Regulated businesses December 15, 2014/media/Files/I/Iam-Corp/presentations/en/...COST OF CAPITAL = RISK FREE RATE + ... Regulated businesses ... RAINFALL AT EMBALSE EL YESO (mm)(1)

Regulated businesses

Suez Environnement

December 15, 2014

- 1 -


Suez Environnement

December 15, 2014

- 2 -

Source: INE

Sources: Central Bank of Chile

Source: Central Bank of Chile

Sources: Central Bank of Chile


Suez Environnement

December 15, 2014

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•

•


Suez Environnement

December 15, 2014

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VIII Region / Concepción

Essbio

Xii Region / Pta.Arenas

Aguas Magallanes

XV y I Region / Iquique Aguas Del Altiplano

V Region / Valparaíso Esval

VI Region / Rancagua Essel

VII Region / Talca Aguas Nuevo Sur

Los Ríos / Valdivia Aguas Décima

Xi Region / Coyhaique Aguas Patagonia

II Region / Antofagasta Aguas De Antofagasta

III Region / Copiapó Aguas De Chañar

IV Region / La Serena Aguas Del Valle

IX Region / Temuco Aguas Araucania

R.M. / Santiago Aguas Andinas

X Region de Los Lagos y XIV Region de Los Ríos / Pto.Montt Essal


Suez Environnement

December 15, 2014

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Suez Environnement

December 15, 2014

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SEOUL

ROME

SANTIAGO

ATHENS

STOCKHOLM

MADRID

WASHINGTON

MEXICO CITY

LONDON

PARIS

OTTOWA

COPENHAGEN

SYDNEY

BERLIN

OSLO

1,24

1,36

1,39

1,62

2,33

2,56

2,74

3,23

3,65

3,88

5,12

5,33

5,93

6,6

7,09


Suez Environnement

December 15, 2014

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Suez Environnement

December 15, 2014

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•

•


Suez Environnement

December 15, 2014

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Suez Environnement

December 15, 2014

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Suez Environnement

December 15, 2014

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TOTAL LONG-TERM COSTS

(CTLP):

Annual revenues required by the

Model Company

Norms/regulations Demand projections

Geography Quality standards Other parameters

Expected demand (Q*)

Cost of Capital

Design and Valuation of Infrastructure

• Water production • Water distribution • Sewage collection • Sewage treatment/disposal • Commercial and

administration

Annual Return

on Investment

Annual Operating

Costs

Average Annual Tariff = Annual Return on Investment ($) + Annual Operating Costs ($) Demand Q*(m3)


Suez Environnement

December 15, 2014

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COST OF CAPITAL = RISK FREE RATE + RISK PREMIUM

0%

1%

2%

3%

4%

2008 2009 2010 2011 2012 2013 2014

SECONDARY MARKET INTEREST RATES, UF 10-YEAR CHILEAN BOND (REAL)


Suez Environnement

December 15, 2014

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Suez Environnement

December 15, 2014

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1,06

1,35

1,62

1,72

1,95

1,99

2,00

2,03

2,08

2,14

2,29

2,35

2,38

2,50

3,02

3,29

Maipú

Gran Santiago

Concepción

Rancagua

La Serena

Temuco

Talca

Valdivia

Valparaíso

Arica

Copiapó

Punta Arenas

Puerto Montt

Iquique

Antofagasta

Coyhaique

Source: SISS Industry Report 2013. Tariffs to December 2013 considering US $1= $524


Suez Environnement

December 15, 2014

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50,1%

24,2%

5,0%

2,2% 1,9%

16,6% IAM

International

CORFO

Workers

Pension Funds

Others

50.1%

100%

56.6%


Suez Environnement

December 15, 2014

- 16 -


Suez Environnement

December 15, 2014

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Suez Environnement

December 15, 2014

- 18 -

CLIENTS/EMPLOYEES BILLING/EMPLOYEES Th. M3

RUPTURES X 100 KMS. RUPTURES X 1.000 CLIENTS

Source: SISS Industry Report 2013


Suez Environnement

December 15, 2014

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0,200 0,180 0,185 0,190

0,162 0,148

0,131

0,00

0,10

0,20

2008 2009 2010 2011 2012 2013 2014

RUPTURE RATES (RUP./KM.YEAR)

REDUCTION by ~35% of the annual ruptures/km

rates in 6 years INCREASE IN AUTONOMY of

the potable water distribution system for 9 hours for when there is an emergency that

does not allow for the production of water

VALUATION OF RESIDUES IN WASTEWATER TREATMENT

PLANTS: • Water suitable for all types of

irrigation • Bio-methane at the Farfana Plant • Bio-solids • Biodiesel (R&D)

Implementation of arsenic abatement

treatments Company’s world class positioning in Health and

Safety standards

“10 Rules that Save Lives”


Suez Environnement

December 15, 2014

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In US$m

REVENUES

+5% Growth (CAGR)

EBITDA

393 390435

463 472

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

50

100

150

200

250

300

350

400

450

500

2009 2010 2011 2012 2013

EBITDA (MM$) EBITDA MARGIN

+5% Growth (CAGR)


Suez Environnement

December 15, 2014

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Suez Environnement

December 15, 2014

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Suez Environnement

December 15, 2014

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50,0

70,0

90,0

110,0

130,0

150,0

170,0

190,0

avr.

-08

juil.

-08

oct.-0

8

janv.-

09

avr.

-09

juil.

-09

oct.-0

9

janv.-

10

avr.

-10

juil.

-10

oct.-1

0

janv.-

11

avr.

-11

juil.

-11

oct.-1

1

janv.-

12

avr.

-12

juil.

-12

oct.-1

2

janv.-

13

avr.

-13

juil.

-13

oct.-1

3

janv.-

14

avr.

-14

juil.

-14

oct.-1

4

Aguas Andinas IPSA INDEX


Suez Environnement

December 15, 2014

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Suez Environnement

December 15, 2014

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Suez Environnement

December 15, 2014

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Suez Environnement

December 15, 2014

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Suez Environnement

December 15, 2014

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Hydraulic Efficiency Plan to reduce losses and

Energy Efficiency Plan


Suez Environnement

December 15, 2014

- 29 -

FLOW OF THE MAIPO RIVER (M3/S)

(1) Source: Dirección General de Aguas (DGA)

RAINFALL AT EMBALSE EL YESO

(mm)(1)

* Average calculated from 1983 to date.

0,00

50,00

100,00

150,00

200,00

Average Flow Mimimum Flow

Maximum Flow

0

200

400

600

800

1000

1200

1400

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

sep

t./1

4


Suez Environnement

December 15, 2014

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•

•

•


Suez Environnement

December 15, 2014

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Documents

Regulated businesses December 15, 2014/media/Files/I/Iam-Corp/presentations/en/...COST OF CAPITAL = RISK FREE RATE + ... Regulated businesses ... RAINFALL AT EMBALSE EL YESO (mm)(1)