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## The Chairman’s Report 

Dear Fellow Shareholders 

Consolidated Water’s Revenue exceeded $10 million for the first time in your Company’s history during the year 2000. At first glance, this may seem a modest milestone, until one considers that five short years ago our Revenue totaled just $5.9 million. 

At $10 million, the year’s Revenues were 21.5% higher than the previous year’s $8.2 million. This increase reflects a resumption of growth in our Cayman market, where Revenue increased by 15.9%, and the inclusion of $464,928 in Revenue from our operations in Belize, which were acquired in late July, 2000. 

Net Income for the year ended December 31, 2000 increased 53.2% to a record $2,404,820, when compared with net income of $1,569,717 in 1999. We achieved this increase in several ways. Firstly, the increased volume of water sales in Cayman yielded higher dollar profits. Secondly, the first five months of operations in Belize contributed net income of $181,154, despite a brief hiatus courtesy of Hurricane Keith. Even more worthy of note, the Gross Profit 

Margin on that facility was a healthy 46.2%, compared with a very respectable Gross Profit Margin of 43.4% in our Cayman operations. Lastly, Indirect Expenses in 2000, including those of the Belize operation, increased in line with Revenue growth, and Other Income increased $134,857 from 1999 levels. 

Fully Diluted Earnings Per Share in 2000 rose 36.7% to a record $0.67, compared with the previous record of $0.49 achieved in 1999. The number of 

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Our water is used not only to supply the public’s needs but to irrigate our landscapes in areas deprived of adequate fresh water supply. 

