Calidda s Q Results Call. August 23th, 2018

Transcription

1 Calidda s Q Results Call August 23th, 2018

2 Disclaimer The information provided herein is for informational and illustrative purposes only and is not, and does not seek to be, a source of legal, investment or financial advice on any subject. This presentation does not purport to address any specific investment objectives, financial situation or particular needs of any recipient. It should not be regarded by recipients as a substitute for the exercise of their own judgment. This information does not constitute an offer of any sort and is subject to change without notice. Calidda is no obligation to update or keep current the information contained herein. Calidda expressly disclaims any responsibility for actions taken or not taken based on this information. Calidda does not accept any responsibility for losses that might result from the execution of the proposals or recommendations presented. Calidda is not responsible for any content that May originate with third parties. Calidda May have provided, or might provide in the future, information that is inconsistent with the information herein presented. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. 2

3 Table of Content 01 Key Updates and Results 02 Commercial Performance 03 Operational Performance 04 Financial Performance 05 Conclusions 06 Q&A 3

4 01 Key Updates and Results 4

5 1 Calidda at a Glance Calidda s client base and invoiced volume both increased by the end of Q by 31% and 2%, respectively, compared to Q s figures. Over the same period, our network length was enlarged by 577 km, whereby the distribution system reached a total of 8,926 km of underground pipelines. Calidda s Total Revenues, Adjusted Revenues and EBITDA increased by 6%, 11% and 11%, respectively, driven by: The higher Distribution Revenues due to the bigger invoiced volume and the greater approved tariff by Osinergmin, since the beginning of last May. The increase of Residential segment services due to the greater number of connections and the fact that 24,981 gas appliances have been sold (168% of the sales obtained in the whole year 2017). Key Operational Results Operational Results Q Q Var % Accumulated Clients 655, ,589 31% Invoiced Volume (MMCFD) % Network Lenght (km) 8,926 7,911 13% Potential Clients 2 886, ,154 12% Network Penetration 3 74% 63% - Key Updates Key Financial Results Financial Results Q Q Var % Total Revenues (USD MM) % Total Adj. Revenues (USD MM) % EBITDA (USD MM) % Adjusted EBITDA Margin % 59.2% - Net Income (USD MM) % Interest Coverage 6 (x) 8.4x 8.2x - 1) MMCFD = Million cubic feet per day. 2) Number of clients which are located in front of the existing distribution network of Calidda. 3) Network Penetration = Accumulated clients / Potential clients 4)Total Adjusted Revenues = Total revenues without considering the income of pass-through concepts, such as the acquisition and transport of natural gas, and IFRIC 12 (investments in the network distribution) 5) Adjusted EBITDA Margin = EBITDA / Adjusted Revenues 6) Interest Coverage = EBITDA / Interests from debt 5 5 5

6 02 Commercial Performance 6

7 2 Solid Base of Clients with upward trend Segment Evolution (# de clients) Highlights Power Generation Industrial NGV Stations Active vehicles as of Jun-18: 179,023. Residential and Commercial (thousands) During the last 4 years, the number of clients from the Residential & Commercial segment has increased at a rate of 31% per year. 7

8 2 Upward Trend of Invoiced Volume (Amounts expressed in MMCFD) Residential and Commercial NGV Stations Industrial Power Generation 679 [CELLRANGE] [CELLRANGE] [CELLRANGE] 699 [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] 80% of the invoiced volume comes from the Take-or-Pay long term contract s with 16 clients. The average lead time is 13 years for all of these contracts, which amounts 606 MMCFD. Industry 42 MMCFD Power Generation 563 MMCFD As of Q2 2018, the invoiced volume has increased when compared to 2017 mainly due the developent of the NGV Stations (+5MMCFD: +8%), the industrial (+3MMCFD) and residential segment (+1.5MMCFD: +12.9%). 8

9 2 Historic Invoiced Volume per Client Segment (Amounts expressed in MMCFD) Residential & Commercial Industrial NGV Stations Power Generation CAGR (14-17) = 0.9%

10 03 Operational Performance 10

11 Thousands 3 Large Distribution System with Improving Penetration Index Distribution System (km) 8,926 8,348 7,425 5,988 8,366 7,807 4,678 6,928 5,531 4, As of Q2 2018, Calidda s distribution system consists of 8,926 km of under ground pipelines. During the Q2 2018, Calidda built 577 km, out of which 18 km were steel high pressure network, while the remaining 559 km were low pressure polyethylene pipeline. Total Polyethylene Network Steel Network 1,400 1, Clients progress and penetration ratio 1 70% 74% 55% 57% 59% Potential Clients* Total Clients Penetration rate 80% 60% 40% 20% 0% The network penetration ratio increased as of Q to 74% due to the higher dynanism of the connection of residential clients. Calidda s focus is on low income districts benefited by the subsidies, where the savings produced by the use of natural gas against other alternative fuels is more appreciated. 1) Penetration Rate = Total Clients / Potential Clients * (*) Clients who are adjacent to Calidda's distribution network. 11

12 3 Natural Gas Distribution capacity and Transportation Clients are divided in two groups: (i) Non Regulated Clients (independent), which consume more than 1 MMCFD and signed separated contracts the natural gas supply and transportation services, and (ii) Regulated Clients, which consume less than 1 MMCFD and signed contracts with Calidda who provide NG distribution service and act as intermediary of supply and transportation natural gas services. During the last year, both Regulated and Non-Regulated clients consumed 289 MMCFD, equivalent to 69% of our natural gas distribution capacity (Lurín- Ventanilla) Calidda s capacity: 420MMCFD Distributed (MMCFD): 156 [Reg] [Non-Reg] = 289 Facturado (MMCFD): 156 [Reg] [Non-Reg] = 335 Over the same period, Regulated clients consume around 156 MMCFD, equivalent to 68% of the total contracted transportation and contracted supply volume of natural gas Clientes Regulados Clientes No Regulados Capacidad de Cálidda - Jul/2017 Sep/2017 Nov/2017 Jan/2018 Mar/2018 May/2018 Clientes Regulados Transporte - TgP Gas - Pluspetrol Residential Industrial Mainly network Power Generator Calidda s City Gate No-Regulated clients (Power Generation): Distributed: 203 MMCFD Invoiced: 438 MMCFD 1/ Contracted volume takes into consideration the fixed (Take-or-Pay) and non-fixed capacity. 12

13 04 Financial Performance 13

14 4 Diversified Revenue s Source by Client Segment Invoiced Volume Distribution Revenues Adjusted Revenues 1 1.7% 16.1% 8.7% 48.9% 13.5% 22.6% 38% 29.1% 6.4% 31.4% 73.5% 14.9% 9.0% 9.8% 14.4% 2 3 Even though the Residential and Commercial segment represents only 1.7% of the invoiced volume, it concentrates 13.5% of our distribution revenues. More over, if we take into consideration the revenues from installation services, this segment achieves 38.1% of our Total Adjusted Revenues. On the other hand, the Power Generation segment represents 73.5% of the involved volume, 48.9% of the distribution revenues, and 31.4% of the Total Adjusted Revenues. 1/ Total Adjusted Revenues exclude Pass-through and IFRIC 12 revenues. 2/ Installation Services Revenues include revenues from connection fees and financing. 3/ Others: mainly derived from network relocation and other non recurrent services. 14

15 4 Sound and Controlled Financial Indicators (Amounts expressed in US$ MM; last twelve months as of Q2 2018) Total Revenues EBITDA & Adj. EBITDA Margin (%) CAGR (14-17) 2% % 100.0% 80.0% 60.0% % % 52.1% 59.9% 60.3% 60.6% 40.0% 20.0% - 0.0% Total Adjusted Revenues Pass-through & IFRIC 12 EBITDA Adjusted EBITDA Margin CAPEX Funds From Operations 1 45% 43% 41% 39% 34% CAPEX Adjust. Revenues 1/ Funds From Operations (FFO) = Net Income + Depreciation + Amortization 15

16 4 Sound and Controlled Financial Indicators (Amounts expressed in US$ MM ; last twelve months as of Q2 2018) Debt & Net Debt 1 / EBITDA Debt / Capitalization 2 (%) 3.5x 3.2x 2.8x 2.9x 2.8x 53.2% 54.8% 53.7% 56.8% 54.1% 2.6x 2.6x 2.6x 2.7x 2.5x Debt/EBITDA Net Debt/EBITDA Interest Coverage 3 FFO 4 / Net Debt 6.3x 6.8x 7.8x 8.5x 8.4x 24% 22% 26% 26% 27% 1/ Net Debt = Financial Debt - Cash 2/ Capitalization = Equity + Financial Debt 3/ Interest Coverage = EBITDA / Accrued interests 4/ Funds From Operations (FFO) = Net Income + Depreciation + Amortization 16

17 4 Sound and Controlled Financial Indicators (Amounts expressed in US$ MM; last twelve months as of Q2 2018) Debt Maturity Equity Net Income International Bond Banking Debt Total Assets

18 05 Conclusions 18

19 06 Q&A 19

20 A Shareholders with Extensive Experience in Energy Markets Stock Control: 60% of property over Calidda Leading energy company with businesses in the electricity and NG sectors in Colombia, Peru, Guatemala and Brazil. Founded in 1896, and controlled by the District of Bogotá since 1956, with a stock participation of 76.2%. Main transporter and distributor of electricity and natural gas. Key results as of 2017: (i) more than 3.5 million customers within the electricity distribution business, (ii) more than 2.7 million customers for the distribution of natural gas through 5,971 kilometers of pipelines, and (iii) generated power of 14,765 GWh. Financial results of 2017 (2) : Revenues - US$ 1,113 mm // EBITDA - US$ 823 mm Valid Rating: BBB (IDR) Fitch Ratings, AAA (Col) Fitch Ratings. Controlled Investments Non-Controlled Investments (1) (1) Stock Control: 40% of property over Calidda One of the largest distribution and transportation companies of NG in Colombia. Founded in 1974 by the government of Colombia. Currently controlled by Grupo Aval. Main operator in the distribution of NG in Colombia through Gases de Occidente, Surtigas and Gases del Caribe, and participates in the distribution of energy in Colombia. GEB has 15.2% of stock participation in Promigas. Key results as of 2017: (i) more than 4 million clients for the distribution of natural gas, (ii) power generation capacity of MW, (iii) compression capacity of 18,100 HP, among others. Financial results of 2017 (2) : Revenues- US$ 1,091 mm // EBITDA - US$ 410 mm Valid Rating: BBB- (IDR) Fitch Ratings, AAA(Col) Fitch Ratings. 1) GEB has the permission of the Municipal Council to sell his participation in these companies. 2) Considers an exchange rate of 2,984 USD/COP. Controlled Investments Non-Controlled Investments 20

21 A Calidda s Adjusted Revenues Composition Distribution of the Adjusted Revenues (%) 2Q 2018 Pass-Through Concepts Distribution service Main operative income of Calidda which is generated by the distribution of natural gas through underground pipelines to different kinds of clients. 65% Sell and transport of natural gas Pass-through income related to the acquisition and transportation of natural gas which are transferred to the final consumer. Connection services Operative income which is paid by the consumer for the internal installation of pipelines needed to achieve the connection to the natural gas network. Includes revenues from the facility s financing. 24% Revenues of network expansion Pass-through income related to the investments executed by Calidda in order to expand the distribution network. Connection fees One time fee which is paid by the new clients when connected to Calidda s natural gas network. 4% Other services Operative income which mainly comes from network relocation services and other services. 7% 21

22 A Competitivity: Calidda s Final User GN Tariffs vs. Alternatives as of July 2018 Residential & Commercial (US$/MMBTU) NGV Stations (US$/MMBTU) / % -68% % -60% A1 Residential A2 Residential C Commercial 3/ LPG Residential Residential Electrical Energy 2/ LPG 3/ Commercial 4/ Diesel 2 3/ NGV Vehicular LPG Gasoline 90 3/ 3/ Industrial (US$/MMBTU) Power Generation (US$/MMBTU) / 1/ % -75% % -69% D E Electrical energy Source: 1/ NG Tariff: According to the distribution tariff sheet as of Jul-18. 2/ Tariff to the BT5B consumer Residential and Non Residential from Luz del Sur as of Jul-18. 3/ Source: FACILITO (Osinergmin) as of Jul-18. 4/ According to the gas price of distributors of LPG. 5/ According to Petroperú ex-plant as of Jul-18. 2/ 3/ Diesel LPG Industrial Petroleum 6 4/ 5/ 3/ 5/ Generator's tariff Diesel Industrial petroleum GLP: Gas Licuado de Petróleo GNV: Gas Natural Vehicular 22

23 A Natural Gas Reserves Ensure the Sustainability of Calidda Natural Gas Reserves trend (thousands of trillions of cubic feet) 1 and Production 2 (thousands of millions of cubic feet) in Peru. Lifespan Proven Natural Gas Reserves years 36.8 years 34.8 years 32.1 years 31.9 years 32.6 years Proven Probable Production 1) Source: Ministry of Energy and Mine, up to Dec ) Source: Perupetro, up to Dec ) Lifespan of Proven reserves = Proven reserves / Production of natural gas. The estimation accounts the natural gas reserves and production of the same year. 23

24