Athens Water Supply And Sewerage Company S.a. · ATHEX:EYDAP
Athens Water Supply And Sewerage — FY2021 Earnings Presentation
48 slides from Athens Water Supply And Sewerage's earnings presentation, April 2022
Slide 1: 2021 Annual Financial Results Briefing
\ x Ae = y APRIL 202 N \ 2021 ANNUAL \. FINANCIAL RESULTS BRIEFING @EYDAP
Slide 2: Today's Agenda
Today’s Agenda Key Financial Points 2021 2022 Targets 2021 Financial Results 2
Slide 3: Key Financials 2021 (1/2)
Key Financials 2021 (1/2) Total consumption increased to 406.7 mn. cubic meters from 399.7 mn. cubic meters in 2020 (+1.75%). The Company’s turnover was 360.7 mn. € compared to 330.3 mn. € in 2020, increased by 9.2% (+30,4 mn. €). Out of the 30.4 million €, 25 million € is a fixed fee for the
Slide 4: Key financials 2021 (2/2)
Key financials 2021 (2/2) The total operating cost of the Company increased by 29 million € (+10.1%) and amounted to 317.6 million € from 288.6 million € in 2020. This increase is mainly due to: A charge amounting to 6.2 million €, due to increased raw water cost Increase in the number of new
Slide 5: We have achieved significant progress to our strategic priorities
We have achieved significant progress to our strategic priorities Our vision is to be the most reliable company in water cycle management, benefitting people and the environment ESG is in the heart of our values ENVIRONMENT SOCIETY GOVERNANCE Strategic Pivots Security Efficiency Growth Offering qual
Slide 6: In 2021, the exclusive right of water supply and sewerage services was renewed
In 2021, the exclusive right of water supply and sewerage services was renewed, ensuring the continued viability of the Company Mutually beneficial agreement for all stakeholders, after fruitful negotiations between EYDAP, the Ministry of Infrastructure and three other Ministries, with the significa
Slide 7: In 2021 the development grounds for the future were set
In 2021 the development grounds for the future were set New Organizational Chart with emphasis on the evolution of the Company into a growth vehicle. New Employee Collective Agreement. The transformation projects were set in motion. Sewerage Projects in 4 areas of Eastern Attica were launche
Slide 8: Our Targets for 2022
Our Targets for 2022 Our targets for 2022 are: The preparation for the implementation of the new regulatory framework, The operational costs rationalization, The execution and promotion of the significant investment projects, The preparation of the Company for further development and growth,
Slide 9: Stable prices in 2022
Stable prices in 2022* «EYDAP’s tariffs for water supply and sewerage services are extended …..until the approval of the new tariffs based on the new contract according to par.2» (law 4812/2021) «A new independent regulatory authority will be formed, which is expected to be fully operational wit
Slide 10: Increase of effectiveness and streamlining of operational costs
Increase of effectiveness and streamlining of operational costs Company’s goal is the increase of effectiveness via, among others, the streamlining of operational costs aiming to restrain water supply and sewerage services tariff: Energy cost reduction Mailing services cost reduction Optimal u
Slide 11: EYDAP becomes a growth vehicle in 2022
EYDAP becomes a growth vehicle in 2022… GREEN TRANSITION DIGITAL TRANSITION • Transformation projects ~ € 400 mn.* • Sewerage and Water Recycling Works in East Attica ~ € 800 mn.** • Water network replacement for leaks’ reduction ~ € 200 mn.* • New areas of business activities and know-how leveragin
Slide 12: Significant investment in green and digital transition
….with significant investment in green and digital transition 4 12
Slide 13: Strategic transformation projects will set the ground for the next 20 years
Strategic transformation projects will set the ground for the next 20 years Modernization of operations Operational Upgrade Resources Optimization #1.A. Modernization and optimization of #2. Data digitization and transformation of #3. Cost optimization, redistribution of network and assets managemen
Slide 14: Sewerage and Wastewater Treatment Projects upgrade the life of residents in East Attica
Sewerage and Wastewater Treatment Projects upgrade the life of residents in East Attica Projects progress in East Attica • In construction progress: - Sewerage networks Glyka Nera (Peania) Pallini – Gerakas – Anthousa (Pallini) Rafina – Kallitechnoupoli – Neos Voutzas (Rafina – Pikermi) Pikermi, Dra
Slide 15: Potential Opportunities and zero carbon water know-how
Potential Opportunities and zero carbon water know-how can increase the value of EYDAP and create value for the rest of Greece Geographic Expansion Infrastructure Exploitation New Services Energy Transition Participation in water supply and Construction, Maintenance and Examination of potential syne
Slide 16: We focus on the emergence of our ESG potential
We focus on the emergence of our ESG potential ESG is in the heart of our values ENVIRONMENT SOCIETY GOVERNANCE WATER ENERGY CUSTOMERS EMPLOYEES ATHEX ESG GOVERNANCE STATE REGULATOR E2S2G4 First public organization that has integrated the international SASB standards In 2022 EYDAP will proceed with:
Slide 17: Total Shareholders Return Increase
Total Shareholders Return Increase The Company’s BoD suggests: the distribution of a dividend from retained earnings in the amount of 29.82 million € (0.28 € / share) which corresponds to 97% of the profits after taxes. The examination of further distribution of dividends to the shareholders fro
Slide 18: Financial Results
Financial Results APRIL 2022
Slide 19: 3 important changes reflected in the 2021 financial statements
3 important changes are reflected in the financial statements of 2021, compared to the previous years: The settlement of the debt for raw water used by EYDAP SA from 2013 to 2020 with the determination of the debt at 157.2 million € and the payment of this amount at the beginning of 2022. It is note
Slide 20: The Operation and Maintenance Contract of the External Water Supply System
The Operation and Maintenance Contract (OM) of the External Water Supply System (Annex to the Concession Agreement) provides that: The duration of the OM contract is three years with the possibility of unilateral extension by the State for six months (Article 11 - Duration of the Contract) The fixed
Slide 21: Based on these data, the Company on 1/1/2021 formed
Based on these data, the Company on 1/1/2021 formed: Exclusive Right of Raw Water Supply (Intangible Asset) Non-Current Exclusive Right of Raw Water Supply worth 87.5 million € which will be depreciated over 20 Liability (Long-Term Liability) worth 87.5 million €, the years - the duration of the con
Slide 22: On 31/12/2021 the Company
On 31/12/2021 the Company: Reduce the Exclusive Right to Raw Reduced the Non-Current Exclusive Right to Raw Water Supply (Intangible Asset) by € Water Supply Liability (Long-Term Liability) by 25 4.4 million (yearly amortization) at 83.1 million as much as the value of its liability for 2021 million
Slide 23: Financial Results 2021 (Company)
Financial Results 2021 (Company) In thousands of € 2019 2020 2021 Y-O-Y Turnover 323.744 330.318 360.753 9,2% Gross Profits 163.284 149.632 156.918 4,9% % of turnover 50,4% 45,3% 43,5% EBITDA 107.661 -57.099 85.484 250% % of turnover 33,3% -17,3% 23,7% EBIT 70.582 -92.164 46.310 150% % of turnover 2
Slide 24: EBITDA 2021
EBITDA 2021 (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 25: Earnings Before Taxes (EBT) 2021
Earnings Before Taxes (EBT) 2021 (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 26: Turnover Breakdown 2021
Turnover Breakdown 2021 (amounts in thousands of € ) TURNOVER 2019 2020 2021 Y-O-Y Revenues from Water Supply and Related 219.250 223.393 227.862 2,0% Services % of turnover 67,7% 67,6% 63,2% Revenues from Sewerage Services 102.713 104.642 106.304 1,6% % of turnover 31,7% 31,7% 29,5% Revenues from E
Slide 27: Turnover 2021
*EWWS: External Water Supply System Turnover 2021 (amounts in thousands of € ) Without the Revenues of the Contract for the O&M of EWWS*: +5.435 € +1,6% 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 profi
Slide 28: Revenues from Water Supply and Related Services
Revenues from Water Supply and Related Services 2021 (amounts in thousands of € ) WATER SUPPLY AND RELATED 2019 2020 2021 Υ-Ο-Υ SERVICES Revenues from Water Consumption 213.446 218.701 222.324 1,7% % of the total of water supply and related services 97,3% 97,9% 97,6% New Water Supply Connections 2.4
Slide 29: Revenues from Water Supply and Related Services
Revenues from Water Supply and Related Services 2021 (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: Revenues from Sewerage Services
Revenues from Sewerage Services 2021 (amounts in thousands of € ) Sewerage Revenues 2019 2020 2021 Υ-Ο-Υ Revenues from Sewer Usage 99.908 102.326 103.882 1,5% % of the total Revenues from Sewerage Services 97,3% 97,8% 97,7% Connection Fees 420 450 629 39,9% % of the total Revenues from Sewerage Serv
Slide 31: Revenues from Sewerage Services
Revenues from Sewerage Services 2021 (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 32: Operating Expenses Breakdown
Operating Expenses Breakdown* 2021 (amounts in thousands of € ) OPERATING EXPENSES* 2019 2020 2021 Υ-O-Y Personnel Costs 120.160 119.338 127.130 7% % of Operating Expenses 55% 47% 46% Utility Expenses 36.613 37.621 44.919 19% % of Operating Expenses 17% 15% 16% Third-party Expenses and Fees 49.871 5
Slide 33: Operating Expenses Breakdown
Operating Expenses Breakdown* 2021 (amounts in thousands of € ) *before D&A expenses 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 34: Personnel Costs Breakdown
Personnel Costs Breakdown 2021 (amounts in thousands of € ) PERSONNEL COSTS 2019 2020 2021 Υ-O-Y Wages and Salaries 88.704 88.418 93.854 6% % of the total of Personnel Costs 74% 74% 74% Social Security Costs 20.190 19.867 19.206 -3% % of the total of Personnel Costs 17% 17% 15% Provisions for post-e
Slide 35: Provisions for other Defined Benefit Plans
Provisions for other Defined Benefit Plans 2021 (amounts in thousands of € ) Provisions for other Defined Benefit Plans 2019 2020 2021 Y-o-Y Provisions for staff indemnity due to retirement 1.264 1.269 252 -80% Special indemnity for personnel hired after 25/10/1999 262 329 1.133 244% Special indemni
Slide 36: Personnel Costs
Personnel Costs 2021 (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: Breakdown of Various Provisions
Breakdown of Various Provisions 2021 (amounts in thousands of € ) VARIOUS PROVISIONS 2019 2020 2021 Y-o-Y Bad Debt Expenses * 2.609 11.367 3.733 -67% Provisions for Litigation Expenses -4.479 -4.268 498 112% Inventory Write-offs (reversals) 2 102 19 -81% Total of Various Provisions -1.869 7.201 4.25
Slide 38: Provision from Impairment of Receivables
Provision from Impairment of Receivables 2021 (amounts in thousands of € ) EAD: Exposure At Default LGD: Loss Given Default PD: Probability of Default 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
Slide 39: Breakdown of Third-Party Expenses & Fees
Breakdown of Third-Party Expenses & Fees 2021 (amounts in thousands of € ) THIRD-PARTY EXPENSES & FEES 2019 2020 2021 Y-o-Y Psytallia WWTP 27.613 27.636 27.972 1% % of the total Third-Party Expenses and Fees 55% 54% 52% Metamorphosi WWTP 2.975 3.173 1.956 -38% % of the total Third-Party Expenses and
Slide 40: Third-Party Expenses & Fees
Third – Party Expenses & Fees 2021 (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 41: Breakdown of Utility Expenses
Breakdown of Utility Expenses 2021 (amounts in thousands of € ) UTILITY EXPENSES 2019 2020 2021 Y-o-Y Electricity 16.885 17.666 22.376 27% % of the total of Utility Expenses 46% 47% 50% Natural Gas 405 280 675 141% % of the total of Utility Expenses 1% 1% 2% Rents 8.361 8.619 9.187 7% % of the total
Slide 42: Utility Expenses
Utility Expenses 2021 (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 43: Breakdown of Other Expenses
Breakdown of Other Expenses 2021 (amounts in thousands of € ) OTHER EXPENSES 2019 2020 2021 Y-o-Y Taxes and duties 4.060 4.364 5.803 33% % of the total of Other Expenses 38% 31% 38% Consumables 1.864 1.892 2.465 30% % of the total of Other Expenses 17% 13% 16% Promotion and Advertising Expenses 766
Slide 44: Other Expenses
Other Expenses 2021 (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 45: Balance Sheet Items
Balance Sheet Items 2021 (amounts in thousands of € ) ASSETS 2020 2021 21-20% Tangible Assets 788.727 778.198 -1,3% Intagible Assets 562 83.968 14845,4% Right-of-Use Assets 2.722 1.302 -52,2% Other Non Current Assets 140.888 91.302 -35,2% Inventories 14.297 14.803 3,5% Trade Receivables-Contract Ass
Slide 46: Breakdown Receivables from Customers and Contract Assets
Breakdown Receivables from Customers and Contract Assets 2021 (amounts in thousands of € ) Receivables from Customers and Contract Assets 2020 2021 Receivables from Customers and Contract Assets before provisions 278.502 328.877 Provisions for doubtful receivables and Contract Assets -99.573 -103.30
Slide 47: Cash Flow Statement
Cash Flow Statement 2021 (amounts in thousands of € ) 2019 2020 2021 Cash Flow from operating activities Profit before tax 84.047 -80.427 59.411 Adjustments for non-cash items 17.295 185.385 24.421 Adjustments in operating assets and liabilities 2.781 -6.702 -23.095 Late payment charges collected 6.
Slide 48: Thank you!
Ae X N Thank you! @EYDAP
Athens Water Supply and Sewerage Company S.A. (EYDAP) — FY2021 Earnings Presentation on 6ix