Manila Water Co. Inc. · PSE:MWC
Manila Water — Q1 2006 Earnings Presentation
11 slides from Manila Water's earnings presentation, Apr 26, 2006
Slide 1: Manila Water Company 1st Quarter Analysts' Briefing
MANILA WATER COMPANY 1st Quarter Analysts’ Briefing April 26, 2006 First Quarter 2006 Highlights 6 Billed volume at 887 mld, double the 1997 level 6 NRW continued to drop, now at 34% 6 Net income grew 24% year on year 6 Operating expenses kept in check 6 Expansion projects to Taguig, Antipolo, San M
Slide 2: Initiatives on track vis-à-vis Strategic Imperatives
Initiatives on track vis-à-vis Strategic Imperatives Strategic Imperatives Initiatives • Aggressive Network • 65kms of new pipelines laid, mostly in the expansion areas Expansion • Effective management of • Opex remains well controlled amidst inflation rate and continuing oil price operating expense
Slide 3: Growth in Billed Volume and Reduction in Non-Revenue Water
Operational Performance Continuing Growth in Billed Volume – Doubled the 1997 level in Million Liters per Day 1,000 23 MLD increase in 3 months 887 900 864 825 800 758 767 751 706 900 887 th ow 700 gr 645 6% 850 840 594 600 800 500 440 EO Mar05 EO Mar06 400 1997 1998 1999 2000 2001 2002 2003 2004 20
Slide 4: Improved 24-Hour Water Supply and Customer Base Expansion
Operational Performance Improved access to 24-hour water supply 1997 1Q 2006 26% 97% 24 hours 13-23 hours 0-12 hours Manila Water Company, Inc. Operational Performance Expansion in Customer Base 741thousand HOUSEHOLDS served 6 Water network now reaching the unserved towns farther east Manila Water C
Slide 5: Continuing Growth Through Continuing Investments: Antipolo Water Supply Project
Continuing Growth Through Continuing Investments Manila Water Company, Inc. Continuing Growth Through Continuing Investments Expansion projects Antipolo Water Supply Project • Kingsville and Siruna pump station on-going; Lucban PS to be started this May • Siruna and Lucban Reservoir on-going • Benef
Slide 6: Expansion Projects: Baras, San Mateo, FTI South Septage Plant
Continuing Growth Through Continuing Investments Expansion projects Baras • Deepwell construction started Q4 2005. • Construction of water network (Phase 1) is ongoing. • Beneficiaries: 1,500 households • Target completion: 3Q 2006 San Mateo/Montalban Line • Transmission lines fully completed • Serv
Slide 7: Maintained Strong Financial Position
Financial Performance Manila Water Company, Inc. Financial Performance Maintained Strong Financial Position In million pesos YTD Mar. YTD Mar. % Inc/ (except for ratio and EPS) 2006 2005 (Dec) Revenues 1,519.3 1,309.1 16% Operating Expenses 618.9 583.6 6% EBITDA 846.9 687.1 23% Net Income 599.7 483.
Slide 8: Strong Balance Sheet and Healthy Leverage Profile
Financial Performance Strong Balance Sheet In million pesos YTD Mar. YTD Mar. % Inc/ (except for ratio and EPS) 2006 2005 (Dec) Current Assets 4,780.7 5,034.5 (5.0%) Non-Current Assets 14,008.0 10,944.0 28.0% Total Assets 18,788.7 15,978.5 17.6% Current Liabilities 2,945.7 1,935.7 52.2% Non-Current
Slide 9: Funding Sources for Expansion Projects
Funding Sources Internal Cash Flow 60% + 40% $40M New Loan + P1B Peso Loan = CAPEX PROJECTS/ Others (Expansion Projects) Manila Water Company, Inc. Update on Expansion Projects Outside East Zone Manila Water Company, Inc. 9
Slide 10: Update on Expansion Projects Outside East Zone
Update on Expansion Projects Outside East Zone Maynilad z Awaiting release of TOR publication z Awarding in September z Consortium members to be firmed up by June z Terms of Reference & due diligence to determine bid position Others z Exploratory discussions are ongoing with various parties Manila W
Slide 11: Summary / Thank You!
Summary Growth Prospects and Challenges 6 Efficient Capex spending to drive growth z Expansion to the high growth areas farther east z Implement operational improvements to maintain cost efficiency 6 Track record in the East Zone and strong financial position provide an edge in pursuing projects out