Fellow stockholders, ladies, and gentlemen.

For many companies here in the country and across the globe, 2021 was a critical year of recovery from the unprecedented impact of the COVID-19 pandemic. Manila Water is no exception.

For us, 2021 marks an important milestone in two fundamental ways. First, 2021 was a year to regain stability amid the challenging dynamics of the new environment under COVID-19. Second, the year was dedicated to equal focus upon rebuilding our business and gearing up for growth, and will also improve the financial performance of the Company.

When I was appointed as chairman less than a year ago, I saw it as a genuine privilege to be part of an important company rooted in service and hard work to provide a basic human need for sustenance and sanitation: water. I am involved in many industries, and now with water provision, distribution, and sanitation, this aligns with my firm belief that investing to provide people better quality and access to basic services is critical to a country's sustainable social and economic growth.

To this end, we immediately got to work.

For the East Zone Concession, our first order of business was to maintain reliable service to our customers as the economy slowly opened up. Through the hard work of our technical and business teams on the ground, we successfully maintained water availability at regulatory levels.

Furthermore, we hit the ground running to jumpstart our capital expenditure projects for water supply and distribution, as well as for wastewater expansion. As a result, we reached a record CAPEX level of nearly Php14 billion for the year.

Lastly, 2021 saw us reach resolution with the government on a Revised Concession Agreement. Further strengthened by the recent passing into law of the Water Franchise Bill, these developments provide a solid foundation for Manila Water to continue its track record of efficiency and customer service in the East Zone Concession.

As we strengthened our business in the East Zone, we equally focused on gearing up for growth. Beyond the East Zone, the opportunities ahead for both our domestic and international businesses are promising. With Manila Water now joined by Prime Infrastructure Holdings, Manila Water is part of a diverse and dynamic group of companies that provide crucial services for nationbuilding and have successfully brought the Filipino brand to the world.

Our heritage is defined by our tenacity to go into unchartered territory to compete and succeed in the countries that we serve. I see the same path for Manila Water. The Company's new mission will further strengthen the pride and commitment of our employees to seize the many opportunities ahead.

I see the same path for Manila Water. The Company's new mission, vision and values will further strengthen the pride and commitment of our employees to seize the many opportunities ahead.

I thank our shareholders who have continued to place their trust in our efforts as we faced the challenges of recent years. Finally, I take this opportunity to thank our former Chairman, Fernando Zobel de Ayala and the rest of the Ayala leadership for this opportunity to join a company with so much potential. For more than 20 years you have provided the vision and fundamentals to make Manila Water the successful company that it is today. Now, with the groundwork having been laid, I am confident that Manila Water will realize its potential for growth and become a truly global Filipino water company.

Enrique K. Razon, Jr.

Chairman of the Board