Manila Water Co. Inc. · PSE:MWC
Manila Water — FY2005 Earnings Presentation
17 slides from Manila Water's earnings presentation, Feb 13, 2006
Slide 1: Manila Water Company 2005 Analysts' Briefing
MANILA WATER COMPANY 2005 Analysts’ Briefing February 13, 2006 The Manila Water Company, Inc. OUTLINE 6 Growth in 2005 z Operations & Business Results z Organizational/ People Development and Awards z Sustainable Development Initiatives z Financial Results 6 Sustaining Growth in 2006 and Beyond 6 Su
Slide 2: Executed major capital programs
Growth in 2005 Operations & Business Results Manila Water Company, Inc. Operations and Business Results Executed major capital programs in kilometers 1,400 1,261 z PhP 3.9B – total capital expenditures for 2005 1,200 1,000 793 800 600 424 400 235 174 200 29.6 0 0 5.4 0 1997 1998 1999 2000 2001 2002
Slide 3: Reduced water losses; improved access to 24-hour water supply
Operations and Business Results Reduced water losses in % Non-Revenue Water (NRW) 65% 63.0% 60% 55.2% 54.0% 55% 53.0% 52.0% 51.0% 50.7% 50% 45% 43.4% 8% pts. 40% decrease 35.5% 35% 1997 1998 1999 2000 2001 2002 2003 2004 2005 6 Biggest gain in system loss in 2005 Manila Water Company, Inc. Operation
Slide 4: Expanded customer base; steady growth in billed volume
Operations and Business Results Expanded customer base number of Households in Thousands 650 600 600 556 550 515 500 471 450 428 Equivalent to 409 390 more than 5 400 million people 340 350 325 300 1997 1998 1999 2000 2001 2002 2003 2004 2005 Manila Water Company, Inc. Operations and Business Result
Slide 5: Improved sewerage and sanitation services; Income Tax Holiday bonus year
Operations and Business Results Improved sewerage and sanitation services • 26 Package Wastewater Treatment Plants completed 1997 2005 21,769 Sewer Connections 46,251 Sewer Connections Treatment Capacity: 40MLD Treatment Capacity: 77MLD Manila Water Company, Inc. Regulatory Developments Obtained Bon
Slide 6: MWSS Board Memo for PGMA
Regulatory Developments MWSS Board Memo for PGMA We are pleased to update you on the outstanding performance of Manila Water in 2005, as reported to the Board of Trustees on 12 January 2006. Manila Water Company, Inc. Growth in 2005 Organizational/People Development and Awards Manila Water Company,
Slide 7: Organizational/People Development and Awards
Organizational/People Development and Awards 6 PROTEXT/ YOUTH z Talent exchange program bet. Manila Water & United Utilities 6 Cross-posting 6 Training and management development programs Manila Water Company, Inc. Organizational/People Development Performance-based Rewards and Incentives 6 Chairman
Slide 8: International Awards
International Awards 2005 Asiamoney’s Best Managed Company (Under US$300M category) 6 Manila Water is the country's “stand-out small cap” 6 A strong example of a successful public- private sector partnership 6 Key strengths: z Excellent financial management skills z Track record of operating efficie
Slide 9: Provided services to the urban poor
Sustainable Development Initiatives Manila Water as the first Philippine company to publish a Sustainable Development Report that essentially meets internationally recognized Global Reporting Index (GRI) guidelines on CSR reporting Manila Water Company, Inc. Sustainable Development Initiatives Provi
Slide 10: Livelihood Programs
Sustainable Development Initiatives Livelihood Programs Cooperative development Vendor Development including financing for contractors Greater community participation in the Manila Water supply chain such as pipe retreading • Promotion of SME’s • Employment generation Manila Water Company, Inc. Grow
Slide 11: Strong growth in revenues and income
Financial Results Strong growth in revenues and income 35% increase in revenues In Million 6,000Pesos 5,680 46 % increase 5,000 in EBITDA 51 % increase 4,000 4,206 in net income 3,000 2,955 2,000 2,023 2,011 1,332 1,000 0 Revenues EBITDA Net Income 2005 Actual 2004 Manila Water Company, Inc. Financi
Slide 12: Steady dividend growth; Initial Public Offering
Financial Results Steady dividend growth In PhP/ share 0.25 0.21 se ea 0.20 cr in % 50 0.15 0.14 0.10 0.10 0.05 0.05 0.00 2003 2004 2005 2006 6 Adjusted for effect of IPO shares Manila Water Company, Inc. Financial Results Manila Water Initial Public Offering (IPO) 6 Successfully completed in March
Slide 13: $64 million loan for wastewater projects closed
Financial Results $64 million loan for Wastewater projects closed 6 Funded by the World Bank through Landbank 6 US$21M counterpart funds from Manila Water Manila Water Company, Inc. Growth Strategy / 2006 Prospects Manila Water Company, Inc. 13
Slide 14: Growth Strategy: new growth initiatives
Growth Strategy New growth initiatives: OUTSIDE THE EAST ZONE • Philippines • Asian Region WITHIN THE EAST ZONE Wastewater Development of new water sources VOLUME INCREASES TARIFFS Improved water availability/pressure – increased per capita consumption Population growth, Economic development Geograp
Slide 15: Major Investments and New Business Opportunities
Major Investments Within the East Zone Manila Third Sewerage Project 6 Funded by a 17-year loan from World Bank/Land Bank 6 To increase sewer coverage from only 10% to 30% in 2010 and benefit more than 3.3 million people 6 Components: 1. Sewer Systems 2. Upgrade of Existing Sanitation Systems 3. New
Slide 16: Summary
Summary Manila Water Company, Inc. Summary Growth in 2005 6 Strong growth driven by significant improvements in operating efficiencies z Recovered volume from 8% pts. gain in NRW delivered to more customers z Opex managed within budgeted levels despite cost pressures 6 Strengthened financial positio
Slide 17: Thank You!
Summary Sustaining Growth in 2006 and Beyond 6 Well-positioned to capitalize on growth opportunities within and outside the East Zone 6 Expansion in Taguig & Rizal towns 6 ITH Extension to allow higher capex and accelerated water availability in unserved areas 6 US$ 85M investment in wastewater to t