MLD Well Field 186MLD Sum
Slide 18: Growth platform in place
Growth platform in place “Ts « - <3) MANILA WATER "CARE IN-EVERY DROP
Slide 19: Flexible Business Models in Entering New Markets and Partnerships
FLEXIBLE BUSINESS MODELS IN ENTERING NEW MARKETS AND PARTNERSHIPS - > Water Source Development and Management Raw Water Transmission Pipelaying Boracay Water eC Manila Water Laguna Water e Mani Total Solutions Bulk Water Supply Purified Water Cebu Water e Kenh Dong Water e Tagum Water e Manila Water
Slide 20: 2018 Financial and ESG Highlights
2018 FINANCIAL AND ESG HIGHLIGHTS FINANCIAL > 719.848 @> 26.52B Net Income* P9.98 B Capital Expenditures P122.53 B %- Total Asset Base oy 2017 2016 Economic value generated Revenues** 20,266.82 18,877.51 17,971.21 Economic value distributed Operating Cost 5,211.61 4,481.38 4,039.41 Employee wages an
Slide 21: Environmental, Social and Governance
ENVIRONMENTAL 2% §—9.6% Enterprise-wide non-revenue water (end-of-period) 9,102 Tons @%* BOD* Organic Pollution Load Removed > 62.42 mem 57,345 Tons @* Used Water Treated co (eq) Complies with the 2 DENR Effluent Standard Carbon Emissions Avoided due to used water treatment SOCIAL 25.62 M om Populat
Slide 22: Our Contribution to the United Nations Sustainable Development Goals
ul OUR CONTRIBUTION T THE UNITED NATIONS CLEAN WATER AND SANITATION 1,126,254 billed connections 25.62 M population served ‘across the Enterprise 142,037 ‘sewer connections 116,507 dosludged septic tanks SUSTAINABLE DEVELOPMENT G.-AL S di.
Slide 23: Councal which will
Councal which will ‘guide the Enterprise to be more proactive inadapting to and Supporting the 9,102 tons of organic pollution (tee B vw water trail through ervironmental advocacias 102,753 Lakbayan participants/ Water and Used Water Trail Program participants since 2014 ‘Adhering strongly with the
Slide 24: Expanding Operations Outside Metro Manila through Manila Water Philippine Ventures
EXPANDING OPERATIONS OUTSIDE METRO MANILA THROUGH MANILA WATER PHILIPPINE VENTURES CLARK WATER ‘A MANILA WATER PHILIPPINE VENTURES COMPANY 40-year concession; until 2040 Water and Used Water Customer: 1,900 locators Coverage: Clark Freeport Zone Billed Volume*: 7.1 mcm MWC Ownership: 100% \, MANILA
Slide 25: New Businesses in the Pipeline
NEW BUSINESSES IN THE PIPELINE TAGUM WATER ‘AMANILA WATER COMPANY ESTATE WATER ‘A MANILA WATER-AYALA LAND STRATEGIC PARTNERSHIP Provides water and used water services to all horizontal Ayala Land Inc. developments nationwide Customer: Locators and residents of 65 Ayala Land Developments Billed Volum
Slide 26: Expanding Operations Outside the Philippines
EXPANDING OPERATIONS OUTSIDE THE PHILIPPINES S EastWater 50-year contract; until 2058 Bulk Water Customer: SAWACO Coverage: Ho Chi Minh City Take or pay: 300 mld Billed Volume*: 54.0 mcm _MWC Ownership: 49% a \ MANILA WATER CARE IN EVERY DROP CONG TY CO PHAN CAP NUCIC KENH DONG 20-year contract; unt
Slide 27: Vertical Expansion through Manila Water Total Solutions
VERTICAL EXPANSION THROUGH MANILA WATER TOTAL SOLUTIONS Integrated Used Healthy Family Pipelaying Water Services Bottled Water a. ie a Design and build of water, Provision of holistic customer- High-quality yet affordable used water and gray water specific solutions for used water | purified water i
Slide 28: Manila Water
<3) MANILA WATER "CARE IN-EVERY DROP
Slide 29: Consistent Income Growth and Margins
CONSISTENT INCOME GROWTH AND MARGINS Php ‘000 Phpl9,836 USD377 18,000 16,000 14,000 64% 12000 EBITDA Margin 10,000 8,000 Php 6,524 USD124 6,000 4,000 2,000 [ L q 2ttth 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 @ Revenues @Net Income
Slide 30: Healthy Balance Sheet to Support Growth
HEALTHY BALANCE SHEET TO SUPPORT GROWTH (in Million Php) 1H 2019 FY 2018 % Change Assets 124,480 122,533 2% Liabilities 69,189 68,912 0.4% Equity 55,291 53,621 3% Cash and Cash Equivalents 6,307 9,39] (33%) .. while comfortably operating within financial ratio covenants Ratios 1H 2019 FY 2018 Bank D
Slide 31: Manila Water
MANILA WATER 32
Slide 32: Contact Information
MANILA WATER CARE IN EVERY DROP Contact Information Investor Relations Office Number: (+632) 917-5900 Loc. 1414 Email Address: invrel@manilawater.com Manila Water Website: www.manilawater.com Bloomberg Ticker: MWC PM EQUITY Reuters Ticker: MWC PS Disclaimer: Statements in this presentation describin
Slide 33: Forward-looking statements
tward-looking statements” within atements (including as to plans, objectives, ation that does not relate solely to historical or ent expectations of future events, estimates, and certain anagement. These are therefore subject to certain risk factors and uncertainties, some of which are beyond the Co
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