Our Report

Mr. Chairman, Members of the Board, fellow shareholders.

The solid foundation laid in recent years continued to allow us to achieve remarkable results in 2024. This is truly significant as our achievements were attained during a particularly challenging El Niño year.

In 2024, several of our key business units delivered stellar results. For our East Zone Concession, the business posted a 20% increase in revenues to end the year at Php28.8 billion. This performance was driven largely by the implementation of the second tranche of our approved Rate Rebasing tariff adjustment and supported by steady consumption growth across all customer segments. EBITDA increased by 22% to Php20.7 billion, with EBITDA margin improving to 72%.

Similarly notable was the performance of our NEZ PH business, which had a banner year in 2024 with earnings growing more than threefold to Php2.3 billion, from Php750 million the previous year. This impressive growth trajectory was driven by an 8% increase in total billed volume, implemented tariff adjustments in several NEZ PH service areas, and stronger contributions from key business units which, in all, pushed revenues past Php9.0 billion. The collaboration we have with government and water district partners in Laguna, Boracay, Cebu, Clark as well as the communities served by our Estate Water Group, continues to propel us to do better outside of our core East Zone business.

Equally important, in 2024 we continued to invest in critical infrastructure to fulfill our regulatory and service commitments. Group-wide capital expenditures (CAPEX) reached Php26.3 billion in 2024, with our East Zone Concession accounting for 90% of total CAPEX at Php23.6 billion. These investments underscore our focus on ensuring sustainable water supply and wastewater coverage, while continuing the rollout of service improvements for our growing customer base.

Lastly, I would like to share our progress relative to our ESG commitments. You will recall that several years ago, we had set out clear target outcomes covered under our three sustainability pillars, namely (1) Helping Communities Thrive; (2) Protecting the Environment; and (3) Building a Culture of Care and Trust. Said target outcomes are categorized under seven areas and outlined as a total of eight distinct ESG commitments for target completion year in 2025. I am happy to share that, as of 2024, we have already attained four of our eight ESG commitments ahead of schedule. Specifically, these attained outcomes fall under the categories of (1) Water Security; (2) Economic Contribution; (3) Resource Efficiency; and (4) Health and Safety. This milestone speaks significantly to the importance we place upon fulfilling our purpose of working towards better lives and resilient economies through critical infrastructure.

In closing, I would like to credit our solid performance in 2024 to team Manila Water – the women and men who continue to inspire the Leadership Team through their unfailing dedication to the customers in the different areas we serve. You can rest assured that we in Manila Water will continue to improve services, drive operational efficiencies and create more value for our shareholders and stakeholders.

Jose Victor Emmanuel A. De Dios

President & CEO