The East Zone Concession holds the exclusive right to provide water and wastewater services to the eastern side of Metro Manila and certain municipalities of Rizal. The concession area covers 1,400 square kilometers, encompassing 24 cities and municipalities with a population of more than 7 million comprising a broad range of residential, semi-business, commercial and industrial customers.

On a consolidated level, revenues increased 19% to nearly Php36.6 billion. This growth was supported by the recovery of the East Zone’s residential and commercial accounts, as well as by the 29% increase in revenues from our NEZ PH businesses. Consolidated cost of services and expenses for the period totaled Php11.8 billion, reflecting a 9% increase year-on-year. Key cost drivers included expenditures related to the new facilities, regulatory compliance requirements, market-driven rate adjustments, and costs directly tied to higher revenue and production levels. Costs were further tempered by various efforts to streamline costs and realize operating efficiencies. As a result, consolidated EBITDA rose 26% to Php 25.9 billion, lifting the EBITDA margin by 4 percentage points to 71%. This figure includes our share in the one-time gain from the divestment of Tan Hiep amounting to Php471 million under Saigon Water. Excluding this share in one-time gain, the normalized EBITDA margin stands at 69%.

The year 2024 has been a solid year for the Company, driven by strong topline growth from the continued recovery of customer demand with the continued uptick of economic activities and implementation of tariff adjustments. Revenues at the Parent Company showed robust performance which increased 20% to Php28.8 billion with the implementation of the 2nd tranche of

*East Zone net income presented above is before impairment provision for MWAP investment. East Zone statutory net income after impairment provision for financial statement purposes is Php9,037 million.

We continued to develop and construct water and wastewater infrastructure for the current and future requirements of our East Zone customers. The capital expenditure level reached nearly Php26.3 billion in 2024. As the East Zone Concession remains to be the largest business segment of the group, we will continue to protect and strengthen this core as we gear up for growth. Specifically, we will continue to accelerate our CAPEX projects both in the areas of water security and wastewater

As the East Zone Concession remains to be the largest business segment of the group, we will continue to protect and strengthen this core as we gear up for growth. Specifically, we will continue to accelerate our CAPEX projects both in the areas of water security and wastewater treatment. 23.6 22.7 19.2

To name a few of these projects:

• The East Bay Project Phase 1 is composed of a 50 MLD water treatment plant with a 25 km transmission pipeline, pumping stations and a 21 km submarine pipeline. Said project will similarly extract water from Laguna Lake as with the now operational 100 MLD Cardona Plant. The East Bay Phase 1 is now physically complete and is ongoing process proving. The larger East Bay Phase 2 with a 200 MLD capacity is at 66% completion.
• The Wawa Calawis Phase 1 project is composed of an 80 MLD water treatment plant and 10 km pipe network with reservoir and booster station. The larger Phase 2 with a 220 MLD capacity is now at 43% completion. These projects will further augment the water supply available to customers and ensure water security in the coming years.
• The Hinulugang Taktak Sewer Treatment Plant will have the capacity to treat 16 million liters of wastewater per day to help rehabilitate the historic Hinulugang Taktak falls, one of the city’s popular tourist destinations. It is currently at 74% completion. Another is the Mandaluyong West – San Juan South– Quezon City South Sewerage System Project which is composed of a 60 MLD sewage treatment plant with a 53 km combined sewer network. This project is currently at 63% progress and is targeted for completion in 2025.