Aguas Andinas (AGUAS) Corporate presentation summary

Company overview and market position

• Provides drinking water, sewerage, and wastewater treatment to around 8 million people, with 2.3 million customers and a 40% market share in Chile's Metropolitan Region.

• Operates 22 drinking water plants and 17 wastewater treatment plants, with 100% coverage in concession areas.

• Listed on the Santiago Stock Exchange, with Veolia as the main shareholder (50.1% ownership via IAM).

• Holds the highest international rating in Latin America for the sector (A- by S&P) and strong local ratings.

• Board of Directors renewed in April 2025; new CEO and Director of Strategy appointed.

Regulatory framework and tariff process

• Operates under a stable regulatory environment with perpetual concession and national oversight by SISS.

• Tariffs set every five years, indexed to inflation and other economic indicators, ensuring self-financing of investments.

• Eighth tariff process concluded, with base rate increases (5% for Aguas Andinas, 12% for Aguas Cordillera, 5% for Aguas Manquehue).

• Tariff-linked projects include drought resilience, alternative water sources, and infrastructure upgrades.

• Weighted tariff adjustment of -12% and new investments recognized in tariffs.

Climate change adaptation and investment

• Facing increased frequency of extreme turbidity events and severe droughts, requiring major infrastructure investments.

• Expanded autonomy from 4 to 37 hours during turbidity events with Pirque Mega Tanks.

• Biociudad strategy launched to adapt water provision to climate change, including new wells and alternative catchments.

• Planned capex of ~$300 billion CLP for Biociudad projects and ~$100 billion CLP for other flagship projects (2025-2030).

• Annual investment expected at $200–$250 billion CLP, with a 70% payout of 2024 earnings proposed.