Manila Water Co. Inc. · PSE:MWC
Manila Water — 9M 2014 Earnings Presentation
18 slides from Manila Water's earnings presentation, Nov 6, 2014
Slide 1: 9M 2014 Financial Performance Analysts' Briefing
9M 2014 Financial Performance Analysts’ Briefing November 6, 2014 Romulo Lounge, 25F Tower One & Exchange Plaza
Slide 2: Presentation Outline
Presentation Outline 9M 2014 Consolidated Financial and Operating Performance (Unaudited) Breakdown of Results East Zone Boracay Island Water Clark Water Laguna Water Thu Duc Water Kenh Dong Water Current Developments 2 2
Slide 3: Consolidated Financial Performance
Consolidated Financial Performance Unaudited (In Million Php) 9M 2014 9M 2013 % Change Revenues 12,207 11,540 6% COS and Operating Expenses 3,754 3,251 15% Other Income (Expenses) 310 244 27% Equity Share in net income of associates 263 207 27% Others 47 37 26% EBITDA 8,763 8,532 3% EBITDA margin 72
Slide 4: Quarterly Net Income
Quarterly Net Income (In Million Php) Y-o-Y +1% Q-o-Q -20% 4 4
Slide 5: Group Operating Results
Group Operating Results Billed Volume 9M 2014 9M 2013 % Change Total Billed Volume 503.8 440.3 14% (in mcm) East Zone 337.6 326.1 4% Boracay Island Water 3.0 2.7 11% Clark Water 8.6 7.1 21% Laguna Water 23.2 8.2 183% Thu Duc Water 90.3 89.6 1% Kenh Dong Water 41.1 6.6 523% 5 5
Slide 6: Quarterly Operating Results
Quarterly Operating Results Y-o-Y +11% Billed Volume Q-o-Q -1% (in mcm) 172.7 170.7 159.1 160.4 153.5 6 6
Slide 7: Consolidated Costs and Expenses
Consolidated Costs and Expenses (In Million Php) 9M 2014 9M 2013 % Change COS and Operating Expenses 3,754 3,251 15% Major Cost Items Manpower 985 933 6% Power, Light, and Water 823 631 30% Taxes and Licenses 300 182 65% Repairs and Maintenance 265 177 50% 7 7
Slide 8: Consolidated Liquidity and Gearing Ratios
Consolidated Liquidity and Gearing Ratios Liabilities Liabilities Equity Equity Ratios Sep 2014 Dec 2013 Current Ratio 1.52x 1.12x Debt to Equity* 0.95x 1.07x Net Bank Debt to Equity 0.77x 0.85x 8 * Excluding Concession Liabilities 8
Slide 9: East Zone Concession
East Zone Concession (In Million Php) 9M 2014 9M 2013 % Change Revenues 11,193 10,724 4% COS and Operating Expenses 3,272 2,900 13% EBITDA 7,921 7,824 1% Net Income 4,024 3,887 4% Billed Volume (in mcm) 337.6 326.1 4% Water Connections (in ‘000s) 943.6 921.9 2% NRW 11.3% 11.0% 0% CAPEX 2,784 3,109 (
Slide 10: East Zone Concession
East Zone Concession 9M14 9M13 9M14 9M13 9M14 9M13 9M14 9M13 9M 2014 9M 2013 % Change Average Tariff (Php/cu.m.) 31.53 31.45 0% (all-in excl. VAT) Average Consumption 43.5 43.4 0% (in cu.m. per connection) Collection Efficiency 99.20% 100.90% (2%) 10 10
Slide 11: Boracay Island Water (BIWC)
Boracay Island Water (BIWC) (In Million Php) 9M 2014 9M 2013 % Change Revenues 247 201 23% COS and Operating Expenses 99 82 21% EBITDA 148 119 24% Net Income 74 59 26% Billed Volume (in mcm) 3.0 2.7 11% Water Connections 6,073 5,603 8% NRW 15.0% 14.0% 1% CAPEX 74 98 (24%) 11 11
Slide 12: Clark Water (CWC)
Clark Water (CWC) (In Million Php) 9M 2014 9M 2013 % Change Revenues 286 245 17% COS and Operating Expenses 137 116 18% EBITDA 149 129 16% Net Income 79 69 15% Billed Volume (in mcm) 8.6 7.1 20% Water Connections 1,987 1,949 2% NRW 6.0% 8.0% (2%) CAPEX 118 54 119% 12 12
Slide 13: Laguna Water (LWC)
Laguna Water (LWC) (In Million Php) 9M 2014 9M 2013 % Change Revenues 480 228 111% COS and Operating Expenses 230 90 156% EBITDA 250 138 81% Net Income 116 76 54% Billed Volume (in mcm) 23.2 8.2 183% Water Connections (in ‘000s) 87 59 47% NRW 12.0% 22.0% (10%) CAPEX 702 348 102% 13 13
Slide 14: Thu Duc Water BOO
Thu Duc Water BOO (In Million VND) 9M 2014 9M 2013 % Change Revenues 250,181 238,716 5% COS and Operating Expenses 75,555 70,774 7% EBITDA 174,626 167,941 4% Net Income 90,168 82,311 10% PFRS (in million Php) Net Income @49% 162 160 1% Billed Volume (in mcm) 90.3 89.6 1% 14 14
Slide 15: Kenh Dong WS JSC
Kenh Dong WS JSC (In Million VND) 9M 2014 9M 2013 % Change Revenues 151,414 24,027 530% COS and Operating Expenses 35,836 9,265 287% EBITDA 115,578 14,762 683% Net Income 36,984 (12,351) (399%) PFRS (in million Php) Net Income @47.35% 86 87 (1%) Billed Volume (in mcm) 41.1 6.6 523% 15 15
Slide 16: Current Developments
Current Developments Cebu bulk water supply project to commence by 4Q 2014 Clark Water was recently awarded an extension of its original concession for another 15 years up to 2040 Submitted pre-qualification documents for bidding of the Bulacan Bulk Water Supply Project Awaiting decision fro
Slide 17: Summary
Summary Sustained expansion in the East Zone with 4% billed volume growth despite flat tariff Subsidiaries continue to post double- and triple-digit improvements, leading to healthy consolidated billed volume growth of 14% Net income contribution from non-East Zone businesses growing by 32% y-
Slide 18: www.manilawater.com Customer Service Hotline 1627
www.manilawater.com Customer Service Hotline 1627 18