May 8, 2020

Securities and Exchange Commission

Secretariat Building, PICC Complex
Roxas Boulevard, Pasay City

Attention : Mr. Vicente Graciano P. Felizmenio, Jr.

Director, Markets and Securities Regulation Department

Philippine Stock Exchange, Inc.

PSE Tower, 5th Avenue corner 28th Street, Bonifacio Global City, Taguig City, Philippines

Attention : Ms. Janet E. Encarnacion

Head, Disclosure Department

Subject : 1st Quarter 2020 Unaudited Performance Results

Gentlemen :

The Company announces today its unaudited Financial and Operating Results for the 1st Quarter of the
year. Please refer to the enclosed financial and operating highlights.

Also attached is a copy of the press statement for more information.

Very truly yours,

Gerardo M. Lobo II
Assistant Corporate Secretary

Encl: a/s
MANILA WATER FINANCIAL AND OPERATING HIGHLIGHTS (CONSOLIDATED)

1Q 2020 1Q 2019
% Change
(in Million Php) Unaudited Unaudited
Revenues 5,539 5,071 9%
COS and Operating Expenses (2,013) (2,461) (18%)
Other Income - net -392 232 (269%)
Equity Share in Net Income of Associates 219 207 6%
Other Income (loss) - net -612 25 (2,537%)
EBITDA 3,134 2,842 10%
EBITDA margin 57% 56% 1%
Depreciation and Amortization (827) (657) 26%
Net Interest Expense (461) (371) 24%
Provision for Income Tax (595) (540) 10%
Non-controlling Interests 28 (40) (169%)
Net Income 1,279 1,233 4%

March 31, 2020 December 31, 2018

% Change
(in Million Php) Unaudited Unaudited
Assets
Current Assets 17,928 14,406 24%
Noncurrent Assets 121,034 120,196 1%
Total Assets 138,962 134,602 3%

Liabilities and Stockholders' Equity

Current Liabilities 25,077 21,922 14%
Noncurrent Liabilities 56,699 56,688 0%
Total Liabilities 81,777 78,610 4%
Stockholders' Equity 57,185 55,991 2%

Total Liabilities and Stockholders' Equity 138,962 134,602 3%

(in mcm) 1Q 2020 1Q 2019 % Change

Total Billed Volume 314.9 305.8 3%
Manila Concession 124.6 121.6 2%
Manila Water Philippine Ventures 25.8 21.8 19%
Clark Water 3.5 3.5 2%
Laguna Water 11.0 10.5 5%
Boracay Water 1.3 1.1 21%
Cebu Water 3.1 3.2 (3%)
Estate Water 3.0 2.5 19%
Bulacan MWPV 0.5 0.4 25%
Obando Water 0.4 0.4 0%
Calasiao Water 0.1 0.1 0%
South Luzon Water 1.1 -
Aqua Centro 0.4 0.1 300%
Bulakan Water 0.6 -
Calbayog Water 0.8 -
Manila Water Asia Pacific 164.4 162.4 1%
Thu Duc Water 27.3 26.5 3%
Kenh Dong Water 16.0 14.1 14%
Saigon Water 30.5 26.6 15%
East Water 89.2 94.0 (5%)
PT STU 1.5 1.3 16%

1Q 2020 1Q 2019 % Change

Total Billed Connections 1,203,867 1,139,371 6%
Manila Concession 999,370 992,036 1%
Manila Water Philippine Ventures 204,497 147,335 39%
Clark Water 2,088 2,077 1%
Laguna Water 110,747 102,449 8%
Boracay Water 5,818 5,826 (0%)
Cebu Water 1 1 0%
Estate Water 12,998 11,619 12%
Bulacan MWPV 8,223 7,790 6%
Obando Water 9,326 9,055 3%
Calasiao Water 2,640 2,126 24%
South Luzon Water 19,046 -
Aqua Centro 7,105 6,392 11%
Bulakan Water 12,225 -
Calbayog Water 14,280 -
PRESS STATEMENT
08 May 2020

Manila Water core net income down 12% in 1st Quarter

Manila Water core net income fell 12 percent in the first quarter of the year with lower contribution
coming from its domestic subsidiaries. On the other hand, operations in its East Zone concession remained
resilient as performance improved on the back of continued supply and network management initiatives
to ensure service availability. Considering one-offs driven by the raw water supply shortage in 2019,
consolidated net income for the period increased 4 percent to ₱1.3 billion.

Manila Water’s East Zone concession earnings stood at ₱1.63 billion for the first quarter of the year.
Excluding one-offs recognized in 2019, core net income stood at ₱1.65 billion, lower by 7 percent from
last year.

It can be recalled that the East Zone managed through a raw water supply shortage last year which caused
a significant drop in water service availability. The situation pushed Manila Water to work through the
challenges and further improve its network management capability. These efforts led to a more dynamic
and efficient distribution network that enabled the Company to maintain water availability at near 100%
for its customers, with potable water 24/7 and water pressure kept steady at regulatory levels. Entering
2020, the good coordination among the National Water Resources Board (NWRB), MWSS and the National
Irrigation Administration (NIA) resulted in better water levels in the raw water dams. These favorable raw
water levels and the Company’s consistent service performance yielded a 2 percent improvement in billed
volume and a 10 percent increase in revenue for the period. Excluding the effect of the voluntary bill
waiver program implemented in 2019, revenues increased by 2 percent.

Costs and expenses decreased 30 percent to ₱1.3 billion despite the 15 percent increase in direct cost,
driven largely by the recorded ₱534 million penalty imposed by MWSS in relation to the water supply
shortage last year. For direct costs, the increase was driven by higher chemical costs with the operations
of the Cardona Treatment Plant in Laguna Lake, as well as higher power costs with the energization of
new deep wells.

Domestic operations under Manila Water Philippine Ventures (MWPV) posted a net loss of ₱151 million
in the first quarter. This was mainly due to the lower net income contribution from Estate Water with the
decrease in supervision fees. The decline was primarily the result of the change in accounting treatment
for said fees, but also in part by the stoppage of projects due to the Enhanced Community Quarantine.
Even as the improved performance of other core subsidiaries like Laguna Water and Clark Water partially
offset the decline, additional expenses recognized for MWPV’s various exposures during the period
contributed to the net loss. Excluding one-offs, MWPV net income stood at ₱38 million for the period, 78
percent down from 2019.

For Manila Water Asia Pacific (MWAP), which houses Manila Water’s international business operations,
performance in the first quarter of 2020 resulted to a net loss of ₱193 million. This was mainly driven by
the recognition of additional expenses in relation to MWAP’s investment in Cu Chi in Vietnam, consistent
with the Group’s governance and management practices. The recognition of additional expenses in
relation to Cu Chi was partially offset by the increase in equity share in net income of associates, which
stood at ₱219 million, 6 percent higher than last year. The Vietnam investments drove the increase in
equity share in net income for the period, as a result of the implementation of tariff increases and higher
billed volume in the Thu Duc Water and Kenh Dong Water operations.

In view of the COVID-19 pandemic impact on the communities which Manila Water serves, numerous
contingency measures have been put in place to ensure business continuity and to safeguard the health
and safety of employees and customers.

With the onset of the Enhanced Community Quarantine, Manila Water implemented business
contingency measures to ensure critical facilities and business centers remain operational to provide
reliable service to our customers. Furthermore, in view of health and safety concerns, Manila Water
suspended meter reading activities in its service areas for the duration of the Enhanced Community
Quarantine. Finally, to assist customers amid the quarantine period, the company deferred the due date
of customer bills for 30 days.

For Manila Water’s employees, in order to ensure welfare and safety amid the COVID-19 pandemic and
Enhanced Community Quarantine, only essential technical and business operations employees are
deployed at the facilities while the rest are on an on-call/work-from-home capacity. Deployed employees
are provided the necessary protection (protective gear; disinfection of facilities) and support to ensure
their safety. Equally important, preparations are underway for the safe and effective re-integration of
employees upon the lifting of the Enhanced Community Quarantine.

Rene Almendras, Manila Water President and CEO sees the importance of cooperation among Manila
Water’s employees, customers and partners amid the impact of COVID-19. “As we face the
unprecedented challenges posed by the COVID-19 pandemic, we should work even more closely with our
partners and stakeholders so we can continue to provide reliable service. Only by working together can
we find safer, more effective and innovative ways of serving our customers under this new normal.”