AGUAS ANDINAS Results Meeting November 30 2018
AGENDA Financial Performance Investments Tariffs Contingencies Q&A
FINANCIAL PERFORMANCE
Numbers in Millions of Pesos Revenues FINANCIAL 600.000 473.397 509.541 492.003 PERFORMANCE 440.734 500.000 403.879 390.691 AS OF 374.644 400.000 300.000 SEPTEMBER 30 200.000 2018 100.000 0 2013 2014 2015 2016 2017 sept-17 sept-18 EBITDA & EBITDA Margin Net Income and Net Income Margin 400.000 160.000 35% 62% 140.000 30% 58% 298.604 282.624 291.513 300.000 120.000 273.746 54% 248.532 25% 218.347 227.589 100.000 50% 20% 200.000 80.000 46% 139.620 15% 135.343 129.008 60.000 42% 119.422 116.676 101.430 101.566 10% 100.000 40.000 38% 5% 20.000 34% 0 30% 0 0% 2013 2014 2015 2016 2017 sept-17 sept-18 2013 2014 2015 2016 2017 sept-17 sept-18 EBITDA EBITDA Margin Recurring Net Income Non-Recurring Net Income Net Income Margin
The Company’s revenues increased to CLP$391 billion due to: Increased sales volumes, registering an increase of 4.1% in Potable Water and 3.7% in REVENUES Sewage Treatment. Tariff indexations registered during 2017 and 2018 (+1.47% on november 29 th of 2018). INCREASED BY 4.3% Revenues (Billion CLP$) Clients 450 400 2.250.716 36 38 350 Sewerage 8 11 2.195.996 300 250 189 177 200 2.303.852 150 Potable Water 2.249.314 100 158 148 50 sept-18 sept-17 0 sept-17 sept-18 Potable Water Sewage Treatment Ohter Regulated Revenues Non-Regulated Revenues
Raw Materials and Consumables Used increased due to: An increase in electricity costs for CLP $1.6 billion, due to more consumption associated with sales volume. COSTS INCREASED Higher costs of CLP $2.6 billon for the purchasing of raw water in order to face the melting BY 4.4% period (October – April). Personnel Expenses increased due to: Increased remunerations and bonuses associated to increases in CPI, in addition to an increased workforce and extraordinary benefits for personnel due to the collective negotiation process for CLP $3.1 billion. Other Expenses, By Nature decreased due to: Lower sludge management costs in the Biofactories for CLP $383 million. Lower allocation for doubtful accounts for CLP$2.3 billion. Offset by higher activity in network maintenance of CLP $720 million. . Higher costs in new service activity, customer management and property value for CLP 1,238 million. Raw Materials and Consumables Used Personnel Expenses (BN CLP$) Other Expenses, By Nature (BN CLP$) (BN CLP$) 90.676 90.088 43.573 +7.5 % 40.516 +17.3 % -0.6 % 29.441 25.104 sept-17 sept-18 sept-17 sept-18 sept-17 sept-18
OTHER HIGHLIGHTED RESULTS Texto Texto Texto Texto
We put sustainability at the heart of the company's business model. The melting of the GREEN AND SOCIAL glaciers and the drought motivated us to be the first green issuers of the country. BOND CHILE DAY 2018
We have refinanced CLP $ 65 of bank debt, doubling the duration from 3.1 to 5.8 years. BANK DEBT RENEGOTIATION $40 Debt Maturity Profile as of March 31 2018 $35 $30 $25 Billion Pesos $20 $15 $10 $5 $- 2019 2020 2021 2022 2023 2024 2025 Maturity Profile as of September 30, 2018 $35 Debt Maturity Profile as of September 30 2018 $30 $25 Billion Pesos $20 $15 $10 $5 $- 2019 2020 2021 2022 2023 2024 2025 Maturity Profile as of September 30, 2018
$90 $80 DEBT $70 $60 STRUCTURE AS Billion Pesos $50 OF SEPTEMBER $40 30, 2018 $30 $20 $10 $- 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 • Leverage: 1.66x Limit: 1.98 Promissory Notes Bonds Bank Loans • Financial Expense Coverage: 7.16x Variable Promissory Notes 10% 19% Fixed • Local Credit Rating: AA+ 90% DEBT BREAK Bank Loans DOWN BY DEBT BREAK • Total Net Financial Debt: CLP$ 939 10% INTEREST DOWN BY TYPE billion INSTRUMENT • Net Debt/EBITDA Ratio: 3,05x Bonds 71%
INVESTMENTS
PROGRESS IN 16 $ 24 9 2018 INCREASED Reserve tanks Wells to extract Million USD with 54 milllion liters underground water. invested. of capacity. AUTONOMY 11 OF AUTONOMY WORKS for emergencies HOURS $ 121 6 with 1,500 2019 mega reserve milllion liters Million USD tanks in Pirque. of capacity. invested. 34 OF AUTONOMY for emergencies HOURS Stage 1 Progress: 53.6% Construction Civil Works, Supply of Equipment, Assembly and Commissioning, Elevation and Emptying Works – Reserve Tanks
TEXTO TARIFFS
TIMELINE List of ‘middle Final candidate’ for parameters Expert and Committee is methodology determined published SISS requests Tariff studies Expert minutes from SISS rules on Publication of Final exchanged committee SISS expert New Tariff Observations observations Administrative 2013-18 info Company parameters and Parameters between called by establishes committee to Settlement on preliminary on preliminary appeal over the provided presents methodology company SISS new tariffs make final AA parameters parameters SISS decision on for tariff study discrepancies / and SISS ruling AM made the parameters observations AC 28 FEB 2020 30 NOV 2018 30 JAN 2018 15 MAR 2019 25 MAR 2019 10 APR 2019 10 MAY 2019 01 OCT 2019 01 NOV 2019 16 NOV 2019 28 NOV 2020 30 JAN 2020 18 MAY 2020 29 JUN 2020
TEXTO AWARDS
Avonni AWARDS 2018 Sixth place in Corporate Sustainability Index 2018 of ActionAbility Institute and Revista Capital. National award Avonni Innovation 2018, in the Energy category because of the biogas plant. Natural gas plant of Biofactores Gran Santiago receive the national award of Innovation Recyclapolis. Recyclapolis
Our company exhibit a great result in the Dow Jones Sustainability Index (DJSI), report that evaluate the sustainability performance of thousands stock exchange listing companies. This year we AWARDS 2018 obtained the sixth place in the sanitary industry category. Our company was recognized with the Momentum for Climate Change 2018, given by the United Nations Organization. Momentum for Climate Change
Q&A Session
AGUAS ANDINAS Results Meeting November 30 2018
Annexes
In December 2016, the Chamber of Deputies approved the Project of Law Bulletin Nº 10795-33 which intends to modify the legislation which applies to public sanitation services in regards to: PROJECT OF LAW non-regulated services, the tariff-setting process and 10.795-33 the fulfillment of development plans by service providers. This initiative has been submitted to the Senate in its second legislative instance and is currently in the Commission of Public Works. Sessions of the Commission of Public Works: January 4 th 2017 Commission of Public Works requests May 3 rd 2017 June 13th 2018 constitutionality report Comission of Public Works MOP proposes Technical from the Secretary General receives the reports from Committee to discuss the of the President (Segpres) the MOP and Segpres Project of Law March 1 st 2017 May 2018 August 2018 Commission of Public The Comission of Public Discussion in Progress Works requests formal Works requests a formal report from the Ministry of report from the new Public Works (MOP) Minister of Public Works stating its opinión on the Project of Law
On May 28, 2018, Aguas Andinas filed an application for unconstitutionality with the Constitutional Court, requesting that certain provisions of Law No. 19,496 be declared APPEAL inapplicable in a judicial proceeding initiated by SERNAC against Aguas Andinas, a through a class- action lawsuit. SUBMITTED TO THE This collective action is related to the potable water cuts that occurred in the city of Santiago CONSTITUTIONAL during the months of February and April 2017, as a result of events of force majeure associated with the extreme turbidity observed in the waters of the Maipo river, which supply the potable COURT water plants of the company. In the above-mentioned civil process -currently in progress-, Sernac requests that hefty fines be imposed on Aguas Andinas for each one of the affected consumers, a possibility that upon understanding this company is unconstitutional, since the eventual sanction would be totally disproportionate. In addition, the sectoral authority (the SISS) has already become aware of this situation, which could cause the company to be sanctioned twice for the same facts, a matter that does not comply with the constitution. This violates the principle "non bis in idem" which means that no one can be tried or double convicted for the same act. This appeal was accepted by the Constitutional Court on August 3 rd .
Rain water is a challenge for ESSAL, our water utility in the south of Chile. RAIN WATER SITUATION Legislation Reality Rain Water Separate Networks Management X y XIV Región Rain Water Law 58,0 57,6 57,1 N°19.525 53,8 millones de m 3 33,7 33,1 Mixed Water 32,3 31,2 Management Chilean Sewage Elevation Plant Norm (2472 Of 2000) SISS Instructions: Use of by pass 2012 2013 2014 2015 Ord. 3104/2011 Sewerage and Sewage Water Ord. 4208/2010 Treated Volume Potable Water Billing Facturación AP Volúmen Tratado Sewage Water Sewage treatment plants receive more tan 1.7 Sewage Management times the volumen consumed by clients. Sanitation Services 80% to 95% of potable water General Law consumption DFL N°382
Recommend
More recommend
