2019 CONFERENCE CALL
Economic-Financial and Investor Relations Office
March 31, 2020
LEGAL NOTICE
This presentation may contain forward-looking statements referring to SABESP's business outlook, operating and financial estimates and growth prospects. These are only projections and, as such, they are exclusively based on the expectation of SABESP's management team in relation to the future of the business and its continuous access to capital to finance the Company's business plan. These forward-looking statements largely depend on changes in market conditions, governmental rulings, industry performance and the Brazilian economy, amongst other factors, in addition to the risks disclosed in the documents filed by SABESP, thus they are subject to changes without prior notice.
2
BILLED VOLUME (million m³)
Total water and sewage billed volume, including wholesale
Sabesp | Sabesp | ||||||||||
(Excluding Guarulhos and Santo André) | (Including Guarulhos and Santo André) | ||||||||||
3.5% | |||||||||||
2.7% | 3,749.0 | 3,879.7 | |||||||||
3,550.3 | |||||||||||
3,646.0 | |||||||||||
2.4 % | 0.2% | ||||||||||
2.107,9 | 2.112,7 | ||||||||||
1.926,4 | 1.971,9 | ||||||||||
Water | |||||||||||
Water | 7.7% | ||||||||||
3.1% | Sewage | ||||||||||
Sewage | 1.767,0 | ||||||||||
1.641,1 | |||||||||||
1.623,9 | 1.674,1 | ||||||||||
2018 | 2019 | ||||||||||
2018 | 2019 | ||||||||||
Historical Billed Volume | |||||||||||
942 | 944 | 931 | 924 | 950 | 973 | 989 | 959 | 993 | ||||||||||||||||||||||||||
925 | 904 | 923 | ||||||||||||||||||||||||||||||||
880 | 880 | 910 | ||||||||||||||||||||||||||||||||
863 | 872 | |||||||||||||||||||||||||||||||||
841 | ||||||||||||||||||||||||||||||||||
495 | 512 | 520 | 509 | 519 | 528 | 531 | 523 | 520 | 534 | 533 | 556 | 522 | 536 | |||||||||||||||||||||
484 | 490 | 494 | ||||||||||||||||||||||||||||||||
473 | 414 | 416 | 440 | 433 | 457 | |||||||||||||||||||||||||||||
386 | 399 | 405 | 395 | 404 | 413 | 408 | 404 | 437 | ||||||||||||||||||||||||||
368 | 379 | 382 | 386 | |||||||||||||||||||||||||||||||
3Q15 | 4Q15 | 1Q16 | 2Q16 | 3Q16 | 4Q16 | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 1Q19 | 2Q19 | 3Q19 | 4Q19 | |||||||||||||||||
3 | ||||||||||||||||||||||||||||||||||
Sewage | Water | Water + Sewage | ||||||||||||||||||||||||||||||||
FINANCIAL HIGLIGHTS (R$ million)
14,253.6
Gross operating revenue13.2%16,134.0
16,085.1
Net operating revenue11.8%17,983.6
Costs, adm. & selling | 10,943.6 | ||||
expenses and | 12,257.0 | 12.0% | |||
construction costs | |||||
Adjusted EBITDA | 6,540.6 | ||||
14.8% | |||||
7,510.5 | |||||
5,148.0
Adjusted EBIT11.3%
5,730.3
2,835.1
Net income18.8%3,367.5
2018 | 2019 | |
4
KEY EVENTS IMPACTING RESULTS IN 2019
- Start of operation in the municipality of Santo André
- R$ 1,424,8 million increase in operating revenues and R$ 6.5 million reduction in expenses, and R$ 1,418.3 million increase in net income
- Operations in the municipality of Guarulhos
- R$ 424,6 million increase in operating revenues, R$ 189,9 million increase in costs and expenses, and R$ 231,7 million increase in net income
- TAC - Retirees
- R$ 173.3 million reversal in Salaries and payroll charges and Pension plan obligations
- São Lourenço Production System
- R$ 137,9 million increase in costs and expenses resulting from the startup of operations
- Signing of a Service Agreement with the municipality of São Bernardo do Campo and Guarujá
- R$ 39,0 million R$ 46,4 million innon-recurring expenses
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COSTS AND EXPENSES (R$ million)
Costs and expenses in 2018*: R$ 8,203.9 | 14.3% | |||||||||||
0.3% | Costs and expenses in 2019*: R$ 9,375.6 | |||||||||||
2,673.6 | 2,681.9 | *Excluding construction costs | ||||||||||
22.6% | 27.8% | |||||||||||
1,808.4 | 19.1% | 22.2% | 1,780.2 | |||||||||
1,474.7 | 1,392.6 | |||||||||||
1,142.9 | 1,177.6 | |||||||||||
17.1% | ||||||||||||
9.5% | 959.4 | 963.8 | ||||||||||
-23.2% | 24.7% | |||||||||||
249.3 | 272.9 | 265.1 | 310.4 | 166.7 | ||||||||
128.1 | ||||||||||||
58.7 | 73.2 | |||||||||||
Salaries and payroll | General Supplies | Treatment Supplies | Services | Electricity | General Expenses | Depreciation and | Allowance for Doubtful | |||||
charges and Pension | Amortization | Accounts | ||||||||||
plan obligations |
2018 2019
% Net Revenue in 2018 | ||||||||
16.6% | 1.5% | 1.6% | 9.2% | 6.0% | 6.0% | 8.7% | 1.0% | 0.4% |
% Net Revenue in 2019 | ||||||||
14.9% | 1.5% | 1.7% | 10.1% | 6.4% | 6.5% | 9.9% | 0.7% | 0.4% |
6
FINANCIAL PERFORMANCE (R$ million)
1,898.5
230.6
3,367.5
2,835.1 | (1,313.4) | (50.2) | (233.1) |
2018 | N.O.R. | Costs & | Other Revenue | Net Financial | Income Tax & | 2019 |
Net Income | Net Income | |||||
Expenses | & Expenses (*) | Result | Social Contribution | |||
2019 | 2018 | Variation | |
Net Income 2018 | 2,835.1 | ||
Net Operating Revenue | 17,983.6 | 16,085.1 | 1,898.5 |
Costs & Expenses | (12,257.0) | (10,943.6) | (1,313.4) |
Other Revenue & Expenses (*) | (15.0) | 35.2 | (50.2) |
Net Financial Result | (1,033.7) | (1,264.3) | 230.6 |
Income Tax & Social Contribution | 1,310.4 | (1,07.3) | (233.1) |
Net Income 2019 | 3,367.5 | ||
(*) Includes equity results | 7 |
PERFORMANCE INDICATORS
Total Gross Revenue per m³ Billed - R$/m³
Figures at 4Q19 average prices, updated by IPCA
The following were not considered: | |
Construction revenue | |
R$928 million referring to the agreement with Guarulhos in 4Q18 | |
R$1,254 million referring to agreement with Santo André in 3Q19 | 8 |
PERFORMANCE INDICATORS
Operating Expense per m³ Billed - R$/m³
Figures at 4Q19 average prices, updated by IPCA
Expenses considered: Personnel
General Supplies General materials Services Electricity General expenses Tax expenses
Reversals excluded:
R$696 million referring to agreement with the State Government in 1Q15
R$307 million referring to the migration of the additional pension plan in 3Q16 R$173 million referring to the TAC Retirees.
9
PERFORMANCE INDICATORS
EBITDA per m³ Billed - R$/m³
Figures at 4Q19 average prices, updated by IPCA
The following were not considered: | |
Revenue: | |
R$928 million referring to the agreement with Guarulhos in 4Q18 | |
R$1,254 million referring to agreement with Santo André in 3Q19 | |
Reversal of expenses: | |
R$696 million referring to agreement with the State Government in 1Q15 | |
R$307 million referring to the migration of the additional pension plan in 3Q16 | 10 |
R$173 million referring to the end of the TAC Retirees in 3Q19. |
SABESP 2019
- Net income of R$ 3.4 billion
- Market expansion with the incorporation of Santo André and Guarulhos
- 2 million people incorporated to the population served - 600 thousand with new water connecitons and new sewage connections
- Stopping the delinquency of the municipalities in the wholesale base
- 17 contracts secured/renewed in 2019
- 2019 324 municipalities contracted - 92.2% of the revenue secured
- 2018 307 municipalities contracted - 84.4% of the revenue secured
- The 10 biggest contracts acccount for 65.6% of the revenue and have na average maturity of 26 years
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SITUATION TO COMBAT THE CRISIS
- More secured water supply system in the SPMR
- Water production capacity 12% higher
- Transfers between reservoirs increaded by 163% and between distribution systems by 300%
- Water storage 8% higher
- In 2013 the reservoir storage levels were 52% and in March 2020, 77%
- Reduction in production from 69.1 m³/s in 2013 to 66 69,1 m³/s in 2019
- Finacials Indicators
- EBITDA margem of 44.6% tn 2013 to 52.2% in 2019
- The Covenants (Total Debt / EBITDA and Net Debt / EBITDA) that was 2.32x and 1,91x in 2013 reached 1.75x and 1.45x, respectively in 2019
- Foreign Exchange exposure was 39.1% in 2013 reached 48% in 2019
- Value of the debt in dollar remained practically the same, US$ 1.579 million in 2013 against US$ 1.578 million in 2019
- Dollar that breakes the Covenant in 2013 was R$ 5,71 against the value of the dollar R$ 2,34. In 2019 the dólar that breakes the Covenant was R$ 13,15 against the valeu of the dollar of R$ 4.03
- Sabesp more prepared to face the health crisis caused byCovid-19
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DIVERSIFIED CONSUMER BASE
WATER BILLED VOLUME BY TYPE OF CUSTOMER | SEWAGE BILLED VOLUME BY TYPE OF CUSTOMER |
WATER REVENUES BY TYPE OF CUSTOMER* | SEWAGE REVENUES BY TYPE OF CUSTOMER* |
Approximately 90% of water volume and revenue come from residential, | Approximately 90% of sewage volume and revenue come from residential, |
commercial and industrial customer | commercial and industrial customer |
*Managerial information | 13 |
www.sabesp.com.br
IR Contacts
Mario Azevedo de Arruda Sampaio | Angela Beatriz Airoldi |
Head of Capital Markets and Investor Relations | Investor Relations Manager |
maasampaio@sabesp.com.br | abairoldi@sabesp.com.br |
+55 (11) 3388-8664 | +55 (11) 3388-8793 |
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Disclaimer
SABESP - Companhia de Saneamento Básico do Estado de São Paulo published this content on 31 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 March 2020 07:07:08 UTC