eastw : opp day sep 4, 2012

East Water Performance 2Q2012

Eastern Water Resources Development and Management Public Company Limited


Agenda

2

• 2H2012 Outlook

• 1H2012 Performance

• Water Situation

• Project Update


2H2012 Outlook Positive / Negative Factors

Positive Factors

• Thailand Board of Investment (BOI) reported that the total investment of those who have investment incentive in 1H2012 grew up 34%.

• According to The Tourism Authority of Pattaya, revenue from tourism is expected to grow up to 7.7 billion in 2012 from 7.3 billion in 2011 and the number of tourists was expected to increase from 7 million people per year to 10 million in the next 3 years.

Negative Factor

• Due to European economic crisis, the exports fell 15.6% (January - April 2012) and the export volume for the year 2012 is expected to grow by only 7-8%

• Eastern Seaboard may be threatened with drought in 2013 and may cause the higher cost for the company

*Source of Information: The University of Thai Chamber of Commerce

3


30.3 65.7

155.7

208.5

79

134.6

0

50

100

150

200

250

300

350

400

450

H1/2011 H2/2012

Total Investment – Promotion Certified issued by BOI

Zone3

Zone2

Zone1

**Zone 1: Bangkok/Nakornpathom/ Pathumthani / Samutsakorn / Sumutprakarn

Zone 2: Rayong / Chachoengsao/ Chonburi/ Ratchaburi/ Phuket/Others

Zone 3: 58 Remaining Provinces

+70.4%

+33.9%

+116.8%

Note: Chemical/Plastic/Paper Industry grew by 44% (YOY)

2H2012 Outlook Growth of Industrial Estate in Eastern Seaboard

*Source of Information: Thailand Board of Investment: BOI

265

408.8 54.3%

Billion Baht

4


2H2012 Outlook

Sale volume growth 8-9% (YoY %) Potential Customer

New Business (Under Study) • Diversification to Utilities/Infrastructure Company • Desalination

Customers Expected Volume Per year

Year

5 SPP Projects in Hemaraj 10 MCM. 2015

PTT Group 1.5 – 2.7 MCM. 2015

IRPC & CP Land 0. 5 – 1.0 MCM. 2014

Gateway City 7.0 – 14.0 MCM. 2016-2017

5


Description Amount

(MB)

Year

2012 2013 2014 2015 2016

East Water

Enhancement of water pipeline 500 87 265 148

Bangpra Project** 850 302 384

Tabma Project 2,735 891 1,131 558 70 85

Total 4,085 1,280 1,780 706 70 85

6

2H2012 Outlook CAPEX 2012-2014

**CAPEX for Bangpra project have been used in 2011 in amount of 164 million Baht


Current pipeline Pipeline on the Construction RID Pipeline (Completed) RID Pipeline (On the construction)

สระส ำรองน ำ้ดบิฉะเชงิเทรำ

Sam Nuk Bok

Klongyai

NPL Dok Krai

Prasae

แมน่ ำ้บำงปะกง

Bangpakong river

Siam

แมน่ ำ้ระยอง

Tapma

Bangpra

Water Supply Sourcing

Projects

Supply

(MCM)

Investment

(MB)

Current Projects

1.Bangpra pumping Station 18.0 850

2.Tapma 55.0 2,735

Total 73.0 3,585

2H2012 Outlook Raw Water Investment :Water Supply Sourcing

7


Agenda

8

• 2H2012 Outlook


• Water Situation

• Project Update


1H2012 Performance Financial Summary: 10 Yrs Revenue VS Net Profit

*This presentation excluded the extra-ordinary revenue of the Prasae project in 2010, its cost of project sold, and its profit from the 2010 operating performance

9

1,159

1,416

1,899 2,094

2,401 2,430 2,502

2,878

3,107 3,310

348 340 441 500 508 441

571

808 867 1,008

0

500

1,000

1,500

2,000

2,500

3,000

3,500

MB

.

Revenue

Net Profit

704

1,856


Rayong 21%

Sattahip 20%

Bangpakong 13%

Chacoengsao 15%

Chonburi 9%

Others 22% IEAT

37%

Domestic 32%

Private Estates

25%

General Factories

7%

EASTW’s Total Revenue Breakdown by Line of Business

Total Revenue*= 1,855.81 MB

Tap Water Breakdown by Contracts

* As of June 31, 2012 (6M)

Tap Water Revenue*= 500.03 MB

Raw Water Breakdown by Customers

10

Raw Water Revenue*= 1,296.14 MB

Raw Water Tap Water

1H2012 Performance Financial Summary: Product Mix

* As of June 31, 2012 (1H)

Raw Water 70%

Tap Water 27%

Others 3%


1H2012 Performance Financial Summary: Sale Volume; Raw and Tap Water

65.72 65.72 63.56 66.51 69.39 70.44

0

10

20

30

40

50

60

70

80

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12

131.44

139.83

127 128 129 130 131 132 133 134 135 136 137 138 139 140 141

H1/11 H1/12

15.16 15.43 15.76 16.32 16.36 17.16

0

5

10

15

20

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12

30.59

33.52

29

30

31

32

33

34

H1/11 H1/12

Raw water Volume

Tap water Volume

1.51% q-o-q

11.21% y-o-y

4.89% q-o-q

7.18% y-o-y

11


1H2012 Performance Raw Water & Tap Water Tariff

9.11 9.11 9.10 9.11 9.55

10.03

12.07 12.28 12.18 12.31 12.42 12.45

7

8

9

10

11

12

13

14

Q1 Q2 Q3 Q4 Q1 Q2

Raw Water

Tap Water

(Bt/ cu.m)

Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012

12


1H2012 Performance Cost Structure

Raw Water 18%

Electricity 37%

Depreciation 29%

Others 16%

Raw Water 22%

Electricity 41%

Depreciation 25%

Others 12%

42% 37%

12% 11%

2% 2%

13% 11%

0%

20%

40%

60%

80%

Q2/2011 Q2/2012

Tax

Interest

SG&A

COGS

2012

Raw Water 29%

Staff 10% Electricity

27%

Depreciation 16%

Chemical 5%

Others 13%

Raw Water 34%

Staff 9% Electricity

27%

Depreciation 14%

Chemical 5%

Others 11%

2011 2011

2012

Cost Structure: Consolidated

Raw Water Tap Water

13


1H2012 Performance Financial Summary: Revenue and Net Profit

820 832 817 841

892 964

236 257 242 274

324 379

0

200

400

600

800

1000

1200

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12

MB

1653

1856

H1/11 H1/12

Revenue (MB)

493

704

H1/11 H1/12

Net Profit (MB)

47.5% y-o-y

15.9% y-o-y

8.1% q-o-q

17% q-o-q

14


1H2012 Performance Financial Summary: Financial Ratios

Ratios 2Q 2011 2Q 2012

Gross Profit Margin 67.07% 71.56%

Net Profit Margin 30.82% 39.34%

ROE 13.02% 17.32%

ROA 11.76% 11.30%

D/E 0.55 0.58

EPS 0.16 0.23

15

Eastern Water Resources Development and Management Public Company Limited 16

1H2012 Performance Financial Summary : Balance Sheet as of June 30, 2012

Asset : 11,291.98 MB Liability : 4,153.13 MB Equity : 7,138.85 MB

4.81% 8.21% 2.92%

Jun,30 2012

Asset : 10,774.24 MB Liability : 3,838.04 MB Equity : 6,936.20 MB Dec,31 2011


72.87% 72.18% 73.02%

69.40%

45%

50%

55%

60%

65%

70%

75%

2008 2009 2010 2011 2012(6M)

Dividend Payout

0.34

0.48 0.52

0.61

0.25

0.35 0.38

0.42

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

2008 2009 2010 2011 2012(6M)

TH B

/sh

are

EPS VS DPS

EPS

DPS

17

*This presentation excluded the extra-ordinary revenue of the Prasae project in 2010, its cost of project sold, and its profit from the 2010 operating performance

1H2012 Performance Financial Summary: Dividend Policy

0.42

0.20

47.62%


Agenda

18

• 2H2012 Outlook


• Water Situation

• Project Update


0

20

40

60

80

100

120

อ่ างฯบางพระ

53%

0

10

20

30

40

50

60

70

80

อ่ างฯดอกกราย

0

4

8

12

16

20

24

อ่ างฯหนองค้ อ0

20

40

60

80

100

120

140

160

180

อ่ างฯหนองปลาไหล

42% 20%

33%

0

20

40

60

80

100

120

140

160

180

200

220

240

อ่ างฯประแสร์

51%

0

5

10

15

20

25

30

35

40

45

อ่ างฯคลองใหญ่

73%

62.39

117.0

4.36

21.4

23.59

71.4

69.49

163.75

29.19

40.1

125.48

248.0

Chonburi Rayong

Bangpra Nongkor Dok Krai NPL Klong-Yai

Prasae

Water Situation

Water Supply in Major Reservoirs as of Aug 31, 2012

19

Eastern Water Resources Development and Management Public Company Limited Total

Wate

r Stor

age o

f Dok

Kra

i, Non

g Pla

Lai &

Klon

g Yai

Reser

vior

(Milli

on m

3)

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

Aug 31, 2012 122.27 million m3 (44.4%)

Maximum Storage 275.25 million m3

Dok Krai, Nong Pla Lai & Klong Yai Reservoir

2012 Highest 2006-2012

Average 2006-2012

Lowest 2006-2012

Minimum Storage 19.5 million m3

Dead Storage 9.5 million m3

2005

2004

Water Situation

Water Situation : Dok Krai, Nong Pla Lai, Klong Yai

20


Bang Pra & Nong Kho Reservoir Maximum Storage 138.40 million m3

Aug 31, 2012 66.75 million m3 (48.2%)

Minimum Storage 13.05 million m3

Total

Wate

r Stor

age o

f Ban

g Pra

& N

ong K

ho R

eserv

ior

(Milli

on m

3)


2012

Highest 2006-2012

Average 2006-2012

Lowest 2006-2012

2005

Water Situation

Water Situation : Bang Pra & Nong Kho

21


Prasae Reservoir

Maximum Storage 248.0 million m3

Aug 31, 2012 125.48 million m3 (50.6%)

Minimum Storage 20.0 million m3 Total

Wate

r Stor

age o

f Ban

g Pra

& N

ong K

ho R

eserv

ior

(Milli

on m

3)


2012

Lowest 2006-2012

2005

2011

2006

2009

Water Situation

Water Situation : Prasae

22


140

284 303 312 325

100

150

200

250

300

350

1H 2012 2012F 2013F 2014F 2015F

Demand Forecast Raw Water MCM / Year

+3.0%

23

+6.7% +4.2%

34

68 72 76 80

20

40

60

80

100

1H 2012 2012F 2013F 2014F 2015F

Demand Forecast Tap Water

+5.6% +5.9% +5.3%

*Tap water sales volume was excluded O&M Contract

+8.4%

Water Situation

Demand Forecast: Raw and Tap Water

+5.5%


Agenda

24

• 2H2012 Outlook


• Water Situation

• Project Update


Nongplalai-Maptaphut # 3

• Increasing pumping capacity by 105 MCM/ Yr

• Overall Progress 94.34% (as of July 31, 2012)

• Completion: Dec, 2012

Project Update Nongplalai-Maptaphut # 3

25

Investment: 2,181 MB


Project Update Bangpra project

Pumping Station

Bangpra Reservior

• Reducing water transmit from Rayong to Chonburi

• Building new pumping station at Bangpra reservoir

• Capacity: 200,000 CU.M per day starting in 2014

• Overall Progress 26.40% (as of July 31, 2012

• Completion: 2013

Bangpra Project

26

Investment: 850 MB


Rayong River pumping station

Location

Maptaput

27

• Development of supply sourcing

• Increase water supply by 55 MCM per year

• Land: 1,000 acres (400 Rai)

• Pumping station, pipeline

• Overall Progress 13.70% (as of July 31, 2012


Tabma Project

Project Update Tabma Project

Investment: 2,735 MB

27

Klong Tapma Puming station


Project Update Other Projects: Dok-Krai and Map-Ka 2

Pumping station Improvement

Dok-Krai

• Improving pump and laying pipeline

• Increasing capacity from 96 to 116 MCM/ Yr

• Overall Progress 100.00% (as of July 31, 2012)


Storage pond

Map-Ka 2

• Secure water pumping system>> reserve water more than 20 hrs in case of power failure

• Capacity: 220,000 CU.M.

• Overall Progress 76.96%

(as of July 31, 2012)


28

Investment: 192 MB Investment: 100MB


Q & A

29


Thank you


Index


Cabinet Resolution

On Sep 12, 1992

The Provincial Waterworks

Authority (PWA)

EAST WATER

Initial Paid-Up Capital 10 MB.

The Royal Irrigation

Department (RID)

To continue its role as to develop raw water resources & reservoirs

To establish a new company

Responsible for the development & management of the raw water delivery system in Eastern

Seaboard(ES) of Thailand

• Aug 1996: increased capital to 1.7 billion Baht • Jul 1997: Listed on SET • Dec 1998: Established Universal Utilities • Sep 1999: Awarded ISO 9002

Company Outlook: History

32


East Water

Universal Utilities (UU)

100%

Chachoengsao Waterwork 99%

Bangpakong Waterwork 99%

Nakornsawan Waterwork 100%

EGCOM TARA

15.88%

Foreign Investors 18.78%

As of July 31, 2012

Company Outlook: Shareholders and Group Structure

33

PWA 40%

EGCO 19%

Utilico 10%

IEAT 5%

Other Investors

26%


Chacoengsao Pipeline

Chonburi Pipeline

Prasae - Klongyai Pipeline

Rayong Pipeline

Raw Water Customers

Rayong Heavy Industry, Petro Chemical

Chonburi Domestic Consumpt., General Industry

Chachoengsao Automotive, Domestic Consumption

Tap Water Major Concessions

Rayong 86,400 CM per day

Ratchburi 48,000 CM per day

Chachoengsao 47,400 CM per day

Bangpakong 43,200 CM per day

Suttahip 31,200 CM per day

Chonburi 24,000 CM per day

Nakornsawan 19,200 CM per day

Others 17,710 CM per day

Company Outlook: Pipeline Network and Service Areas

34


0

200

400

600

2554 2555 2560 2565

176 187 225 284 69 79

101 111

21 23 48

60

2 3 3

4

De

ma

nd

(M

CM

./ye

ar)

Year

269 292 377

459

Water Situation

Water demand in the year 2022

Area

(+) Factor

(-) Factor

Demand Increase (MCM.)

Rayong

-

58.5

Chonburi

-

10

Borwin-Pluakdang

-

12

Chacoengsao

Customers

-

1

Major customers

-Maptaphut Indust. Estate

-Petrochem. Customers in EIE

RIL1996 , PTT Complex -Satthahip Waterworks

Major Customers

-Pattaya Waterworks

Sri-racha Waterworks, Laem Chabung Waterworks

Major Customers

-Power plant in ESIE, CIE

-Nong klang dong

Chacheongsao

Borwin-Pluakdang

Chonburi

Rayong

2011 2012 2017 2022

35


Half Year Results

Ended 30 June 2012


Contents

Company Highlights

Operation Highlights

Financial Results

37 37


Nakhonsawan

Srichang Island

Chachoengsao Bangpakong

Group 1 Concession Contracts

Group 2 O&M Contracts

Sattahip , Chonburi

Group 3 NRW Contracts

Prathum-Rangsit (PWA)

Samui Island

Rayong

Universal Utilities Co., Ltd. (UU)

Rachaburi-Samutsongkram Borwin , Nongkham Larn Island

38


Universal Utilities Q2/2012 Highlight

39

Million Baht

Performance Q2/2012 % Growth

Revenue 261 MB 12.29%

EBITDA 83 MB 22.72%

NET Profit 40 MB 48.37%

-

50.00

100.00

150.00

200.00

250.00

300.00

Q2/2011 Q2/2012

232.74 261.35

67.52 82.86

27.12 40.23

Revenue

EBITDA

Net Profit

39


Universal Utilities Jan-Jun 2012 Highlight

40

Million Baht

Performance Jan-Jun 2012 % Growth

Revenue 507 MB 9.10%

EBITDA 153 MB 22.44%

NET Profit 74 MB 53.14%

-

100.00

200.00

300.00

400.00

500.00

600.00

Jan-Jun 11 Jan-Jun 12

465.09 507.42

124.80 152.81

48.11 73.67

Revenue

EBITDA

Net Profit

40


Contents

Company Highlights


Financial Results

41 41


Tap Water Demand Q2/2012 (Excluded O&M Contract)

14.00

15.00

16.00

17.00

18.00

Q2/2011 Q2/2012

15.43

17.16

Million Cubic Meter 11.25%

Remarks : CWS Increase 0.38 Million Cu.m. BWS Increase 0.65 Million Cu.m. Bowin Increase 0.17 Million Cu.m. Sattahip Increase 0.57 Million Cu.m. Rayong Increase 0.36 Million Cu.m. 42


Tap Water Demand Jan-Jun 2012 (Excluded O&M Contract)

28.00

30.00

32.00

34.00


30.59

33.52

Million Cubic Meter 9.58%

Remarks : CWS Increase 0.80 Million Cu.m. BWS Increase 0.83 Million Cu.m. Bowin Increase 0.28 Million Cu.m. Sattahip Increase 0.85 Million Cu.m. Rayong Increase 0.59 Million Cu.m. 43


Contents

Company Highlights


Financial Results

44


-

20.00

40.00

60.00

Q2/2011 Q2/2012

27.12 40.23

-

100.00

200.00

300.00

Q2/2011 Q2/2012

232.74 261.35

Tap Water Revenue & Net Profit

45

Million Baht

Revenue Q2/2011 Vs. Q2/2012 (Consolidated) Net Profit Q2/2011 Vs. Q2/2012 (Consolidated)

Million Baht

Remarks : CWS Increase 10 MB Satthahip Increase 8 MB Bowin Increase 4 MB Rayong Increase 5 MB CHonburi Decrease 4 MB BWS Increase 5 MB

12.29% 48.37%

Remarks : CWS Increase 2 MB BWS Increase 3 MB Bowin Increase 3 MB Rayong Increase 3 MB Samui Increase 3 MB

45


-

50.00

100.00


48.11

73.67

-100.00 200.00 300.00 400.00 500.00 600.00


465.09 507.42

Tap Water Revenue & Net Profit

46

Million Baht

Revenue Jan-Jun 2011 Vs. 2012 (Consolidated) Net Profit Jan-Jun 2011 Vs. 2012 (Consolidated)

Million Baht

Remarks : CWS Increase 16 MB Satthahip Increase 12 MB Bowin Increase 6 MB Rayong Increase 9 MB Chonburi Decrease 5 MB BWS Increase 7 MB

9.10% 53.14%

Remarks : CWS Increase 7 MB BWS Increase 5 MB Bowin Increase 4 MB Rayong Increase 6 MB Samui Increase 4 MB

46


-

25

50

75

100

2012 A 2012 E 2013 E 2014 E 2015 E

34

68 72 76 80

Forecasted

47

Million Cubic Meter

Tap Water Demand (Excluded O&M Contract)

6 Mths

4.64% 6.02% 5.16%

AVG. Growth 5.27%

47


Capex 2012-2014

Description Amount

(MB)

Year

2012 2013 2014

Universal Utilities

Plant Capacity Expansion 498 410 88 0

Pipeline Expansion 79 28 29 22

M&E Replacement 252 87 91 74

Total 829 525 208 96

Plant Expansion 2012 Chonburi Project 250 MB (24,000 Cu.M./Day) 2012 Satthahip Project 160 MB (12,000 Cu.M./Day) 2013 BWS Project 88 MB (Expand 19,200 Cu.M./Day)

48


Capacity

ประปา/ปี มิ.ย.-55

ฉะเชิงเทรา 47,400

บางปะกง 43,200

นครสวรรค์ 22,200

ระยอง 86,400

สัตหีบ 31,200

บ่อวิน 9,600

ชลบุรี 24,000

เกาะล้าน 300

เกาะสีชัง 250

เกาะสมุย 3,000

หนองขาม 1,560

สัมปทาน 269,110

ราชบุรี 48,000

O&M 48,000

รวม 317,110

ลบ.ม./วนั

49


Thank You www.eastwater.com


Water Situation

51

Accumulated Rainfall (Jan 1 – Aug 27, 2012)

Aug 27, 2012


El Niño

La Niña

neutral

Water Situation El Niño / La Niña

52


Water Situation

Rayong Vs Chonburi

Rayong Chonburi

Accumulated rainfall (Aug 27, 2012) was 834.2 MM >>> Low

Accumulated rainfall (Aug 27, 2012) was 592.6 MM >>> Very Low

53


Budgeting 2012

Volume (M.CM) 283.57 283.57

Cost of Goods Sold (unit: million baht)

Raw Water 161.01 0.57 161.01 0.57

electricity 323.79 1.14 323.79 1.14

depreciation 250.00 0.88 250.00 0.88

other 126.92 0.45 126.92 0.45

drought protection expense 5.00 0.02 65.79 0.23

Total COGS 866.72 3.06 927.51 3.27

Water Situation

Cost from Drought


IEAT 37%

Consumption 32%

Private Estates

25%

General Factories

7%

EASTW’s Total Revenue Breakdown by Line of Business

Total Revenue*= 1,855.81 MB


Raw Water Breakdown by Province Tap Water Breakdown by Province

* As of June 31, 2012 (1H)

Tap Water Revenue*= 417.41 MB

Raw Water Breakdown by Customers

55


Rayong 73%

Chonburi 26%

Chachoengsao

1% Rayong 21%

Sattahip 20%

Bangpakong 13%

Chacoengsao 15%

Chonburi 9%

Others 22%

Raw Water Tap Water

Raw Water 70%

Tap Water 23%

Services&Re

ntal 6%

Others 1%

2Q2012 Performance Financial Summary: Product Mix

* As of June 31, 2012 (1H)


Total Cost of Tap Water Breakdown (Consolidated Jan-Jun)

Remarks : Total Cost Exclude Cost Allocation ,Tax and Interest Expense.

Revenue & Total Cost of Tap Water (Consolidated Jan-Jun)

0100200300400500600


Total Cost(Exclude Tax and Interest)

Revenue

465.09 507.42

78.37% 82.53% 33.12% 29.15%

7.87% 7.63% 5.92% 5.69% 11.47% 12.55% 0.77% 0.83%

34.30% 36.91%

6.55% 7.24%

0%

20%

40%

60%

80%

100%

120%


Tap Water cost structure

Raw Water Staff Cost Electricity Depreciation Chemical Cost of Services Others

2Q2012 Performance Tap Water Revenue and Costs Breakdown

56


0

200

400

600

2554 2555 2560 2565

176 187 225 284 69 79

101 111

21 23 48

60

2 3 3

4

De

ma

nd

(M

CM

./ye

ar)

Year

269 292 377

459

Water Situation

Raw Water Demand 2011-2022

Chacheongsao

Borwin-Pluakdang

Chonburi

Rayong

Area

(+) Factor

(-) Factor

Demand increase (MCM.)

Rayong

Rayong power plant

Baan-chang Waterworks

38.5

Major customers

-Maptaphut Industrial Estate

-Petrochem. Customers in EIE , Asia Industrial Estate, RIL1996 , PTT Complex

-Satthahip

Waterworks

Chonburi

Major Customers

-Laem Chabung Industrial Estate

–Thai oil

-Laem Chabung , Pattaya , Sri-racha Waterworks

-

21.5

Borwin-Pluakdang

Major Customers

-Power plant in ESIE, CIE, H-ESIE, TNP2 - Nong Klang dong

-

25

Chacoengsao

Major Customers

-Chonburi Waterworks

UU

1

2011 2012 2017 2022

57


Demand + NRW 3% (MCM.)

Capacity of pipe line system (MCM.)

Supply (MCM.)

351.0

281.5

283.7

292.2

456.0 (Plus NPL3-105 MCM)

372

365.9

376.9

456.0

394.5

445.7

459.1

2012 2017 2022

Water Situation Raw Water Demand and Supply 2012-2022

Demand (MCM.)

58


Water Situation

Existing Supply 2012

2012

2012

Total Sale Volume 284

59

eastw : opp day sep 4, 2012

Documents

othersraw water

raw water revenue

1h2012 performanceraw

mbtap water revenue

waterraw water volume80

water tariff bt cu

sale volume raw

bangpra project