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Eastern Water Resources Developmentand Management PLC.

3 December 20083 December 2008

ContentsContents

Company OverviewCompany Overview

Operation HighlightsOperation Highlights

Financial HighlightsFinancial Highlights

Future InvestmentsFuture Investments

2

2008 Highlights

• 99 6% of the warrants exercised which raised the company paid-up capital to 1 663 7299.6% of the warrants exercised which raised the company paid-up capital to 1,663.72MB, resulting D/E Ratio decrease to 0.56 times

• The Utilico Emerging Markets Limited, an investment company from UK, reportedshareholding above 10 % since February

• Divested the total shares of Eastern Hobas Pipe since March

• A+ Credit Rating with Stable outlook affirmed by TRIS

• 98.7% of eligible votes approved on tariff discount agenda (EGM No.2/2008 on Aug 25,2008)

• 29.68% Net Income increase, and 14.73% EBITDA increase

• Dividend received from the tap water business, EGCOM TARA 40.17 MB and UniversalUtilities 43.84 MB

G d h V G d CG S i b IOD• Granted the Very-Good-CG Scoring by IOD

3

East Water Group StructureEast Water

Tap Water Related Business

Universal Utilities : 100%* THB 510 million

Water Trades and Services : 100%*THB 5 million











Bangpakong Water Supply

Chachoengsao Water Supply

Nakornsawan Water Supply

Bangpakong Water Supply

Chachoengsao Water Supply


Bangpakong Water Supply Co.,Ltd.

Chachoengsao Water Supply Co.,Ltd.

Nakornsawan Water Supply Co Ltd

Contract to service drinking vending machine


Rayong Waterworks

Operations & Maintenance Surin, Ratchaburi –SamutSongkhram


Rayong Waterworks

Operations & Maintenance

Nakornsawan Water Supply Co.,Ltd.

Rayong Waterworks

Operation & Maintenance

Non Revenue Water

East Water Sattahip, Borwin Waterworks

g

PWA 3 project : Omnoi, PathumThani, Pattaya

Operations & Maintenance

Non Revenue Water

East Water

Non-Revenue Water

East Water

EGCOM TARA : 15%* THB 345 million

4

Koh Sichang, Lan, Samui Waterworks

Shareholding StructureOriginal (1992)

IPO (1997)

PWA

100%

PWA

44%

Public 51%

IEAT5%

Registered capital THB 10 MillionRegistered capital THB 1,000 Million

PWA40.20%

Institutions18.69%

Retail Investors7.70%

Retail Investors & Institutions 26.39%

Utilico 10.12%

Paid-up Capital = THB ~1,663.72 MillionAs of 15 Oct 2008

IEAT4.57%EGCOMP

18.72%

Note: *PWA : Provincial Waterworks Authority, a state enterprise responsible for waterworks outside BKKy, p p

*IEAT : Industrial Estate Authority of Thailand, a state enterprise responsible for establishment industrial estates

*EGCOMP : A public company limited, produce and supply electricity in Thailand

*Utilico : Utilico Emerging Markets Limited, an investment company from UK

5

ContentsContents




F t I t tFuture Investments

6

Bangpakong River

Reserve Pool 2 Mcm.• Due to the higher pace of industrial growth, the Company operates majorly i th i in three provinces : Chonburi, Rayong and Chachoengsao.East Water’s pipelines network ranging

ChacheongsaoIV

ชลบรุี

Reserve Pool 7.5 Mcm.Siam Water Resource 10 Mcm.

from diameter 500 – 1500 mm. and 324 km. in length linking as the water grid li i E t S b d

NongKhoBangPra

line in Eastern Seaboard

KlongYaiPrasae

Puakdang-BorwinII

ChonburiIIIBangkok

D kK i

KlongYaiNongPlaLai

-

DokKrai

Existing Pipe NetworkConstructing Pipe Network

RayongI

ระยอง

Source of Raw Water, Pipelines Network and Service Areas Source of Raw Water, Pipelines Network and Service Areas 7

NetworkService Area

2009 (F t)2009 (Forecast)

8

600

Raw water Demand vs Supply in Chonburi&Rayong25512008 10 yr : 2017

500

550

600

yr)

463 1 mcmKlong Pra Ong Chao Chaiyanuchit 70 mcm

Klong Wang ta nod 70 mcm

350

400

450

d (m

cm/y

393.1 mcm

463.1 mcm

Bangpakong Ri er 50 mcm

Prasae Reservoir 80 mcm

250

300

350

r Dem

and 323.1 mcm

243.1 mcmRayong River 21.4 mcm

Bangpakong River 50 mcm

150

200

aw W

ater

DK+NPL+NK 171.7 mcm193.1 mcm

-

50

100 Ra

Raw Water Demand

2534

2535

2536

2537

2538

2539

2540

2541

2542

2543

2544

2545

2546

2547

2548

2549

2550

2551

2552

2553

2554

2555

2556

2557

2558

2559

2560

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

9

Major Customer of East Water

P i E i ti T f C t P t C tProvince Existing Type of Customer Prospect Customer

Rayong Petro ChemicalPower Plant

SCC ChemicalDOW ChemicalPower Plant

Heavy IndustryDOW ChemicalPTT ph.7 of Gas Separation UnitPTTCH GHECO1 Power PlantRayong and Banchang WaterworksRayong and Banchang Waterworks

Chonburi Domestic ConsumptionG l I d t

Chonburi, Lamechabang, Srirachaand Pattaya Waterworks (Tourist)General Industry

Electronics IndustryPower Plant

and Pattaya Waterworks (Tourist)IPT Power PlantThai Oils

Chacheongsao Domestic ConsumptionAutomotive

General IndustrySuvarnabhumi Airport

10

ContentsContents

Company Overviewy

Operation Highlightsp g g

Financial Highlightsg g

Future Investments

11

Average Tariff in 2006-2008

Unit: Baht/m3

10

7.047.59 7.7

6

8

4

6

Avg. Tarrif

2

02006 2007 20082006 2007 2008

12

New Tariff Structure for 2008-2012

New Tariff Expected Expected Expected Expected

Unit: Baht/m3

Type of CustomersNew Tariff In 2008*

Expected Tariff

In 2009

Expected Tariff

In 2010

Expected Tariff

In 2011

Expected Tariff

In 2012

1. PWA &Government & Domestic Consumption 8.5** 9.25 10.00 10.50 11.00p

2. IEAT and existing user 8.5** 9.25 10.00 10.50 11.00

3. Private Industrial Estate 9.5 10.25 11.00 11.50 12.00

4. General&Other Factory 10.5 11.25 12.00 12.50 13.00

13* Gradually increasing the tariff from May 2008 classified and negotiated by type of customers** 7 Baht/m3 during May- Dec 2008 for the 7 sales contract of PWA(6) and IEAT(1) in chonburi according to the resolution of EGM2/2008

East Water Group Source of Revenue

Million Baht

2,500 Other Income

Pi

2,094

1,900 8%

2,401

3%

2,430

1%

2,437

5% 1%

2% 1% 2%

1,500

2,000 Pipes

Drinking Water

Services Income

1,416

1%5%

9%

8%12%

5%

8% 13%

2%

19%12%19%

13%

3%6%

22%

%

5%

5% %

500

1,000 Services Income

Tap Water

Raw Water65%79%

7%9%8%

63% 56%

12%

63% 69%

-

500 Raw Water

2003 2004 2005 2006 2007 2008

14

Sustainable Raw Water Volume and Sale Growth

Million Cubic Meter Million Baht

250

199211

228

1 800

2,000

1,6031,753

8%9%

200 157

178190

1,400

1,600

1,800

1,1061,344

1,404

1,603

150

1,000

1,200

, 001,106

100

600

800

50

200

400

- 2003 2004 2005 2006 2007 2008

- 2003 2004 2005 2006 2007 2008

15

Continuous Tap Water Volume and Sale Growth

60

Million Cubic Meter

700 Million Baht

44

4850 600

472541 15%9 %

40

400

500

317

17

22

27

20

30

300

159

221

1417

10

20

100

200 123159

02003 2004 2005 2006 2007 2008

-

100

2003 2004 2005 2006 2007 20082003 2004 2005 2006 2007 2008

16

2003 2004 2005 2006 2007 2008

Raw Water Costs Breakdown

COGS Breakdown of Raw Water ComparisonRevenue & COGS of Raw Water Comparison

16%13% Raw Water

1 404 101,603.24

1,752.72

17%

5%

12%

4% Labour

Electricity2007

1,106.78 1,256.941,344.05

1,404.10

on B

aht

35%

31%

36%

31%

Electricity

Depreciation

Milli

o

36%

Others

20082003 2004 2005 2006 2007 2008

38% 37% 38%38%38% 41%

20082003 2004 2005 2006 2007 2008

COGS Rev

17

Consolidated EBIT & EBITDA

EBITDAEBIT

1,400 1,220

EBITDA

1,000 817 827 783 883 17% 15%

1,000

1,200

812

1,024 1,048 1,039 1,064

800 656

754

800 600

400

600 400

200

-

200

-2003 2004 2005 2006 2007 2008

-2003 2004 2005 2006 2007 2008

18

Net Profits Performance

Million BahtConsolidated Net Income Separated Net Income

Million BahtMillion Baht

700

571

700

29%20%

500

600

441

500 508

441

571

500

600

441

500

443 432

519 20%

400 353 400 353

200

300

200

300

100 100

-2003 2004 2005 2006 2007 2008

19

-2003 2004 2005 2006 2007 2008

Financial Structure of East Water

Consolidated D/E RatioSeparated D/E Ratio

1.201.25 1.25

0.93 0.920 97

1.021.09

1 0.870 81

0.88

1.040.97

1

0.97

0 56

0.75

Tim

es

0.810.86

0.75

Tim

es

0.56

0 25

0.5 0.52

0.25

0.5T

0

0.25

0

20

Dividend Policy

Baht/Share*

0.50.35

0.450.39 0.39

0.33 0.35

0.3 0.20

0.25 0.25 0.25 0.25

57% 56%

0.02003 2004 2005 2006 2007 2008

57% 56% 64% 64% 76%

2003 2004 2005 2006 2007 2008

EPS DPS

* Adjusting figure for comparison purpose of par split from 10 to 1 Baht/share since May 200521

Source of FundsSource of Loan Amount

(MB)Outsta-nding

Tenor (years)

Rate2005-2007

Rate2008-2009

Rate2010-2011

Long-Term Loan from KTB- Tranche A

1500500

948202

77

4.5*4.5*

MLR-1.50MLR-1.50

MLR-0.75MLR-0.75

- Tranche B

Source of Loan Amount (MB)

Outsta-nding

Tenor (years)

Rate2007-2009

Rate2010-2011

Rate2012-2013

Long-Term Loan from KTB-Tranche C( Semi-Annual) 1500 1500 7 4.8 MLR-1.75 MLR-1.50

Source of Loan Amount (MB)

Outsta-nding

Tenor (years)

Rate2007-2009

Rate2010-2011

Rate2012-2013

Long-Term Loan from KBANK- Tranche A(Undrawdown) 1000 - 7 MLR-2.0 MLR-1.75 MLR-1.50

* New interest rate be adjusted down from 6% and MLR-1.5% for KTB Long-Term Loan in Tranche A and B respectively, to 4.5% from July 2007 to Oct 201022

ContentsContents




Future InvestmentsFuture Investments

23

Future Projects

Waterworks ProjectsRaw Water Projects j

•Existing Contract Expansion•Samui and Chonburi Project

j

1.Expansion and Enhancement• Prasae-Klongyai Samui and Chonburi Project

•IWP Projects/ Waste Water Projects•Expand to Regional / SE Asia

•Potential Project in India (Bangalore)

Prasae Klongyai• Nongplalai-Dokkrai-Mabtapud• Nongkor-Laemchabang• Nongplalai-Nongkor Potential Project in India (Bangalore)

•Potential Project in Vietnam (Ho Chi Minh City)

• Nongplalai-Nongkor

2. Alternative ProjectOff Stream Reservoir• Off-Stream Reservoir

• Sea Water Reverse Osmosis• Reserve Pool Linkage

24

Prasae-Klongyai Pipeline Linkage Project

Prasae-Klongyai connecting pipeline project

KlongYai PrasaeAppointed in Aug 2005, by the Cabinet, as the General Contractor for the 31 8 km Prasae-Klongyai Pipeline

Pipeline linkage 120 m.the 31.8 km. Prasae-Klongyai Pipeline project(1,680MB) to supply water to MTP

Pumping station

98% constructions progress achieved, only 120m. of pipe laying and system commissioning outstanding

NongPlaLai

Existing Pipe Network

RID asked for the Budget Allocation but still in process

Existing Pipe Network

Constructing Pipe Network

Pumping station

Due to long budget allocation process and probable higher water cost, EW proposed to be the owner of the pipeline with the water allocation from Pumping stationpipeline with the water allocation from RID

25

L i i li f N l l i t M t h t

NongPlaLai-Dokkrai- Maptaphut Line 3BangPra Laying pipeline from Nongplalai to Maptaphut

area diameter 1,350 – 1,600 mm. approx. 30 km.Increasingly potential pipeline from 168 to

307 mcm. per year to be supported waterNongKho

BangPra

307 mcm. per year to be supported water demand in 10 years

Total investment 1,770 MB Project Period 2009-2011

KlongYaiPrasae

PPrasae-Klongyai (RID)

NongPlaLai

DokKrai

g

Laying pipeline approx. 30 km.

Maptaphut Industrial Estate

26

Alternative Raw Water Resource Supply

Water resourcesdevelopment by EW

1 Private Water Puddle : 60-80 mcm.

2 Off-stream Reservoir : 30 mcm.

3 Sea Water Reverse Osmosis : 100k-300k/day ( 36-100 mcm./year)

Existing Pipe NetworkConstructing Pipe Network27

Waterworks Projects

• Samui Island WW.– The expansion project will be started in Feb 2009 to be increased capacities from 3,000 to 6,000

cm. per day which investment budget approx. 100MB( 30 years concession )

• Chonburi WW. – In process of biding for tap water bound sales 24,000 cm. per day which will be resulted in early

2009 with an initial budget of approx.120 MB ( 20 years concession )

• Expand to Regional / SE Asia

•Potential Project in India (Bangalore)- 5-year water loss reduction project with 3 contracts for a budget more than 2,000 MB and

funded by JIBIC

•Potential Project in Vietnam (Ho Chi Minh City)- Potential acquisition of equity for a Build-Own-Operate tap water supply treatment plant

Indicative East water Group’s Capital Expenditure

Projects TotalMB

2009MB

2010MB

2011MB

2012MB

2013MB

Unit : Million Baht

Raw Water Projects(Existing Cap. Enhancement)

3,800 1,290 1,580 790 - 140

Tap Water Projects 730 370 110 230 20 0

Total Capital Expenditure 4,530 1,660 1,690 1,020 20 140

Raw Water Projects(Alternative Projects)**

2,960 60 690 730 1,030 450

29** Alternative Project is not calculated in the CAPEX as it is a raw water replacement project which will be updated in the future

Thank YouThank YouThank YouThank Youwww.eastwater.comwww.eastwater.com

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