Athens Water Supply And Sewerage Company S.a. · ATHEX:EYDAP
Athens Water Supply And Sewerage — FY2020 Earnings Presentation
55 slides from Athens Water Supply And Sewerage's earnings presentation, April 2021
Slide 1: 2020 Annual Financial Results Briefing
9 ~ 3) Ns. APRIL 202 . \ | : Q AC me \ 2020 annua Ns FINANCIAL RESULTS BRIEFING @EYDAP
Slide 2: Key Financial Points
Key Financial Points The turnover of the Company was € 330.3 million in 2020 showing an increase of 2% (+6.6 million €), compared to 323.7 million in 2019. Total water consumption increased to 399.7 million cubic meters from 392.3 million cubic meters in 2019 (+ 1.9%). The Company took a €157.5
Slide 3: Financial Results 2020 (Company) before the provision for the cost of raw water
Financial Results 2020 (Company) before the provision for the cost of raw water regarding the period 1.10.2013-31.12.2020 In thousands of € 2018 2019 2020 Y-O-Y Turnover 322.397 323.744 330.318 +2,0% Gross Profits 139.964 163.284 171.832 +5,2% % of turnover 43,4% 50,4% 52,0% EBITDA 100.755 107.661 1
Slide 4: Dividend
Dividend The intention of the Company's Management is the distribution of a dividend to the shareholders from the retained earnings and / or return of capital from the issuance of equity shares, amounting to a total of 50 million Euros. The exact mix of the retained earnings and/or return of capital
Slide 5: Negotiations with the Greek State
Negotiations with the Greek State The Company is in the final stage of negotiations with the Greek State for the extension of the exclusive right of water supply in its area of jurisdiction for the period 2021-2040. The proposed agreement is a comprehensive framework that permanently gives clos
Slide 6: Total price of raw water 2004 - 2040
Total price of raw water 2004 - 2040 2004 - 2013 € 0.151 / m3 -23,5% 2013 - 2020 Reasonable € 0.115 / m3 -44,5% agreement for 2021 - 2023 the past, 2021 - 2040 € 0,115 / m3 fair solution for the future € 0.084 / m3 2024 - 2040 € 0,078 € / m3
Slide 7: Annual total cost of raw water 2004 - 2040
Annual total cost of raw water 2004 - 2040 2004 - 2013 € 60 mn. -23,5% 2013 - 2020 Reasonable € 46 mn. -44,5% agreement for 2021 - 2023 the past, 2021 - 2040 € 46 mn. fair solution for the future € 33 mn. 2024 - 2040 € 31 mn.
Slide 8: The upcoming agreement will be positive for all parties involved
The upcoming agreement will be positive for all parties involved Parties Consumers Municipalities & Ministries & EYDAP EYDAP Regions EYDAP Fixed Assets shareholders Stable pricing Sewerage services Debt Settlement for the Stock market value Sustainable period 2013 - 2020 enhancement invest
Slide 9: Future Planning
FUTURE PLANNING ΣΧΕΔΙΑΣΜΟΣ ΓΙΑ ΤΟ ΜΕΛΛΟΝ
Slide 10: 2020: the foundations for Company's growth were set
2020: the foundations for Company’s growth were set Mature Negotiations with the Greek Phase A of Transformation and New New Operating Statute for new State Organizational development Structure initiatives New more flexible Procurement Rules to Proclamation of tenders for all Management of the COVID
Slide 11: With the closure of the 16-year pending issues, we plan the next 20 years
With the closure of the 16-year pending issues, we plan the next 20 years of Company’s growth path Our vision is to be the most reliable company in water cycle management and always oriented to people and the environment Strategic Pivots Security Efficiency Growth Offering quality water supply and U
Slide 12: We have identified the operational risks and challenges we will be called to address
We have identified the operational risks and challenges we will be called to address so as to achieve our strategic goals. Challenges Operational Risks Unclear Regulatory Environment Significant disinvestment within the past years (~22% decrease Disinvestment of regulated asset base since 2012), whi
Slide 13: 10-year Investment Plan
10-year Investment Plan Investment Plan Objectives Green Transition Digital Transition Strategic Priorities • Transformation projects ~ € 175 mn.* • Sewerage and Water Recycling Works in East Attica ~ € 700 mn.** • Water network replacement for leaks’ reduction ~ € 200 mn.* 1.1 € bn. *With possible
Slide 14: Transformation
Implementation of a series of strategic transformation projects with an estimated budget of ~ € 175 million over the next five years Overview of strategic transformation projects Modernization of operations Operational Upgrade Resources Optimization #1. Modernization and optimization of #2. Data dig
Slide 15: Our vision for a new corporate Culture
Our vision for a new corporate Culture The ultimate goal is to lay the foundations for the development of a new corporate culture that will provide multiplier benefits for employees, shareholders, society and the environment. Organisation’s orientation From… …to: Contributing to… Qualitative, enviro
Slide 16: Sewerage and Wastewater Treatment Projects in East Attica
Sewerage and Wastewater Treatment Projects in East Attica New WasteWater Treatment Plants klm mn residents Wastewater budget networks
Slide 17: Progress in East Attica
Progress in East Attica Εντός του 2020 Within 2020 - Tenders were announced for the construction of sewerage networks for the districts of Spata-Artemida, Rafina-Pikermi, with a total length of ~ 400 km and a budget of 168 million euros. - Wastewater network is under construction at Glyka Nera (comp
Slide 18: Financial Results
Financial Results ΣΧΕΔΙΑΣΜΟΣ ΓΙΑ ΤΟ ΜΕΛΛΟΝ
Slide 19: Financial Results 2020 (Company)
Financial Results 2020 (Company) The company is in advanced discussions with the Greek State for the extension of the exclusive right of water supply in its area of jurisdiction and for the final settlement of the price of the acquired untreated water for the period 2013 - 2020. Taking into acco
Slide 20: Financial Results 2020 (Company)
Financial Results 2020 (Company) Operating costs include the impairment of financial assets, which increased by approximately 8.8 million €. The change in relation to the end of the fiscal year 2019 is analyzed as follows: o 54% due to the increase of receivables (Exposures at Default) with the sa
Slide 21: Financial Results 2020 (Company) before the provision for raw water
Financial Results 2020 (Company) before the provision for raw water for the period 1.10.2013-31.12.2020 In thousands of € 2018 2019 2020 Y-O-Y Turnover 322.397 323.744 330.318 +2,0% Gross Profits 139.964 163.284 171.832 +5,2% % of turnover 43,4% 50,4% 52,0% EBITDA 100.755 107.661 100.401 -6,7% % of
Slide 22: EBITDA 2020 before the provision for raw water
EBITDA 2020 before the provision for raw water for the period 1.10.2013- 31.12.2020 (amounts in thousands of €) In all presentation diagrams the size increases are shown in blue and the decreases in red. If the total change is positive for the company's profits it is displayed in green while if it i
Slide 23: Earnings Before Taxes (EBT) 2020 before the provision for raw water
Earnings Before Taxes (EBT) 2020 before the provision for raw water for the period 1.10.2013-31.12.2020 (amounts in thousands of €) In all presentation diagrams the size increases are shown in blue and the decreases in red. If the total change is positive for the company's profits it is displayed in
Slide 24: Financial Results 2020 (Company)
Financial Results 2020 (company) During 2020, the company made a provision for the extra costs of raw water for the period 1.10.2013- 31.12.2020, amounting to € 157.5 million € This provision, in the Income Statement 2020, appears in two parts: In Cost of Sales: € 22.2 million for the year 202
Slide 25: Financial Results 2020 (Company)
Financial Results 2020 (Company) In thousands of € 2018 2019 2020 Y-O-Y Turnover 322.397 323.744 330.318 2,0% Gross Profits 139.964 163.284 149.632 -8,4% % of turnover 43,4% 50,4% 45,3% EBITDA 100.755 107.661 -57.099 -153,0% % of turnover 31,3% 33,3% -17,3% EBIT 63.175 70.582 -92.164 -230,6% % of tu
Slide 26: EBITDA 2020
EBITDA 2020 (in thousands of €) In all presentation diagrams the size increases are shown in blue and the decreases in red. If the total change is positive for the company's profits it is displayed in green while if it is negative in orange
Slide 27: Earnings Before Taxes (EBT)
Earnings Before Taxes (EBT) (amounts in thousands of €) In all presentation diagrams the size increases are shown in blue and the decreases in red. If the total change is positive for the company's profits it is displayed in green while if it is negative in orange
Slide 28: Adjusted Financial Results 2020 (Company)
Adjusted* Financial Results 2020 (Company) In thousands of € 2018 2019 2020 Y-O-Y Turnover 322.397 323.744 330.318 2,0% *This adjustment consists of three differences from the published results: Gross Profits 139.964 163.284 171.832 5,2% (a) From the item "Other Expenses" (in the % of turnover 43,4%
Slide 29: Adjusted EBITDA-I
Adjusted* EBITDA-I 2020 (amounts in thousands of €) In all presentation diagrams the size increases are shown in blue and the decreases in red. If the total change is positive for the company's profits it is displayed in green while if it is negative in orange
Slide 30: Adjusted EBT-I
Adjusted* EBT-I 2020 (amounts in thousands of €) In all presentation diagrams the size increases are shown in blue and the decreases in red. If the total change is positive for the company's profits it is displayed in green while if it is negative in orange
Slide 31: Turnover Breakdown
Turnover Breakdown 2020 (amounts in thousands of €) TURNOVER 2018 2019 2020 Y-O-Y Revenues from Water Supply and Related Services 220.266 219.250 223.393 1,9% % of turnover 68,3% 67,7% 67,6% Revenues from Sewerage Services 100.280 102.713 104.642 1,9% % of turnover 31,1% 31,7% 31,7% Revenues from El
Slide 32: Turnover
Turnover 2020 (amounts in thousands of €) In all presentation diagrams the size increases are shown in blue and the decreases in red. If the total change is positive for the company's profits it is displayed in green while if it is negative in orange
Slide 33: Revenues from Water Supply and Related Services
Revenues from Water Supply and Related Services 2020 (amounts in thousands of €) WATER SUPPLY AND RELATED SERVICES 2018 2019 2020 Υ-Ο-Υ Revenues from Water Consumption 211.298 213.446 218.701 2,5% % of the total of water supply and related services 95,9% 97,3% 97,9% New Water Supply Connections 1.95
Slide 34: Revenues from Water Supply and Related Services
Revenues from Water Supply and Related Services 2020 (amounts in thousands of €) In all presentation diagrams the size increases are shown in blue and the decreases in red. If the total change is positive for the company's profits it is displayed in green while if it is negative in orange
Slide 35: Revenues from Sewerage Services
Revenues from Sewerage Services 2020 (amounts in thousands of €) Sewerage Revenues 2018 2019 2020 Υ-Ο-Υ Revenues from Sewer Usage 98.055 99.908 102.326 2,4% % of the total Revenues from Sewerage Services 97,8% 97,3% 97,8% Connection Fees 452 420 450 7,1% % of the total Revenues from Sewerage Service
Slide 36: Revenues from Sewerage Services
Revenues from Sewerage Services 2020 (amounts in thousands of €) In all presentation diagrams the size increases are shown in blue and the decreases in red. If the total change is positive for the company's profits it is displayed in green while if it is negative in orange
Slide 37: Operating Expenses Breakdown
Operating Expenses Breakdown* 2020 (amounts in thousands of €) OPERATING EXPENSES* 2018 2019 2020 Υ-O-Y Personnel Costs 117.829 120.160 119.338 -0,7% % of Operating Expenses 52% 55% 47% Utility Expenses 34.553 36.613 37.621 2,8% % of Operating Expenses 15% 17% 15% Third-party Expenses and Fees 47.10
Slide 38: Operating Expenses Breakdown 2020
Operating Expenses Breakdown* 2020 *before D&A expenses (amounts in thousands of €) In all presentation diagrams the size increases are shown in blue and the decreases in red. If the total change is positive for the company's profits it is displayed in green while if it is negative in orange
Slide 39: Personnel Costs Breakdown
Personnel Costs Breakdown 2020 (amounts in thousands of €) PERSONNEL COSTS 2018 2019 2020 Υ-O-Y Wages and Salaries 86.299 88.704 88.418 0% % of the total of Personnel Costs 73% 74% 74% Social Security Costs 19.863 20.190 19.867 -2% % of the total of Personnel Costs 17% 17% 17% Provisions for post-em
Slide 40: Provisions for other Defined Benefit Plans
Provisions for other Defined Benefit Plans2020 (amounts in thousands of €) Provisions for other Defined Benefit Plans 2018 2019 2020 Y-o-Y Provisions for staff indemnity due to retirement 1.349 1.264 1.270 0% Special indemnity for personnel hired after 25/10/1999 311 262 329 26% Special indemnity fo
Slide 41: Personnel Costs
Personnel Costs 2020 (amounts in thousands of €) In all presentation diagrams the size increases are shown in blue and the decreases in red. If the total change is positive for the company's profits it is displayed in green while if it is negative in orange
Slide 42: Breakdown of Various Provisions
Breakdown of Various Provisions 2020 (amounts in thousands of €) VARIOUS PROVISIONS 2018 2019 2020 Y-o-Y Bad Debt Expenses * -9.877 2.609 11.367 336% Provisions for Litigation Expenses 20.004 -4.479 -4.268 -5% Inventory Write-offs (reversals) 241 2 102 4991% Total of Various Provisions 10.368 -1.869
Slide 43: Provision from Impairment of Receivables
Provision from Impairment of Receivables 2020 (amounts in thousands of €) EAD: Exposure At Default LGD: Loss Given Default PD: Probability of Default
Slide 44: Breakdown of Third-Party Expenses & Fees
Breakdown of Third-Party Expenses & Fees 2020 (amounts in thousands of €) THIRD-PARTY EXPENSES & FEES 2018 2019 2020 Y-o-Y Psytallia WWTP 28.261 27.612 27.635 0% % of the total Third-Party Expenses and Fees 60% 55% 54% Metamorphosi WWTP 2.412 2.975 2.945 -1% % of the total Third-Party Expenses and F
Slide 45: Third-Party Expenses & Fees
Third-Party Expenses & Fees 2020 (amounts in thousands of €) In all presentation diagrams the size increases are shown in blue and the decreases in red. If the total change is positive for the company's profits it is displayed in green while if it is negative in orange
Slide 46: Breakdown of Utility Expenses
Breakdown of Utility Expenses 2020 (amounts in thousands of €) UTILITY EXPENSES 2018 2019 2020 Y-o-Y Electricity 15.919 16.885 17.666 5% % of the total of Utility Expenses 46% 46% 47% Natural Gas 476 405 280 -31% % of the total of Utility Expenses 1% 1% 1% Rents 7.849 8.361 8.619 3% % of the total o
Slide 47: Utility Expenses
Utility Expenses 2020 (amounts in thousands of €) In all presentation diagrams the size increases are shown in blue and the decreases in red. If the total change is positive for the company's profits it is displayed in green while if it is negative in orange
Slide 48: Breakdown of Other Expenses
Breakdown of Other Expenses 2020 (amounts in thousands of €) OTHER EXPENSES 2018 2019 2020 Y-o-Y Taxes and duties 4.524 4.060 4.364 8% % of the total of Other Expenses 24% 38% 31% Consumables 1.514 1.864 1.892 1% % of the total of Other Expenses 8% 17% 13% Promotion and Advertising Expenses 979 766
Slide 49: Other Expenses
Other Expenses 2020 (amounts in thousands of €) In all presentation diagrams the size increases are shown in blue and the decreases in red. If the total change is positive for the company's profits it is displayed in green while if it is negative in orange
Slide 50: Balance Sheet Items
Balance Sheet Items 2020 (amounts in thousands of €) ASSETS 2019 2020 20-19% Tangible Assets 799.219 788.727 -1,3% Intagible Assets 619 562 -9,2% Right-of-Use Assets 3.607 2.722 -24,5% Other Non Current Assets 104.174 140.888 35,2% Inventories 13.219 14.297 8,2% Trade Receivables-Contract Assets 183
Slide 51: Breakdown Receivables from Customers and Contract Assets
Breakdown Receivables from Customers and Contract Assets 2020 (amounts in thousands of €) Receivables from Customers and Contract Assets 2018 2019 2020 Receivables from Customers and Contract Assets before provisions 271.744 271.563 278.502 Provisions for doubtful receivables and Contract Assets -85
Slide 52: Cash Flow Statement
Cash Flow Statement 2020 (amounts in thousands of €) 2018 2019 2020 Cash Flow from operating activities Profit before tax 80.314 84.047 -80.427 Adjustments for non-cash items 31.773 17.295 185.385 Adjustments in operating assets and liabilities 8.086 2.781 -6.702 Late payment charges collected 8.935
Slide 53: Capital Structure Optimization
Capital Structure Optimization We will proceed within a short period of time to a balance sheet restructuring, and gearing, targeting at the development of the Company. We examine potential capital return, in line with our international peers.
Slide 54: @EYDAP April 2021
@EYDAP APRIL 2021
Slide 55: Thank you!
Ae X N Thank you! @EYDAP
Athens Water Supply and Sewerage Company (EYDAP) — FY2020 Earnings Presentation on 6ix