Scotiabank Investor Roadshow COMPANY … –Investor Roadshow COMPANY PRESENTATION AUGUST 2017 2...
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Scotiabank – Investor Roadshow COMPANY PRESENTATION AUGUST 2017
Transcript of Scotiabank Investor Roadshow COMPANY … –Investor Roadshow COMPANY PRESENTATION AUGUST 2017 2...
Scotiabank – Investor Roadshow
COMPANY PRESENTATIONAUGUST 2017
2
AGENDA
1. Company overview
2. Market overview
3. Operations in Chile & Peru
4. Growth opportunities
3
COMPANY OVERVIEW
1.
Company overview
Leading position in Chile & Peru
Cash
US$681 mm
Total Assets
US$6.8 bn
Rating
BBBFitch
EBITDA LTM
US$594 mm
US$541 mm / US$53 mm
Net Debt / EBITDA
1.7 x
4
KEY FINANCIALS
Note: All figures as of Jun171 In terms of generation
BBBS&P
Power-Plants
2423 / 1
Transmission Lines
~900 km
THE COMPANY
Market Share1
21% / 7%
Installed Capacity
3,852 MW
3,282 MW / 570 MW
Ownership
49.96% Matte Group
9.58% Angelini Group
19.44% Pension Founds
21.02% Others
Company Overview
Well diversified generation assets
5
3,852 MW Inst. Capacity
Hydro: 1,597 MW
Thermal: 1,685 MW
1 COLBUN’S PRESENCE IN CHILE & PERU.
4 Reservoir: 1,065 MW
12 Run-of-the-river: 532 MW
3 CCGT: 1,337 MW
4 Diesel: 568 MW
1 Coal: 350 MW
CENTRAL ZONE:
210 MW / 1,128 MW
CENTER-SOUTHERN ZONE:
1,204 MW / 454 MW
SOUTHERN ZONE:
172 MW / 103 MW
Fenix Power Peru:
570 MW
12,772 MW
SEIN
17,399 MW
SIC
34%
29%
21%
2%
14%Hydro
Coal
Natural Gas
Diesel
Others
54,260
GWh
2 GENERATION MATRIX LTM. (%)
51%
41%
3%5%
48,783
GWh
SIC SEINSources: Coordinador Eléctrico Nacional SIC (Chile) & COES (Peru)
Note: All figures as of Jun17
Company overview
Fenix Power: Most efficient CCGT in Peru 1
Source: Colbún S.A. Note: All figures as of Jun171 Based on fuel consumption
6
40 miles south of LimaLargest City and Capital of Peru
1st Gas-fired Plant in Dispatch OrderFollowing hydro generators on a consistent basis
3 TWh / YearLong-term Contracts (80% Capacity)
570 MWGross Effective Capacity(1)
3.5 TWhNet Annual Generation
2 GE Gas Turbines192 MW Each
192 MW Steam TurbineWith Chillers and Cooling Water System
500 kv Transmission LineReducing Congestions Issues
LARGEST GENERATION PLANTS IN PERU – Effective
Capacity MW
979 852 719 616 570 569
Kallpa Chilca(Engie)
Illo Noce(Engie)
Puerto Bravo Illo Cold(Engie)
Gas Diesel
1 KEY OPERATING HIGHLIGHTS. 2
80%
Contracted capacity though 2023
6.9 years
PPAs average life / Strong AAA Locally-rated off takers
NG Supply
Sufficient for 100% of the generation for the next 6 years
Colbún51%
ADIA36%
Sigma13%
3 OWNERSHIP. (%)
most efficient CCGT in PeruBased on fuel consumption
7
MARKET OVERVIEW
2.
Market overview
Marginal costs & demand in Chile and Peru
8Sources: Coordinador Eléctrico Nacional SIC (Chile) & COES (Peru)
Marginal costs in the SIC have fallen in the last years, mainly due to the entrance of
NCRE, the drop in commodity prices and to the sluggish demand.
MARGINAL COST IN SIC & SEIN. (US$ / MWh)2
Marginal costs in Peru are lower than in Chile, mainly due to the low cost of natural gas.
However, marginal costs have been particularly low over the past years because of an
oversupply due to the entrance into operation of relevant hydro projects.
1 DEMAND GROWTH. (12 month average %)
0.9%
4.4%
0%
2%
4%
6%
8%
10%
12%SIC SEIN
96
19
0
30
60
90
120
150 Mg. Cost Sic Mg. Cost SEIN
Market overview
Generation and price development in Chile’s central grid
(SIC)
9Source: Colbún S.A. & CDEC-SIC
0
50
100
150
200
250
300
0
10
20
30
40
50
60
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2Q17LTM
USD
/M
Wh
Annual
Pow
er
Genera
tion –
SIC
TW
h
Hydro Coal Gas & LNG Diesel-Fuel Others Marginal Cost
~90% of the energy
is generated with
base load power plants
• 17,399 MW Inst. Capacity
• Development based on hydro + competitive
natural gas
• Fixed price power purchase agreements (set by
regulator for distribution companies)
• LNG re-gasification terminal since 2009
• Coal-fired power plants
• PPA tenders with price indexation
Market overview
Main reservoirs condition
10Source: Colbún S.A. & CDEC-SIC
0%
5%
10%
15%
20%
25%
ene-14 ene-15 ene-16 ene-17
% of máximum capacity
Colbún System
STORED ENERGY. (%)2
0
20
40
60
80
2014 2015 2016 1H17
M3/se
c
Chapo Reservoir
0
50
100
150
200
250
300
2014 2015 2016 1H17
M3/se
c
Colbún Reservoir
WATER FLOWS. (m3/sec)3
4,478
18,289
0
5,000
10,000
15,000
20,000
25,000
4,000
5,000
6,000
7,000
2011 2012 2013 2014 2015 2016 2Q17LTM
Colbún Hydro Generation SIC Hydro Generation
HYDRO GENERATION. (GWh)1
Jun-14 Jun-15 Jun-16 Jun-17
Company Overview
Stable EBITDA1 despite sevear hydrological conditions
COLBUN’S EBITDA VS. HYDRO GENERATION. (US$ million & TWh)
Note: All figures as of Jun171 Excludes EBITDA’s contribution from Fenix. 11
537582
546 541
6.76.5
4.84.5
0.0
2.0
4.0
6.0
8.0
0
200
400
600
800
2011 9 10 2012 11 12 2013 13 132 2Q17 LTM 14
TWhUS$ million
EBITDA Hydro Generation
2014 2015 2016 2Q17 LTM
Source: Colbun S.A.
0
20
40
60
80
100
120
140
160
Avg.
Aw
ard
ed
Pri
ce
(US$/M
Wh)
Market overview
Decreasing prices in the last regulated auctions in
Chile
Year 2013 2014 2015 2016
Energy (TWh) 4.7 12.0 1.2 12.5
Avg. Awarded Price (US$/MWh) 126 108 79 48
Supply starting 2016/2019 2016/2019 2023 2023
Duration (years) 15 15 20 20
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Market Overview
Relevant regulatory changes in Chile
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1 TRANSMISSION AND COORDINATOR LAW.
2 WATER CODE.
Enacted in July, 2016.
Pricing and remuneration mechanisms were modified.
The former coordinators, Centers of Economic Dispatch (CDEC) were replaced by a single
National Electric Coordinator, with a new structure and functions.
New attributions were given to the CNE and the functions of the Experts Panel were
reduced.
Under discussion.
Water rights extinction if they are not used.
Setting of a retroactive ecological flow for already granted water rights.
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OPERATIONS IN
CHILE & PERU
3.
Operations in Chile & Peru
Balanced commercial position in Chile
5.2 4.96.7 6.5
4.8 4.5
1.9 2.6
2.6 2.4
2.5 2.6
2.23.2
3.0 3.4
3.6 3.9
6.9 7.2 7.2 6.6 6.5 6.5
2,2
2.9
0,5
4.4
0,5
3.8
0,2
4.4
0,3
4.5
0,4
4.6
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
2
4
6
8
10
12
14
2012 2013 2014 2015 2016 2Q17LTM
TWh
Hydro Coal LNG Diesel Regulated Sales Unregulated Sales EBITDA Mg (%)
Source: Colbún S.A. Unregulated Sales, excludes sales to Codelco at Marginal Cost
CONTRACTUAL COMMITTMENTS VS GENERATION. (TWh)
15
Operations in Chile & Peru
Ensured long-term regasification capacity
and LNG supply
16
Long-term strategy: leveraging our efficient natural gas power facilities and diversifying our
supply sources; contributing to provide competitive, flexible, secure and sustainable power supply
2,000 2,000 2,000
0
500
1,000
1,500
2,000
2,500
2017 2018 2019
GWh
LONG-TERM LNG SUPPLY:
REGASIFICATION
CAPACITY
SECURED
Optio
nal
Long-term regasification capacity and supply contract with ENAP:
On May, 2017, Colbún and Enap entered into a contract for the supply of natural gas with regasification
capacity from LNG.
Effective as of January 1, 2018, for a period of 13 years.
GNL supply with Enap and international providers.
Capacity for up to two combined cycle units per year.
1,000
1
2
MEDIUM-TERM LNG SUPPLY: METROGAS AND ENAP
Commercial Strategy
High quality clients In Chile
1 SALES BY TYPE OF CUSTOMER. (%) 2 AVERAGE MONOMIC PRICE 2. (US$/MWh)
Note: All figures as of Jun171 Cumulative, base 2017.2 Average monomic prices are calculated by dividing the total amount of sales in US$, by physical energy sales in MWh
17Source: Colbún S.A.
Long-term energy supply contracts with creditworthy
counterparties.
12.9 12.8 12.7
10.79.5
8.3 8.3
0
3
6
9
12
15
2017 2018 2019 2020 2021 2022 2023
Regulated Customers Unregulated Customers
~10 YEARS AVERAGE MATURITY
2017 2018 2019 2020 2021 2022 2023
contracts expired (%)1 0 1% 1% 17% 27% 36% 36%
(TWh)1 0.0 0.1 0.2 2.2 3.4 4.6 4.6
PPAs expired:
Saesa: 2.1 TWh
PPAs expired:
Anglo American:
1.2 TWh PPAs expired:
CGE-2006: 0.7 TWh
Chilectra: 0.5 TWh
PPAs IN CHILE. (TWh)3
29%
21%20%
17%
10% 3%
Codelco (A+)
Chilectra (BBB+)
CGED (Local AA)
Saesa (Local AA+)
AngloAmerican (BB+)
Others
60
80
100
120
2014 2015 2016 2Q17
Regulated Unregulated
2.0 TWh
1.6 TWh
8.0TWh
3.8 TWh
15.4 TWh
2017 2018 2019 2020
Commercial Strategy
PPAs renewal opportunities in Chile
2024 2024 2025 2026
20 20 20 20
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1 UPCOMING REGULATED AUCTIONS 1.
2 UNREGULATED CLIENTS.
In the coming years there is a relevant amount of energy for large unregulated clients to be re-contracted.
Colbun is currently participating in auctions with unregulated customers (mining and industrials).
Opportunities in medium-size clients: In the last months, Colbun has signed new contracts with medium-size
clients for a total of ~800 GWh/year and average tenor of ~ 6 years. The prices and volumes offered reflect the
current market conditions and the cost structure of the Company.
Supply starting
Duration (years)
Year
1 Latest available information.
1,696
1,503
1,3141,436 1,479
0
400
800
1,200
1,600
2,000
2013 2014 2015 2016 2Q17 LTM
352
537 582 546 541
56 53
21%
36%
45% 45%40%
0%
10%
20%
30%
40%
50%
0
200
400
600
2013 2014 2015 2016 2Q17 LTM
EBITDA Chile EBITDA Fenix EBITDA Mg
Financial Review
Consolidated financial results
2 EBITDA & EBITDA MG. (US$ million & %)
6382
200 205216
102
0
50
100
150
200
250
2013 2014 2015 2016 2Q17 LTM
Hid
roA
ysén
3 NET INCOME. (US$ million)1 OPERATING REVENUES. (US$ million)
19Source: Colbun S.A.
4 DEBT/EBITDA & NET DEBT/EBITDA. (x)
4.8
3.53.8
2.8 2.9
4.1
2.0 2.01.7 1.7
0
1
2
3
4
5
6
2013 2014 2015 2016 2Q17
Debt/EBITDA
Net Debt/EBITDA
Chile1340
Peru363
Avrg. Maturity: 4.6 years
Avrg. US$ Interest Rate: 4.95%
US$94%
UF6%
Fixed97%
Variable3%
Source: Colbún S.A.
2 DEBT PROFILE.
3 AMORTIZATION STRUCTURE. (US$ million)
Banks21%
Int. Bonds59%
Local Bonds20%
Note: All figures as of Jun17
348
12 28 32
532
33 25 25
525
25 25 25 16 40
100
200
300
400
500
600
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fenix Term Loan
Colbún's Bonds
20
Financial Review
Consolidated Debt Profile
1 FINANCIAL DEBT.
US$
1,703 million
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GROWTH
OPPORTUNITIES
4.
Growth opportunities
Growth opportunities in Chile & the Region
34 MW
La Mina Run-of-the-river / NCRE
(Completed as of Apr17)
170 MW
San PedroRun-of-the-river
SPECIAL FOCUS IN PERU AND COLOMBIA.
Growing electricity consumption
Well established regulatory framework
Diversification:
- Hydrological conditions
- Generation technology
- Fuel access
- Regulation
1
GROWTH OPPORTUNITIES IN CHILE:
BASE LOAD CAPACITY AND
RENEWABLES.
Hydro projects
NCRE under study
2
22
~316 MW
Guaiquivilo
MeladoReservoir /
Run-of-the-river
~93 MW Los CuartosRun-of-the-river
6 MW
El MédanoRun-of-the-river
9 MWPMGDSolar Photovoltaic
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1. Size: Second-largest generation company in Chile’s largest electricity grid
and a relevant presence in Peru.
2. Customers: Diversified, solid and creditworthy portfolio of clients.
3. High standards of environmental and social management: Complete
integration with all of our Stakeholders.
4. Shareholders: Strong, reliable controlling group with a strategic and long-
term vision of the business.
5. Management: Experienced management and high standards of corporate
governance.
6. Financial flexibility: Strong metrics, conservative financial strategy and
ample access to financial markets.
1
2
3
4
5
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Concluding remarks
Disclaimer And contact information
This document provides information about Colbún S.A. In no
case this document constitutes a comprehensive analysis of
the financial, production and sales situation of the company.
To evaluate whether to purchase or sell securities of the
company, the investor must conduct its own independent
analysis.
This presentation may contain forward-looking statements
concerning Colbún's future performance and should be
considered as good faith estimates by Colbún S.A.
In compliance with the applicable rules, Colbún S.A.
publishes on its Web Site (www.colbun.cl) and sends the
financial statements of the Company and its corresponding
notes to the Superintendencia de Valores y Seguros, those
documents should be read as a complement to this
presentation.
INVESTOR RELATIONS TEAM CONTACT
Miguel Alarcó[email protected]
+ 56 2 2460 4394
Verónica [email protected]
+ 56 2 2460 4308
Soledad Errá[email protected]
+ 56 2 2460 4450
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