COLBÚN S PRESENTATION BICE INVERSIONES CORREDORA DE BOLSA S.A. SEPTEMBER 2015

Transcription

1 COLBÚN S PRESENTATION BICE INVERSIONES CORREDORA DE BOLSA S.A. SEPTEMBER 215 1

2 2 AGENDA SIC COLBUN PROJECTS

3 Spot Market Price USD/MWh Annual Power Generation SIC TWh 3 GENERATION AND PRICE EVOLUTION IN CHILE S CENTRAL GRID Development based on hydro + competitive natural gas Power purchase agreements signed under fixed prices (set by regulator for distribution clients) LNG re-gasification terminal since 29 Coal- fired power plants PPA tenders with price indexation Others Diesel-Fuel LNG Coal Gas Hydro Average Spot Market Price USD/MWh Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

4 jan-14 feb-14 mar-14 apr-14 may-14 jun-14 jul-14 aug-14 sep-14 oct-14 nov-14 dec-14 jan-15 feb-15 mar-15 apr-15 may-15 jun-15 jul-15 aug-15 4 SIC OVERVIEW 1 2 Others 7% Diesel 7% Natural Gas 2% Coal 29% Generation Matrix Hydro 37% Natural Gas 22% Others Diesel 9% 4% Coal 27% Hydro 38% Marginal Cost Monthly Average (USD/MWh) Acc Aug Acc Aug Aug14 Aug15 3 SIC Reservoir water level as % of 4 total capacity 4% 2% % aug14-aug15 aug13-aug14 7% 6% 5% 4% 3% 2% 1% % Electricity Demand Growth (YoY) 2.3% Graphs Sources: 1), 2), 3), 4) CNE and CDEC-SIC.

5 5 HYDROLOGICAL CONDITIONS 1 Colbún Hydro Generation (GWh) Acc. Rainfalls Aug14/Aug Acc. Aug14: 3,915 Acc. Aug15: 3, Aug15 LTM Los Quilos (mm) Armerillo (mm) ,647 1, Melting Forecast at Maule (m3/s) Abanico (mm) ,665 1, Canutillar (mm) ,599 2,478 Oct Nov Dec Jan Feb Mar Source: Colbún.

6 6 END OF HIGH COMMODITY PRICES 1 12 WTI (US$/Barrel) 2 6, HENRY HUB (US$/MMBTU) 11 5,5 1 5, 9 4, , 3,5 3, 6 2,5 5 2, 4 1,5

7 7 POWER DEMAND FORECAST FOR CHILE IS DECREASING % 5.9% % % 4.6% % CNE Apr 15 CNE Apr 14 CNE Oct 13 IEA 212 IEA 29

8 8 ELECTRIC POWER GROWTH POTENTIAL 1 MWh/ person Annual Electricity per Capita Consumption Graphs Sources:)Wolrd Bank. 8

9 9 AGENDA SIC COLBUN PROJECTS

10 1 OVERVIEW Installed capacity of 3,278 MW ~ 21% Market Share / 25% by Generation Dec214 Gx. Asset Diversification (MW) Reservoir: 1,57 Run-of-the-river: 532 CCGT/Peaking: 1,347 Coal: 342 Wind Farm: 46* Biomass: 26* *Through PPAs Main Figures As of Jun15 (US$ million) Assets: 6,4 Equity: 3,4 Mkt Cap: 4,9 EBITDA LTM: 55 Net Debt: 965 Ownership 24% 17% Matte Group Pension Funds 1% 49% Tx. Assets ~9 Km 27 Substations Angelini Group Others Intern. Ratings Fitch: BBB S&P: BBB- Local Ratings Fitch: A+ Humphreys: AA- Committed Controlling Group High Standards of Corporate Governance 2 out of 9 female directors 1

11 11 COLBUN IS THE SECOND LARGEST GENERATOR IN THE SIC With over 3.2 TW of World Class Facilities 48% Hydro 1,589 MW 532 MW Run-of-the-river 33% 1,57 MW Reservoir 67% 3,278 MW 52% Thermal 1,689 MW 766 MW CCGT 45% 342 MW Coal 2% 581 MW Diesel 35% 11

12 12 COMMERCIAL STRATEGY 1 MW Capacity (MW) & *Estimated Generation (TWh/year) Breakdown 3.5 3,278 MW 19.5 TWh 12. TWh , (*) Under medium hydrological conditions. Capacity (MW) Generation (TWh/year) Contracted Sales Hydro Coal CCGT Diesel/Gas Peaking Diesel/Gas This graph is shown for illustrative purposes and represents estimated and potential output of our power plants and approximate level of contractual commitments. Real output from our power plants and variable production costs are dependent on many factors, such as hydrology, plant availability, access to fuels (coal and LNG) and commodity prices, among others. 12

13 13 COMMERCIAL POSITION GWh ,24 2,242 9,85 2,893 Contractual Sales vs. Generation (GWh) ,655 1, , ,11 3,74 3,234 4,431 3,794 4,47 2,623 2,69 4% 35% 3% 25% ,853 2,616 6,912 7,224 6,655 7,24 6,38 7,47 5,233 4,857 2% 15% 1% 5% Q15 LTM Hydro Coal LNG Diesel % Regulated Sales Unregulated Sales EBITDA Mg Graph Source: Colbun. Unregulated Sales 213 & 214 excludes sales to Codelco at Marginal Cost 13

14 14 LEVERAGING OUR COMBINED CYCLES 1 Contracted Gas Generation: Metrogas and ENAP (GWh) Regasification Capacity (GWh) , 2,5 2,5 2, 2, 2,5 1.5 Optional Long- term flexible gas price, providing flexibility to our LNG production Good complement to hydro and coal 14

15 15 HIGH QUALITY CLIENTS 1 2 Sales by Type of Costumer (%) Sales Volume by Customer (%) Unregulated Regulated 61% 39% Codelco (A/A+) 29% Chilectra (BBB+/BBB+ )* 21% CGED (Local A+) 19% Others 5% AngloAmeric an (BBB/BBB+) 9% Saesa (Local AA) 17% Historic Sales by Type of Costumer (GWh) Q15 LTM Regulated customers Unregulated customers Average Monomic Price (US$/MWh) Regulated Costumers Unregulated Costumers Graphs Sources: 1), 2), 3), 4) Colbun as of June15 LTM. 4) Average monomic prices are calculated by dividing the total amount of sales in US$, by physical energy sales in MWh.

16 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 16 MAIN FIGURES AND METRICS 1 2 Operating Revenues (US$ million) 2. 1, ,49 1,53 1, EBITDA (US$ million) & EBITDA Mg (%) % 37% 287 2% 21% 5% 4% 3% 2% 1% Q15 LTM Q15 LTM % Quarterly EBITDA (US$ million) Source: Colbún s Financial Statements Net Income (US$ million) Tax Reform HidroAysén Q15 LTM HidroAysén

17 17 MAIN FIGURES AND METRICS Debt & Net Debt (US$ million) Debt Net Debt Q Net Debt / EBITDA Q15 LTM 3 4 Leverage Ratio* (%) Q15 Source: Colbún s Financial Statements. (*) Calculated as Liabilities/Equity Cash Flow (US$ million) Capex EBITDA Q15 LTM

18 18 DEBT AND LIQUIDITY 1 Total Debt: MMUS$ 1,877 Avrg. Maturity: 6. years Avrg. USD Interest Rate: 4.9% Cash: MMUS$ 913 Net Debt: MMUS$ 965 Dividend Policy 3% (As of Jun15) BANKS 22% Debt Profile Type Currency Interest Rate BONDS 78% UF 9% USD 91% FIXED 1% 2 8 Amortization Structure (US$ million) 3 Banks Bonds Avg. MMUS$ 5 for the next 3 years Avg. Maturity: 6. years Source: Colbún s Financial Statements

19 19 ~9 MW OF NEW CAPACITY WITH OVER 2 BILLION INVESTED 1 MW 3.5 Colbún Installed Capacity Angostura 316 MW 3, ,37 Quilleco 71 MW Chiburgo 19 MW Hornitos 55 MW Santa María I 35 MW San Clemente Los Pinos 5 MW 1 MW Total a Total a Dic. 26 Dic % Hydro 1,589 MW 52% Thermo 1,689 MW

20 2 RELEVANT ASSETS FOR THE POWER SYSTEM 1 2 Angostura s Figures Capacity : 316 MW Expected Annual Gx.: 1,5 GWh 214 Availability: 97% CAPEX (Including Tx. Lines):~ MMUS$76 Start up: Abr14 46 families reallocated Angostura Generation (GWh) Q 2Q 3Q 4Q Santa María I s Figures Capacity: 342 MW Expected Annual Gx: 2,5 GWh CAPEX (Including the Tx line):~ MMUS$ 75 Start up: Aug Santa María I Generation (GWh) 96 1,853 2,616 2,623 2, Q15 LTM

21 21 AGENDA SIC COLBUN PROJECTS

22 22 GROWTH OPPORTUNITIES IN CHILE IV V RM VI VII Hydro Coal 5 MW equivalent of water rights under study NCRE under study VIII 34 MW La Mina Run-of-the-river / NCRE IX XIV X 35 MW Santa María II Coal ~17 MW San Pedro Reservoir

23 23 LA MINA CONSTRUCTION SITE 34 MW of Installed Capacity and 19 GWh of expected annual generation Under construction since Dec14 and to date is on schedule Expected to be commissioned in early 217

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26 26 SAN PEDRO HYDROELECTRIC PROJECT Panguipulli Lake Riñihue Lake San Pedro reservoir Project ~17 MW of Installed Capacity and 95 GWh of expected annual generation The Company continues with the socialization process of the project

27 Compensation Works: Los Lagos Bus Terminal, Panguipulli Information Center, Habilitation and beach equipment in Panguipulli, Camping in Riñihue 3 4

28 28 SANTA MARIA II COAL-FIRED PROJECT 35 MW of Installed Capacity and 2,5 GWh of expected annual generation Environmentally Approved Social, economic and commercial dimensions of the project are being analyzed, in order to timely define the beginning of its construction Santa María II

29 SEARCHING FOR INVESTMENT OPPORTUNITIES IN THE REGION 29 Special Focus on Colombia and Peru Growing Electricity Consumption Well established regulatory framework Diversification: Hydrological Conditions Generation Technology Fuel Access Regulatory Risks

30 3 OUR STRATEGY Be a leading and growing company of profitable and sustainable power generation in selected countries of Latin America Growth Excellence in Sustainability Excellence in Human Capital Management Operational Excellence Profitability 3

31 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 Colbun'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 ( 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 Alarcón María Elena Palma malarcon@colbun.cl mpalma@colbun.cl +(562) (562)

32 32 SECTOR SEGMENTATION 3 SUB-SECTORS 4 SEPARATE GRIDS GENERATION TRANSMISSION Regulated sectors (concessions) SING Antofagasta Tal-Tal SIC Arica 4,34 MW - 25% 17,23 GWh - 25% 15,85 MW - 75% 52,27 GWh - 74% Santiago DISTRIBUTION RELEVANT INSTITUTIONS Ministry of Energy Regulator: CNE Supervisor: SEC Coordinator: CDEC Castro SEA SAM Chaitén Cochrane Pto. Natales Pto. Williams Source: CNE, December MW - % 155 GWh - % 1 MW - % 291 GWh - %

33 33 MARKET STRUCTURE GENERATORS Main Players in the Generation Sector-SIC 36% REGULATED CUSTOMERS UNREGULATED CUSTOMERS SPOT MARKET 21% 26% DISTRIBUTION COMPANIES FREE CUSTOMERS CDEC 17% >15 players Regulated Auction Tariffs Unregulated Auction Tariffs Marginal Cost /Spot Price Endesa Colbún Gener Others Source: Colbún Dec14