Aguas Andinas (AGUAS) Investor Day 2024 summary

Strategic Direction and Purpose

• Relaunched corporate purpose emphasizes environmental sustainability, social responsibility, and stakeholder engagement, aligning with evolving community expectations and climate challenges.

• Over 1,500 employees participated in co-creating and internalizing the new purpose, embedding it into all processes and decision-making.

• The purpose-driven approach aims to create a resilient, adaptive, and collaborative organization, increasing reputational value and shared value creation.

• The company’s management model now integrates environmental education, community outreach, and transparent communication to strengthen its social license to operate.

• The company is expanding its role to support rural and peripheral communities with water access and sanitation solutions, including educational visits and university collaborations.

Road Map and Sustainability Objectives

• A new roadmap with specific strategic lines and 18 objectives connects economic activity with purpose, focusing on basin-wide resource management, climate adaptation, circular economy, and biodiversity.

• The roadmap prioritizes customer satisfaction, solid financial performance, and safe working environments.

• The company is committed to educating the community and reducing environmental impacts.

• Actions include support for rural water services and collaboration with universities.

• The purpose is integrated into project management, guiding cultural change and collaborative work.

Tariff Process and Regulatory Environment

• Achieved a landmark agreement with the regulator for the 2025–2030 tariff period, including a 3% increase in March 2025, plus 1% hikes in December 2025 and March 2026, totaling a 5% rise, with mechanisms to address drought-related costs.

• The base drought rate applies when new wells are constructed or compensation costs are incurred for water transfers to ensure supply during droughts.

• The new tariff structure incorporates projects to enhance resilience, such as new wells, alternative supply plans, and infrastructure upgrades.

• Tariffs totaling Ch$40,677 million in Total Net Long-Term Cost (TNLTC) will be applied as new standards/services are provided.

• The process reflects a shift in regulatory mindset, now recognizing climate change as a structural issue requiring long-term solutions.