Manila Water Co. Inc. · PSE:MWC
Manila Water — H1 2023 Earnings Presentation
20 slides from Manila Water's earnings presentation, Aug 10, 2023
Slide 1: 1H Analysts' Briefing
1H ANALYSTS’ BRIEFING August 10, 2023
Slide 2: Investor relations contact
For questions and comments, you may send us an e-mail at: invrel@manilawater.com
Slide 3: 1H 2023 Financial and Operating Highlights
1H 2023 Financial and Operating Highlights Billed Consolidated EBITDA NIAT Capital Volume Revenues +56% +73% Expenditures NIAT Margin +5% +42% EBITDA Margin +6 ppts +6 ppts -30% • Strong topline performance in EZ and NEZ-PH businesses. Robust tariff increases and continued billed volume recovery pos
Slide 4: Consolidated Financial Performance
Consolidated Financial Performance Consolidated NIAT up 73% with significant (in Million Php) 1H 2022 1H 2023 % Change topline recovery; NIAT margin up 6 ppts Operating Revenues 10,857 15,391 42% • Consolidated revenues up 42% with robust tariff COS and Operating Expenses (4,644) (5,624) 21% increas
Slide 5: Consolidated Financial Performance: Net income contribution per SBU
Consolidated Financial Performance Net income contribution per SBU (in million Php) 5,047 4,599 2,920 2,533 -52 364 161 111 Parent NEZ - Philippines NEZ - International Conso YTD 1H 2022 YTD 1H 2023 • Parent Company: Higher revenues from tariff increases and 6% BV growth push NIAT up 28% to Php4.6 b
Slide 6: Capital Expenditures
Capital Expenditures YTD 1H 2022 YTD 1H 2023 NEZ-PH NEZ-PH Php692 million (7%) Php957 million (18%) Php9.7 billion Php6.8 billion EZ Php9,053 million EZ (93%) Php5,848 million (82%) EZ NEZ EZ NEZ • Relative decrease in CAPEX with the purchase of land (Php2.5 billion) in EZ during same period LY. • W
Slide 7: Capital Expenditures: East Zone
Capital Expenditures: East Zone Water Treatment Plants Note: status as of June 2023 (80 MLD) Wawa-Calawis Wastewater 94% Completed (50 MLD) San Mateo – Rodriguez System Treatment Plants 25% Completed (300 MLD) Kaliwa Commencing (60 MLD) Manda West – SJ South – QC South 59% Completed (50 MLD) East Ba
Slide 8: Capital Expenditures: Non-East Zone
Capital Expenditures: Non-East Zone Water Treatment Plants Note: status as of June 2023 Water Treatment Plant, Ilagan Water Wastewater 54% Completed (20 MLD) BNR STP Upgrade, Clark Water Treatment Plants 66% Completed Cabuyao Expansion, Laguna Water P4: 94%, P5: 78% BNR Upgrade of Hollow Fiber Membr
Slide 9: Balance Sheet Highlights
Balance Sheet Highlights Dec 2022 1H 2023 ASSETS LIABILITIES AND EQUITY Key Balance Sheet Items (in Mn Php) Cash & Cash Equivalents 8,812 9,139 194,803 202,882 194,803 202,882 CAPEX 22,415 6,805 9,139 Cash and Cash 8,812 Bank Debt 84,923 85,762 32,988 33,762 Equivalents 76,291 73,452 Debt Profile Ot
Slide 10: Parent Company (East Zone Concession)
Parent Company (East Zone Concession)
Slide 11: Parent Company: Operating Highlights
Parent Company: Operating Highlights • Increased consumption across all segments, with the 1H 2022 1H 2023 % Change sustained recovery in commercial + industrial accounts in line with continued recovery of businesses Billed Volume (in MCM) 245.3 258.9 6% • NRW remained steady with continued leak rep
Slide 12: Parent Company: Financial Highlights
Parent Company: Financial Highlights Parent NIAT up 82% driven by higher tariff and (in Million Php) 1H 2022 1H 2023 % Change billed volume recovery, NIAT Margin at 38% Operating Revenues 8,222 12,024 46% • Higher revenues with increased consumption across all COS and Operating Expenses (2,964) (3,7
Slide 13: Parent Company: Water Supply Update
Parent Company: Water Supply Update We continue to provide reliable service to our customers in line with our service obligations • Angat + La Mesa dams within normal operating levels 178.00 199.86 • New Water source projects and service reliability initiatives (as of Aug. 10, 2022) (as of Aug. 10,
Slide 14: Non-East Zone Philippines
-Non-East Zone >hilippines
Slide 15: NEZ-PH: Consolidated Financial Highlights
NEZ-PH: Consolidated Financial Highlights NEZ-PH sustains its turnaround with tariff (in Million Php) 1H 2022 1H 2023 % Change increases in several BUs and 2% increase in BV Operating Revenues 2,676 3,475 30% COS and Operating Expenses (1,629) (1,892) 16% • Revenues up 30% with higher water and sewe
Slide 16: Non-East Zone International
Non-East Zone International
Slide 17: NEZ-INTL: Operating & Financial Highlights
NEZ-INTL: Operating & Financial Highlights NEZ-INTL NIAT down 31% with lower share in net (in Million Php) 1H 2022 1H 2023 % Change income of associates Equity share in net income of 307 295 4% • Positive performance of key Vietnam businesses offset by lower associates BV from East Water and higher
Slide 18: Sustainability + ESG Highlights
Sustainability + ESG Highlights PROTECT THE ENVIRONMENT Inspiring Engagement for the Environment Fostering Environmental Stewardship ▪ Marked Arbor Day with the 2nd year of Hike PASIBOL engages employees and and Bike stakeholders to promote environmental ▪ Celebrated World Environment Day with stewa
Slide 19: Summary
Summary • Strong topline performance in EZ and NEZ-PH businesses. Robust tariff increases and continued billed volume recovery post-COVID restrictions provide solid platform for growth • COS and OPEX in line with continued recovery of economic activity. EBITDA up 56% to Php10.1 Bn. EBITDA margin imp
Slide 20: Manila Water: Care in Every Drop
a \ MANILA WATER CARE IN EVERY DROP