Aguas Andinas SA Class A · BCS:AGUAS_A
Aguas Andinas SA Class A — Investor Presentation (April 2015)
22 slides from Aguas Andinas SA Class A's investor presentation, April 2015
Slide 1: Corporate Presentation April 2015
Corporate Presentation April 2015
Slide 2: Aguas Andinas Pura Vida
Slide 3: Aguas Andinas: Largest Water Utility
FINANCIAL HIGHLIGHTS (millions of pesos) AGUAS ANDINAS Largest Water Utility REVENUE 440.734 328.964 6,02% Largest water utility in Chile and one of the largest in Latin annual America average1 2010 2014 EBITDA 273.637 6,01% 204358 More than 2 million clients annual average1 2010 2014 Natural monopo
Slide 4: Corporate Structure: World Class Controlling Shareholders
CORPORATE STRUCTURE World Class Controlling Shareholders OWNERSHIP AS OF FEBRUARY 28TH 2015 100,0% Chilean Pension Funds • SUEZ ENVIRONNEMENT is one of the leading water and 2,2% Brokers 7,1% sewage treatment players worldwide. CORFO Others 5,0% 12,0% • AGBAR is an international benchmark in the san
Slide 5: Consolidated Industry Operated by Private Players
INDUSTRY COVERAGE RATIOS** CONSOLIDATED INDUSTRY 100% 99,9% (DW) 99,8% (WT) Operated by private players 80% 96,5% (S.) 60% 40% MARKET SHARE* 20% 0% AGBAR SUEZ 43% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ONTARIO TEACHERS PP 31% Drinking Water Sewage Wastewater Treatment
Slide 6: “A Hales Re) AGUAS ano
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Slide 7: Challenges: Aguas Andinas
CHALLENGES Aguas Andinas • Service continuity • Increased service standards • Service reliability • New channels to provide customer service • Automation and technology OPERATIONS CLIENTS • Customer service, infrastructure and better • Security processes COMMUNICATIONS ORGANIZATION • Intelligent org
Slide 8: Service Continuity: Increase Reserves of Drinking Water
COMMITTED INVESTMENT PLAN WITH THE SISS FOR 2013-2023(USD MILLONS) SERVICE CONTINUITY Increase Reserves of Drinking Water A two-phase plan that will strengthen our network has been developed. 84 39 27 Safety Infrastructure Projects – Phase I (completed): • 7 new wells (500 liters per second) Drinkin
Slide 9: Service Continuity: Drought Mitigation Plan
EMBALSE EL YESO WATER VOLUME SERVICE CONTINUITY 250.000.000 225.000.000 200.000.000 Drought Mitigation Plan Volume (m3) 175.000.000 150.000.000 125.000.000 100.000.000 75.000.000 50.000.000 New investments to increase capacity and agreements with 25.000.000 primary users for the joint management of
Slide 10: Service Continuity: 4th Stage of Mapocho Treatment Plant
SERVICE CONTINUITY 4th Stage of Mapocho Treatment Plant Project to be completed in 2017 Will increase the treatment capacity of the Trebal-Mapocho complex from 6.6 m3 to 8.8 m3 Main benefits: • Respond to increasing demand • Strengthens the security of operations in the basins of Gran Santiago • Pre
Slide 11: Service Continuity: Operating Highlights 2012-2014
SERVICE CONTINUITY Operating Highlights 2012-2014 2. PRODUCTION • New wells in the Cerro Negro area • Drought Contingency Plan 4. COLLECTION • Maintenance of sewage network to provide optimal service. 1. EXTRACTION 5. TREATMENT • Connection between El Yeso • Completion of the Mapocho reservoir and L
Slide 12: Strategic Customer Service Plan: New World Class System
STRATEGIC CUSTOMER SERVICE PLAN New World Class System Implementation of AquaCIS, new billing tool that will allow us to further strengthen our commitment to serving clients Integrates commercial operations processes, such as customer service, contracting services, readings, billing and collection,
Slide 13: Regulatory Framework: Proven, Stable and Transparent
The regulatory framework of the REGULATORY FRAMEWORK Chilean water industry has been fundamental to the development of Proven, Stable and Transparent the sector. Regulatory framework in place more than 20 years MODEL COMPANY vs. REAL COMPANY Superintendence of Sanitation Services (SISS) acts as the
Slide 14: Sixth Tariff Negotiation Process
Mechanism for Tariff Negotiation Process SIXTH TARIFF NEGOTIATION PROCESS SISS study of Company study model of model CALENDAR company company At least 12 months 2 months 1 Discrepancies 1a 5 months Negotiation 1b 22 4 months 45 days 3 1 month 4 Agreement? No Yes 1. Publication of preliminary bases (
Slide 15: Resolution of Sixth Tariff Negotiation Process
RESOLUTION OF SIXTH TARIFF NEGOTIATION PROCESS On November 14th, Aguas Andinas and its subsidiaries Aguas Cordillera and Aguas Manquehue, came to an agreement with the Superintendence of Sanitary Services (the "SISS") within the framework of the sixth tariff-setting process for the period 2015-2020.
Slide 16: Resolution of Sixth Tariff Negotiation Process
RESOLUTION OF SIXTH TARIFF NEGOTIATION PROCESS Additional tariff increases when new investments come into operation: Turbidity safety works: +1.1% in 2018 Quality improvement works WWTP Farfana + Trebal: +1.4% in 2018 Tariff discount due to Non-Regulated Business: Alto Maipo Project: -1.2% in 2018 (
Slide 17: Tariff Benchmarks
TARIFF BENCHMARKS TARIFFS PER CUBIC METER (WATER AND SEWAGE) US$/M3 Coyhaique 3,29 Oslo 7,09 Berlin 6,6 Antofagasta 3,02 Sydney 5,93 Iquique 2,50 Copenhagen 5,33 Puerto Montt 2,38 Ottowa 5,12 Paris 3,88 Punta Arenas 2,35 London 3,65 Copiapó 2,29 Mexico City 3,23 Arica 2,14 Washington 2,74 Madrid 2,5
Slide 18: Productivity/Quality of Service
PRODUCTIVITY/QUALITY OF SERVICE CLIENTS/EMPLOYEES BILLING/EMPLOYEES Th. M3 144 573 365 82 AGUAS ANDINAS CHILEAN INDUSTRY AVERAGE AGUAS ANDINAS CHILEAN INDUSTRY AVERAGE RUPTURES X 100 KMS. RUPTURES X 1.000 CLIENTES 1,9 22,9 7,4 0,2 AGUAS ANDINAS CHILEAN INDUSTRY AVERAGE AGUAS ANDINAS CHILEAN INDUSTRY
Slide 19: Financial Performance
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Slide 20: Financial Performance as of December 2014
FINANCIAL PERFORMANCE as of December 31 2014 Millions of CLP Revenue and EBITDA growth (CAGR) have been 6.02% and 6.01%, 500.000,00 REVENUE 440.734 382.886 402.624 respectively, during the last 5 years. 400.000,00 363.733 328.964 300.000,00 - Coverage of Financial Expenses= 5.82 (Dec 14) 200.000,00
Slide 21: Debt Structure as of December 2014
Pasivos Financieros DEBT STRUCTURE as of December 31 2014 150.000.000 Million of CLP 100.000.000 Bank Loans Bonds 50.000.000 Promissory Notes - 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2031 2032 2033 2034 2035 2037 DEBT BREAK DOWN BY INSTRUMENT DEBT BREAK DOWN BY IN
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