1Q20 CONFERENCE CALL
Economic-Financial and Investor Relations Office
May 19, 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 Santo André) | (Including Santo André) | |||||||||||||||||||||||
2.2% | 2.6% | |||||||||||||||||||||||
950.4 | 917.7 | 972.4 | 997.9 | |||||||||||||||||||||
2.0 % | 532.5 | 1.1% | 538.4 | |||||||||||||||||||||
514.8 | 525.3 | |||||||||||||||||||||||
Water | Water | |||||||||||||||||||||||
Sewage | 2.5 % | Sewage | 4.5% | |||||||||||||||||||||
435.6 | 446.4 | 439.9 | 459.5 | |||||||||||||||||||||
1Q19 | 1Q20 | 1Q19 | 1Q20 | |||||||||||||||||||||
Historical Billed Volume | ||||||||||||||||||||||||
942 | 944 | 931 | 950 | 973 | 989 | 959 | 993 | 998 | ||||||||||||||||
910 | 925 | 904 | 923 | 924 | ||||||||||||||||||||
856 | 863 | 872 | 880 | 880 | ||||||||||||||||||||
835 | 841 | |||||||||||||||||||||||
522 | 536 | 538 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
490 | 494 | 495 | 512 | 520 | 509 | 519 | 528 | 531 | 523 | 520 | 534 | 533 | 556 | 437 | 457 | 460 | ||||||||||||||||||||||||||||||||||||||||||||||
485 | 472 | 473 | 484 | 433 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
386 | 399 | 405 | 395 | 404 | 414 | 413 | 408 | 404 | 416 | 440 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
371 | 363 | 368 | 379 | 382 | 386 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1Q15 | 2Q15 | 3Q15 | 4Q15 | 1Q16 | 2Q16 | 3Q16 | 4Q16 | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 1Q20 | 3 | |||||||||||||||||||||||||||||||||||||||||
Sewage | Water | Water + Sewage | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL HIGLIGHTS (R$ million)
3,536.1
Gross operating revenue*7.6%3,803.9
3,878.5
Net operating revenue4.2%4,042.4
Costs, adm. & | 2,746.4 | ||||
selling expenses | 3,045.7 | 10.9% | |||
and construction costs | |||||
Adjusted EBITDA | 1,544.7 | ||||
3.9% | |||||
1,483.8 | |||||
1,133.9
Adjusted EBIT11.8%
1,000.3
647.3
Net income/(loss)201.6%-657.9
(*) Does not include construction revenue
1Q19 | 1Q20 | 4 | |
COSTS AND EXPENSES (R$ million)
Costs and expenses in 1Q19*: R$ | -2.156,4 | 17.6% | |||||||||||
Costs and expenses in 1Q20*: R$ | -2.536,9 | ||||||||||||
-0.5% | *Excluding construction costs | ||||||||||||
681.0 677.8 | 17.7% | ||||||||||||
0.5% | |||||||||||||
15.4% | 52.5% | 483.5 | |||||||||||
422.2 | 424.1 | 410.8 | |||||||||||
8.2% | 326.5 | 292.4 | 1,919.2% | ||||||||||
14.5% | 283.0 | ||||||||||||
191.7 | 157.5 | -1.3% | |||||||||||
57.4 | 65.7 | 86.7 | 93.8 | ||||||||||
7.8 | 15.8 | 15.6 | |||||||||||
Salaries and payroll | General Supplies | Treatment Supplies | Services | Electricity | General Expenses | Depreciation and | Allowance for Doubtful | Tax Expenses | |||||
charges and Pension | Amortization | Accounts | |||||||||||
plan obligations |
1Q19 1Q20
% Net Revenue in 1Q19 | ||||||||
17.6% | 1.5% | 2.2% | 10.9% | 7.3% | 4.9% | 10.6% | 0.2% | 0.4% |
% Net Revenue in 2019 | ||||||||
16.8% | 1.6% | 2.3% | 10.5% | 8.1% | 7.2% | 12.0% | 3.9% | 0.4% |
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FINANCIAL PERFORMANCE (R$ million)
163.9
(299.3) (3.2)
647.3
(1,829.8) | 663.2 | (657.9) |
1Q19 | N.O.R. | Costs & | Other Revenue | Net Financial | Income Tax & | 1Q20 |
Net Income/ (Loss) | Expenses | & Expenses (*) | Result | Social Contribution | Net Income/(Loss) |
1Q20 | 1Q19 | Variation | ||
Net Income 1Q19 | 647.3 | |||
Net Operating Revenue | 4,042.4 | 3,878.5 | 163.9 | |
Costs & Expenses | (3,045.7) | (2,746.4) | (299.3) | |
Other Revenue & Expenses (*) | 6.4 | 9.6 | (3.2) | |
Net Financial Result | (1,980.3) | (150.5) | (1,829.8) | |
Income Tax & Social | ||||
Contribution | 319.3 | (343.9) | 663.2 | |
Net Income 1Q20 | (657.9) |
(*) Includes equity results | 6 |
COVID-19 - SOCIAL INITIATIVES
- Installation of water in field hospitals
- Cleaning of the areas
- 290 municipalities in the State
- 9 thousand cleaning initiatives
- Distribution of water tanks
- Total of 4,500 water tanks
- Installation of washbasins and drinking fountains throughout the State
- 65 cities in the coastal and interior areas
- 60 washbasins installed in the São Paulo Metropolitan Region
- Volunteer Program
- 35 tons of food and 17 tons of hygiene kits
7
INITIATIVES TO COMBAT THE EFFECTS OF THE ECONOMIC CRISIS
Economic Crisis | Covid-19 | |
Factors impacting the Company's results and liquidity
UNFAVORABLE | FAVORABLE |
- Reduction innon-residential demand
- Increase in default
- Exemption of temporary tariffs to social/favela categories
- Postponement of tariff adjustment
- High exchange rate volatility
- Increase in residential demand
- Expansion of public and multilateral financing to the sector
- Postponement of the payment of 50% of the Regulation and Inspection Fee
- Possibility to postpone amortizations
MEASURES | STATUS | |
R$ 360 million budget reduction in expenses and postponement of R$ 300 million in investments | Effetive | |
25th debentures issuance totaling R$ 1.45 billion | Effetive | |
Replacement of debt in foreign currency for local currency (US$ 495 million) | Effetive | |
Reduction of staff through the Knowledge Retention Program | Ongoing | |
Postponements of amortizations, bringing receipts forward and contracting new financing | Under analysis | |
Replace escrow deposits for guarantee insurance | Under analysis | 8 |
DEBT BREAKDOWN
1Q20 | 1Q20 - With Change Currency Adjustment |
- Debt conversion from US$ 494 million for R$ 2.8 billion
- 32% reduction in total foreign currency debt
- 17% reduction in foreign exchange exposure estimated in dollar on March 31st
- 25th debenture issueance
- Amount of R$ 1.45 billion
- Conditions: CDI +3,30% - Term: 18 month
- Additional (potential) Funding
- IDB Invest - mandate letter
- Infrastructure debentures - R$ 1 billion - approved by the Ministry of Regional Development
- Support from public banks and multilateral entities
- Standstill on debt payment
- Disbursement anticipation
Scope adjustments and/or counterparts limits
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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 19 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 May 2020 07:07:07 UTC