Thessaloniki Water And Sewage Company Sa · ATHEX:EYAPS
Thessaloniki Water And Sewage Company Sa — EYATh S.A. (Thessaloniki Water Supply & Sewerage Co.) — Investor Presentation (June 2014)
69 slides from Thessaloniki Water And Sewage Company Sa's investor presentation, June 2014
Slide 1: Analysts' Presentation June 2014
Analysts’ Presentation June 2014 1 Company Presentation - Fiscal Year 2013 - June 2014
Slide 2: Index
Index 1. Vision 3 2. Target 4 3. Strategy 5 4. Global Statistics 6 5. The Company today 13 6. Financial Results & Share 26 7. Growth Strategy 61 8. Business Plan 66 2 Company Presentation - Fiscal Year 2013 - June 2014
Slide 3: Vision
Vision The management has adopted modern technology to control all applications for even better water quality as well as improvement of sewerage treatment. With respect to the environment and the water resources the management’s main target is the protection of the Thermaikos bay. Dried Sludge Plant
Slide 4: Target
Target Constant improvement of the provided services Secure provision of excellent quality drinking water Efficient environmental protection Improvement of the company financials Dried Sludge Plant 4 Company Presentation - Fiscal Year 2013 - June 2014
Slide 5: Strategy
Strategy The Company Strategy focuses upon the fulfillment of its obligations as a Public Utility Company Dried Sindos Plant 5 Company Presentation - Fiscal Year 2013 - June 2014
Slide 6: Global Statistics - 2013
Global Statistics - 2013 6 Company Presentation - Fiscal Year 2013 - June 2014
Slide 7: Global Statistics - 2013
Global Statistics - 2013 http://growingblue.com/the-growing-blue-tool/ 7 Company Presentation - Fiscal Year 2013 - June 2014
Slide 8: Financial Implications - 2013
Financial Implications - 2013 http://growingblue.com/the-growing-blue-tool/ 8 Company Presentation - Fiscal Year 2013 - June 2014
Slide 9: Environmental Implications - 2013
Environmental Implications - 2013 http://growingblue.com/the-growing-blue-tool/ 9 Company Presentation - Fiscal Year 2013 - June 2014
Slide 10: Social Implications - 2013
Social Implications - 2013 http://growingblue.com/the-growing-blue-tool/ 10 Company Presentation - Fiscal Year 2013 - June 2014
Slide 11: Global Statistics - 2013
Global Statistics - 2013 11 Company Presentation - Fiscal Year 2013 - June 2014
Slide 12: Greece in Rank - 2013
Greece in Rank - 2013 http://growingblue.com/the-growing-blue-tool/ - Greece 12 Company Presentation - Fiscal Year 2013 - June 2014
Slide 13: EYATh today
EYATh today 13 Company Presentation - Fiscal Year 2013 - June 2014
Slide 14: Main Directions
Main Directions Rationalization of financial accounts Removal of significant amount of sludge Maintenance works increase with costs decrease Ensuring profitability and liquidity Partial replacement and leaks limitation Bills payment through the internet and favorable terms of claims payment Particip
Slide 15: Priorities
Priorities The reuse of the treated liquid waste in cultivation close to the Treatment Plant The reinforcement of the production plant and exploitation of biogas from the sludge, which is already in the Sindos plant as well as the exploitation of its heating power. Finally, the company Business Plan
Slide 16: At a Glance
At a Glance EYATh S.A. In progress is the Investment Plan 2008-2013 of total value € 87.9 mil. Design and Implementation of the new Investment Plan 2014-2018 ΕΥΑΘ Α.Ε. Expansion of the customer base Exploitation of renewable resources for energy production Sindos Biological Treatment Plant 16 Compan
Slide 17: Strategy Implementation Framework
Strategy Implementation Framework Main axis for strategy planning remains the sustainability in growth as well as the choices for humanity Combination of business operations and social responsibility Provision of high level water and sewerage services with the minimum possible cost Protection of the
Slide 18: Design of Services
Design of Services Design and implementation of the following: Upgrade of the Sewerage Treatment Plant in cooperation with the Greek Development Bank as a management body of the Sindos Industrial Area Electronic monitoring of the Water and Sewerage Network for the precise estimation of operation and
Slide 19: Projects
Projects Two important projects were announced. These projects concern the ‘Construction of the 2nd Branch of the Main Sewerage Pipe of Thessaloniki’ budget of €44 mil. and the ‘Construction of Extension of Water treatment Plant Phase 2’ budget of €36.5 mil. In the same direction, constructed and de
Slide 20: Treatment Plant
Treatment Plant Operation & Maintenance : Receiving the majority of the urban waste Removal of 45,000 tonnes for the production of organic fertilizers Progressive increase in demand for calcified material Remaining quantity amounts to 188,000 tonnes The product of the plant will be provided to agric
Slide 21: Sewerage Treatment Plant
Sewerage Treatment Plant Capacity : 2012 Capacity of Organic Load (design): 296,000 m3 296.000 m3 Population Served (design): 1,333,000 1.333.000 Service Data for 2012: Average daily Service: 184,700 m3 173.700 m3 Amounts of wastes (m3/daily): a. Urban wastes 183,000 172.600 b. Industrial wastes - c
Slide 22: 2013 Important Facts
2013 Important Facts Outcome of the management policies : Annual Audit and composition of budgets with budget plan and accounts cross checking of the company figures Arrangement of liabilities between EYATH SA and EYATH Fixed Assets for the previous years Collection of bills from Municipalities and
Slide 23: Outlook 2013
Outlook 2013 Planed construction of the 2nd Branch of the Central Sewerage Treatment Plant of Thessaloniki (€44 mil.) Planed construction of the Water Treatment Plant Extension in Thessaloniki (€36.5 mil.) Preparation of relevant study for investigation of possible ways for exploitation of sludge in
Slide 24: EYATh S.A. today Water Sewerage
EYATh S.A. today 250,000 m³ average daily water production 510,000 customers-consumers Water 2,340 th. pipe network length 120 sqm. service area 175,000 m³ average daily sewerage treatment 1,700 th. total network length Sewerage 510,000 customers-consumers 637 sqm. service area Refin
Slide 25: EYATh S.A. today
EYATh S.A. today EYATh fixed Assets EYATh S.A. Raw water conveyance system: 4 Pumping 45 Storage Pipes Network stations Tanks 112 Facilities Water Treatment Quality Control • In July ’01, E.Y.A.Th. Fixed Assets signed a 30 years exclusive agreement with E.Y.A.Th. S.A. • E.Y.A.Th. SA purchases unproc
Slide 26: Financial Results & Share
Financial Results & Share 26 Company Presentation - Fiscal Year 2013 - June 2014
Slide 27: Consolidated Annual Financial Results
Consolidated Annual Financial Results Company turnover reached €72.3 mil. in 2013 compared to €73.9 mil. in 2012 a decrease of 2.10% Cost of sales reached the amount of €46.5 mil. in 2013 compared to €43.3 mil. in 2012 an increase of 7.38% Gross profit reached €25.8 mil. in 2013 compared to €3
Slide 28: Income Financials - 2013
Income Financials - 2013 Turnover (€ mil) Gross Profit (€ mil) 75.4 73.9 72.3 40 80 32.5 30.6 Summary on Financials (€ t h.) 60 30 25.8 2013 2012 Dif f erence 40 20 Turnover 72.299 73.851 -2.10% 20 10 Cost of Wat er Sold 46.479 43.284 7.38% 0 0 Earnings Bef ore Tax 17.696 21.397 -17.30% 2011 2012 20
Slide 29: Balance Sheet - 2013
Balance Sheet - 2013 2013 2012 (€ th.) Assets Non C urrent Assets 88,324 91,501 C urrent Assets 103,296 99,818 Total Assets 191,620 191,319 Equity 143,363 136,194 Debt 48,257 56,125 Total Liabilities 191,620 191,319 2012 figures adjusted to revised IAS 19 29 Company Presentation - Fiscal Year 2013 -
Slide 30: Cash Flow - 2013
Cash Flow - 2013 2013 2012 (€ th.) Operating Activities 22,848 17,461 Investing Activities 3,686 - 435 Financing Activities - 5,921 - 7.208 C ash - beginning 32,976 23,159 C ash - end 53,588 32,976 C ash - increase / decrease 20,612 9,818 2012 figures adjusted to revised IAS 19 30 Company Presentati
Slide 31: Financial Ratios - 2013
Financial Ratios -2013 2013 2012 2011 2010 Productivity Ratios Gross Profit Margin 35.71% 41.39% 43.14% 36.95% ΕΒΙΤ 21.77% 25.14% 31.06% 26.71% Capital Return Ratios ROE 12.34% 15.71% 20.86% 19.30% ROA 9.24% 11.18% 14.33% 12.46% Liquidity Ratios Liquidity 4.81% 3.39% 2.76% 2.18% Capital Structure Ra
Slide 32: Turnover Progression - 2013
Turnover Progression - 2013 80 72.3 46.5 70 60 50 € mil. 40 29.2 25.8 3.4 13.5 30 1.9 17.6 15.7 4.6 20 13.0 10 0 l t ss l T T st er s l ax a a ta e A B st n ci o th ro v E T E o o o C o n T O G ti C rn ia a F u er T p O 32 Company Presentation - Fiscal Year 2013 - June 2014
Slide 33: Turnover - 2013
Turnover - 2013 Turnover breakdown 60,000 50,294 50,000 46,889 40,000 € th. 30,000 25,410 23,557 20,000 10,000 0 2013 2012 Water Sewerage 2013 2012 35% 32% 65% 68% 33 Company Presentation - Fiscal Year 2013 - June 2014
Slide 34: Gross Profit - 2013
Gross Profit - 2013 Gross Profit 25,000 20,714 20,304 20,000 15,000 € th. 10,000 5,016 5,106 5,000 0 2013 2012 Water Sewerage 2013 19% 2012 20% 81% 80% 34 Company Presentation - Fiscal Year 2013 - June 2014
Slide 35: EBITDA - 2013
EBITDA - 2013 30,000 24,316 25,000 21,523 20,000 2,793 € th. 15,000 10,000 5,000 0 EBITDA 2012 Decrease EBITDA 2013 35 Company Presentation - Fiscal Year 2013 - June 2014
Slide 36: Liquidity - 2013
Liquidity - 2013 Equity € mil. Total Liabilities € mil. 150 60 143 140 136 55 55 130 € mil. € mi. 50 48 120 45 110 40 100 2013 2012 2013 2012 Cash € mi. Dividend € mil. 60 54 6.0 5.8 50 40 33 € mi. 30 € mil. 5.0 20 4.4 10 0 4.0 2013 2012 2013 2012 36 Company Presentation - Fiscal Year 2013 - June 20
Slide 37: Earnings Before Taxes - 2013
Earnings Before Taxes - 2013 Earnings Before Taxes 20,000 18,000 17,223 15,484 16,000 14,000 12,000 € th. 10,000 8,000 6,000 4,174 4,000 2,213 2,000 0 2013 2012 Water Sewerage 2013 2012 13% 20% 87% 80% 37 Company Presentation - Fiscal Year 2013 - June 2014
Slide 38: Earnings After Taxes - 2013
Earnings After Taxes - 2013 Earnings After Taxes 16,000 14,260 14,000 12,000 11,440 10,000 € th. 8,000 6,000 4,000 3,456 2,000 1,635 0 2013 2012 2013 Water Sewerage 13% 2012 20% 87% 80% 38 Company Presentation - Fiscal Year 2013 - June 2014
Slide 39: Cost Analysis - 2013
Cost Analysis - 2013 Cost Analysis 50,000 46,479 45,000 43,284 40,000 35,000 30,000 € th. 25,000 20,000 15,000 10,000 5,004 4,869 4,245 3,976 5,000 306 484 0 Priduction Distribution Managing R&D 2013 2013 2012 2012 1% 1% 8% 8% 9% 9% 82% 82% Production Distribution Managing R&D 39 Company Presentatio
Slide 40: Cost Reconciliation - 2013
Cost Reconciliation - 2013 58,000 135 269 -178 3,195 56.034 56,000 52,613 54,000 52,000 50,000 € th. 48,000 46,000 44,000 42,000 40,000 Costs 2012 Production Distribution Managing R&D Costs 2013 6.5% costs increase in 2013 compared to 2012 40 Company Presentation - Fiscal Year 2013 - June 2014
Slide 41: Consumption Breakdown - 2013
Consumption Breakdown - 2013 Water Consumption Breakdown 2013 Water Consumption Breakdown 2012 ELPE 5% ELPE Businesses 5% Businesses Indust ry 5% Industry 5% 6% 6% Local Local Governmental Governmental of f ices offices 9% 9% Public Sect or Public Sector 3% 4% Households Households 72% 71% sq.m. (mi
Slide 42: Completed Projects - 2013
Completed Projects - 2013 Works Completed in 2013 Private Intersections 38% Maintenance Repair 48% A dditional Works 14% 42 Company Presentation - Fiscal Year 2013 - June 2014
Slide 43: Works in the Process - 2013
Works in the Process - 2013 Works is the process 2013 Maintenance 3% Int ersect ions 8% Repairs 18% Emergenies 15% Expansions 56% 43 Company Presentation - Fiscal Year 2013 - June 2014
Slide 44: Network Maintenance - 2013
Network Maintance - 2013 Network Maintenance - 2013 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 € 4,000,000 3,000,000 2,000,000 1,000,000 0 2009 2010 2011 2012 2013 Water Sewerage 44 Company Presentation - Fiscal Year 2013 - June 2014
Slide 45: Consolidated Financial Results Q1 2014
Consolidated Financial Results Q1 2014 Turnover reached €19.3 mil. in Q1 2014 compared to €18.3 mil. in Q1 2013 an increase of 4.5%. Cost of goods sold reached €11.1 mil. in Q1 2014 compared to €10.4 mil. in Q1 2013 a decrease of 7%. Gross profit reached €8.1 mil. in Q1 2014 compared to €7.9 mil. in
Slide 46: Income Statement Q1 2014
Income Statement Q1 2014 Consolidated Financial Results (€ th.) 3M 2014 3M 2013 Change Turnover 3Μ Gross Profit 3Μ Turnover 19.258 18.438 4.45% 19,258 9,000 19,000 18,348 8,139 7,964 Cost of Goods Sold 11.119 10.384 7.08% € th. € th 17,000 7,000 Gross Profit 8.139 7.964 2.20% 15,000 5,000 Earnings B
Slide 47: Tariff policy 2007-2011
Tariff policy 2007-2011 Pricing policy for 2007-2011 in application since May 2007 concerning water consumers from 1/1/2007 with annual adjustment of costs for water and sewerage services 18/11/2008 – Water and sewerage pricing freeze for 2009 at the prices of 2008 for the first three scales of
Slide 48: Tariff Policy
Tariff Policy Tariff Policy (€) 1,8 1,7 1,7 1,7 1,7 1,6 1,6 1,6 1,5 1,5 1,4 1,4 1,3 1,4 1,4 1,4 1,3 1,3 1,3 1,3 1,2 1,2 1,2 1,2 1,1 1,1 1,0 1,0 1,0 1,0 1,0 0,9 0,9 € 0,8 0,7 0,6 0,6 0,5 0,4 0,2 0,0 b ik ra a e A ga sk a G mo ir s R e M ga P re b r o da en P a S w Th N us G mo V an lo s M lle n r dz
Slide 49: Average Cost Tariff per €2
Average Cost Tariff per €2 Fixed sewerage cost 8% Variable sewerage cost Variable water cost 29% 46% Tax 5% Fixed water cost 12% Global research shows that the sewerage costs counts for 37% for every €2, whereas the water cost counts for 58% with the remaining 5% to be taxation. Source : www.globalw
Slide 50: 5year Financial Results
5year Financial Results Results 2009 2010 2011 2012 2013 Turnover 77,376 71,182 75,400 73,851 72,299 C osts 47,054 44,878 42,876 43,284 46,479 Gross Profit 30,322 26,304 32,524 30,566 25,821 Other Income 4,748 3,406 2,635 3,133 3,418 35,070 29,710 35,159 33,699 29,238 Administrative Expenses 5,745 3
Slide 51: 5 year Turnover
5 year Turnover 90 80 75.9 77.4 75.4 73.8 71.2 72.3 70 60 50 € mil. 40 30 20 10 0 2008 2009 2010 2011 2012 2013 51 Company Presentation - Fiscal Year 2013 - June 2014
Slide 52: 5 year Gross Profit
5 year Gross Profit 40 35 33.6 32.5 31.2 30.3 30 26.3 25.8 25 € mil. 20 15 10 5 0 2008 2009 2010 2011 2012 2013 52 Company Presentation - Fiscal Year 2013 - June 2014
Slide 53: 5 year Results
5 year Results 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 30 23.65 25 20 15 10 5.30 5.93 % change 5 3.19 1.90 0.95 0 -2.05 -1.62 -5 -2.89 -4.46 -4.74 -6.02 -10 -8.00 -4.62 -15 -13.25 -20 Turnover Cost Gross Profit Visualization of the annual differences for the last 5 years 53 Company Present
Slide 54: EYATh in numbers
EYATh in numbers Personnel 750 638 627 650 610 614 615 606 584 561 549 550 509 439 450 405 350 327 287 258 242 250 150 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 213 6.2% staff decrease in 2013 compared to 2012 54 Company Presentation - Fiscal Year 2013 - June 2014
Slide 55: EYATh in numbers
EYATh in numbers Turnover per Employee 350 299 300 286 263 250 218 191 200 173 th. € 150 138 141 136 130 123 120 116 116 107 106 86 94 100 50 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 EYATh EYADAP 4.5% turnover increase per employee in 2013 compared to 2012 55 Company Presentation - Fiscal Ye
Slide 56: EYATh in numbers
EYATh in numbers Net Earnings per Employee 80 72 69 70 60 54 50 38 th. € 40 29 31 30 27 24 18 19 20 15 12 9 9 10 10 5 4 2 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 EYATh EYDAP 21.7% earnings per employee decrease in 2013 compared to 2012 56 Company Presentation - Fiscal Year 2013 - June 2014
Slide 57: Share
Share Established: 1998 IPO: 2001 Reuters Code: TWSr.AT Bloomberg Code: EYAPS:GA Market Cap 31/12/2013: € 196 mil. No. of Shares: 36,300,000 ASE Category: Large Cap 150 160 8.00 Closing Price (€) Volume ('000) 130 140 120 100 110 80 6.00 60 90 40 20 70 0 4.00 2/1/2013 3/6/2013 23/10/2013 2/1/2013 3/
Slide 58: Share
Share 58 Company Presentation - Fiscal Year 2013 - June 2014
Slide 59: Shareholders
Shareholders Natural Persons; 7,64% Other; 1,15% Legal Persons; 17,19% TAIPED; 74,02% 59 Company Presentation - Fiscal Year 2013 - June 2014
Slide 60: Share
Share Sector Market Cap P/E (x) P/E 14(x) Price/Sales (x) Dividend estimated Return (%) 5year EYATH € 171.3 m. 13.1 9.9 2.4 2.5 EYADAP € 958 m. 12.2 13.3 2.9 3.9 Pennon Group GBP 2.9 b. 73.8 19.6 2.3 4.2 Acqua America $ 4.4 b. 21.3 20.6 5.7 2.5 Veolia € 7.7 b. - 30.8 0.3 5.1 Severn Trent GBP 4.9 b.
Slide 61: Growth Strategy
Growth Strategy 61 Company Presentation - Fiscal Year 2013 - June 2014
Slide 62: Strategy - Actions
Strategy - Actions Strategy which ensures the sustainability of the Company targeting the Customer service and the Environmental protection Expansion of the Company’s operations to take place initially in the areas the EYATh services and then into new areas Automation of facilities with the in
Slide 63: Organic Growth Strategy
Organic Growth Strategy Targets Strategy Investments improving capacity Efficient Resource Use of alternative water Management resources Water Supply Optimization of Quality Control Network Modernisation Implementation of exquisite technological methods Sewerage network construction
Slide 64: Organic Growth Strategy
Organic Growth Strategy Targets Strategy Seminars – Conferences HR programs Training Programs Client Satisfaction rating system adoption Client Service Electronic client support and communication network Operational upgrade Restructure Upgrade & control of the production and management
Slide 65: Non Organic Growth Strategy
Non Organic Growth Strategy Targets Strategy Customer Base Expansion Expansion into municipalities beyond exclusive jurisdiction Strategic Alliances New Business New services based on Energy Units EYATh’s competitive Implementation of modern advantages and existing methods in network cli
Slide 66: Reporting Table of the Business Plan of EYATh S.A.
Reporting Table of the Business Plan of EYATh S.A. 66 Company Presentation - Fiscal Year 2013 - June 2014
Slide 67: Business Plan
Business Plan STATEMENT OF INVESTMENTS 2008 - 2013 DESCRIPTION 2009 2010 2011 2012 2013 1 Buildings 0.00 0.00 0.00 0.00 0.00 2A Machinery & Other 142,205.70 759,200.07 664,109.04 205,589.14 824,447.27 Installed Water 2B 280,298.40 128,586.01 114,950.44 110,763.99 443,665.28 Meters 3 Transportation 0
Slide 68: Disclaimer
Disclaimer This material contains certain “forward-looking” statements. These statements reflect management’s current expectations based on economic conditions and fundamentals. This presentation serves only informative purposes and it does not form or can either be referred as a buy, sell or hold e
Slide 69: Company Presentation - Fiscal Year 2013 - June 2014
69 Company Presentation - Fiscal Year 2013 - June 2014
EYATh S.A. (Thessaloniki Water Supply & Sewerage Co.) — Investor Presentation (June 2014) on 6ix