DISCLAIMERo The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of
an offer or invitation to purchase or subscribe for share in Eastern Water Resources Development and Management Public Company Limited (“EASTW” and shares in EASTW, “shares”) in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever.
o This presentation has been prepared by the EASTW. The information in this presentation has not been independently verified. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of the EASTW or any of its agents or advisors, or any of their respective affiliates, advisors representatives, shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.
o This presentation is made, furnished and distributed for information purposes only. No part of this presentation shall be relied upon directly or indirectly for any investment decision-making or for any other purposes.
o This presentation and all other information, materials or documents provided in connection therewith, shall not, either in whole or in part, be reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws.
2Note: All currency figures within this presentation are presented in Thai Baht (“Bt.”) unless otherwise stated.
Financial
Outlook & Strategies
Business Overview
AGENDA
3
• Group Structure & Shareholder• Our Business & Business Model • Customers Area & Challenge (Water Situation)
EASTW - INFORMATION
4
VISION
“being the leader in total water solution of the country”
COMPREHENSIVE WATER SOLUTION
Raw & Tap
WaterIndustrial
Water
Waste Water
Management
Recycled
Water
GROUP STRUCTURE
5
Concessions under UU:• Rayong Waterworks• Chonburi Waterworks• Bangpakong Waterworks• Nong Kham Waterworks• Lak Chai Muang Yang Waterworks
Concessions under UU & Subsidiaries:• Nakornsawan Water Supply Co., Ltd.• Egcom Tara Water Supply Co., Ltd.• Chachoengsao Water Supply Co., Ltd.• Bangpakong Water Supply Co., Ltd.
Concessions under East Water:• Sattahip Waterworks• Bowin Waterworks• Koh Lan Waterworks• Koh Samui Waterworks
Raw Water Business
100%Tap Water & Related Business
40.20% 18.72% 4.57%
PWA: Provincial Waterworks AuthorityMWC: Manila Water Company, Inc.IEAT: Industrial Estate Authority of Thailand
PWA MWC IEAT
STRATEGIC SHAREHOLDERS
6
PWA40.20%
Manila Water18.72%
Institution Investors18.56%
Retail Investors17.96%
IEAT4.57%
PWA: Provincial Waterworks AuthorityMWC: Manila Water Company, Inc.IEAT: Industrial Estate Authority of Thailand
Major shareholders Shareholders’ value appreciation
Market capitalization of approx. THB 18.80 Billion
4.52
6.65 6.20
12.3012.2010.80
11.60 11.80 12.40
10.60
4.68
7.206.65
14.00
15.80 15.60
12.30 11.90 12.4010.80
0.0
3.0
6.0
9.0
12.0
15.0
18.0
THB per share
Share price (end of year) Highest price
Note: Info as of 30 June 2018
EGCO has completed the sale all of the shares in EASTW to MWC on Mar 14, 2018
OUR BUSINESS
7
56%
34%
10% Other
Raw Water Distribution
Tap Water
As the core business of EASTW, raw water distribution is the main source of revenues
while tap water and waterworks management – operated under Universal Utilities Co., Ltd.
(100% subsidiary) – are compelling supportive businesses.
RAW WATER MARKET-BASED OPERATIONS & KEY CUSTOMERS
11
Major customers Local authorities: Provincial Waterworks Authority (PWA),
and Industrial Estate Authority of Thailand (IEAT) Industrial estates: Hemraj Estate, Amata Estate Multi-national companies: SCG, Thai Oil (TOP), PTT Global
Chemical (PTTGC), Toyota
PrasaeKlong Yai
Nong-Pla-Lai
Dok Krai
Bang Phra
Nong Kho
HemrajEstate
IEATLaem -
ChabangEstate IEAT
Map Ta Phut
Estate
TAP WATER MARKET-BASED OPERATIONS & KEY CUSTOMERS
12
EASTW’s Concession
UU’s Concession
- Total production capacity = 315,410 cubic meters / day
- Average sales volume = 225,986 cubic meters / day
- Total production capacity = 82,500 cubic meters / day
- Average sales volume = 52,048 cubic meters / day
OVERVIEW OF WATER SITUATION
13
Source of data: Royal Irrigation Department
Info as of 3 Aug 2018
CHONBURI RAYONG
Bangpra Nongkho Dokkrai Nongplalai Klongyai Prasae
Reservoir Capacity (M. Cu.M.)
117.00 21.40 79.41 163.75 40.10 248.00
Water Reserve (M. Cu.M.)
62.42 10.22 47.98 111.35 21.50 188.35
Useable storage volume(excluding Dead Storage)(M. Cu.M.)
50.37 9.22 44.98 97.85 18.50 168.35
59.59 329.68
% Total Capacity 43.05% 43.08% 56.64% 59.76% 46.13% 67.88%62.42
10.22
21.50111.35
188.35
47.98
18
PrasaeKlong Yai
Dok Krai
Bang Phra
Nong Kho
Main Water Resource
Existing Pipe Network
Nong-Pla-Lai
Leased Pipe Network
Projects
Prasae #2+70 MCM
(2018)
Tabma+47 MCM
(2020)
NL-NK2 #1(2017)
Bangpakong-pumping+50 MCM
(2020)
Reserve Water Resource
RAW WATERRESOURCESMANAGEMENT
Financial
Outlook & Strategies
Business Overview
AGENDA
20
• Financial Highlight 1H/2018• Dividend Policy and Dividend Payout
PROVEN PERFORMANCE OF EAST WATER
21
• Excludes the extra-ordinary revenues and net profit of Prasae Project in 2010.• Total Revenue included ‘Construction revenue under concession agreement’ starting from 2013• Total Revenue and Net Profit in 2015 include gain from measuring fair value of 15.88% equity interest in Egcom Tara• Net Profit means Profit attributable to Equity holders of the parent company
2,437
2,8783,107
3,310
3,7263,956
4,305
4,6594,414 4,357
571807 870 1,008
1,240 1,313 1,3341,585
1,309 1,221
0
1,000
2,000
3,000
4,000
5,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Mil. Bt.
Revenue Net Profit
1
FINANCIAL HIGHLIGHTS OF 1H/2018
22
2,2792,106
1,562 1,520
716586
0
500
1,000
1,500
2,000
2,500
3,000
1H/2017 1H/2018
Mil. Bt.
Total revenue Total expenses Net profit
113
-7.59%
-2.72%
-18.21%
Revenue
Net profit
Expenses
• Total revenue included construction revenue and cost under concession agreement (TFRIC.12)• Net Profit for the year
113
Construction under concession agreement
148
148
2,131 1,414 2,093 1,407
REVENUES 1H/2018
23
1,3101,185
708
712
148113
83
83
30
13
2,279 2,106
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
1H/2017 1H/2018
Mil. Bt.
Raw water Tap water Construction under concession agreement Rental & Services Other
57%
31%
34%
56%
-7.59%
7%
4%1%
5%4%1%
RAW WATER: Sales volume
121.05 108.64
10.82 10.91
0
3
6
9
12
0
40
80
120
160
1H/2017 1H/2018
Baht/Cu.M.Million Cu.M.
Raw water Selling Tariff
+ 0.80%
TAP WATER: Sales volume
48.08 47.89
14.73 14.87
0
5
10
15
0
15
30
45
60
1H/2017 1H/2018
Baht/Cu.M.Million Cu.M.
Tap water Selling tariff
+ 1.02%
TOTAL EXPENSES 1H/2018
24
-4.56%
COGS decreased by 1.45% YoY;
168 144
71 67
201 202
1,123 1,107
1,5621,520
0
200
400
600
800
1,000
1,200
1,400
1,600
1H/2017 1H/2018
Mil. Bt.
Tax Interest SG&A COGS
Cost of Raw Water decreased by 4.56% yoy: because of• Decreasing of volume sales from Household customers, • Decreasing of electricity cost for transfer raw water to support in Chonburi Area.
Cost of Sales for Tap Water increased by 11.60% yoy : because of • Increasing of depreciation and amortization by 8.49 million Baht from the amortized assets under
concession agreements.• Increasing of higher raw water cost as the company had purchased raw water from private source.Cost of Construction under concession agreements decreased by 24.09% yoy: according to accounting standard TFRIC12
492416
67 148
470 464
61 1130
200
400
600
Raw Water Tap Water Rental&Sevices Construction underconcession agreement
1H/2017 1H/2018
-9.43%
+11.60%
-2.72% YoY
-24.09%
COSTS BREAKDOWN Q2/2018
25
Raw water18%
Electricity28%
Depreciation32%
Maintenace7%
Other15%
492.40 469.93
4.07 4.33
0.0
1.5
3.0
4.5
0
200
400
600
1H/2017 1H/2018
Bt./Cu.M.Mil. Bt.
Costs of Raw Water
415.74 463.97
8.65 9.69
0.0
3.0
6.0
9.0
12.0
0
200
400
600
1H/2017 1H/2018
Bt./Cu.M.Mil. Bt.
Costs of Tap Water
Other6%
Chemical4%
Electricity15%
Raw Water18% Depreciation
35%
Wages22%
GP of Tap Water of 1H/201834.87%
GP of Raw Water of 1H/201860.35%
SHARE INFORMATION AND DIVIDEND PAYMENT
26
0.610.75 0.79 0.80 0.84 0.78 0.73
0.42 0.44 0.42 0.45 0.47 0.47 0.47
69.4%
59.0%53.2% 56.1% 56.0%
60.3%64.4%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
0.00
0.20
0.40
0.60
0.80
1.00
2011 2012 2013 2014 2015 2016 2017
Baht/share
EPS DPS % Dividend payout ratio
*
Dividend policy is not less than 30% of normal net profit
* Excluding the net profit of 183.32 MB from measuring fair value of 15.88% equity interest in Egcom Tara
*
CONTACT US
27
Eastern Water Resources Development and Management Public Company LimitedFloor 23-26, East Water Building, 1 Vibhavadi Rangsit Road, Jomphol, Chatuchak, Bangkok 10900
Tel: 02-272-1600 Fax: 02-272-1601
Website: www.eastwater.com or investor-th.eastwater.com
For further information & enquiries, please contact our investor relations at:Tel: 02-272-1600 Email: [email protected]