EASTWATER S Opportunity Day Q3/2018 1 DISCLAIMER o The - - PowerPoint PPT Presentation

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EASTWATER S Opportunity Day Q3/2018 1 DISCLAIMER o The - - PowerPoint PPT Presentation

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EASTWATER S Opportunity Day Q3/2018 1 DISCLAIMER o 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

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SLIDE 1

EASTWATER’S

Opportunity Day Q3/2018

1
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SLIDE 2

DISCLAIMER

  • 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
  • r commitment whatsoever.
  • 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.
  • 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.
  • 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. 2 Note: All currency figures within this presentation are presented in Thai Baht (“Bt.”) unless otherwise stated.
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SLIDE 3

Business Direction Business Outlook Business Overview

AGENDA

3
  • Vision of East Water
  • Group Structure & Shareholders
  • Our Business & Performance
  • Raw & Tap Water Business
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SLIDE 4

EAST WATER - INFORMATION

4

VISION

“To be the leader in total water solutions

  • f the country”

COMPREHENSIVE WATER SOLUTIONS

Raw & Tap

Water

Industrial

Water

Waste Water

Management

Recycled

Water

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SLIDE 5

Concessions under UU:

  • Rayong Waterworks
  • Chonburi Waterworks
  • Nong Kham Waterworks
  • Lak Chai Muang Yang Waterworks
  • Hua Roa 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

GROUP STRUCTURE & SHAREHOLDERS

5

Raw Water Business

100%

Tap Water & Related Business 40.20% 18.72% 4.57%

PWA: Provincial Waterworks Authority MWC: Manila Water Company, Inc. IEAT: Industrial Estate Authority of Thailand

PWA MWC IEAT

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SLIDE 6

STOCK INFORMATIONS

6 PWA: Provincial Waterworks Authority MWC: Manila Water Company, Inc. IEAT: Industrial Estate Authority of Thailand

Major shareholders Historical P/E and Share Price

Market capitalization THB 18. 8.30 30 Billion
  • n
12.20 10.80 11.60 11.80 12.40 11.00 15.44 13.50 13.81 15.13 16.99 16.48 0.00 6.00 12.00 18.00 0.0 10.0 20.0 30.0 2013 2014 2015 2016 2017 Sep-18 THB/share Share price (end of year) P/E Note: Info as of 28 Sep 2018 EGCO has completed the sale all of the shares in EASTW to MWC on Mar 14, 2018

63.49%

(Total of PWA, MWC, IEAT)

PWA 40.20% Manila Water 18.72% Institution Investors 18.21% Retail Investors 18.30% IEAT 4.57%

Paid-up Capital THB 1,663.73 Million

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SLIDE 7

SHARE INFORMATION AND DIVIDEND PAYMENT

7

Dividend policy is not less than 30% of normal net profit

0.61 0.75 0.79 0.80 0.84 0.78 0.73 0.35 0.42 0.44 0.42 0.45 0.47 0.47 0.47 0.20 69.4% 59.0% 53.2% 56.1% 56.0% 60.3% 64.4% 57.1% 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 1H2561**

Baht/share

EPS DPS % Dividend payout ratio

*

* Excluding the net profit of 183.32 MB from measuring fair value of 15.88% equity interest in Egcom Tara ** Interim dividend for the 1H2018 is 0.20 THB per share and has been paid on 5th September 2018.
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SLIDE 8

OUR BUSINESS & PERFORMANCE

8

56%

33%

11%

Other

Raw Water Tap Water

Revenue Structure of 2017

2,437 2,878 3,107 3,310 3,726 3,956 4,305 4,659 4,414 4,357 3,196 571 807 870 1,008 1,240 1,313 1,334 1,585 1,309 1,221 890 1,000 2,000 3,000 4,000 5,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 9M/2018
  • Mil. Bt.
Revenue Net Profit 1
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SLIDE 9

FINANCIAL RATIOS

9

Key Financial Ratios As of Q3/2017 As of Q3/2018 Liquidity Ratio Current ratio (time) 0.52 0.41 Profitability Ratio(1) Gross profit / total sales and services revenue (%) 52.94% 50.16% Net profit / total sales and services revenue (%) 32.74% 28.17% Performance Ratio Return on Equity (ROE) (%) 12.73% 10.89% Return on Assets (ROA) (%) 6.42% 5.69% Capital Structure and Debt Ratio Debt to Equity ratio (time) 0.93 0.86 Debt Service Coverage ratio (DSCR) (time) 2.22 2.13

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SLIDE 10

BUSINESS OVERVIEW : RAW WATER (1/2)

10

Pluak Dang- bowin

Laem - Chabang Map Ta Phut

278 282 296 282 256 188 257 257 271 251 226 166
  • 50
150 350 2013 2014 2015 2016 2017 9M2018 Distribution Volume Sales Volume

RAW WATER: Sales volume

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SLIDE 11

BUSINESS OVERVIEW : RAW WATER (2/2)

11

RAW WATER: Distribution by Customer Group

Industrial Estate 72% Household 13% Private Industrial Park2% Factories1% Internal Usage 12% Raw water 16% Electricity 29% Depreciation 33% Maintenance 6% Others16%

GP of Raw Water

  • f 9M2018

61.29%

RAW WATER: GP & Cost Breakdown

188 Mil. Cu.M.

(9M2018)

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SLIDE 12

BUSINESS OVERVIEW : TAP WATER (1/2)

12
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SLIDE 13

BUSINESS OVERVIEW : TAP WATER (2/2)

13

TAP WATER: GP & Cost Breakdown

68 76 84 93 96 72 50 100 2013 2014 2015 2016 2017 9M2018 Sales Volume

TAP WATER: Sales volume

Other 6% Chemical 4% Electricity 16% Raw Water 18% Depreciation 33% Wages 23% GP of Tap Water
  • f 9M2018

37.62%

Hua Ror Nakhorn Sawan Ratchaburi - Samut Songkram Chachoeng Sao Bang Pakong Nong Kham Chonburi Sattahip Koh Lan Koh Samui Rayong Lak Chai Bo Win

Total Production Capacity

400,310

(Cu.M./Day) Average Sales Volume

267,683

(Cu.M./Day)

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SLIDE 14

Business Direction Business Outlook Business Overview

AGENDA

14
  • Demand & Supply Forecast
  • Water Situation & Business Strength
  • Project on process
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SLIDE 15

DEMAND & SUPPLY FORECAST 20 YRS.

15 279 278 282 296 282 256 251 260 438 509 559 579 649 719

50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

Water volume (million cubic metres) Year

Current water capital 398 Million m3
  • 1. Raising the
efficiency of Bang Pakong River by 20 Million m3
  • 2. Klong Phan
Thong 20 Million m3
  • 3. Klong Luang
40 Million m3
  • 4. Thab Ma pond
27 Million m3
  • 5. Private ponds
4 Million m3
  • 6. Prasae additional
water allocation 50 Million m3 (Klong Sapan-PS-NK-BP)
  • 7. Thab Ma pond
20 Million m3
  • 8. Prasae additional
water allocation 70 Million m3 (Klong Wang Ta Not-PS-NK-BP)
  • 9. Water diversion
Klaeng district 70 Million m3 Forecast water capital 719 Million m3
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SLIDE 16

OVERVIEW OF WATER SITUATION

16 Source of data: Royal Irrigation Department Info as of 16 Nov 2018

CHONBURI RAYONG

Bangpra Nongkho Dokkrai Nongplalai Klongyai Prasae Reservoir Capacity (M. Cu.M.)

117.00 21.40 79.41 163.75 40.10 295.00

Water Reserve (M. Cu.M.)

95.19 18.62 78.11 165.90 37.83 272.29

Useable storage volume (excluding Dead Storage) (M. Cu.M.)

83.14 17.62 75.11 152.40 34.83 252.29 100.76 514.63

% Total Capacity

71.06% 82.34% 94.59% 93.07% 86.86% 85.52%

95.19 18.62 37.83 165.90 272.29 78.11
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SLIDE 17

WATER SITUATION IN CHONBURI

17
  • Info as of 16 Nov 2018
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SLIDE 18

WATER SITUATION IN RAYONG

18
  • Info as of 16 Nov 2018
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SLIDE 19

WATER SITUATION IN PRASAE, RAYONG

19
  • Info as of 16 Nov 2018
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SLIDE 20 20

Prasae Klong Yai Nong-Pla-Lai Dok Krai Bang Phra Nong Kho

Reservoir

EEC AREA

Leased Pipe Network
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SLIDE 21 21

Prasae Klong Yai Dok Krai Bang Phra Nong Kho

Main Water Resource Existing Pipe Network

Nong-Pla-Lai

Leased Pipe Network Raw Water Projects

Tabma +47 MCM (2020) Clarified water projects (Gulf/Amata)

Bangpakong- pumping +20 MCM (2019) Reserve Water Resource

ON GOING

PROJECTS

EEC AREA

Clarified Water Projects
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SLIDE 22

SIGN CONTRACT NEW PROJECTS

22

AMATA CITY RAYONG GULF IPP

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SLIDE 23

Business Direction Business Outlook Business Overview

AGENDA

23
  • Opportunities Projects
  • Water Innovation Project
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SLIDE 24 24

Prasae Klong Yai Dok Krai Bang Phra Nong Kho

Main Water Resource Existing Pipe Network

Nong-Pla-Lai

Leased Pipe Network

Digital Park

Reserve Water Resource

POTENTIAL OPPORTUNITIES PROJECTS

Clarified Water

U-Tapao Airport

Clarified Water Projects

EEC AREA

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SLIDE 25

WATER INNOVATION PROJECT

25
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SLIDE 26

CAPEX OF OPPORTUNITY PROJECTS

26

Project

Investment PAID FORECASTING

(MB.) (MB.) 2018F 2019F 2020F 2021F RAW WATER 5,650 3,416 315 286 1,633

  • 1

Prasae-Nongplalai Pipeline 2,909 2,833 76

  • 2

Tab ma 2,203 570

  • 1,633

3 Increase pumping efficiency in Bangpakong river 538 13 239 286

  • Clarified Water

1,210

  • 379

330 290 211 4 Gulf IPP 750

  • 113

136 290 211 5 Amata City Rayong 460

  • 266

194

  • TAP Water
  • 200

200 200 200 6 UU N/A

  • 200

200 200 200 OTHER

  • 200

200 200 200 7 MAINTENANCE N/A

  • 200

200 200 200 SUMMARY 6,860 3,416 1,094 1,016 2,323 611

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SLIDE 27 27 Tap Water Projects Recycle Water Projects

OPPORTUNITIES PROJECTS

Outside EEC AREA

Comprehensive Water Projects

Ratchaburi

Phuket Recycle Water Project

(1,000 Cu.M./day)

Comprehensive Water Project

(MOU on 01.02.18)

Tap Water Project

(15,000 Cu.M./day)

Ayutthaya

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SLIDE 28

Q & A

28
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SLIDE 29

CONTACT US

29

Eastern Water Resources Development and Management Public Company Limited

Floor 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: IR@eastwater.com

Miss Suwanna Korcharoenrat VP-Finance Department Tel: 02-2721600 ext 2432 Miss Buntarika Ketsiri Financial Analyst and Investor Relations Manager Tel: 02-2721600 ext 2438

  • Mr. Atiwan Prabsrephum

Financial Analyst and Investor Relations officer Tel: 02-2721600 ext 2411 Miss Wanichaya Homsuwan Financial Analyst and Investor Relations officer Tel: 02-2721600 ext 2420