COMPANY PRESENTATION 2Q 2013

Transcription

1 COMPANY PRESENTATION 2Q 213

2 Agenda Company Overview Business Strategy Financial Profile Chilean Electricity Sector Overview 2

3 Colbún at a glance Company Overview Business Power Generation & Trade Market Share (as a % of Installed Capacity) - SIC Size 2 nd largest generator in Chile s Central Grid (SIC), with over 2% market share (MW). The SIC covers 9% of the population Others 24% Colbún 2% Capacity 2,962 MW 43% hydro and 57% thermal AES Gener 17% Endesa 39% Generation 11,568 GWh in 212 Power plants People 45% hydro and 55% thermal 15 hydro plants in 4 different basins 7 thermal plants in 4 different regions 976 employees as of March 13 Results EBITDA of USD 284 million in 212 EBITDA of USD 451 million LTM Revenues of USD 1.4 billion in 212 Revenues of USD 1.6 billion LTM Source: Colbún December 212 Generation (GWh) and Installed Capacity (MW) Generation Hydro Capacity 45% 43 % 57 % Source: Colbún 212 Generation and Capacity Thermal 55% 3

4 A diversified asset base ACONCAGUA BASIN: 213 MW Company Overview 7 THERMAL POWER PLANTS NEHUENCO COMPLEX: 874 MW DIESEL/GAS Nehuenco I Capacity: 368 MW Nehuenco II Capacity: 398 MW Nehuenco III Capacity: 18 MW CANDELARIA POWER PLANT: 27 MW DIESEL/GAS Candelaria Capacity Unit I : 133 MW Capacity Unit II : 137 MW SANTA MARIA I POWER PLANT: 342 MW COAL Santa María I Capacity: 342 MW LOS PINOS POWER PLANT: 1 MW DIESEL Los Pinos Capacity: 1 MW ANTILHUE POWER PLANT: 13 MW DIESEL Antilhue Capacity Unit I : 51 MW Capacity Unit II : 52 MW Chacabuquito Capacity: 29 MW Los Quilos Capacity: 39 MW Hornitos Capacity: 55 MW Colbún Capacity: 474 MW San Ignacio Capacity: 37 MW San Clemente Capacity: 5 MW Rucúe Capacity: 178 MW Carena Capacity: 9 MW Blanco Capacity: 6 MW Juncal Capacity: 29 MW Juncalito Capacity: 1 MW CARENA POWER PLANT: 9 MW MAULE BASIN: 63 MW Machicura Capacity: 95 MW Chiburgo Capacity: 19 MW LAJA BASIN: 249 MW Quilleco Capacity: 71 MW BIOBIO BASIN: 316 MW Angostura Capacity: 316 MW 15 HYDRO POWER PLANTS 4 TRANSMISSION LINES 261 KM Trunk Transmission System 68 KM Sub Transmission System 523 KM Additional Transmission System Combined Cycle Open Cycle Coal-fired Run of the River Reservoir CHAPO LAKE: 172 MW Canutillar Capacity: 172 MW

5 REGULATED CUSTOMERS A diversified customer base Company Overview CHILECTRA ( /23/25) CONAFE (Until 215) CGE-Río Maipo (21-221) CGE-Distribución (21-224) SAESA (21-219) Santiago CODELCO Salvador CODELCO Ventanas ANGLOAMERICAN Los Bronces CODELCO Andina METRO AGUAS ANDINAS La Farfana CMPC Puente Alto UN-REGULATED CUSTOMERS CODELCO Teniente CMPC Procart 5

6 Colbún has grown steadily over the past decade Company Overview Capacity (MW) Total Operating Revenues (MMUSD) ,26 MW CAGR: 9% 2,962 MW USD 214 million CAGR: 21% USD 1,49 million Market Cap (MMUSD) 3-year Moving Average EBITDA (MMUSD) USD 4,83 million 35 3 USD 273 million USD 618 million CAGR: 23% USD 17 million CAGR: 1%

7 Solid and reliable controlling group with a strategic and long term vision Company Overview CONTROL Controlled by the Matte Group (49%), one of the leading economic groups in Chile, with stakes in various sectors (forestry, financial, telecommunications, among others). LARGE STAKEHOLDER The second important stakeholder, the Angelini Group, is also a leading Chilean economic group and owns 9.6% of Colbún. FLOAT 41% free float, with relevant local institutional investor presence. GOVERNANCE 4 out of 9 are independent directors. Source: Colbún, June 213 Matte Group 49% Ownership Structure Angelini Group 1% Others 23% Pension Funds 18% ACCOUNTING STANDARDS Disclosure under IFRS standards Functional currency: US dollar 7

8 Agenda Company Overview Business Strategy Financial Profile Chilean Electricity Sector Overview 8

9 Corporate strategy Business Strategy Who are we? We are a Chilean company, leader in the generation of reliable, competitive and sustainable energy. What do we do? We seek to generate long-term value by developing projects and managing power infrastructure, integrating with excellence the economical, technical, environmental and social dimensions. 9

10 Strategic pillars Business Strategy 1. Strengthening Strengthen our organization and people Strengthen our operations Strengthen our financial position 2. Diversification and Risk Management Narrow our exposure to exogenous variables: diversified asset base (technology, fuel and location) and clients Risk-sharing mechanisms with our strategic clients and suppliers Active risk-management policy 3. Growth Identify and develop growth options to strengthen our competitive position based on efficient capacity Commercial strategy that generates long-term returns consistent with our asset base 1

11 Colbún: a sustainable partner Business Strategy EMPLOYEES INVESTORS ENVIRONMENT CLIENTS AND SUPPLIERS COMMUNITY AND SOCIETY CONTRACTORS AND PROVIDERS 11

12 Commercial policy Business Strategy COMMERCIAL GOALS Supply secure and competitive energy to our customers Maximize returns from our current and future assets Manage volatility given large renewable component 1. CONTRACT LEVEL 2. SALE PRICE INDEXATION 3. HEDGE PROGRAM Define optimal Contract Level Incorporate indexation formulas of sale prices Structure tailor-made hedge programs Hydro capacity (Output of a medium-dry year) + Efficient thermal capacity (Output of coal-fueled plant) that reflect our cost structure Hydro Efficient thermal Transitional periods CPI Fossil Fuels Flexible Price to protect from more adverse 1) Hydrologic conditions 2) Fuel prices 12

13 GWh Commercial balance evolution Business Strategy Contractual Sales vs. Generation (GWh) LTM June 213 Hidro Coal Gas Diesel Contractual Sales Volume 13

14 Our expansion plan Business Strategy FINAL STAGES (expected to begin operations by the end of 213) LONG-TERM LNG SUPPLY Existing CCGT (766 MW) and existing open-cycles (27 MW) that could be optimized, subject to securing a long-term competitive and flexible natural gas supply. 2,962 MW Angostura 316 MW OTHER GROWTH OPPORTUNITIES La Mina* 34 MW Santa María II 342 MW San Pedro 15 MW Hydro potential ~5 MW ~ 4,3 MW 53% 43% Hydro capacity (*NCRE) Combined-cycle capacity Coal-fired capacity Open-cycle capacity (natural gas and/or diesel) 14

15 Our projects under development Business Strategy SANTA MARÍA II COAL POWER PLANT: 342 MW Coronel, Biobío Region SAN PEDRO HYDRO POWER PLANT: 15 MW Riñihue Lake, Los Ríos Region INVESTMENT AND SCHEDULE: SPENT AS OF SEP 212: Under revision 112 MMUSD SANTA MARÍA II LA MINA ANGOSTURA SAN PEDRO LA MINA HYDRO POWER PLANT: 34 MW Maule River, Maule Region ANGOSTURA HYDRO POWER PLANT: 316 MW Santa Barbara and Quilaco, Biobío Region INVESTMENT POWER PLANT: 675 MMUSD INVESTMENT TX LINE: 45 MMUSD SPENT AS OF JUN. 213: 63 MMUSD ADVANCE JUN. 213: 93% ESTIMATE START OF OPERATION: 4Q213 15

16 Agenda Company Overview Business Strategy Financial Profile Chilean Electricity Sector Overview 16

17 Income statement and FCF Financial Profile EBITDA (MMUSD) Selected Sources & Uses of Funds (MMUSD) WK Capex EBITDA June 213 LTM June 213 LTM 5% EBITDA margin (%) 2. Debt (MMUSD) 4% 3% 32% 2% 28% % 1% 15% 5 % June 213 LTM June 213 Net Debt Cash 17

18 Conservative financial strategy Financial Profile Amortization Schedule of LT Debt (MMUSD) Balance Sheet as of June 213 (MMUSD) Current Assets 76 Cash and equivalents 223 Accounts receivable 184 Recoverable taxes 23 Other current assets 123 Non-Current Assets 5,259 Property, Plant and Equipment 4,955 Liquidity Position Cash USD 223 million of cash and cash equivalents as of June 213. Committed lines Committed back-up facility of UF 4 million (~USD 2 million), unused, signed with local counterparties. Other sources of liquidity Access to additional USD 15 million in credit lines facilities and a registered commercial paper program, which we use from time to time for working capital optimization purposes Other non-current assets 35 Total Assets 6,2 Current Liabilities 536 Long-Term Liabilities 1,94 Shareholders' Equity 3,58 Total Liabilities and Shareholders' Equity 6,2 18

19 A quarterly look at Colbún s results Financial Profile Sales vs. Generation - quarterly (GWh) 2Q12 3Q12 4Q12 1Q13 2Q13 Contractual Sales (*) (*) Lighter areas are Codelco supplies Hydro Coal Natural gas (LNG) Diesel Revenues - quarterly (MMUSD) Q 2Q 3Q 4Q Revenues 212 Revenues 213 EBITDA margin - quarterly (%) EBITDA - quarterly (MMUSD) 5% 4% 3% 37% 29% 24% 25% % 1% 8% % 19 2Q12 3Q12 4Q12 1Q13 2Q13 1Q 2Q 3Q 4Q EBITDA 212 EBITDA 213

20 Agenda Company Overview Business Strategy Financial Profile Chilean Electricity Sector Overview 2

21 Sector segmentation 3 SUB-SECTORS GENERATION SING SIC Antofagasta Chilean Electricity Sector Overview 4 SEPARATE GRIDS Arica 4,146 MW - 24% 16,751 GWh - 25% Tal-Tal 13,332 MW - 76% 48,796 GWh - 74% TRANSMISSION Regulated sectors (concessions) Santiago DISTRIBUTION Castro SEA Chaitén 52 MW - % 166 GWh - % RELEVANT INSTITUTIONS Cochrane Ministry of Energy 21 Regulator: CNE Supervisor: SEC Coordinator: CDEC SAM Pto. Natales Pto. Williams Source: CNE, December MW - % 287 GWh - %

22 Market structure Chilean Electricity Sector Overview Electricity Market Structure Main Players in the Generation Sector-SIC GENERATORS 39% >15 players REGULATED CUSTOMERS UNREGULATED CUSTOMERS SPOT MARKET 2% 24% 17% DISTRIBUTION COMPANIES FREE CUSTOMERS CDEC Regulated Tender Tariffs Auctioned under the supervision of the National Energy Commission. Unregulated Tariffs Market Price: settled by both parties, generator and free customer. Spot Price /Marginal Cost The variable cost of the most expensive dispatched plant at each moment. Endesa Colbún Gener Others Source: Colbún, December

23 Evolution of power generation and demand in the SIC Chilean Electricity Sector Overview Annual Power Generation SIC (TWh) Annual Electricity Demand SIC (TWh) Others Diesel-Fuel LNG Coal /Petcoke Gas Hydro Diesel 7% LNG 21% Unregulated Demand Regulated Demand Unregulated: ~3% 3 25 Coal 27% % Jan-Jun 213 9% 5% 33% Gas % Hydro 4% % 5% 213 YoY monthly growth Regulated: ~7% 5 3% Source: Generación Bruta en el SIC, CNE % J F M A M J J A S O N D Source: Producción Real por Sistema, CNE/Colbún, 213. Anuarios CDEC-SIC 23

24 Variable Cost of the Plants (USD/MWh) Dispatch and pricing model: a technical guide Chilean Electricity Sector Overview OBJECTIVE INSTITUTION MODEL Meet demand at the lowest cost possible Independent load dispatch center (CDEC) coordinates the efficient dispatch of electricity producers CDEC dispatches plants in ascending order of variable production cost Prices vary according to the type of customer: REGULATED CUSTOMERS 1) Node Price: calculated by the CNE every 6 months 2) Auction Price: auctioned under the supervision of the Regulator for bilateral LT contracts UNREGULATED CUSTOMERS 3) Market Price: free price settled by both parties for bilateral contracts OTHER GENERATORS 4) Spot Market Price: the variable cost of the most expensive dispatched plant at each moment of the day All facilities are also paid a capacity charge for being available 24 Dispatch Model Pricing Model Hydro CC-Diesel CC-LNG Coal OC-Diesel Thermo-Diesel Output from available plants (MWh) Dispatched Plants *Margin = [Spot Price - Var. Cost] Back Up Plants Plants receive revenues from Capacity charge Plants earn a Margin* Dispatch Scheme Demand Curve SPOT PRICE Marginal Cost of the System

25 Evolution of electricity prices Chilean Electricity Sector Overview Electricity Prices-SIC (USD/MWh) ) Energy Node Price Alto Jahuel (USD/MWh) 2) Average Auction price (USD/MWh) 3) Average Market price (USD/MWh)* 4) Energy Spot Market Price Alto Jahuel (USD/MWh) Source: Costos reales marginales mensuales Alto Jahuel, CDEC/ Colbún; Historia precios nudos, CNE; Informes Mensuales Systep, Note (*): The market Price is calculated by the Regulator upon information provided by all generation companies. This average price does not includes the capacity charge component. 25

26 Chilean Electricity Sector Overview Demand and supply: what to expect in the coming years Electricity Demand - SIC (TWh) Available Power by type - SIC (MW) TWh 7 MW 12. Hydro (1) Wind Coal Gas (2) Diesel Source: Informe Técnico Definitivo Fijación Precio Nudo SIC,CNE/Colbún, April Source: Informe Técnico Definitivo Fijación Precio Nudo SIC,CNE, April 213 (1) Considering normal hydro conditions (2) Real gas output depends on fuel availability

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