COMPANY PRESENTATION 1Q 2013

Transcription

1 COMPANY PRESENTATION 1Q 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 Assets People 45% hydro and 55% thermal 15 hydro plants in 4 different basins 7 thermal plants in 4 different regions 968 employees as of March 13 Results EBITDA of USD 284 million in 212 EBITDA of USD 347 million LTM Revenues of USD 1.4 billion in 212 Revenues of USD 1.4 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 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 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 ACONCAGUA BASIN: 213 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 15 HYDRO POWER PLANTS 4 ANTILHUE POWER PLANT: 13 MW DIESEL Antilhue Capacity Unit I : 51 MW Capacity Unit II : 52 MW TRANSMISSION LINES 47 KM Trunk Transmission System 68 KM Sub Transmission System 737 KM Additional Transmission System Combined Cycle Open Cycle Coal-fired Run of the River Reservoir Rucúe Capacity: 178 MW LAJA BASIN: 249 MW Canutillar Capacity: 172 MW Quilleco Capacity: 71 MW CHAPO LAKE: 172 MW

5 REGULATED CUSTOMERS A diversified customer base Company Overview CHILECTRA ( /23/25) CONAFE (Until 22) 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) ,7 MW CAGR: 8% 2,962 MW US$ 129 million CAGR: 2% US$ 1,49 million Market Cap (MMUSD) 3-year Moving Average EBITDA (MMUSD) US$ 4,83 million 35 3 US$ 273 million US$ 435 million CAGR: 2% US$ 54 million CAGR: 13%

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. Matte Group 49% Source: Colbún, December 212 Ownership Structure Angelini Group 1% Others 22% Pension Funds 19% 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 Identify and develop project options to consolidate our market share. 3. Growth Commercial strategy that generates long-term returns consistent with our asset base. 2. Diversification and Risk Management Narrow our exposure to exogenous variables: diversified asset base (technology, fuel and location) and clients. Active risk management policy. 1. Consolidation Consolidate our people, our operations, our projects, our financials Long-term value generation (Profitability/EBITDA) 1

11 Value Chain Business Strategy Project Development Operational Excellence Risk / Return Profile Multidimensional challenge: Technical + Environmental / Social + Financial High standards: Reliability + Security + Environmental Risk / return profile combining: Commercial policy + Financial strength + Risk management Sustainability Value & Trust 11

12 Colbún: a sustainable partner Business Strategy EMPLOYEES INVESTORS ENVIRONMENT CLIENTS AND SUPPLIERS COMMUNITY AND SOCIETY CONTRACTORS AND PROVIDERS 12

13 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 13

14 Evolution of Colbún s Business Model Business Strategy GWh Contractual Commitments MMUSD Base Generation EBITDA (EBITDA Margin) Ratio: Base Generation / Commitments (58%) (6%) (6%) (48%) (45%) (59%) (1%) 19 (18%) (29%) (32%) (15%) (2%) 144% 125% 112% 97% 9% 92% 53% 7% 7% 87% 67% 74% Base Generation 1 / Commitments 2 9% B.G. / C 7% B.G. / C 85% : Commitments represent Colbún s committed sales (through contracts) excluding commitments which price is indexed to the spot price 2: Base Generation represents Colbún s electricity low variable cost (hydro generation + gas generation pre-27 and coal generation afterwards) 14

15 Our expansion plan Business Strategy UNDER CONSTRUCTION UNDER DIFFERENT STAGES OF DEVELOPMENT 2,962 MW Angostura 316 MW La Mina* 34 MW Santa María II 342 MW San Pedro 15 MW Hydro potential ~5 MW ~ 4,3 MW OTHER GROWTH OPPORTUNITIES Existing CCGT (766 MW) and existing open-cycles that could be combined (27 MW), subject to securing a long-term competitive and flexible natural gas supply. 53% 43% Hydro capacity (*NCRE) Coal-fired capacity Combined-cycle capacity Open-cycle capacity (natural gas and/or diesel) 15

16 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 MAR. 213: 593 MMUSD ADVANCE MAR. 213: 88% ESTIMATE START OF OPERATION: 4Q213 16

17 Agenda Company Overview Business Strategy Financial Profile Chilean Electricity Sector Overview 17

18 Income Statement Financial Profile Revenues, EBITDA (MMUSD) & EBITDA Margin 1.6 Revenues EBITDA EBITDA margin (%) Average EBITDA : MMUSD % 29% 32% Non-operational result from past years affected by payments to early terminate old natural gas transport contracts % 15% 2% 212 Income Tax: one-time MMUSD 74 charge from increase in tax rate 2 2% MMUSD March 213 LTM Revenues 753 1,16 1,346 1,159 1,24 1,333 1,49 1,415 EBITDA Depreciation (17) (118) (117) (122) (124) (125) (136) (145) Non-operational result (43) (51) (13) (37) (45) (58) Exchange rate differences 12 (65) (12) (14) 1 (3) Income Tax (32) (1) (37) (7) (6) (24) (64) (75) Net Income 276 (9)

19 Capital Structure and Credit Metrics Financial Profile Key Credit Metrics Cash, Debt & Net Debt (MMUSD) March 213 LTM Cash Total debt to total capital (%) , Net debt Total debt Net debt to EBITDA (x) , EBITDA Interest coverage (x) , March

20 Free Cash Flow Analysis Financial Profile Selected Sources & Uses of Funds (MMUSD) K WK Capex EBITDA Negative FCF in past years due to intensive capex program Intensity of capex diminishes in 213 Expected recovery of VAT Credit in coming years (current stock of MMUSD 258) Low dividend policy (3% of Net Income) March 213 LTM 2

21 Conservative Financial Strategy: Smooth debt profile coupled with a strong liquidity position Financial Profile Amortization Schedule of LT Debt (MMUSD) Balance Sheet as of March 213 (MMUSD) 6 5 Banks Bonds Current Assets 75 4 Cash and equivalents Accounts receivable Recoverable taxes Other current assets Liquidity Position Non-Current Assets 5,363 Property, Plant and Equipment 4,933 Other non-current assets 43 Cash USD 238 million of cash and cash equivalents as of March 213. Committed lines Committed back-up facility of UF 8 million (~USD 38 million), unused, signed with local counterparties. Plan to maintain a similar level of back-up liquidity facilities during the CAPEX period. 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 Total Assets 6,2 Current Liabilities 553 Long-Term Liabilities 1,98 Shareholders' Equity 3,541 Total Liabilities and Shareholders' Equity 6, 21

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

23 Agenda Company Overview Business Strategy Financial Profile Chilean Electricity Sector Overview 23

24 Sector Segmentation 3 SUB-SECTORS GENERATION SING SIC Antofagasta Chilean Electricity Sector Overview 4 SEPARATE GRIDS Arica 3,964 MW - 25% GWh - 25% Tal-Tal 12,365 MW - 75% GWh - 74% TRANSMISSION Regulated sectors (concessions) Santiago DISTRIBUTION Castro SEA Chaitén 52 MW - % 146 GWh - % RELEVANT INSTITUTIONS Cochrane Ministry of Energy 24 Regulator: CNE Supervisor: SEC Coordinator: CDEC SAM Pto. Natales Pto. Williams Source: CNE, December MW - % 276 GWh - %

25 Market Structure Chilean Electricity Sector Overview Electricity Market Structure Main Players in the Generation Sector-SIC GENERATORS 39% REGULATED CUSTOMERS UNREGULATED CUSTOMERS SPOT MARKET 2% 21% >15 players 17% DISTRIBUTION COMPANIES FREE CUSTOMERS CDEC 2% 1% Regulated Auction Tariffs Unregulated Auction Tariffs Marginal Cost /Spot Price Endesa Colbún Gener Arauco CGE Others Source: Colbún, December

26 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 Gas Coal /Petcoke Hydro Diesel 7% LNG 21% Gas % Unregulated Demand Regulated Demand Unregulated: ~3% 25 Coal 27% 25 2 Jan-Mar % Hydro 4% 1% 1 24% 35% 5 34% Source: Generación Bruta en el SIC, CNE/Colbún, % 1% 5% % 213 YoY monthly growth J F M A M J J A S O N D Regulated: ~7% Source: Producción Real por Sistema, CNE/Colbún, 213. Anuarios CDEC-SIC

27 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 27 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

28 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. 28

29 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 Hydro (1) Wind Coal Gas (2) Diesel Max demand 12. Min demand Average demand Source: Informe Técnico Definitivo Fijación Precio Nudo SIC,CNE/Colbún, April Source: Informe Técnico Definitivo Fijación Precio Nudo SIC,CNE/Colbún, April 213 (1) Considering normal hydro conditions (2) Real gas output depends on fuel availability

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