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 — Q2 2021 Earnings Presentation
22 slides from Companhia De Saneamento Basico Do Estado De Sao Paulo Sabesp's earnings presentation, Aug 18, 2021
Slide 1: Presentation 2Q21
PRESENTATION ei 2Q21
Slide 2: Agenda
AGENDA THE COMPANY OUR OPERATIONS OUR FINANCIAL PERFORMANCE SPMR – WATER SITUATION IR Contacts 2Q21 Presentation
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 in relation to the future Disclaimer
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) 10.2 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 15.0 Law nº 13,303/16
Slide 6: Diversified consumer base
DIVERSIFIED CONSUMER BASE WATER BILLED VOLUME SEWAGE BILLED VOLUME WATER REVENUE* SEWAGE REVENUE* 21% 7% Residential Commercial 6% Industrial <1% Public 66% Whosale • Approximately 90% of water volume and revenue come from residential, commercial and industrial • Approximately 90% of sewage volume a
Slide 7: Broad coverage of municipalities
BROAD COVERAGE OF MUNICIPALITIES CONTRACTUAL BASE TOP 10 CONTRACTS Nº Municipalities % of Revenue % of Total Remaining Expired Contracts 8 0.51 Municipalities Revenues Period Maturity up to 5 years 3 0.16 (2Q20) (years) Maturity 6 to 10 years 22 2.55 São Paulo 46.69 19 Maturity 11 to 15 years - - Ma
Slide 8: Regulatory framework
REGULATORY FRAMEWORK ‘ Goals for Universalization Deadlines Federal Law 14,026/2020 - New ‘ 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 an
Slide 9: Tariff review
TARIFF REVIEW METHODOLOGY OF TARIFF REVIEW (PRICE CAP) Required Revenue = OPEX + CAPEX + Taxes + RABt – RAB0 WACC Personnel RAB0 (-) Water Income Tax Average Billed Energy Depreciation (+) Sewage Revenue Tariff (P0) Volume Materials WK Variation (+) Others Taxes Others Capex Output of Asset Sabesp 4
Slide 10: Tariff readjustments and revisions
TARIFF READJUSTMENTS AND REVISIONS READJUSTMENTS AND REVISIONS 3rd OTR AND TARIFF STRUCTURE INDEXES 3rd OTR IPCA Index – Between the readjustement/revision periods Tariff readjustment in 2021: for residential and non-residential OTR- Ordinary Tariff Revision customers (7.6%), social residential (-
Slide 11: Water and sewage operations
WATER AND SEWAGE OPERATIONS WATER CONNECTION EVOLUTION WATER CONNECTION (in 000’s) Add 1,0 million new connections by 2025 (million) SEWAGE CONNECTION EVOLUTION SEWAGE CONNECTION (in 000’s) (million) Add 1,2 million new connections by 2025 Coverage: from 92% in 2020 to 95% in 2025 Treatment:
Slide 12: Capex and financing
CAPEX AND FINANCING Financial Values (in R$ million) CAPEX PLAN OF R$ 21.0 BILLION For more information see explanatory Note 31 FROM 2021 TO 2025 FINANCING MAIN PROGRAMS Metropolitan Water Program Tietê Project Program for Water Loss Reduction Clean Stream Program Clean Wave Program New
Slide 13: Long term and low cost funding
LONG TERM AND LOW COST FUNDING TOTAL DEBT BREAKDOWN DEBT BY INDEXOR Nominal Average Cost of Debt Local Foreign General 7.32% 1.63% 6.20% DEBT AMORTIZATION PROFILE (R$ million) 2Q21 Presentation 13
Slide 14: Consistent performances
CONSISTENT PERFORMANCES NET REVENUE (R$ million) NET INCOME (R$ million) ADJUSTED EBITDA* (R$ million) DIVIDEND / PAY OUT 2015 2016 2017 2018 2019 2020 Dividend (R$) 0.2 1.2 1.0 1.2 1.4 0.4 Pay Out (%) 27.9 27.9 27.9 27.9 27.9 27.9 Outstanding Shares 683.5 683.5 683.5 683.5 683.5 683.5 * Millions *A
Slide 15: Historical leverage
HISTORICAL LEVERAGE (R$ 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 Aa2,br Ba2 • Adjusted EBITDA – LTM • ** Fina
Slide 16: Covenant – Adjusted net debt vs EBITDA
COVENANT – ADJUSTED NET DEBT vs EBITDA 2Q21 Presentation 16
Slide 17: Covenant – Adjusted total debt vs EBITDA
COVENANT – ADJUSTED TOTAL DEBT vs EBITDA 2Q21 Presentation 17
Slide 18: Financial highlights (R$ million)
FINANCIAL HIGHLIGHTS (R$ million) 2016 2017 2018 2019 2020 2H21 Net Revenues 14,098 14,608 16,085 17,984 17,798 9,273.3 Adjusted EBITDA** 4,572 5,269 6,541 7,511 6,422 6,446.1 Adjusted EBITDA Margin** 32.4 36.1 40.7 41.8 36.1 34.7 Adj, EBITDA Margin without Constr** 43.3 45.4 48.8 49.5 45.0 44.2 Net
Slide 19: SPMR – Water situation (08/14/2021)
SPMR – WATER SITUATION (08/14/2021) VOLUME STORAGE (%) WATER INFLOW (m³/s) AVERAGE PRODUCTION (m³/s) PRODUCTION SYSTEMS – AVERAGE PRODUCTION (m³/s) 2Q21 Presentation 19
Slide 20: Water supply system stronger than before the water crisis of 2014/2015
SPMR – WATER SITUATION WATER SUPPLY SYSTEM STRONGER THAN BEFORE THE WATER CRISIS OF 2014/2015 Reservoirs 2013 2021 Var. % Reservoirs (Water Rights) (m³/s) 68.9 80.3 16.5 Maximum storage capacity (hm³) 1,816 1,945 7.1 (without the technical reserve of the Cantareira System) Transfer between reservoir
Slide 21: Water plan for SPMR – from 2015 to 22
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 22: IR Contacts
IR Contacts Mario Azevedo de Arruda Sampaio Head of Capital Markets and IR maasampaio@sabesp.com.br +55 (11) 3388-8664 Angela Beatriz Airoldi Investor Relations Manager abairoldi@sabesp.com.br +55 (11) 3388-8793 Juliana Pin S. Jardim IR Analyst jpsjardim@sabesp.com.br +55 (11) 3388-9267 www.ri.sabes