2q15 results conference call - sabespfile/sabesp_conference_call_2q15.pdf · this presentation may...
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2Q15 Results Conference Call
August/2015
Economic-Financial Office and Investor Relations Office
2
This presentation may contain forward-looking statements referring to SABESP’s
business outlook. operating and financial results estimates. and growth prospects.
These are only projections. and as such. they are exclusively based on SABESP’s
management expectation in relation to the future of 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 rules.
industry performance and the Brazilian economy. amongst other factors. in
addition to risks exhibited in disclosure documents filed by SABESP. Therefore.
they are subject to changes without prior notice.
Notice
2Q14 2Q15
511.0 468.5
387.3 362.8
Sewage
Water
1H14 1H15
1,066.0 950.3
797.8 734.0
Billed Volume
3
(7.5)%
(6.3)%
(8.3)%
831.3 898.3 (8.0)%
(10.9)%
(9.6)%
1,863.8 1,684.3
Total water and sewage billed volume, including wholesale (million m³)
710
606
2Q14 2Q15
Produced Water Volume
511
469
2Q14 2Q15
Billed Water Volume
Financial Highlights (R$ million)
4
302.4
439.1
661.7
2,315.0
2,754.1
337.3
472.5
756.6
2,350.3
2,822.9
Net income
Adjusted EBIT
Adjusted EBITDA
Costs, adm. exp.,selling and
construction
Net operatingrevenue
2Q15 2Q14
0,4%
10,2%
(1.5)%
14.3%
7.6%
2.5%
11.5%
Payroll andBenefits
Supplies Treatmentsupplies
Services Electric power GeneralExpenses
Depreciationand
Amortization
Credit write-offs
Tax expenses
551
47 65
352
145 190 223
62 18
529
43 64
270 208
49
284
0 18
2Q14 2Q15
27.6%
(4.1)%
(8.1)% (1.0)%
(23.2)% 44.2% (74.4)%
0.7%
5
Costs and Expenses (R$ million)
(99.7) %
% Net revenue in 2Q14
20.0% 1.7% 2.3% 12.8% 5.2% 6.9% 8.1% 2.2% 0.6%
% Net revenue in 2Q15
18.7% 1.5% 2.3% 9.6% 7.4% 1.7% 10.1% 0.0% 0.6%
(11.2)% Cost and expenses in 2Q14*: R$1,650.8
Cost and expenses in 2Q15*: R$1,465.1
*Not including construction costs
Net income – Main variations
6
Net Income
2Q14
N.O.R. Costs and
Expenses
Other Rev.
and
Expenses(*)
Net Financial Income Tax
and Social
Contribution
Net Income
2Q15
337.3
68.8 (35.3) 6.4
177.0 (182.0)
302.4
2Q15 2Q14 Var.
Net Income 2Q14 302.4
Net Operating Revenue 2,822.9 2,754.1 68.8
Costs and Expenses (2,350.3) (2,315.0) (35.3)
Other Revenues and Expenses * 11.6 5.2 6.4
Net Financial 155.4 (21.6) 177.0
Income Tax and Social Contrib. (302.3) (120.3) (182.0)
Net Income 2Q15 337.3
*Including equity result
Cantareira System - Rainfall
7
out nov dez jan fev mar abr mai jun jul ago set
Média Histórica 130,8 161,2 226,8 265,9 206,5 184,1 89,2 83,2 56,0 49,9 36,9 91,9
Minima Histórica 21,4 52,4 104,5 111,8 40,2 55,8 7,6 8,8 0,0 0,0 0,1 0,9
2013/14 123,4 97,0 62,9 87,8 73,0 193,3 85,7 37,3 15,8 40,4 22,6 66,0
2014/15 42,5 135,0 165,5 148,2 322,4 189,9 45,3 74,4 39,7 43,9
93%
59%
28%
33%35%
105%
96%
45%
28%
81%61%
72%
32%
84%
73%56%
156%
103%
51%
89%
71% 88%
0,0
50,0
100,0
150,0
200,0
250,0
300,0
350,0
OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP
Historical avg. 130.8 161.2 226.8 265.9 206.5 184.1 89.2 83.2 56.0 49.9 36.9 91.9
Historical low 21.4 52.4 104.5 111.8 40.2 55.8 7.6 8.8 0.0 0.0 0.1 0.9
2013/14 123.4 97.0 62.9 87.8 73.0 193.3 85.7 37.3 15.8 40.4 22.6 66.0
2014/15 42.5 135.0 165.5 148.2 322.4 189.9 45.3 74.4 39.7 43.9
Cantareira System – Water inflow
8
outubro novembro dezembro janeiro fevereiro março abril maio junho julho agosto setembro
Média Histórica 30,6 35,0 53,1 70,9 73,9 66,9 48,4 38,4 35,3 28,8 24,5 25,6
Mínima Histórica 14,0 14,0 21,8 26,9 27,6 28,1 24,7 19,9 16,5 13,9 12,0 11,8
1953 17,5 26,0 31,5 26,9 34,5 29,8 34,6 23,8 20,7 17,6 16,3 16,2
2013/2014 25,1 22,1 22,5 15,4 10,5 18,9 17,2 10,1 10,0 6,4 8,2 9,0
2014/2015 5,2 8,8 16,0 11,5 40,7 42,6 18,1 14,0 16,2 11,3
0,0
10,0
20,0
30,0
40,0
50,0
60,0
70,0
80,0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Historical avg. 30.6 35.0 53.1 70.9 73.9 66.9 48.4 38.4 35.3 28.8 24.5 25.6
Historical low 14.0 14.0 21.8 26.9 27.6 28.1 24.7 19.9 16.5 13.9 12.0 11.8
1953 17.5 26.0 31.5 26.9 34.5 29.8 34.6 23.8 20.7 17.6 16.3 16.2
2013/14 25.1 22.1 22.5 15.4 10.5 18.9 17.2 10.1 10.0 6.4 8.2 9.0
2014/15 5.2 8.8 16.0 11.5 40.7 42.6 18.1 14.0 16.2 11.3
9
31
.90
31
.77
27
.65
25
.20
22
.77
23
.30
22
.11
20
.95
21
.38
19
.86
18
.50
18
.96
17
.06
14
.03
14
.04
13
.48
13
.36
13
.34
13
.51
jan
/14
fev/
14
mar
/14
abr/
14
mai
/14
jun
/14
jul/
14
ago
/14
set/
14
ou
t/1
4
no
v/1
4
dez
/14
jan
/15
fev/
15
mar
/15
abr/
15
mai
/15
jun
/15
jul/
15
infl
ow
in m
³/s
Water production from the Cantareira System (in m³/s)
FEB/14 to JUL/15
-18.3 m³/s
Reduction from
initiatives:
(in m³/s)
Comparison with February/2014 = last month of regular production, before the initiative for water saving
6.68
3.4
7.36
0.82
Pressure reduction / Losses
Permittee decrease
Increase in other systems
Bonus program
Jan/1
4
Feb/1
4
Mar/
14
Apr/
14
May/
14
Jun/1
4
Jul/14
Aug/1
4
Sep/1
4
Oct/14
N
ov/1
4
De
c/1
4
Jan/1
5
Feb/1
5
Mar/
15
Apr/
15
May/1
5
Jun/1
5
Jul/15
Sabesp’s initiatives to offset the lower water
Withdrawal from the Cantareira System
10
Water Plan for the SPMR – 2015 to 2017
(main initiatives)
works in progress
Description
flow (m³/s)
estm. Objectives Status Availability/ guarantee
Initiatives planned for 2015
Reversion increase from Guaratuba River to the Ponte Nova reservoir by 0.5 m³/s
0.5 jan/15 ◦ Recover the storing volume and assure Alto Tietê's water source
completed
Reversion from the Guaió River to the Taiaçupeba reservoir: 1 m³/s
1 mai/15 completed
Interconnection between: Pequeno River → Grande River (Billings) → Taiaçupeba (Alto Tietê) 4 m³/s
4 set/15 ◦ Recover the storing volume and assure the Alto Tietê reservoir
works in progress
1 m³/s transfer increasefrom Taquacetuba to Guarapiranga (from 4 to 5 m³/s)
1 dez/15 ◦ Assure Guarapiranga's water source works in progress
Increase of the ABV Water Treatment Station production from 15 to 16 m³/s
jun/15 ◦ Transfer water from Guarapiranga to the Cantareira area via the aqueduct system
completed
total 2015 6.5
Initiatives planned for 2016
Reversion from Itapanhaú River (Ribeirão Sertãozinho) to the Biritiba reservoir: 2.5 m³/s
2.5 2016 ◦ Recover the storing volume and assure Alto Tietê's water source
under development
Reversion of 1 m³/ sfrom Alto Juquiá to Ribeirão Santa Rita (Guarapiranga basin)
1 2016 ◦ Increase Guarapiranga's water source under development
total 2016 3.5
Initiatives planned for 2017
Jaguari → Atibainha Interconnection: 5.13 m³/s to the Cantareira system (security increase)
5.13 2017 a) Recover the stored volume and assure the Cantareira System's water source
in bidding process (works
scheduled to last for 18 months)
São Lourenço Production System: 6.4 m³/s 6.4 2017 ◦ Produce 6.4 m³/s for the Greater São Paulo's western region
works in progress
total 2017 11.53
Total 2015 - 2017 21.53
11
Water Consumption Reduction Incentive
Program - Bonus
10% surcharged
60
%
62
%
61
%
61
%
63
%
63
%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
5%
10
%
10
%
10
%
10
%
10
%
10
% 2
0%
18
%
18
%
18
%
17
%
17
%
fev/15 mar/15 abr/15 mai/15 jun/15 jul/15
BONUS 30% BONUS 20% BÔNUS 10% REDUZIU S/ BÔNUS AUMENTOU CONSUMOBONUS 30% BONUS 20% BONUS 10% REDUCED W/OUT
BONUS
INCREASED
CONSUMPTION
Feb/15 Mar/15 Apr/15 May/15 Jun/15 Jul/15
www.sabesp.com.br
IR Contacts
Mario Azevedo de Arruda Sampaio Angela Beatriz Airoldi [email protected] [email protected] +55 (11) 3388-8664 +55 (11) 3388-8793