Companhia De Saneamento Basico Do Estado De Sao Paulo Sabesp · BMFBOVESPA:SBSP3
Companhia De Saneamento Basico Do Estado De Sao Paulo Sabesp — Companhia de Saneamento Básico do Estado de São Paulo - SABESP — Q3 2022 Earnings Presentation
20 slides from Companhia De Saneamento Basico Do Estado De Sao Paulo Sabesp's earnings presentation, Nov 17, 2022
Slide 1: Presentation 3Q22
RRESEN TATION eee 3Q22
Slide 2: Agenda
AGENDA THE COMPANY OUR OPERATIONS OUR FINANCIAL PERFORMANCE SPMR – WATER SITUATION IR Contacts Presentation 3Q22
Slide 3: Disclaimer
This presentation may contain forward-looking statements referring to Sabesp’s business outlook, operating and financial results estimates, and growth prospects. These are only forecasts, and as such, they are exclusively based on Sabesp’s management expectation regarding the future of the business
Slide 4: One of the largest water and sewage providers in the world
…ONE OF THE LARGEST WATER AND SEWAGE PROVIDERS IN THE WORLD COMPANY OVERVIEW MAIN OPERATIONAL INDICATORS(1) Sabesp is one of the largest water and sewage Water Sewage service providers in the world based on the number of customers Connections (million)(2) 10.1 8.6 Natural monopoly, low operating
Slide 5: With strong corporate governance
...WITH STRONG CORPORATE GOVERNANCE We are a mixed capital company, majority-owned by the State OWNERSHIP STRUCTURE %(3) of São Paulo, with significant private ownership State Law 11,454/2003 requires the State of São Paulo to own at least 50% + 1 of Sabesp voting shares 13.1* Federal Law 13,3
Slide 6: Diversified consumer base
DIVERSIFIED CONSUMER BASE WATER BILLED VOLUME SEWAGE BILLED VOLUME 8% 9% Residential Residential 2% 2% Commercial Commercial 2% Industrial 2% Industrial 2% Public 1% Public Whosale Whosale 86% 86% WATER REVENUE* SEWAGE REVENUE* 20% 24% Residential Residential 5% Commercial 6% Commercial Industrial I
Slide 7: Broad coverage of municipalities
BROAD COVERAGE OF MUNICIPALITIES CONTRACTUAL BASE TOP 10 CONTRACTS Nº Municipalities % of Revenue % of Total Remaining Expired Contracts 1 0.1 Municipalities Revenues Period Maturity up to 5 years 16 1.1 (3Q22) (years) Maturity 6 to 10 years 7 2.7 São Paulo 45.7 18 Maturity 11 to 15 years 111 3.9 Ma
Slide 8: Regulatory framework
REGULATORY FRAMEWORK Federal Law 14,026/2020 - New ‘ Goals for Universalization ‘ December, 2033 Sanitation Regulatory Framework 1 99% of population with access to water 90% of the population with sewage 1 Agenda 2021-2022: – Financial Recovery – Parameters for expiration National Water and – Indemn
Slide 9: Tariff review
TARIFF REVIEW METHODOLOGY OF TARIFF REVIEW (PRICE CAP) Required Revenue = OPEX + CAPEX + Taxes + RABt – RAB0 WACC Personnel RAB0 (-) Measured Water Income Tax Average Energy Depreciation (+) Sewage Revenue Tariff (P0) Volume* Materials WK Variation (+) Others Taxes** Others Capex Output of Asset Sab
Slide 10: Tariff readjustments and revisions
TARIFF READJUSTMENTS AND REVISIONS READJUSTMENTS AND REVISIONS 3rd OTR AND TARIFF STRUCTURE INDEXES Readjustment 2022 = 12.8019% (effective in May) IPCA: 10.5437% IPCA Index – Between the readjustement/revision periods X Fator: -0.2142% OTR- Ordinary Tariff Revision Compensatory Adjustment: 2.
Slide 11: Water and sewage operations
WATER AND SEWAGE OPERATIONS WATER CONNECTION EVOLUTION WATER CONNECTION (in 000’s) (million) Add 1.0 million new connections by 2026 SEWAGE CONNECTION EVOLUTION SEWAGE CONNECTION (in 000’s) (million) Add 1.2 million new connections by 2026 Coverage: from 92% in 2021 to 95% in 2026 Treatment:
Slide 12: Capex and financing (R$ million)
CAPEX AND FINANCING (R$ million) CAPEX PLAN OF R$ 23.8 BILLION* FROM 2022 TO 2026 *Constant values at December 2021 prices FINANCING MAIN PROGRAMS Metropolitan Water Program Tietê Project Program for Water Loss Reduction Clean Stream Program Clean Wave Program New Pinheiros River Project
Slide 13: Long term and low cost funding
LONG TERM AND LOW COST FUNDING TOTAL DEBT BREAKDOWN DEBT BY INDEXER Debentures (Does not include interest and leases) 27% Nominal Average Cost of Debt Infrastructure IDB Invest 7% Local Foreign Debentures 15% IDB 3% 13.3% 2.5% Local Currency Foreign Currency 86% 14% JICA 9% IBRD 2% IDB 12% Others lo
Slide 14: Consistent performance
CONSISTENT PERFORMANCE NET REVENUE (R$ million) NET INCOME (R$ million) ADJUSTED EBITDA** (R$ million) DIVIDEND / PAY OUT 2016 2017 2018 2019 2020 2021 Dividend (R$) 1.2 1.0 1.2 1.4 0.4 0.9 Pay Out (%) 27.9 27.9 27.9 27.9 27.9 27.9 Outstanding 683.5 683.5 683.5 683.5 683.5 683.5 Shares* * Million **
Slide 15: Historical leverage (R$ million)
HISTORICAL LEVERAGE (R$ million) ADJUSTED TOTAL DEBT vs ADJUSTED EBITDA* vs FINANCIAL ADJUSTED EBITDA* EXPENSES** NET DEBT vs ADJUSTED EBITDA* RATINGS Agencies National Scale Global Scale Standard & Poors brAAA BB- Fitch Rating AAA (bra) BB+ Moody's Latam AAA.br • *Adjusted EBITDA – LTM • ** Financi
Slide 16: Financial highlights (R$ million)
FINANCIAL HIGHLIGHTS (R$ million) 2017 2018 2019 2020 2021 9M22 Net Revenues 14,608 16,085 17,984 17,798 19,491 16,124 Adjusted EBITDA** 5,269 6,541 7,511 6,422 6,373 6,861 Adjusted EBITDA Margin** 36.1 40.7 41.8 36.1 32.7 32.4 Adj, EBITDA Margin without Constr** 45.4 48.8 49.5 45.0 41.5 40.6 Net In
Slide 17: SPMR – Water situation (11/09/2022)
SPMR – WATER SITUATION (11/09/2022) VOLUME STORAGE (%) WATER INFLOW (m³/s) AVERAGE PRODUCTION (m³/s) PRODUCTION SYSTEMS – AVERAGE PRODUCTION (m³/s) Presentation 3Q22 *LTA – Long Term Average 17
Slide 18: SPMR – Water supply system stronger than before 2014/2015 crisis
SPMR – WATER SITUATION WATER SUPPLY SYSTEM STRONGER THAN BEFORE THE WATER CRISIS OF 2014/2015 Reservoirs 2013 2022 Var. % Reservoirs (Water Rights) (m³/s) 68.9 80.7 17.1 Maximum storage capacity (hm³) 1,816 1,945 7.1 (without the technical reserve of the Cantareira System) Transfer between reservoir
Slide 19: Water plan for SPMR – 2015 to 22 (main actions)
SPMR – WATER SITUATION WATER PLAN FOR SPMR – FROM 2015 TO 2022 (MAIN ACTIONS) FLOW (m³/s) DESCRIPTION AVAILABILITY/ PURPOSE SECURITY INITIATIVES ACCOMPLISHED IN 2015 Reversal increase from Guaratuba River to the Ponte Nova reservoir by 0,5 m³/s 0.5 • Recover the storage volume and ensure Alto Revers
Slide 20: Investor Relations
INVESTOR RELATIONS Phone +55 (11) 3388-8793 / 9267 E-mail: sabesp.ri@sabesp.com.br www.ri.sabesp.com.br