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May 2025 Aguas Andinas Corporate Presentation May 2025
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May 2025 Speakers Economist from Pontificia Universidad Católica Argentina and Master in Finance from Universidad Adolfo Ibáñez. She has over ten years of experience in different areas of the financial industry such as Banking, and different companies in the telecommunications spectrum. ANTONELA LAINO Finance and Investor Relations Manager Business and Administration with a Minor in Economics from Universidad de Chile. Master in Water Technology & Management from Polytechnic University of Catalonia. She has a long career in Investor Relations in electricity utilities such as Enel Chile, Enel Americas, Endesa Spain, AES Gener, as well as controller in public sector companies. DENISSE LABARCA ABDALA Deputy Manager of Investor Relations
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May 2025 Agenda How we do what we do The Company at a glance1 3 Regulatory framework 2 4 Climate change challenges 5 Resolution of the eighth tariff process 6 ESG: Our commitment 7 Financial performance
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May 2025 The company at a glance 01 A shared purpose 4
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May 2025 Aguas Andinas at a glance Aguas Andinas Aguas Cordillera Aguas Manquehue Not under concession 71 THOUSAND HECTARES IT IS THE SUPPLIED AREA IN THE METROPOLITAN REGION 100% drinking water coverage in concession areas 2.3 million customers 40% market share International rating of “A-” by S&P Local rating of “AA+” by Feller, Fitch and ICR EBITDA of CLP 325 billion EBITDA margin of 49.1% +13.5 thousand km of drinking water network 22 drinking water production plants 17 wastewater treatment plants We are a company who, at the core of our business, delivers drinking water, sewerage and wastewater treatment services to around 8 million inhabitants, together with commercial, and industrial clients. Largest drinking water, sewage and wastewater treatment company in Chile Source: The company. Figures as of the end of March 2024.
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May 2025 Aguas Andinas History Agreement with irrigation associations of Maipo river to guarantee water provision in the face of extreme drought. 1861 Creation of the company Agua Potable de Santiago. Privatization of the company. Construction of El Trebal Wastewater Treatment Plant. The company changes its name to Aguas Andinas. Inauguration of Pirque Mega Tanks (key infrastructure to cope with extreme turbidity events). The Metropolitan Region achieves 100% wastewater treatment. 2000 1999 2001 2012 2020 First Green and Social Bonds. COP24 rewards Biofactories for its contribution to planetary health. 2018 • 2019 2021 Launch of Biociudad, Aguas Andinas' new strategy to adapt Santiago’s water provision to climate change. 2023 Acquisition of the controlling parent company by Veolia. 2022 EMOS is transformed into a state-owned company. 1989 Corporate Purpose Update. Bond issuance in the Swiss market. Completion of tariff processes. 2024 2025 Launch of Acelera, a new transformational plan to continue achieving efficiency and profitability.
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May 2025 Aguas Andinas Shareholders structure Foreign shareholders 18,27% Local shareholders 16,53% Chilean pension funds 10,10%CORFO 5,00% IAM 50,10% Foreign shareholders 7,36% Local shareholders 38,89% Chilean pension funds 3,65% Veolia Group 50,10% Aguas Andinas is a listed company on the Santiago Stock Exchange and is part of the IPSA index, whose main shareholder and controller is Inversiones Aguas Metropolitanas S.A. (IAM), with 50.10% ownership DRINKING WATER, SEWERAGE & WASTEWATER TREATMENT SUBSIDIARIES 100% 50.1% 50.1% 100% 100% 100% 100% 100% 100% Aguas Andinas Foreign Investors from more than 30 countries where stand out Canada, USA, Europe, Asia. IAM Permanent Local & international shareholders • Family Offices • Local Investment and Pension Funds • International Financial Corporations Source: The company. Figures as of the end of March 2024. ENVIRONMENTAL SERVICES SUBSIDIARIES
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May 2025 Board of Directors FELIPE LARRAÍN Chairman GUSTAVO MIGUES Vicepresident DIDAC BORRÁS Director GIORGIANNA CÚNEO Director FERNANDO SAMANIEGO Director RODRIGO MANUBENS Indepent Director VIVIANNE BLANLOT Independent Director Aguas Andinas S.A. is managed by a Board of Directors which is made up of 7 titular members, each of which has a respective alternate who can replace him/her indefinitely in the case of vacancy and temporarily in the case of absence or temporary impediment. The Board was renewed on April 16th, 2025.
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May 2025 Key Executives JOSÉ SÁEZ Chief Executive Officer MIQUEL SANS Chief Financial Officer IVAN YARUR Chief Transformation Officer XAVIER DE FUENTES Director of Operations RACHEL BERNARDIN Strategy and Corporate Affairs Director EUGENIO RODRÍGUEZ Customer and Commercial Management Director SANDRA GAETE People, Organization, Culture and Talent Director CAMILO LARRAÍN Director of Legal, Regulatory and Corporate Governance Affairs CRISTIÁN SCHWERTER Planning, Engineering and Construction Director PAOLA ARATA Director of Territorial Management
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May 2025 Aguas Andinas investment attractions (1) Non-quasi sobereign. Largest sanitation company in Chile and one of the most important in LATAM 40% market share at local level Operates in a stable regulatory environment Natural monopoly with a concession scheme in perpetuity Corporate with the highest international rating in Latin America (1) International rating of A- / Stable by S&P Ratings Strong commitment to sustainability and people's well-being Inrate's ESG rating of “A-” and Moody's rating of “SQS1”. Solid Corporate Governance and experience of the controlling group Veolia is a global leader in environmental and sanitation services Resilience to the effects of climate change Increased operational autonomy to 37 hours 1 7 2 6 3 5 4 Solid history of growth in the sanitation industry More than 160 years of history
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May 2025 How we do what we do 02 A shared purpose 11
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May 2025 Aguas Andinas Circular economy as an operational axis Resilience Circular Economy Sustainable Investments Digitalization and Innovation New Ways of Working and Leadership Positive Social Value
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May 2025 Aguas Andinas Circular economy as an operational axis DRINKING WATER PRODUCTION PLANT DRINKING WATER DISTRIBUTION PLANT RAW WATER HARVESTING Inspection of raw wáter pipelines Robotic aqueduct inspection and advanced diagnostics Water quality assurance Operational diagnostics with acoustic technology and AI for video inspections, diagnostics, and reporting BIOFACTORIES AND WASTEWATER TREATMENT PLANTS DISCHARGE OF TREATED WATER INTO ITS NATURAL CHANNELS VALORIZATION OF BY-PRODUCTS CUSTOMER SUPPLY WASTEWATER COLLECTION 2 3 4 5 1 7 6 8 We must protect and manage hydric resources. Since we share them with other users (we own about 28% of the water rights of the Maipo River, our main source of surface water), we build and manage strong collaborative relationships with other actors in the basin. Aguas Andinas owns, operates and maintains the assets. With the concept of Biofactorywe change the concept of sanitation. We go beyond wastewater treatment to focus on a circular economy model that transforms wastewater into valuable products (reclaimed water, organic fertilizers, biomethane, and green electricity).
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May 2025 Regulatory framework 03 A shared purpose 14
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May 2025 Drinking water, sewage & wastewater treatment market VEOLIA 40% ONTARIO TEACHERS PP 36% MARUBENI 10% ALGONQUIN 4% SMAPA 4% EMPRESAS PUBLICAS DE MEDELLÍN 3% OTHER 3% XV y I Región / Iquique Aguas Del Altiplano II Región / Antofagasta Aguas De Antofagasta III Región / Copiapó Aguas De Chañar V Región / Valparaíso Esval VI Región / Rancagua Essel IV Región / La Serena Aguas Del Valle R.M./ SMAPA R.M. / Santiago Aguas Andinas, Aguas Cordillera, Aguas Manquehue VIII Región / Concepción Essbio VII Región / Talca Aguas Nuevo Sur IX Región / Temuco Aguas Araucanía Los Ríos / Valdivia Aguas Décima X Región de Los Lagos y XIV Región de Los Ríos / Pto. Montt Suralis XI Región / Coyhaique Aguas Patagonia XII Región / Pta. Arenas Aguas Magallanes Privatization begins 1999 2 Concession models for urban water services 96% • Perpetual Concession • 30 years concession of urban customers are supplied by private companies Note: Market share at the end of December 2023 (last updated). The figures have been obtained from the Regulator's website. Source: https://www.siss.gob.cl/586/w3-propertyvalue-6427.html
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May 2025 Regulatory framework Regulator’s Law Law 18.902/1990 ➢ National regulator ➢ Controls performance ➢ Defines standards Superintendencia de Servicios Sanitarios (SISS) Main mechanisms: ➢ Tariff Setting Process ➢ Infrastructure Development Plan Tariffs Law Law: DFL 70/1988 Subsidies Law Law: DFL 382/1988 ➢ Owner of the assets ➢ Responsible to secure the water ➢ Operation & Maintenance ➢ Commercial Activities ➢ Investment activities Water Companies Water Resources Regulator Environmental Regulator Consumer Protection Agency Ministry of Health Financial Regulator Other Regulators
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May 2025 Regulation, tariffs and indexation Common legislation applied to all companies in the country One national regulator, Superintendencia de Servicios Sanitarios (SISS), an agency under the Ministry of Public Works Oversees norms and legislation Supervises companies Companies Operating and commercial responsibilities • Greenfield operation • Cost efficiency • Self-financing of investments through tariffs • Minimum return on assets guaranteed • Existing infrastructure • Real cost • Self-financing of investment through tariffs • Ability to use debt to finance Capex and enhance return on equity Performed every 5 years ▪ Base Tariff ▪ Polynomial indexation formula ▪ Additional tariffs linked to additional works Model Company Aguas Andinas CPI: consumer price index IPBI: imported goods index IPPMan: manufactured goods price index Indexation is triggered when the variation of any of the tariff charges accumulates +-3%. Indexation Polynomial Regulator and Tariff IPi = ai * CPI + bi * IPBI + ci * IPPMan 60.0% 9.4% 30.6%
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May 2025 Climate change challenges 04 A shared purpose 18
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May 2025 Climate change Extreme turbidity events During the last decade, the effects of climate change became evident in central Chile, with an increase in the intensity and frequency of extreme events. High altitude rains, convective rains, atmospheric rivers and other meteorological phenomenon carry sediments into the rivers that feed the drinking water plants, generating extreme turbidity events (turbidity levels that cannot be treated, which stops the production of drinking water). It became necessary to invest in back-up infrastructure that would make it possible to continue having a water supply independent of the rivers' contribution. 4 hrs. Autonomy 37 hrs. Autonomy ~10 years Turbidity Events N° of events (1) Estimate for the next decade. 2021-2030(1)1991-2000 2001-2010 2011-2020 PIRQUE MEGA TANKS During Turbidity Events Before Turbidity Events
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May 2025 Climate change Drought -150% -100% -50% 0% 50% 100% 150% Deficit/Surplus of the Maipo River - Period 1951/2025 Año Húmedo Año extremadamente seco Año Seco Año Normal The second effect of climate change has been an abrupt decrease in annual rainfall and river flows. Aguas Andinas has addressed this challenge with new infrastructure, water efficiency plans, responsible use campaigns and transfer agreements with other users in the basin. Series used for 74 years Wet year Normal yearDry yearExtremely dry year (*) Consider hydrological years.
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May 2025 El Yeso Reservoir Volume Levels close to maximum capacity 2020; 99 [hm3] 2021; 174[hm3] 2022; 154 [hm3] 2023; 192 [hm3] 2024; 220 [hm3] 2025; 207 [hm3] 0 50 100 150 200 250 Reservoir volume [hm3] Volume Hm3 31-Mar
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May 2025 Resolution of the eighth tariff process 05 A shared purpose
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May 2025 23 Results of the VIII tariff process and development plans Aguas Andinas (89%) Aguas Cordillera (8%) Aguas Manquehue (3%) Base rate 5.0% 12.0% 5.0% Calendar 3% Mar 25; 1% Dec 25; 1% Mar 26 10% Jul 25; 1% Nov 25; 1% May 26 Jun 25 Standard upgrade tariffs 7.4% 2.15% 0.16% Estimated timetable 0.55% 2025; 0.3% 2026; 1.86% 2028; 2.31% 2029; 2.39% 2030 0.15% 2025; 2.0% 2029 2025 Investment: Main increases Biociudad Expansion of sewage treatment plants in localities 0.5% annual renewal of networks as from 2024 Weighted tariff ~ 12% • Conversion of a risk (climate change) into a growth opportunity. • Obtaining tariff for projects appropriate to the company's investment efforts.
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May 2025 24 Results of the VIII tariff process and development plans Rates associated to standard upgrade JASJSAJAS JKSJKASJ KSAKSKA Project Aguas Andinas Aguas Cordillera Aguas Manquehue Base drought(1) 3.85% - - Final Drought: Wells in Canals Girdles 0.15% - - Final turbidity: Maipo alternative catchment 1.17% - - Biociudad Total 5.17% - - San Antonio - San Enrique Drive - 2.00% La Farfana Deodorization 0.30% - - Alternative supply plan 0.55% 0.15% 0.16% Thermal hydrolysis La Farfana 1.14% - - Thermal drying of sludge - Trebal Mapocho 0.25% - - Total other projects 2.24% 2.15% 0.16% Total 7.4% 2.15% 0.16% (1) “Base Drought” rate applies to the extent that wells are constructed or, temporarily, if compensation costs are incurred for water transfers derived from redistribution agreements in the supervision committee of Maipo river. TARIFF- LINKED PROJECTS 2025-2030 ~300 bn CLP ~100 bn CLP
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May 2025 Resolution of the eight tariff process 2025-2030 Biociudad projects for the next five years Se contemplan tarifas por un monto total de Ch$40.677 millones Costo Total de Largo Plazo Neto (CLTPN) Las que aplicarán con la entrada en operación de las obras. It involves the underground production of 1,500 l/s through 16 wells in the southern area of the Metropolitan Region. Santiago South Wells Maipo Alternative Catchment and Conduction Fajas de Canales Wells It allows the El Yeso reservoir to be connected to drinking water production plants, helping to overcome extreme turbidity events in rivers. It involves the construction of 7 wells with a flow rate of 70 l/s each and a common drive for the wells to discharge the works planned in the Tronco canal. < 300 MMCLP +5.17% in tariffs Battery of 12 wells distributed in the communes of Estación Central and Lo Prado. Considering 1,200 l/s of underground production. Santiago West Wells
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May 2025 Resolution of the eight tariff process 2025-2030 Other flagships projects with tariff indexation < 100 MMCLP Solution to encapsulate and treat odorous gases from the Biofactory. La Farfana Biofactory Deodorization Alternative Supply Plan La Farfana Thermal Hydrolisis Construction of thermal hydrolysis of biological sludge, sludge thickening, and steam generation works, which ensure compliance with current regulations. Mapocho Trebal Biofactory - Thermal Drying of Sludge Implementation of thermal drying at the Mapocho Trebal Biofactory for a total of 200 tons/day of wet sludge. Solution focused on supplying drinking water in the event of supply interruptions, through the distribution of portable tanks at various points and the logistical planning tasks for transporting them. San Antonio- San Enrique Drinking Water Pumping and Impulsion Plant
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May 2025 27 Capturing growth opportunities and adapting to climate change JASJSAJAS JKSJKASJ KSAKSKA In order to maintain a solid and sustainable financial performance, it is necessary to temporarily generate financial flexibiity to execute investments and obtain the associated tariffs. Average annual investment 2025 – 2030 $200 – $250 CLP bn Biociudad projects with tariff Other tariff-linked projects Capex to ensure service standards ~ $300 MM CLP ~ $100 MM CLP Proposed payout of 70% of fiscal year 2024 earnings.
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May 2025 ESG: Our commitment 06 A shared purpose
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May 2025 Strong ESG commitment Moody’s gives us its highest score to our sustainable debt framework Circular Economy Potable water supply Resilience Wastewater treatment • From 4 hours of autonomy in 2011 to 37 hours in 2022. • with the goal of reaching 96 hours. • 100% drinking water. • Higher population supplied. Aims to reduce energy intensity by 4% by 2026, with 2021 as the base year. • Zero waste, energy self-sufficient and carbon neutral. • 100% of wastewater treatment and return to agricultural and industrial uses. • In 2018 the Biofactories were awarded by the UN as a new strategy that seeks to prevent the climate change. Groundwater extraction, drinking water lifting plants and the largest wastewater treatment plants. By the end of 2023, energy savings from reduced emissions of 1.8 ktonCO2e will be achieved. From 267 kton CO2 in 2019 to 159 kton CO2 in 2023.
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May 2025 Economic Value and Sustainability Aguas Andinas understands the relevance of placing sustainability at the core of its business model BAGUA-AH green and social bond • USD 156 million equiv. • Maturity: 2044 ESG Credentials of Excellence BAGUA-AC green and social bond • USD 59 million equiv. • Maturity: 2025 BAGUA-AC green and social bond BAGUA-AE green and social bond • USD 75 million equiv. • Maturity: 2044 Private bond issued in JPY and AUD Linked Sustainable Loan – ITAÚ • 50 million USD (JPY & AUD) • Maturity: 2037 Sustainable bond – Swiss Market Sustainable Loan – BCI • USD 110 million equiv. • Maturity: 2029 • USD 31 million equiv. • Maturity: 2029 • USD 35 million equiv. • Maturity: 2027 • Up/down: +/- 5 bps per year • KPI 1: 80% renewable energy use • KPI 2: 0% disposal of biosolids in landfills. . Second Party Opinion (SPO)
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May 2025 Financial performance 07 A shared purpose 31
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May 2025 32 Financial context Hydric levels • Precipitation in 2024 has prevented water transfers in 3M2025 and maintains El Yeso Reservoir at 94% at the end of March. Water availability conditions are expected to be normal in 2025. Cash generation and position • As of the first quarter of 2025, cash increased to 181,996 MCLP, after issuing a bond in the local market in January and amortizing part of the debt maturing during the year. Ordinary Shareholders' Meeting • Unanimous approval to distribute 70% of the profits to reinvest part of the profits and accelerate the investment plan to strengthen security in Santiago. • Change in the Board of Directors. • Feller Rate, which rates IAM and AA with AA+ stable, was approved in AGM. Organizational Changes • José Sáez takes over as Chief Executive Officer. • Rachel Bernardin takes over as Director of Strategy and Corporate Affairs.
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May 2025 2.132.607 2.169.426 2.207.344 2.257.165 2.306.152 2.345.870 2019 2020 2021 2022 2023 2024 Operational indicators Figures in CLP Consumers’ base growth Per Customer consumption (mt3/month) Note: Variations consider changes due to polynomial indexation and changes in tariffs related to investment projects. $803 $818 $840 $843 $873 $906 $945 $975 $982 $1,019 $1,059$1,064 $1,082 $1,117 800 875 950 1025 1100 1175 2020 2021 2022 2023 2024 Tariff change: 39.0% CPI: 37.4% 22,1 20,7 20,4 19,6 19,2 19,1 2019 2020 2021 2022 2023 2024 82% 79% 79% 76% 76% 78% 18% 21% 21% 24% 24% 22% 792 770 781 769 764 775 2019 2020 2021 2022 2023 2024 Surface water Groundwater Note: Information obtained from annual report and Financial Statements. Note: 2019 does not include amounts associated with Suralis (former "ESSAL" Subsidiary). Drinking water production (hm3) Aguas Andinas tariffs evolution
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May 2025 34 54,909 50,921 3M2024 3M2025 Utilidad NetaNET INCOME 107,153 111,532 3M2024 3M2025 EBITDA 189,140 197,437 3M2024 3M2025 IngresosREVENUES EBITDA increased by 4.1% (+5.8% with leap day effect) maintaining its growth. Figures in CLP million +4.4% REVENUES EBITDA +4.1% NET INCOME MARGIN -7.3% MAIN VARIATIONS ➢ Revenues increased by 4.4%, driven mainly by: ➢ An increase in consumption (+1,352 MCLP, +0.5%) and in average tariffs (+9,929 MCLP), associated with indexations, the eighth tariff process and higher overconsumption. ➢ Non-sanitation revenues decreased (-2,843 MCLP), due to lower insurance returns, engineering activity and environmental services. ➢ Costs increased by 4.8%, mainly due to: ➢ CPI effect and USD exchange rate impact by (3,089) MCLP. ➢ Electricity (943) MCLP mainly associated to regulated rate increase. ➢ Patents (251) MCLP for a change in the mining patent law and municipal permissions for (220) MCLP. ➢ There was a significant reduction in bad debt of 1,358 MCLP (1.4% of revenues vs. 2.1% in 2024) and efficiencies of +696 MCLP. ➢ Financial result and Others: ➢ Negative variation of the financial result mainly associated with higher debt level and revaluation of the monetary correction on financial debt for (7,588) MCLP, partially offset by an increase in financial income due to higher cash flow for 555 MCLP. ➢ Other results (3,715) MCLP, mainly due to year 2024, when the sale of assets was recorded. 56.5%56.7%
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May 2025 Development plan 57% Corrective 15% Profitability 9% Service life improvements 7% Project w/additional tariff 4% Others 4% Regulatory 3% Risk Management 1% Robust investment plan To ensure committed security of supply standards under climate change conditions. 35,192 million
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May 2025 36 Promissory notes 11.5% Bonds 80.8% Bank loans 7.3% Lease liabilities 0.4% Net Debt Stable Figures in CLP million 1,217,840$ 1,256,216$ 38,376$+3.2% 13,693$ 24,683$ Currency adjustment of debt in UF and others Negative cash flow for the period NFD Variation 2025 DFN 2024 (as Dec. 24) DFN 2025 (as Mar.25) 31.9% of our financial debt is green and social. Cash Position Variation Debt by instrument UF 81.72% CHF 7.72% CLP 7.43% JPY 2.27% AUD 0.85% Debt by currency Fixed 94.72% Variable 5.28% Debt by rate Initial Treasury Position 2025 108,758$ Negative cash flow for the period (13,693)$ Amort., repurchase and new Promissory Notes (75,429)$ Treasury Position as of March 2025 181,996M$ Amort. of bank loans (1,223)$ 163,583$Issuance of bonds and bank loans Figures in CLP million
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May 2025 Economic Value Financial ratios that reflect a solid financial structure. (1) EV/EBITDA according to Bloomberg methodology as of May. 13th, 2025. EPS $19.67 Leverage 1.33x Net Debt/EBITDA 3.81xLiquidity 1.50x ROCE 9.0%EV/EBITDA(1) 9.86x Mar. 2025 Mar. 2025 Mar. 2025 Mar. 2025 Mar. 2025 May 13th, 2025 Indicators consider the effect of asset revaluation.
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May 2025 Bond issuance in the local market in January 2025 • Amount: UF 4,000,000 (USD 156 million equivalent) • Term and amortization : 21 years, Soft-Bullet (4 equal amortizations at the end of the period, maturity in 2046. • Coupon rate and payment: Coupon rate of 3.40% with semiannual payments • Placement rate: 3.19%. • ESG Format: Sustainable (green and social) • Use of funds: 2025 liability refinancing and sustainable project financing • Covenants: (total liabilities-cash)/ equity < 1.5x with adjustment for CPI based on Dec-2009 at calculation date AH Series Bond 0 30 60 90 120 150 180 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 Figures in billions of CLP Promissory notes Local bonds International bonds Bank loans
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May 2025 Finance & IR Manager Antonela Laino Head of Investor Relations Denisse Labarca Investor Relations Team Erika Sandoval Javiera Viscaya Jorge Cuéllar Contact inversionista@aguasandinas.cl
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May 2025 • IR webpage: https://www.aguasandinasinversionistas.cl/en • Financial Statements: https://www.aguasandinasinversionistas.cl/en/financial-information/financial-statements/2024 • Annual Report : https://www.aguasandinasinversionistas.cl/en/financial-information/annual-reports • Corporate Presentations: https://www.aguasandinasinversionistas.cl/en/events-presentations/corporate-presentations/2025 • ESG Financing, Framework and SPO: https://www.aguasandinasinversionistas.cl/en/debt-holders/bond-issuances/green-social-bonds • Rating Classification: https://www.aguasandinasinversionistas.cl/en/debt-holders/rating-classification • Biociudad website (Spanish only): https://biociudad.cl/ • Sanitation Management Report 2023 (Spanish only): https://www.siss.gob.cl/586/articles-23289_recurso_1.pdf Annex Links to relevant information