Cia De Transporte De Energia Electrica Class B · BCBA:TRAN
Cia De Transporte De Energia Electrica Class B — Transener — Investor Presentation (November 2019)
30 slides from Cia De Transporte De Energia Electrica Class B's investor presentation, November 2019
Slide 1: Compañía de Transporte de Energía Eléctrica en Alta Tensión TRANSENER S.A.
Compañía de Transporte de Energía Eléctrica en Alta Tensión TRANSENER S.A. November 2019
Slide 2: Legal Disclaimer
Legal Disclaimer The material that follows is a presentation of general information about TRANSENER as of the date indicated herein and is based on publicly available information. It is in summary form, does not purport to be complete, is not intended to be relied upon as advice to potential investo
Slide 3: Industry Overview
Industry Overview
Slide 4: Industry Drivers
Industry Drivers Promote private ownership and market-based economic incentives Reward efficiency and penalize non-availability Regulate natural monopolies for transmission and distribution Guarantee open access and safety of the grid Protect rights of users and monitor quality of service
Slide 5: Argentine Electricity Market Players
Argentine Electricity Market Players CAMMESA is responsible for, among other things, billing and collecting charges from WEM agents and making payments for transmission services Supply Market Clearing House & Demand Dispatch Center Independent (CAMMESA) Generators Distributors Transmission National
Slide 6: Company Overview
Company Overview
Slide 7: Transener
Transener Privatized in July 1993 with an exclusive 95-year concession to operate and maintain approximately 85% of the 500 kV extra high voltage network in Argentina. The Company is in charge of the operation and maintenance of the 500 kV and 220 kV network along the whole country, under the ri
Slide 8: Corporate Structure
Corporate Structure (Formerly ENARSA) (Through Transelec Argentina) 50% 50% BCBA Citelec S.A. 47.348% 52.652% 100%
Slide 9: Comparative Distance Transener's Network
Comparative Distance Transener´s Network Cobos (Oslo) Resistencia (Baltic Sea) San Juan (Amsterdam) Buenos Aires (Budapest) Comahue (Marseille) Puerto Madryn (Corsica) Esperanza (Sahara Desert- Algeria)
Slide 10: TRANSBA
TRANSBA Privatized in August 1997 with an exclusive 95-year concession to operate and maintain the transmission lines in the Province of Buenos Aires (~39% of Argentina’s population) One of six regional transmission networks in Argentina with operations of over 6,456 km (4,011 miles) of 220, 132
Slide 11: Comparative Distance Transener and Transba's Network
Comparative Distance Transener and Transba’s Network London (UK) Auckland (New Zealand)
Slide 12: Business Overview
Business Overview Unique business in Argentina Operates 85% of the 500 kV extra high voltage network in Argentina. Transener Operation of approximately 12,383 km of lines and 49 substations. Network Grid expansion projects supervision. Regulated Operates and maintains the transmission lines
Slide 13: Business Operations
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Slide 14: Significant improvement in Operating Performance
Significant improvement in Operating Performance 4.0 3.66 3.5 ( 59%) 3.0 2.5 Failures per 100km / year 2.0 ( 72%) 1.48 1.5 1.49 1.0 0.41 0.5 0.0 Transener Transba Beginning of Concession Agreement 12-month period ended September 30 th, 2019 Maximum amount as per concession agreement Transener: 2.5 f
Slide 15: Financial Overview
Financial Overview
Slide 16: Full Tariff Review
Full Tariff Review ENRE Resolutions Nbrs 66/2017 (Transener) and 73/2017 (Transba) issued on January 31st, 2017 The new tariff system is in force for the five-year period 2017/2021 Both resolutions are in force from February 1st, 2017 Due to the differences between the tariff proposals formu
Slide 17: Full Tariff Review - Results vs. requested
Full Tariff Review - Results vs. requested(*) Requested ENRE Resolution (66-516) Reduction (in %) Remuneration REGULATORY ASSET BASE AS OF FEB´17 $ 12.336 $ 8.629 30% REVENUES $ 4.268 $ 3.534 17% PENALITIES $ 53 $ 30 44% OPEX $ 1.629 $ 1.413 13% EBITDA $ 2.586 $ 2.091 19% CAPEX $ 704 $ 688 2% TAXES
Slide 18: Full Tariff Review
Full Tariff Review(*) ENRE Resolution adjusted as of August' 2019 CONSOLIDATED USD = $60 (*) REGULATORY ASSET BASE AS OF AUGUST' 2019 $ 18.347 $ 7.720 $ 26.067 434 USD % INCOME REVENUES $ 7.782 $ 3.570 $ 11.352 189 USD 100% PENALTIES -$ 66 -$ 6 -$ 73 -1 USD 1% OPEX -$ 3.134 -$ 1.067 -$ 4.201 -70 USD
Slide 19: Semiannual tariff adjustments
Semiannual tariff adjustments Acummulated from Semiannual ENRE Resolution February 2017 Base (February 2017) 0,00% 0,00% Nbr. 516/17 1° period (August 2017) 11,35% 11,35% Nbr. 627/17 2° period (February 2018) 11,49% 24,15% Nbr. 99/18 3° period (August 2018) 14,82% 42,55% Nbr. 280/18 4° period (Febru
Slide 20: Net Regulated Revenues
Net Regulated Revenues Revenues included in the Tariff Chart: • Connection Revenue [$/h] • Transformation Revenue [$/MVA-h] • Reactive Power Equipment Revenue [$/MVAr-h] • Transmission Capacity Revenue [$/km-h] • Automatism Revenue [$/mes] Automatism DAG/DAD ET N° 1 ET N° 2 User 1 Line User 2 Transm
Slide 21: Transener – Annual Revenues
Transener – Annual Revenues TRANSENER $ 8.503.777.897,21 Lines $ 3.246.018.321,97 500 kV 11.810,7 km $ 3.121.411.613,28 220 kV 561,5 km $ 124.606.708,70 Transformers $ 1.681.964.457,00 Power 18.955 MVA $ 1.681.964.457,00 Connections $ 2.002.380.632,64 500 kV 42 MVA $ 585.635.188,32 220 kV 8 MVA $ 10
Slide 22: Transba – Annual Revenues
Transba – Annual Revenues TRANSBA+TIBA $ 4.091.762.080,05 TRANSBA $ 3.615.383.276,13 Lines $ 2.286.403.825,05 220 kV 177 km $ 65.516.152,74 132 kV 5.881 km $ 2.080.114.731,78 66 kV 398 km $ 140.772.940,53 Transformers $ 551.207.372,16 Power 4.196 MVA $ 551.207.372,16 Connections $ 773.568.400,20 220
Slide 23: Penalty System
Penalty System The Concession Agreements establish a system of penalties that we may incur if defined parts of the Networks are not available to transmit electricity. Non-availability is divided into two types: Scheduled (which typically result from planned maintenance, incur a reduced penalty
Slide 24: Penalty System - Cumulated penalty
Penalty System Forced Unavailability of transmission lines Cumulated penalty [$] A B C TRANSENER=5 hs Period of unavailability TRANSBA=3hs [hs]
Slide 25: Penalty System - Cap
Penalty System - Cap The penalties which Transener or Transba may be required to pay in respect of any calendar month cannot exceed: 50% of Transener or Transba's non-consolidated monthly regulated revenue related to electricity transmission revenue, transmission capacity revenue and connection
Slide 26: Transener Concession Agreement
Transener Concession Agreement The Transener Concession Agreement may only be terminated: by the Government if Transener becomes bankrupt or by Transener if the Government breaches the Transener Concession Agreement On the Transener Transfer Date, Citelec created a pledge in favor of the Gov
Slide 27: Revenue Breakdown
Revenue Breakdown 350,0 21,9 300,0 250,0 30,5 Net Non Regulated Revenues 200,0 US$ millions 19,3 Net Regulated 150,0 37,7 301,2 Revenues 14,4 20,6 230,5 100,0 150,9 135,0 134,9 122,3 50,0 ----------- 0,0 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 3Q2019 Values corresponding to periods ended as from Dec
Slide 28: Leverage Profile
Leverage Profile EBITDA Total Financial Debt 200 187,4 161,3 200 150 US$ millions 150 129,0 US$ millions 108,1 116,3 100 99,0 99,5 100,1 91,6 * 81,1 100 50,9 ---------- ---------- 50 50 21,2 0 0 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 3Q2019 2014 2015 2016 2017 2018 3Q2019 Financial Debt to EBITDA E
Slide 29: Current debt amortization schedule
Current debt amortization schedule (as of September 30th, 2019) Total Financial Debt US$98,5 millions 1 110 98,5 90 In US$ millions 70 50 30 10 - - 2019 2020 2021 -10 (1) It includes VN$5.0MM and VN$1.6MM notes in Transba’s and Transener’s portfolio, respectively.
Slide 30: Current regulatory situation
Current regulatory situation Transener and Transba requested the recognition of the damages from the breaches of the National State with respect to: i. the lack of the adjustment of the remuneration for the provision of the public service of transmission of high voltage electricity and by trunk di