Companhia De Saneamento Basico Do Estado De Sao Paulo Sabesp · BMFBOVESPA:SBSP3
Companhia De Saneamento Basico Do Estado De Sao Paulo Sabesp — Q3 2019 Earnings Presentation
18 slides from Companhia De Saneamento Basico Do Estado De Sao Paulo Sabesp's earnings presentation, Nov 25, 2019
Slide 1: Results summary (R$ million)
R$ million Gross operating revenue Net operating revenue Costs, adm. & selling expenses and construction costs Adjusted EBITDA Adjusted EBIT Net income ED) 565.2 E MH 3,331.6 4,984.1 3,810.8 5,410.6 2,719.2 2,867.6 1,434.6 3,009.3 1,092.1 2,545.4 1,208.9 43Q18 03Q19
Slide 2: Notes on non-recurring items, TAC and Guarulhos
(1) Non-recurring revenue in 3Q19 resulting from the agreement with the municipality. (2) Revenue in 3Q19 referring to the start of operations in the municipality on August 11, 2019. (3) Expenses with services and amortization in 3Q19 related to the start of operations in the municipality. (4) Rever
Slide 3: Adjusted EBITDA Reconciliation (Non-accounting measures)
(1) Includes Regulation, Control and Inspection Fee (TRCF), totaling R$ 17.4 million in 3Q19 and R$ 15.8 million in 3Q18. (2) Includes TRCF transfer, totaling R$ 15.1 million in 3Q19 and R$ 13.5 million in 3Q18. (*) Total shares = 683,509,869 Adjusted EBITDA Reconciliation (Non-accounting measures)
Slide 4: Adjusted EBIT and EBITDA definitions
* Adjusted EBIT corresponds to net income before: (i) other operating revenues/expenses, net; (ii) financial result; and (iii) income tax and social contribution. **Adjusted EBITDA corresponds to net income before: (i) depreciation and amortization expenses; (ii) income tax and social contribution;
Slide 5: Water and sewage billed volume per customer category
WATER AND SEWAGE BILLED VOLUME” PER CUSTONER CATEGORY - million m° Water Sewage Water + Sewage Catego! 319 3018 % 3019 _3Q18 % 3019 3018 % Residential 404.5 304.6 25 3490 3384 31 7535 7330 28 Commercial 42.0 41.0 24 414 400 28 834 810 26 Industrial 78 77 13) 96 92 «43 174 169 30 Public 10.4 10.1 30
Slide 6: Water and sewage billed volume per region
WATER AND SEWAGE BILLED VOLUME” PER REGION - million m: Water Sewage Water + Sewage Region 3019 3018 % 3019 _ 3018 % 3019 3018 % Metropolitan 302.1 295.2 23 2660 2586 29 5681 5527 28 Regional? 162.6 158.2 28 1432 1381 37 3058 201 33 Total retail 464.7 453.4 25 4092 3067 32 8739 8501 28 Wholesale © 2
Slide 7: Salaries and payroll charges and pension plan obligations
Salaries and payroll charges and Pension plan obligations In 3Q19, there was a decrease of R$ 175.2 million, mainly due to: · Reversal of R$ 173.3 million in the provisions of the TAC - Retirees, non-recurring, referring to employees who retired after the signing of the commitment with the Public Pr
Slide 8: Financial expenses
Financial expenses Increase of R$ 90.5 million, mainly due to the addition of R$ 78.7 million in other financial expenses arising from the increase in recognition of interest over: (i) lawsuits, in the amount of R$ 54.9 million; and (ii) the São Lourenço Production System, in the amount of R$ 17.5 m
Slide 9: Net monetary and exchange variation; income tax
The effect of net monetary and exchange variation in 3Q19 totaled R$ 366.6 million, higher than recorded in 3Q18, highlighting: · Increase of R$ 331.3 million in exchange variations on loans and financing, as a result of the appreciation of the US Dollar and Japanese Yen against the Brazilian Real i
Slide 10: Management's indicators
(1) Total connections, active and inactive, in thousand units at the end of the period. (2) In million inhabitants, at the end of the period. Does not include wholesale. (3) In millions of cubic meters. (4) Does not include Guarulhos and Santo Andre. (*) Unaudited. b) Management’s Indicators Followi
Slide 11: Operating expense per m³ billed
The following were not considered: - Construction revenue - R$928 million referring to the agreement with Guarulhos in 4Q18 - R$1,254 million referring to agreement with Santo André in 3Q19 Operating Expense per m³ Billed - R$/m³
Slide 12: Expenses considered and reversals excluded
Expenses considered: personnel, general materials, third-party services, electric energy, general expenses and tax expenses. Reversals excluded : - R$696 million referring to agreement with the State Government in 1Q15 - R$307 million referring to the migration of the additional pension plan in 3Q16
Slide 13: Items not considered; economic indicators
The following were not considered: Revenue: - R$928 million referring to the agreement with Guarulhos in 4Q18 - R$1,254 million referring to agreement with Santo André in 3Q19 Reversal of expenses: - R$696 million referring to agreement with the State Government in 1Q15 - R$307 million referring to
Slide 14: Loans and financing
(1) Accrued in the quarter (%) (2) Annual average (9 months) (3) Ptax sale rate on the last day of the quarter (*) Unaudited 11. Loans and financing In 3Q19, 49.2% of the Company's total debt is exposed to the exchange rate variation of the Brazilian Real against the US dollar and Japanese Yen, due
Slide 15: Capex
12. Capex In 3Q19, the Company invested R$ 2.2 billion, totaling R$ 3.7 billion year to date, of this total, R$ 1.9 billion refers to investments that did not affect cash. The significant increase in the quarter is due to the start of operations in the municipality of Santo André since it was consti
Slide 16: Income statement, Brazilian Corporate Law
Brazilian Corporate Law R$ ‘000 3Q19 3018) Net Operating Income 5,410,593 3,810,781 Operating Costs (2,379,712) (2,313,289) Gross Profit 3,030,881 1,497,492 Operating Expenses Selling (195,945) (170,022) Estimated losses with doubtful accounts 37,677 (19,307) Administrative expenses (329,607) (216,5
Slide 17: Balance sheet, Brazilian Corporate Law
Brazilian Corporate Law ASSETS Current assets Cash and cash equivalents Trade receivables Related parties and transactions Inventories Restricted cash Currrent recoverable taxes Other receivables Total current assets Noncurrent assets Trade receivables Related parties and transactions Escrow deposit
Slide 18: Signature and forward-looking statements
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city São Paulo, Brazil. Date: November 18, 2019 Companhia de Saneamento Básico do Estado de São P
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