Vision, Strategy & Financial Results

Transcription

1 Vision, Strategy & Financial Results COO Lucas Pescarmona & CFO Julio Dreizzen July 20, 2011

2 Vision & Strategy COO Lucas Pescarmona

3 We Are Green & Have The Edge By 2015 Brazil will need to provide energy for more than additional 13 million homes, representing more than 25 million people, or 22 GW in power. We are positioning ourselves in Brazil to capture this fantastic opportunity and rapidly expand our business in one of the world s fastest-growing economies and populations. Thanks to our technologies, we have already reduced carbon dioxide emissions by 767 billion tons and by continuously innovating, we are not only building a sustainable business but are also maintaining the edge on our competitors. COO Lucas Pescarmona São Paulo, July 20,

4 Building A Sustainable Business Model Leading renewable energy player in Latin America with a proven track record of more than 100 years of experience Profitable resilient business with highly attractive industry dynamics IMPSA is the largest developer of wind power and one of the two largest manufacturers of wind and hydro equipment in Latin America Complete solutions provider with synergies between business units Strong backlog and significant growth potential that provide high revenue visibility Highly experienced management team Innovates green technologies IMPSA today holds a backlog of projects for power generation from renewable resources of more than USD 3 billion Power Power Renewable Renewable Generation Generation R&D R&D EPC EPC NY004V7H-Process arrows.cdr NY004V7H-Process arrows.cdr Core Core Equipment Equipment 4

5 Global Track Record In Quality & Reliability IMPSA has installed hydro and wind power generation equipment in 110 projects in 26 countries with a cumulative Premesa Castelbello IMPSA has installed hydro and wind power generation equipment in 110 projects in 26 countries with a cumulative Sonico capacity of Bolzano more than 23 GW Gjuva Westinghouse Nassfeld Riddes Mubisa Soazza 30+ years Spirit Mountain Lucky Peak Mocassin Echo Pathfinder Tieton Semince Pinacles Kaw Roosevelt & Hoover La Vueltosa Jaguas Summersville Kirkwood I y II Macagua I Truman Tunnel I Tocoma Escaldes Innert Kirchen Tavanasa Küblis Gurtnellen Göschenen Bürglen Gondo Taio Bärenwerk Dahua Shihlin El Níspero Asturias Daniel Gutierrez Río Grande Porce III Corobici Guavio Toro I Manso Caruachi Miranda Segredo Funil Pai Joaquim Bakun Caliraya Botocán Kalayaan I y II San Rafael Dardanelos Pykara Bhumibol Viru Los Alisos Río Reyes N 1 Las Maderas Punta Negra Cabra Corral El Tunal Albardón Quebrada de Ullum y Ullun El Tigre Alfalfal Potrerillos (Álvarez Condarco Cacheuta) Colbún Los Reyunos Nihuil I Arroyito Agua del Toro Cerros Colorados Alicura Piedra del Águila Agoyan Pichi Picun Leufú Ameghino Atucha II Piedras Moras El Embalse Río Grande y Arroyo Corto Casa de Piedra Yacyretá Salto Grande Urugua-í Sobragi Santa Clara y Fundão Itatinga Cubatão Santa Branca Henry Borden Simplicio & Anta 100+ years Kapichira Target Regions Sipansihaporas 5

6 Integrated Renewable Energy Platform 1 Designs, manufactures and installs custom-made equipment for hydro generation projects: One-stop-shop with water-towire solutions Top 10 global hydro player State-of-the-art hydro laboratory More than 23 GW already installed and 17 GW under execution Designs, manufactures and installs wind energy generators and ancillary equipment Leading wind equipment manufacturer in Latin America Proprietary (UNIPOWER ) and licensed technology (Vensys) More than 322 MW already installed and under construction 920 MW under execution turbine backlog Develops and operates hydro power plants and wind farms Hydro Plants: Developed more than 1.1 GW Wind Farms: Largest investor in Latin America: 1.0 GW Focused on projects in Brazil, rest of Latin America, contracted with credit-worthy off-takers Notes: 1. The Company has also a non-core business unit dedicated to waste collection and waste management in Argentina and Colombia 6

7 The Complete Green Energy Solution R&D Core Equipment EPC Renewable Power Generation 7

8 Largest Wind Developer in LatAm More than 1 GW under execution and 1 GW plus under development BRAZIL Commercial Ops 322 MW Constructing 211 MW Awarded PPAs 270 TOTAL 803 MW PERU Under Bidding Process 60 MW TOTAL 60 MW URUGUAY 65 MW awardedin 2011 TOTAL 65 MW ARGENTINA 155 MW awardedin 2010 TOTAL 155 MW 8

9 LatAm s Leading Hydro & Wind Equipment Maker Market Share (Latam) Market Share (Brazil) Rainpower 2% Others 6% Voith 11% Toshiba 13% IMPSA 38% Suzlon 14% GE 15% Other 10% IMPSA 19% Alstom 2% Vestas 12% Andritz 14% Alstom 16% Wobben 18% Gamesa 7% Siemens 3% Q

10 Strategy Focus on renewable energy sectors in high growth developing markets in Latin America, mainly in Brazil Leveraging position as a fully integrated and full service player to capture synergies To increase our leadership as a provider of integrated solutions in hydro and wind power in select high growth emerging markets by executing the following strategies: Continuing with local presence and expanding our proven track record for quality and reliability Innovating and developing proprietary technology to retain the competitive edge Expanding manufacturing capacity to gain key local presence in select focus markets Expand and Increase Partnerships with dominating local players 10

11 Built On Long-Term Contracts, Relationships 103-year history (25 years in Brazil) 87% customer retention rate over last 10 years 97% availability on Wind Turbines Lower than 97% Strategic Relationships Access to Competitive Financing 11

12 Financial Results CFO Julio Dreizzen

13 Financial Highlights LTM consolidated sales of US$1,114 million and 1Q2011 consolidated sales of US$337million LTM consolidated EBITDA reached US$150 million Roughly 60% of sales are being generated in Brazil IMPSA signed agreements for more than US$1.7 billion in wind and hydro projects over the last twelve months IMPSA will play a key role as a supplier of the Belo Monte hydro project for US$520 million and Casanova wind project (CHESF) for US$345 million IMPSA issued a 10-year bullet bond for US$390 million

14 Sales and EBITDA Double-Digit Growth (US$ million) Sales EBITDA ,002 1, x LTM 1Q 2011 Hydro, Wind, Energy & E. Services Sale of Equity in Wind Farms 2.5x Core Growth Drivers: Economic growth and increasing demand for green energy Strong backlog jumps to USD3.6bn from USD2bn in one year Diverse client base and product offering Wind plant in Brazil and Hydro factory on the way Cheap Brazilian financing Shared customer base for wind and hydro divisions 14

15 Liquidity of Energy Assets in Latam IMPSA has demonstrated its ability to monetize its energy generating assets in Brazil, which is a key point in IMPSA s energy strategy. Highly Liquid assets to face any cash flow needs. Transaction Overview Our Partners In February 2009, IMPSA signed an agreement with CEMIG for the sale of a 49% stake in Ceará I wind farms. The stake sales purchase price was R$ 218 mm (~US$127 mm) In April 2010, IMPSA sold a 45% stake of Energimp to Fundo de Investimento do Fundo de Garantia por Tempo e Serviço (FI-FGTS) for R$400 mm (~US$229 mm). (US$ millions) 49% Ceara I Main Figures 45% 55% Santa Catarina ENERGIMP 51% 100% 88% 88% Ceara II Transaction Overview (1) Cemig FI-FGTS Total (49% of Ceara I) (45% of Energimp) Sales of equity to Cemig 127 Equity contributions from FI-FGTS 229 Ceara III & RGN I Notes: 1 Figures as per in Note 6 of IMPSA Financial Statements as of July 31, Net of Income Tax Gain on disposal (2) Gain on fair value of remaining interest Total Gain

16 Backlog & Sales Breakdown Focus On Brazil LTM Sales 1 : US$ 1,114 mm Others Others Brazil Brazil 45% 45% 55% 55% Manufacturing Backlog 1 : US$ 3,084 mm Other Other 41% 41% Brazil Brazil 59% 59% Ourclients, assetsandriskare now predominantly a Brazil story. Our shift to Brazil reflects the greater market opportunity with our broader LatAm client base. Energy 1% Others 9% Butthisis notonlyan opportunity for our energy businesses. Wind 49% Hydro 41% Wind Wind 58% 58% Hydro Hydro 42% 42% Brazil provides us much cheaper financing options with national development bank BNDES and federallycontrolled Caixa Economica Federal. Notes: 1 As of April 30,

17 Strong Backlog Provides Clear Cash Flow Visibility IMPSA s manufacturing backlog and energy pipeline provides stability in the short and medium term Manufacturing Backlog USD Millions 2010 Sales & EBITDA result from 2009 backlog monetization An increase in backlog will lead to an increase in both Sales and EBITDA 17

18 Strategic Investments Net Cash Flow $60 (US$ million) 1Q 2011 $40 $20 $- $(20) $(40) Operational Funds Intangible Assets CAPEX Cash & EquivalentsJan31, 2011: US$46 million Cash & EquivalentsApr30, 2011: US$83 million Net Recourse Debt Non Recourse Debt Recourse Interests Non Recourse Interests Others Long Term Corporate Debt to finance our Capexin the new hydro factory in Brazil Long Term Non Recourse Debt to finance our Capex in wind farm concessions in Brazil (intangible assets) Energy today generates 100 MW in wind operations and by year endthis will increase to 320 MW. IMPSA sdifferencesin cash flowarisefromifric 12 application (applicationofspecificaccountingparameterstospecificimpsa Energy Capex) and the difference produced by wind farm sales. 18

19 Debt Profile Focus On Extending Maturities 390 Project Finance Debt 29% Corporate Debt 71% Corporate Bonds Corporate Debt Corporate 2020 Bullet Bond Debt Structure (U$S mm) Corporate Debt 680 Project Finance Debt 272 Total Debt s Represent 60% Of Corporate Debt 19

20 Summary Focus On Renewable Energy Leading position in Renewable Energies Long track record and solid technological base 25% 25% Growing demand for electricity focused on renewable energies Diversified business portfolio 50% Attractive backlog and highly feasible projects By 2012 weexpecttohavea balanced EBITDA generation between concession type& industrial production 20

21 Vision, Strategy & Financial Results COO Lucas Pescarmona & CFO Julio Dreizzen July 20, 2011