Company Presentation 2013

Transcription

1 Company Presentation

2 Business Portfolio Currently, AEGEA operates in 26 municipalities in 5 states: Water and sewage Serves 17 municipalities nearby Cuiabá (MT) 3.5 million people served + 1,700 employees + 900,000 Water and Sewage Households Operations in states that represent more than 50% of Brazilian GDP Águas de Barra do Garças (MT) Water and sewage Serves 56,560 Households Water (5 cities) and sewage (4 cities) Serves 5 municipalities in the state of Rio de Janeiro 15% AEGEA Water and sewage Serves the capital city Campo Grande (MS) Water Service agreement in the water management system in the municipality of Penha (SC) Sewage Serves the municipality of Piracicaba (SP) 85% Other 2

3 Organizational Structure AEGEA has the support of two important groups in the sectors it operates: Equipav and IFC. 100% Concessions Services 100% 100% 51% 100% 100% 50% 3

4 Brazil: Low Water and Sewage Coverage and Treatment Government Companies low investment level caused a significant deficit of water and sewage coverage and treatment. Water Coverage % Population Sewage Coverage % Population Average: 82.4% Average: 48.1% Source: SNIS 2011 < 40% 40% to 60% 60% to 80% 80% to 90% > 90% Source: SNIS 2011 < 10% 10% to 20% 20% to 40% 40% to 70% > 70% Distribution Loss Ratio % Available Volume Average: 38.8% < 20% 20.0% to 30.0% 30.1% to 40.0% > 40.0% Sewage Treatment % Sewage Generated (1) Average: 37.5% < 10% 10% to 20% 20% to 40% 40% to 70% > 70% Source: SNIS 2011 (¹) Considering that total sewage is equivalent to water consumption Source: SNIS 2011(National Sanitation Information System) 4

5 Growth and Estimate of Access to Water and Sewage Services in Brazil The lack between current coverage and official projections Population benefitting from Water and Sewage Services % of population Water Coverage Sewage Coverage Treated Sewage 80% 81% 81% 82% 81% 82% Coverage Gap 100% 92% 93% 42% 43% 39% 32% 33% 35% 45% 46% 48% 38% 38% 38% (Plansab s Estimates) confirms the need of significant investments in the sector. Sources: SNIS, IBGE, AEGEA, National Sanitation Plan Notes: 1. Of total sewage, considering that the sewage volume is equivalent to water consumption 2. Projections were prepared by the Government in the long-term sanitation coverage plan 5

6 53% 46% 38% 35% Water Business Potential A sector with great potential 98% 94% Sanitation Coverage (% of population) 287 Water Consumption Per Capita (m³/year) 74% 71% 68% 67% 46% 46% 43% Source: FAO - AQUASTAT, ANA, UN, IBGE and SNIS Notes: 1. Includes data; 2. Includes data; 3. Includes data 74% 69% 73% 38% 26% 20% 18% 18% 17% 13% 10% 10% 3% USA Europe Brazil Source: Hydro, CSS-US, ENHIS, SNIS Source: SWAN Research, August % of water available in Brazil is not invoiced, the highest rate among almost all large developing countries and much higher than the average of developed countries. 6

7 Overview on Brazilian Government s Investments in Sanitation The public sector has not been able to achieve the goals established in the last decade Budgeted vs. Actual Investment Public Sector (R$ billion) National Sanitation Plan Necessary Investments (R$ billion¹) 49% 49% 38% 43% 44% % 29% Budgeted Actual Actual/Budgeted (Accrued) and significant investments will be necessary to achieve the coverage goal proposed for the following years. Source: SNIS and National Sanitation Plan Note: 1. Includes June 2010 data 7 7

8 Private Sector s Market Share The Brazilian water and sewage market is still ruled by local or state government companies Region Total economies in Brazil (in thousands of units) Companies Share Private Sector Public Sector North 3, % 61.3% Northeast 20, % 100.0% Southeast 48, % 92.2% South 15, % 97.6% Mid-west 7, % 84.9% TOTAL 96, % 93.0% Market Share of Private Operators on the regions 21.1% 0.0% 56.4% 5.6% 17.0% 100.0%...only 7.0% of total economies in Brazil is served by private companies, 56.4% of which is located in the Southeast Region. Source: SNIS 2011 (National Sanitation Information System) 8

9 Management, Sustainability and Inclusive Model SUSTAINABILITY 9

10 Qualification of Employees Knowledge and human capital Team with vast knowledge of the sector, able to train people prepared to spread this knowledge in order to improve operations, develop new markets and generate new businesses. Audacious Sanitation and Infrastructure growth goals Skilled people Form high-performance teams; Improve and prepare new leaders; Establish talent attraction and retention mechanisms. Águas Guariroba among the Best Companies to Work for, according to Você SA magazine s ranking Technical Qualification with the purpose of training employees to compose a Bank to meet New Businesses demand. It will qualify Managers who will have technical knowledge of the main processes of a sanitation company. Duration of the Course: 2 and a half years, 6 months of pre-selection (on-site training) and 2 years of Graduate (on-site and/or distance training). TRAINING (PRE-SELECTION) 02/2012 to 07/2012 GRADUATE (QUALIFICATION) 08/2012 to 08/2014 OPERATION/BANK NEW BUSINESS 10

11 Complete Business Management Innovative institutional model, in which each business unit has two officers: one focused on population needs and demands and other on granting authority and the regulatory agency. Operations Management: Executive Officer Monitoring of Performance Indicators Definition and Pursuit of Goals Agreement Management: CEO Contact with regulatory agents and the granting authority Open dialogue with Local Community Associations 11

12 Complete Business Management CEO The CEO has a key role on developing the relationship with the community and stakeholders through social and inclusive projects The practice in Aegea and concessionaries is to have an open-door policy in order to listen the community and turn into the right direction 12

13 Afluentes Program We understand our community Through each new business, AEGEA becomes part of local community and engages in inhabitants-clients expectations and demands, for the creation of a relationship system with the community, which is considered an asset included in the strategic plan. The Afluentes Program has the purpose of fostering the integration between neighborhood associations and the company, in order to establish an open communication channel with the community. Through the relationship with community associations, the company gets closer to the inhabitants, knows their needs, hears their suggestions and opinions on the services provided. Case: In Campo Grande/MS, the concessionaire maintains a regular contact with about 320 community associations, to discuss the quality of services and inhabitants demands. From 2009 to 2012, a total of 5,430 requests from community associations were granted. 13

14 Social Programs The Company develops projects aimed at urban improvements, environmental education, cultural and sports activities and beneficent initiatives, in addition to maintaining the program of special tariff on services to low-income population. Jovem Aprendiz For students between the ages of 14 and 24, to help them to enter the job market. Sanear Morena Campo Grande s largest water and sewage program, providing sewage services to about 200,000 people. Saber Faz Bem Saber Faz Bem is a program focused on integration of Prolagos with the local community, through: Classes Students visit to Units Events Sanear Morena 2 Sanear Morena 2 project comprises the construction of 139 km of sewage network, 13,000 home connections and a new sewage treatment station. Águas Novas Água Nova project stimulates treatment and proper disposal of waste and reuse of water to clean the Filter and Settlers located in ETA-Juturnaíba. Programa Saúde Nota 10 The purpose is to raise awareness of students on the importance of water and sewage treatment for the environment and the public health. Cine Prolagos Cine Prolagos is a big screen that broadcasts environmental-related movies free of charge for the population 3,500 viewers De Olho no Óleo The De Olho no Óleo (Keeping and Eye on Oil) campaign is developed in schools included in the Saúde Nota 10 program, and has a focus on the importance of collecting and recycling cooking oil already used. 14

15 Social Economic Overview Brazil Campo Grande Low Middle High Classes Income Boundaries Extremellly Poor E by R$ Poor D2 from R$ to R$ Vulnerable D1 from R$ to R$ Low C3 from R$ to R$ Middle C2 from R$ to R$ High C1 from R$ to R$ 1, Low B from R$ 1, to R$ 2, High A above R$ 2, Source: Pesquisa Nacional por Amostra de Domicílios (PNAD) - National Research based on Household Sample ¹It was 38% in

16 Águas Guariroba: Social Project Projetos CEO Sociológicos Aegea through its concessionaire Águas Guariroba has developed a project called Projetos Sociológicos which aims to benefit low-income Families in Campo Grande. With a specialized team the company: 1. Identify the families 2. Schedule a visit with a case-worker 3. The case-worker visited the family 4. Águas Guariroba analyses the situation of the Household and provide discount and different options for the house to be legally connected to the network 5. The concessionaire supports the family to get the Tarifa Social In addition to that, the company verifies wether there are existing leaks as well as the possibillity of fixing it. 16

17 Águas Guariroba: Social Project Profile Income R$ a month/family Number of households up to 300 The streets were opened by the citizens No regular water No sewage Irregular connections increasing losses 17

18 Águas Guariroba: Social Project After Águas Guariroba Project Casas Populares built for low income families 363 households connected to regular water Access to eletricity Access to sewage collector system Cesta Básica in compliance By developing the project Águas Guariroba was also able to: Expanding its customer base Reduce losses accounting with regular connections Provide Sewage services to its population 18

19 Águas Guariroba: Social Project Disease Reduction in Campo Grande (*) Disease % Typhoid fever % Other infections caused by Salmonella % Shigellosis % Other bacterial infections % Bacterial food poisoning % Ameobiasis % Intestinal protozoan infections % Intestinal infections % Diarrhea % Hookworm % Ascariasis % Trichuriasis % Pinworm % Other helminths % Unidentified intestinal parasitosis % Average 45% Total disease reduction % (*) Source: Campo Grande Municipal Department of Health 19

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22 Social Networks Investor Relations Aegea Saneamento e Participações S.A. Av. Brig. Faria Lima, º andar São Paulo Phone: Fax: