Manila Water Co. Inc. · PSE:MWC
Manila Water — 9M 2022 Earnings Presentation
22 slides from Manila Water's earnings presentation, Nov 14, 2022
Slide 1: 9M 2022 Analysts' Briefing
9M 2022 Analysts’ Briefing 14 November 2022
Slide 2: Investor relations contact
For questions and comments, you may send us an e-mail at: invrel@manilawater.com
Slide 3: 9M2022 Financial and Operating Highlights
9M2022 Financial and Operating Highlights Consolidated EBITDA NIAT Capital Revenues -2% +34% Expenditures EBITDA Margin NIAT Margin +8% -6ppts +5.3ppts +55% Billed Volume +2% • Topline continues to recover in EZ and NEZ PH (East Zone: +1%; Domestic Subs:+6%) • Costs outpace revenues amid new, recurr
Slide 4: 9M2022 Financial and Operating Highlights
9M2022 Financial and Operating Highlights Consolidated EBITDA NIAT Capital Revenues -2% +34% Expenditures EBITDA Margin NIAT Margin +8% -6ppts +5.3ppts +55% Billed Volume +2% • NIAT: Php4.5 Bn; NIAT Margin: 27% as key items (East Zone: +1%; Domestic lent upward impact Subs:+6%) • CAPEX execution pus
Slide 5: Consolidated Financial Performance
Consolidated Financial Performance 9M 9M (in Million Php) % Change Consolidated NIAT up 34% with topline recovery and key 2021 2022 items lending upward impact; NIAT Margin up 5ppts Operating Revenues 15,275 16,463 8% COS and Operating Expenses (6,191) (7,497) 21% • Consolidated revenues up 8% with
Slide 6: Consolidated Financial Performance
Consolidated Financial Performance 9M 9M (in Million Php) % Change Consolidated NIAT up 34% with topline recovery and key 2021 2022 items lending upward impact; NIAT Margin up 5ppts Operating Revenues 15,275 16,463 8% COS and Operating Expenses (6,191) (7,497) 21% • Writeback of deferred forex losse
Slide 7: Consolidated Financial Performance: Net income contribution per SBU
Consolidated Financial Performance Net income contribution per SBU 4,522 3,832 3,387 3,069 327 223 -156 -42 Parent NEZ - Philippines NEZ - International Conso YTD Sep 2021 YTD Sep 2022 • Parent Company: NIAT up 25% with writeback of deferred forex losses and partial reduction of provision related to
Slide 8: Capital Expenditures
Capital Expenditures YTD Sep 2021 YTD Sep 2022 CAPEX execution continues in line Non-East Zone Non-East Zone with fulfillment of service obligations Php2,055 M (23%) Php1,154 M (8%) CAPEX at Php14.03 Bn, with the EZ Concession accounting for 92% of Php9.05 B Php14.03 B total Consolidated CAPEX highe
Slide 9: 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 – Hinulugang Taktak System SJ South – QC South Rodriguez System 35% Completed 47% Completed 17% Completed NBAQ4 Project 99% Completed North and So
Slide 10: Capital Expenditures: Non-East Zone
Capital Expenditures: Non-East Zone Ongoing Water Supply Projects Across the Country Continuous investments in wastewater infrastructure for Compliance BNR Upgrade, Laguna Water BNR Upgrade, Clark Water Completed Completed Clarifier Project, Cebu Completed Cabuyao Expansion, Laguna P1: 100%, P2: 98%
Slide 11: Balance Sheet Highlights
Balance Sheet Highlights Assets Liabilities and Equity YTD Sep (in Million Php) Dec 2021 2022 165,517 181,124 165,517 181,124 Cash & Cash Equivalents 13,338 10,205 10,205 13,338 35,365 CAPEX 16,914 14,029 Cash and Cash 29,455 72,809 71,389 82,397 68,325 Bank Debt Equivalents Net Debt 57,783 72,068 O
Slide 12: Parent Company (East Zone Concession)
Parent Company (East Zone Concession)
Slide 13: Parent Company: Operating Highlights
Parent Company: Operating Highlights YTD Sep YTD Sep • Recovery in commercial + industrial consumption from % Change 2021 2022 quarantine restrictions of previous periods Billed Volume 368.7 373.3 1% (in MCM) • Collection efficiency improved to 100% level as Average tariff Business and Territory tea
Slide 14: Parent Company: Financial Highlights
Parent Company: Financial Highlights Parent NIAT up 25% with writeback of deferred forex YTD YTD losses and the partial reduction of provision re: Clean (in Million Php) Sep Sep % Change Water Act case lending upward impact; NIAT Margin at 2021 2022 31% Revenues 12,274 12,554 2% • Revenue recovery i
Slide 15: Non-East Zone Philippines
“Non-East Zone __ eis naga Philippines a Bie fe
Slide 16: NEZ-PH: Consolidated Financial Highlights
NEZ-PH: Consolidated Financial Highlights YTD Sep YTD Sep % Change 2021 2022 NEZ-PH NIAT better than LY with improved Billed Volume (in mcm) 81.5 86.8 6% performance of Estate Water, VisMin cluster Supervision Fees and MWIS (in Mn Php) 155 111 (29%) (in Million Php) • Consolidated revenues increased
Slide 17: NEZ-PH: Operating & Financial Highlights
NEZ-PH: Operating & Financial Highlights YTD YTD Sep Sep % Change 2021 NEZ-PH NIAT better than LY with improved 2022 performance of Estate Water, VisMin cluster Laguna Water and MWIS Billed Volume (mcm) 34.8 34.3 (1%) Average Tariff (Php/cu.m) 40.8 44.2 8% Laguna Water: Revenue improvement from LY d
Slide 18: Non-East Zone International
Non-East Zone International
Slide 19: NEZ-INTL: Consolidated Financial Highlights
NEZ-INTL: Consolidated Financial Highlights NEZ - INTL NIAT down 32% due to lower share YTD Sep YTD Sep % Change in net income of associates; higher new 2021 2022 business development and management fees Equity share in net income of 486 447 (8%) associates • Lower billed volume from East Water offs
Slide 20: Sustainability + ESG Update for Q3 2022
Sustainability + ESG Update for Q3 2022 Water Efficiency Watershed Protection Wastewater Treatment ▪ ~11.1%, NRW end-of-Q3 2022 through leak ▪ 1,346,986 trees nurtured since 2006, ▪ 5,795 tons of organic pollution removed reduction equivalent to 2,673 has. of reforested area ▪ 34,059 tons of CO2 emi
Slide 21: Summary
Summary • Topline continues to recover in EZ and NEZ PH • Costs outpace revenues amid new, recurring costs • EBITDA: Php9.4 Bn; EBITDA margin: 57% • NIAT: Php4.5 Bn; NIAT Margin: 27% as key items lent upward impact • CAPEX execution pushes forward • Balance Sheet remains robust and compliant with fi
Slide 22: Disclaimer
DISCLAIMER Specific statements and illustrations contained in this report may constitute “forward-looking statements” within the meaning of applicable securities laws and regulations. These statements (including as to plans, objectives, projections, and estimates) and illustrations include informati