Eastern Water Resources Developmentand Management PLC. Jan-Mar 2009 Results
ContentsContents
Company OverviewCompany Overview
Operation HighlightsOperation Highlights
Financial HighlightsFinancial Highlights
Future InvestmentsFuture Investments
2
Highlights
10.56 % of Net Income and 18.56 % of EBITDA increase (Q1/2009, YoY)
Average Tariff increases by 16.71% (Q1/2009, YoY) given tariff reduction to
PWA, according to the resolution of AGM/2008(Oct-Dec 08) as of 30 April,2009
Increasing potential of Nongplalai to Maptaphut(Line3) pipeline with financing
secured by GSB
Tap water business expand to Chonburi and Samui which expect to increase
revenue by approx .14%
3
East Water Group StructureEast Water
Tap Water Related Business
Universal Utilities : 100%* THB 510 million
Water Trades and Services : 100%*THB 5 million
Water Trades and Services : 100%*THB 5 million
Universal Utilities : 100%* THB 510 million
Water Trades and Services : 100%*THB 5 million
Water Trades and Services : 100%*THB 5 million
Water Trades and Services : 100%*THB 5 million
Water Trades and Services : 100%*THB 5 million
Water Trades and Services : 100%*THB 5 million
Universal Utilities : 100%* THB 510 million
Water Trades and Services : 100%*THB 5 million
Water Trades and Services : 100%*THB 5 million
Bangpakong Water Supply
Chachoengsao Water Supply
Nakornsawan Water Supply
Bangpakong Water Supply
Chachoengsao Water Supply
Nakornsawan Water Supply
Bangpakong Water Supply Co.,Ltd.
Chachoengsao Water Supply Co.,Ltd.
Nakornsawan Water Supply Co Ltd
Contract to service drinking vending machine
Nakornsawan Water Supply
Rayong Waterworks
Nakornsawan Water Supply
Rayong Waterworks
Nakornsawan Water Supply Co.,Ltd.
Rayong Waterworks
Chonburi Waterworks
Operations & Maintenance
Non Revenue Water
East Water Sattahip, Borwin Waterworks
Ratchaburi –SamutSonghram, Phuket
PWA 3 project : Omnoi, PathumThani, PattayaNon Revenue Water
East Water
Non-Revenue Water
East Water
EGCOM TARA : 15%* THB 345 million4
East Water
Koh Sichang, Lan, Samui Waterworks
p,East WaterEast Water
Shareholders Structure
PWA40.20%
Institutions17.89%
Retail Investors
8.48%
Retail Investors & Institutions 26.37%
IEAT
Utilico 10.14%
IEAT4.57%EGCOMP
18.72%
Paid-up Capital = THB ~1,663.72 Million
As of 10 April 2009
Note: *PWA : Provincial Waterworks Authority, a state enterprise responsible for waterworks outside BKK
*IEAT : Industrial Estate Authority of Thailand, a state enterprise responsible for establishment industrial estates
*EGCOMP : A public company limited, produce and supply electricity in Thailand
*Utilico : Utilico Emerging Markets Limited, an investment company from UK5
ContentsContents
Company OverviewCompany Overview
Operation HighlightsOperation Highlights
Financial HighlightsFinancial Highlights
F t I t tFuture Investments
6
Bangpakong River
Reserve Pool 2 Mcm.• Due to the higher pace of industrial growth, the Company operates majorly in three provinces : pChonburi, Rayong and Chachoengsao. East Water’s pipelines network ranging from diameter 500 – 1500
ChacheongsaoIV
ชลบรุี
Reserve Pool 7.5 Mcm.Siam Water Resource 10 Mcm.
from diameter 500 1500 mm. and 324 km. in length linking as the water grid line in Eastern Seaboard
NongKhoBangPra
KlongYaiPrasae
Puakdang-BorwinII
ChonburiIIIBangkok
D kK i
KlongYaiNongPlaLai
-
DokKrai
Existing Pipe NetworkConstructing Pipe Network
RayongI
ระยอง
Source of Raw Water, Pipelines Network and Service Areas Source of Raw Water, Pipelines Network and Service Areas 7
NetworkService Area
Raw Water Demand
271Million Cubic Meter
300 201 219 224 214
233 255 271 Million Cubic Meter
200
250 191 201 219 224 214
100
150
50
100 Demand is expected to increase by the expansion of Domestic Consumption
and Petrochemical Phase 3
-2005 A 2006 A 2007 A 2008 A 2009 E 2010 E 2011 E 2012 E
Forecasted
2005 A 2006 A 2007 A 2008 A 2009 E 2010 E 2011 E 2012 E8 * All the figures above were adjusted to the new fiscal year(1 Jan – 31 Dec)
BangpakongBangpakongRiverRiver
ChacoengsaoChacoengsao ReservoirReservoir
ชลบุรีชลบุรี
สระสํารองนํ้าดบิสํานักบกสระสํารองนํ้าดบิสํานักบกChachoengsao Pipeline Networks
อ่างฯหนองค้ออ่างฯหนองค้อ
อ่างฯบางพระอ่างฯบางพระ Bangpakong-Chonburi Pipeline Networks
อ่างฯคลองใหญ่อ่างฯคลองใหญ่
Chonburi Pipeline Networks
อ่างฯประแสร์อ่างฯประแสร์
อ่างฯหนองปลาไหลอ่างฯหนองปลาไหล
อ่างฯ ดอกกรายอ่างฯ ดอกกราย
Rayong Pipeline NetworksRayong Pipeline Networks
ระยองระยอง
9
BangpakongBangpakongRiverRiver
ChacoengsaoChacoengsao ReservoirReservoir
Prospect CustomersProspect CustomersProspect CustomersProspect CustomersAverage Demand of Raw Water
expected to increase 75 000 m3 per day
Bangpakong Chonburi Pipeline Networks
ชลบุรีชลบุรี
สระสํารองนํ้าดบิสํานักบกสระสํารองนํ้าดบิสํานักบกChachoengsao Pipeline Networks
expected to increase 75,000 m3 per day
อ่างฯหนองค้ออ่างฯหนองค้อ
อ่างฯบางพระอ่างฯบางพระ
Bangpakong-Chonburi Pipeline Networks
อ่างฯคลองใหญ่อ่างฯคลองใหญ่
Chonburi Pipeline Networks
อ่างฯประแสร์อ่างฯประแสร์
อ่างฯหนองปลาไหลอ่างฯหนองปลาไหล
อ่างฯ ดอกกรายอ่างฯ ดอกกราย
Rayong Pipeline NetworksRayong Pipeline Networks
ระยองระยอง
10
140Chonburi
Rayong
Reservoir Storage as of 25 May, 2009
80
100
120
140
50
60
70
80
21
24 120
140
160
180
250
275
35
40
45
Rayong117
21.4 64.1
71.4
124.6
163
40.1248
20
40
60
80
36% 10
20
30
40
50
6
9
12
15
18
21
40
60
80
100
60%150
175
200
225
10
15
20
25
30
35
42.5 12.8
28.8165.6
0
อา่งฯบางพระ
36%
0
10
อา่งฯดอกกราย
0
3
อ่างฯหนองคอ้ 0
20
อา่งฯหนองปลาไหล
76%60% 90%
50
75
100
1250
5
อา่งฯคลองใหญ่
72%
Bangphra Nongkoh Dokkrai Nongplalai Khlong yai
0
25
อา่งฯประแสร์
67%
Phrasae
Existing Pipe Network Potential Pipe Network11
2009 (Forecast)
12
13
RID Water ResourceFuture Source of Raw Water Supply
Development Project
1. Klong Phra-ong-chao. –
Bangpra Pipeline : 70 mcm.1
2. Prasae - Klongyai Pipeline
: 80 mcm.
3. Klong Wang-Ta-Node-
2Prasae Pipeline : 70 mcm.
3
4. Stungnum-Trad-Chantaburig
-Rayong Pipeline : 700 mcm.
4
Existing Pipe NetworkConstructing Pipe Network14
Laying pipeline from Nongplalai to Maptaphut
NongPlaLai-Dokkrai- Maptaphut Line 3BangPra Laying pipeline from Nongplalai to Maptaphut
area diameter 1,400 mm. approx. 35 km.
Increasingly potential pipeline to be supported water demand in 10 years
NongKho
BangPra
water demand in 10 years
Total investment 1,730 MB
Project Period 2009 2011Project Period 2009-2011
KlongYaiPrasae
PPrasae-Klongyai (RID)
NongPlaLai
DokKrai
g
Laying pipeline approx. 35 km.
Maptaphut Industrial Estate
15
Prasae-Klongyai Pipeline Linkage Project
Prasae-Klongyai connecting pipeline project
KlongYai Prasae
Appointed in Aug 2005 by thePipeline linkage
Appointed in Aug 2005, by the Cabinet, as the General Contractor for the 31.8 km. Prasae-Klongyai Pipeline project(1,680MB) to supply water to
Pumping station
MTP
98.5% constructions progress achieved only system commissioning
NongPlaLaiachieved, only system commissioning outstanding
RID asked for the Budget Allocation b ill i
Constructing Pipe Network
Pumping station
but still in process
Pumping station
16
Alternative Source of Raw Water Supply
Water ResourcesDevelopment by EW
1 Private Water Reservoir :
60-80 mcm.
2 Off-stream Reservoir : 30
mcm.
3 Water Reverse Osmosis :
10,000 m3 per day
Existing Pipe NetworkConstructing Pipe Network17
Revision of Tariff Structure for 2008-2012
Unit: Baht/m3
Type of Customers Tariff In 2008
Tariff In 2009
Tariff In 2010
Tariff In 2011- 2012
1. PWA & Domestic Consumption: Residential and Bureaucratic
8.5 7.90* 7.90*
To be reconsidered in accordance with cost
and economic
PWA & Domestic Consumption: Commercial customers
8.5 9.25* 9.25*
2 IEAT d i ti 8 5 9 25 9 25 and economic condition in the future
2. IEAT and existing user 8.5 9.25 9.25
3. Private Industrial Estate 9.5 10.25 10.25
4. General & Other Factory 10.5 11.25 11.25
18 * According to the resolution of AGM / 2008(Oct-Dec 08), approval 7.90 Baht/m3 come down for residential and bureaucratic consumer which approx. 40%, the rest of 60% still maintain at normal rate 9.25 Baht/m3 of Domestic Consumption type of customers during 2009-2010
ContentsContents
Company Overviewy
Operation Highlightsp g g
Financial Highlightsg g
Future Investments
19
Source of Revenue
Quarterly Source of Revenue ComparisonEast Water Group Source of Revenue
3,000
800Million Baht
Million Baht
2 502
Quarterly Source of Revenue Comparisonp
2,000
2,500
60010%3%
2,417
8%1%
2,5021%
3%698
613
2%1%
22%
10%2%
13.91%
1,500
,
400
Other Income
Pipes
Drinking Water
20%22% 3%
22%
22%
1,000
0
200 Services Income
Tap Water
Raw Water698 66%72%
10%2%
-
500 0
Jan-Mar 08 Jan-Mar 0966% 69% 66%22%10%
2007 2008 Jan-Mar 09
20 * All the figures above were adjusted to the new fiscal year(1 Jan – 31 Dec)
Raw Water Volume and Sales
Consolidated Performance Consolidated Performance
300 Million Cubic Meter
2,000
Million Baht
219 224250 1,588 1,658
1,500
150
200
1,000
6054
100 440 459 500 54
-
50
-
10.51%YoY
4.44%YoY
2007 2008 Jan-Mar 09 2007 2008 Jan-Mar 09
21 * All the figures above were adjusted to the new fiscal year(1 Jan – 31 Dec)
Tap Water Volume and Sales
Consolidated Performance Consolidated Performance
60
Million Cubic Meter
700
Million Baht
454950 541
500
600
30
40 488 400
12 1320
135 150 200
300
-
10
-
100 7.51%YoY
11.71%YoY
2007 2008 Jan-Mar 09 2007 2008 Jan-Mar 09
22 * All the figures above were adjusted to the new fiscal year(1 Jan – 31 Dec)
Raw Water Revenue and Costs Breakdown
COGS of Raw Water Breakdown (Consolidated F/S)
1 658
Revenue & COGS of Raw Water (Consolidated F/S)
1,5881,658
17%13%19%
14%Raw Water
459Milli
on B
aht 4%
30%
2%
29%
Labour
Electricity
Jan-Mar 08
459M
36%
36%
29%
Depreciation43%
35%40%
2007 2008 Jan-Mar 09
COGS R
Others
Jan-Mar 09
COGS Rev
23 * All the figures above were adjusted to the new fiscal year(1 Jan – 31 Dec)
Tap Water Revenue and Costs Breakdown
COGS of Tap Water Breakdown (Consolidated F/S)
560
Revenue & COGS of Tap Water (Consolidated F/S)
488
20%15% 26%18% Raw Water
Labour
150on B
aht
8%21%5%
16%
Labour
Electricity
Depreciation
Jan-Mar 08
Milli
o
20%12%
4%
18%13%
4%Chemical
Cost of Services47% 48%45%
2007 2008 Jan-Mar 09
COGS Rev
13%Others
Jan-Mar 09COGS Rev
24 * All the figures above were adjusted to the new fiscal year(1 Jan – 31 Dec)
East Water Group Performance
Million Baht
1 200
1,400
1 0611,133
1,263
Million Baht
800
1,000
1,200
822 796 764
917 1,049 1,061
600
800
505 505432
606
334 409 18.55%
YoY
200
400 214
334
193 252
345
10.56%
32.45%YoY
-
2005 2006 2007 2008 Jan-Mar 09
YoY
Net Profit EBIT EBITDA
25 * All the figures above were adjusted to the new fiscal year(1 Jan – 31 Dec)
Financial Structure of East Water
Consolidated D/E Ratio
1 171.25
Consolidated D/E Ratio
1.25
Separated D/E Ratio
1.081.17
1 0.941.01
1
0 66 0.53 0.54
0.75
Tim
es
0 48
0.75
mes
0.66 0.54
0 25
0.5
T
0.550.48 0.49
0.5Tim
0
0.25
0
0.25
26* ROE and ROA were annualized in order to compare which the year end period
Dividend Policy
Baht/Share*
0.5 0.39 0.390.33 0.35
0.30.25 0.25 0.25 0.25
0.0
64% 64% 76% 71%
2005 2006 2007 2008
EPS DPS
* Adjusting figure for comparison purpose of par split from 10 to 1 Baht/share since May 200527
Consolidated Financial Ratio
Financial Ratio Jan Mar 09 Jan Mar 08Financial Ratio Jan - Mar 09 Jan - Mar 08
Gross Profit Margin (%) 61.27 57.87
Net Profit Margin (%) 30.63 31.55g ( )
ROA (%) 9.25* 8.11*
ROE (%) 14.20* 13.25*
Debt to Equity Ratio (times) 0.54 0.61
Interest Coverage Ratio (times) 12 68 7 51Interest Coverage Ratio (times) 12.68 7.51
28 * ROE and ROA were annualized in order to compare which the year end period
Source of FundsSource of Loan Amount
(MB)Outsta-nding
Tenor (years)
Rate2005-2007
Rate2008-2009
Rate2010-2011
Long-Term Loan from KTB- Tranche A
1500500
866184
77
4.5*4.5*
4.5*4.5*
MLR-0.75MLR-0.75
- Tranche B
Source of Loan Amount (MB)
Outsta-nding
Tenor (years)
Rate2007-2009
Rate2010-2011
Rate2012-2013
Long-Term Loan from KTB- Tranche C 1500 1450 7 4.8 MLR-1.75 MLR-1.50
Source of Loan Amount (MB)
Outsta-nding
Tenor (years)
Rate2009
Rate2010-2013
Rate2014-2016
Long-Term Loan from KBANK- Tranche A 1000 - 7 MMR MLR-1.75 MLR-1.50
* New interest rate be adjusted down from 6% and MLR-1.5% for KTB Long-Term Loan in Tranche A and B respectively, to 4.5% from July 2007 to Oct 201029
ContentsContents
Company OverviewCompany Overview
Operation HighlightsOperation Highlights
Financial HighlightsFinancial Highlights
Future InvestmentsFuture Investments
30
Future Projects
Raw Water ProjectsWaterworks Projects
•Existing Contract Expansion
Raw Water Projects
1. Pipeline Expansion• NongPlaLai-MapTaPhut 3 •Existing Contract Expansion
•Chonburi Project•Industrial water / Wastewater Projects
• Improvement Dokkrai Pumping Station
• Nongplalai-NongKho Pipeline ExpansionExpansion
• NongKho-Leamchabang Pipeline Expansion
Special Projects2. Alternative Water Resources
• Private Pond• Off-Stream Reservoir• Desalination
Special Projects
•Mini Hydro Turbine Generator Project (Prasae Reservoir, Nongplalai-Nongkho• Desalination
3. Monitoring Project• Southern Seaboard Project
( , gp gPipeline)
•Expand to Regional / SE Asia
31
Waterworks Projects
• Samui Island WW.– The expansion project to increase capacities from 3,000 to 6,000 m3. per day is still in process ,
th i t th b i i f t (2010) hi h i t t b d t the revenue may recognize at the beginning of next year (2010) which investment budget approx.
100MB, 30 years concession, price decrease to 36.5 baht/m3
• Chonburi WW • Chonburi WW. – Already sign the tap water sales contract of minimum 24,000 m3. per day, the revenue
recognized effect at the end of 2009, 20 years concession, minimum tariff 9.75 baht/m3
• Expand to Regional / SE Asia
P t ti l P j t i I di (B l )•Potential Project in India (Bangalore)- 5-year water loss reduction project with 3 contracts for a budget more than 2,000 MB and
funded by JIBIC funded by JIBIC
32
Indicative East water Group’s Capital Expenditure
Projects TotalMB
2009MB
2010MB
2011MB
2012MB
2013MB
Unit : Million Baht
Raw Water Projects(Existing Cap. Enhancement) 3,000 870 1,420 150 120 440
Tap Water Projects 600 250 110 220 20 0
Total Capital Expenditure 3,600 1,120 1,530 370 140 440
R W t P j tRaw Water Projects(Alternative Projects)** 3,100 - 1,200 730 730 440
33** Alternative Project is not calculated in the CAPEX as it is a raw water replacement project which will be updated in the future
Thank YouThank YouThank YouThank Youwww.eastwater.comwww.eastwater.com