Aguas Andinas (AGUAS) Investor Day 2024 summary

Strategic direction and purpose

• Relaunched corporate purpose emphasizes environmental sustainability, social legitimacy, and stakeholder engagement, aiming to ensure water and sanitation services for over 8 million people while adapting to climate change and evolving societal expectations.

• The Biociudad strategy and a 2030 roadmap focus on resilience, adaptation, and sustainable development, integrating ESG principles and connecting economic activity with climate adaptation, circular economy, and biodiversity objectives.

• Internal transformation initiatives, such as Avanza+, drive efficiency, innovation, and value creation through 130+ projects, including universal water access and energy optimization, with over 1,500 employees engaged in activating the new purpose.

• Enhanced community engagement and educational outreach aim to build social license to operate, address rural water challenges, and include educational visits and university collaborations.

• Leadership across business areas is empowered to drive a culture inspired by the new purpose, focusing on social and environmental impact and creating shared value.

Financial guidance and investment plans

• Achieved a landmark tariff agreement with increases of 3% in March/April 2025, 1% in December 2025, and 1% in March 2026, totaling a 5% rise by March 2026.

• The agreement includes a Base Drought rate (3.85%) linked to new well construction and mechanisms to transfer emergency water purchase costs to rates.

• Planned investments for the next five years are capped at CLP 380 million, with flagship projects including new wells, alternative supply plans, plant deodorization, advanced sludge treatment, and La Farfana biofactory upgrades.

• Two major long-term projects—water reuse (Retorno Maipo) and new Maipo conveyance—are under environmental review, with implementation targeted for 2032; post-2030 projects include Maipo Return pipeline and new sources for Maipo Poniente.

• Financing will leverage new tariff flows, operational savings from Avanza+, and diversified funding sources, including off-balance partnerships for energy projects.

Operational and business developments

• Infrastructure upgrades, such as the Pirque mega-reservoirs, have increased Santiago’s water resilience to 37 hours, with a goal to reach 96 hours.

• New projects will further enhance drought resilience, water quality, and environmental performance, including thermal hydrolysis and sludge drying for agricultural reuse.

• Customer-focused initiatives include replacing 400,000 water meters to reduce losses and expanding universal access, especially for vulnerable populations.

• Energy efficiency and renewable generation projects are being prioritized to offset rising electricity costs and support sustainability goals.

• The company maintains strong credit ratings (AA+ local, A- S&P) and recently completed a $110 million diversification issuance.