Celsia Energy in action

Transcription

1 Celsia Energy in action 2014

2 The story of a transformation 2

3 The transformation process at a glance Coltabaco Coltabaco Tobacco Business Tobacco Business Electric Utility Investment Portfolio 4th Power Generator in Colombia Investment Holding Other 1% Financial and Insurer 42% Investment Sector 42% 5 to distributor in Colombia Hotels 2% Consumer Products 13% Tobacco Portfolio 30% 70% Portfolio 100% Energy Portfolio 100%

4 Celsia: Investment Highlights Attractive Organic Expansion Plan Track Record of Value Creation Solid Financial Position High Growth Potential of the Energy Industry Track Record of Growth and demonstrated ability of execution Key Power Sector Player in Colombia 4

5 Corporate Structure 5

6 Celsia A simple corporate structure: Celsia S.A. E.S.P. 100% 100% Colener S.A. Generation assets Zona Franca Celsia S.A. E.S.P. 50,01% PCH Hidromontañitas EPSA S.A. E.S.P. 87% PCH Río Piedras CETSA S.A. E.S.P. Meriléctrica 6

7 Grupo Argos (Holding) Negocios y porcentajes de participación 60,7% 52,4% 50% 100% 100% 7

8 One of the most relevant players in Colombia s electricity sector 8

9 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Power Generation Sector in Colombia Installed capacity Historic power generation Installed capacity: 14,451 MW International Interconnections: 871 MW (For exports) Hydroelectric 68.4% Centrally dispatched MW (64.6%) Non-centrally dispatched (minors) 573 (4%) Thermoelectric 31.1% Centrally dispatched MW gas, 312 MW Fuel Oil, 307 MW Combustoleo (25%) Non-centrally dispatched (minors) 83 MW (0.6%) GWh % 50% 40% 30% 20% 10% 0% Wind and Cogeneration 0.5% Wind: 18 MW (0.1%) Cogeneration: 56 MW (0.4%) Hydro Thermal % Thermal Data as of October 17, 2012 Data regarding capacity with declared fuels for the current term of reliability charge 9

10 KWh/habitante TWh High Growth Potential of the Energy Industry in Colombia Electricity Demand Growth (SIN) % 4% 4% 4% 4% 2% 3% 2% 2% 2% ,00% 6,00% 4,00% 2,00% 0,00% Demand (SIN) Demand Forecast (SIN) - UPME* Annual Growth (%) * UPME Forecasts (March 2011) Electricity Per Capita Consumption The electricity demand has grown 3% annually (CAGR) in the past five years, and it is expected to grow 4% annually until Colombia s energy consumption is lower than the regional average. Per capita consumption LATAM and Caribbean average 10

11 Footprint Atlantic 610 MW (Thermo CCGT) P Genco Genco + Disco Project construction stage Antioquia 40 MW (SHP) 372 MW (2 Hydro projects) P P P Project - design stage Santander 167 MW (Thermo SCGT) Valle del Cauca 624 MW (Hydro) 20 MW (Hydro project) Customers P P Tolima 51 MW (Hydro) 55 MW (Under construction) Cauca 285 MW (Hydro) 11

12 Energy generation Strategic balanced portfolio Installed capacity (MW) MW * Hydro (reservoir) 51% Hydro (run of the river) 6% 16 facilities in operation Thermal (NG, simple cycle) 9% Thermal (NG, combined cycle) 34% Total SIN capacity 2013 Total SIN firm energy 2013 Celsia 12% Celsia 11% Other 88% Other 89% * Celsia, Zona Franca Celsia, EPSA and CETSA. 12

13 Energy generation Strategic balanced portfolio Total generation (GWh) by 4Q2013 Total SIN Total generation SIN generation (GWh) by 4Q GWh Celsia 9,9% GWh Hydro Thermal 67% 33% Otros 90,1% SIN Energy generated Generation by technologies (GWh) Generation by company (GWh) 100% 80% 60% 40% 20% 0% Hydro Thermal % hydric - SIN EPSA ZF Celsia Celsia * Celsia, Zona Franca Celsia, EPSA and CETSA. 13

14 Generation Celsia Hidromontañitas 19,9 MW Rio Piedras 19,9 MW Zona Franca Celsia 610 MW Meriléctrica 167 MW 14

15 Generation EPSA, major facilites Alto Anchicayá 355 MW Bajo Anchicayá 74 MW Salvajina 285 MW Prado 51 MW Calima 132 MW 15

16 Electricity distribution steady and defensive business Key indicators Amount of distribution substations kv substations kv / 13.2 kv substations Total lenght of the distribution grid in km (<220 kv) Customers Fifth mayor distributor in Colombia. Near clients Collections rate at 99,7% by 4Q Low rate of losses: 8,9% 16

17 Electricity distribution steady and defensive business Distributed energy (GWh) Collections (%) 100% 100% 100,10% 99,70% 99,10% 99,70% 99,91% 1.612, , , Losses (%) SAIDI SAIFI (EPSA) 42,4 13,32% 13,01% 13,37% 10,61% 11,01% 11,15% 11,01% 10,12% 9,89% 9,79% 9,71% 9,73% 9,37% 8,97% 29,4 25,4 25,9 27,0 24,1 23,70 20,20 21,5 17,5 13,5 11, Q-2013 Grid losses Total (includes commercial losses) Q-2013 SAIDI SAIFI 17

18 Key power sector player in Colombia 4th Power Generator in Colombia MW Power generation market share 22% 20% 15% 12% 8% 7% 15% EPM Emgesa Isagen Celsia+EPSA Gecelca AES Chivor Otros Other Thermal Hydro % Market 5th Power Distributor in Colombia GWh Distribution market share (demand) 26% 26% 22% 7% 4% 15% Codensa EPM Electricaribe Emcali EPSA Otros *Celsia consolidated: Celsia, ZF Celsia y EPSA CETSA **Source: EPSA, XM. June

19 Our strategy 19

20 One company, two strategic business units Fuel procurement Generation Transmission Distribution Commercialization Generation Distribution 20

21 Two business units which together add value Generation business 68% of consolidated income in 2013 Reliability, and flexibility in extreme climate scenarios Geographic diversification of assets Income by business units (COP billion) Competitive business with the potential of outperforming the market. Portfolio of technologies that provide reliability to the system Distribution business 32% of consolidated income in 2013 Steady cash flows that leverage growth Stable results Natural monopoly in the area Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Distribution Generation 21

22 Generation business: portfolio of technologies that provide reliability, flexibility and stability of results. Thermal generation Generation by source (GWh) High and stable reliability charge Highly competitive assets competitive costs Reliability to generate in El Niño phenomenon Hydro generation Competitive mean generation Several minor assets with particularly high EBITDA margin Flexibility to take advantage of peak hours 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Hydro Thermal 22

23 Attractive investment and expansion plan 23

24 Clients MW Succesful strategy of organic and inorganic growth Zona Franca Celsia +441 Meriléctrica, Río Piedras +187 Generation Growth - Capacity EPSA Acquisitions Flores IV, Amaime Organic Alto Tuluá, Hidromont añitas Distribution Growth - Clients Aquisitions Organic 24

25 Expansion plan Organic growth Generation business Generation expansion plan Projects construction stage MW MW Bajo Tuluá 20 MW 2014 Cucuana 55 MW Hydric Thermal Projects design stage Celsia has an expansion plan, currently under execution and development phase, that will increase its current installed capacity by 447 MW (+25%). Celsia is developing studies to determine the viability of a 20 MW hybrid solar and wind power plant in Colombia, with the support of the USTDA. Alternativa 2 M.D San Andrés 20 MW 2017 Alternativa 1 M.D Alternativa original M.I. Porvenir II 352 MW

26 Expansion plan Zona Franca Celsia Projects in study - innovation Distribution Alférez 230kV substation to supply the south part of Cali. Benefits go from optimization of current power flows, losses recovery and improvement of quality levels. Other projects: Juanchito - Candelaria 2 115kV power line Second power line to Buenaventura Bahía en Buenaventura substation Grid architecture in 13,2kV and 34,5kV levels 26

27 Key financial statistics 27

28 Solid financial position Annual revenues in % 2% 2% Spot sales Wholesale commercialization 25% 44% Reliability charge Retail commercialization Grids use and connection 9% 9% Natural gas commercialization Other operational services 18% YoY COP million in

29 Solid financial position Revenues (COP billion) Ebitda (COP billion) Consolidated Net income (COP billion) ,9 38,6 36,1 36, , , , , dic-10 dic-11 dic-12 dic-13 CELSIA ZF EPSA Otros dic-10 dic-11 dic-12 dic-13 CELSIA ZF EPSA Otros Margen % 50-10,00 0 ene-10 ene-11 ene-12 ene-13 29

30 Solid Financial Position to Leverage Growth Debt by company (COP Bill.) Debt (rate and currency) ,69 1,77 IBR 5% Libor 11% USD 11% DTF 10% IPC Celsia ZF Celsia EPSA Total 74% COP 89% Debt profile Key indicators Dic/13 Net Debt / Ebitda 1,02x Ebitda / Financial expenses 6,09x Net debt / Equity 0,27 Banca comercial Bonos EPSA Banca multilateral Bonos Celsia Average cost of debt 7,50% 30

31 Shareholders and corporate governance 31

32 Jan-08 Mar-08 May-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Jan-14 Track record of value creation Stock performance (price and volume) 300% 250% 200% 150% 100% 50% Celsia IGBC Colcap Volume (COP Mill.) % Dividend evolution (COP million) % +100% +10% +11% Dividend BVC: CELSIA Total shares outstanding shares Dividend COP 100 end february COP Market cap COP 3,6 bill Yield 1,8% P/Book ratio 1,38 32

33 Ownership structure and corporate governance Stock ownership Corporate governance Foreign investors; 4,0% Other; 20,1% Grupo Argos; 52,4% Name José Alberto Vélez Cadavid Ricardo Sierra Fernández Gonzalo Alberto Pérez Rojas BOARD Role President Juan Benavides Estévez Bretón* Independent Pension funds; 27,6% The Colombian public company with the biggest participation of pension funds on its ownership structure Stockholders 7115 Manuel Ignacio Dussan Villaveces* María Fernanda Mejía Castro María Luisa Mesa Zuleta *Experts in energy Board of Directors best practices: 7 members, 4 of them independent 3 Board committees Audit & Finance Committee Independent Independent Independent Corporate Governance Committee Nominating & Compensations Committee All members of the Audit Committee are independent

34 Thank you Investor Relations Celsia S.A. E.S.P. A Grupo Argos company 34