Cia De Transporte De Energia Electrica Class B · BCBA:TRAN

Cia De Transporte De Energia Electrica Class B — Transener — Investor Presentation (September 2021)

25 slides from Cia De Transporte De Energia Electrica Class B's investor presentation, September 2021

  1. 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. September 2021

  2. 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

  3. Slide 3: Industry Overview

    Industry Overview

  4. 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

  5. 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

  6. Slide 6: Company Overview

    Company Overview

  7. 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

  8. Slide 8: Corporate Structure

    Corporate Structure (Formerly ENARSA) 50% 50% BCBA Citelec S.A. 47.348% 52.652% 100%

  9. Slide 9: 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 6,616 km of 220, 132 and 66 kV lin

  10. Slide 10: Business Overview

    Business Overview Unique business in Argentina  Operates 85% of the 500 kV extra high voltage network in Argentina. Transener  Operation of approximately 12,372 km of lines and 51 substations. Network  Grid expansion projects supervision. Regulated  Operates and maintains the transmission lines

  11. Slide 11: Business Operations

    Transener wr © zm O) 7) yn (3) £ n =) a

  12. Slide 12: Failures per 100km / year

    Significant improvement in Operating Performance 4.0 3.66 3.5 ( 76%) 3.0 2.5 Failures per 100km / year 2.0 ( 84%) 1.48 1.5 1.0 0.88 0.5 0.24 0.0 Transener Transba Beginning of Concession Agreement 12-month period ended March 31st., 2021 Maximum amount as per concession agreement Transener: 2.5 force

  13. Slide 13: Financial Overview

    Financial Overview

  14. Slide 14: Current Annual Regulated Revenues

    Current Annual Regulated Revenues In AR$ millions Transener Transba Special Reactive power equipments eq.; $ 4,1; 0% $ 122,5 Reactive power 1% eq. Connections $ 1.289,3 $ 794,9 16% Lines 22% $ 2.831,3 35% Connections Lines $ 2.164,1 Transformers $ 2.257,4 27% $ 591,6 62% 16% Transformers $ 1.705,4 2

  15. Slide 15: 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

  16. Slide 16: Penalty System: Forced Unavailability of Transmission Lines

    Penalty System Forced Unavailability of transmission lines Cumulated penalty [$] A B C TRANSENER=5 hs Period of unavailability TRANSBA=3hs [hs]

  17. Slide 17: 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

  18. Slide 18: 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

  19. Slide 19: Current regulatory situation

    Current regulatory situation  Decree No. 1020/2020, published on December 17, 2020, provided for the commencement of the RTI process applicable to natural gas and electric power transmission and distribution public service providers subject to federal jurisdiction. In general, said Decree provides

  20. Slide 20: Revenue Breakdown

    Revenue Breakdown 25.000,0 1.563 2.717 2.512 20.000,0 2.193 Net Non Regulated Revenues 15.000,0 In AR$ millions Net Regulated Revenues 1.101 21.492 10.000,0 20.556 19.753 1.425 16.206 936 5.000,0 10.319 8.470 6.854 ----------- 0,0 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 2Q2021 Values express

  21. Slide 21: Leverage Profile

    Leverage Profile EBITDA Total Financial Debt 200 187,4 200 161,3 150,6 150 150 US$ millions US$ millions 101,9 99,0 99,5 100,1 93,6 94,4 * 89,1 * 100 100 ---------- ---------- 50 31,2 50 21,2 0 0 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 2Q2021 2016 2017 2018 2019 2020 2Q2021 Financial Debt to EBITDA

  22. Slide 22: Annual cash flow

    Annual cash flow Consolidated in US$ Million 2017 2018 2019 2020 1Q 2021 2Q 2021 Regulated EBITDA +T.I. 180 155 143 96 15 11 Non Regulated EBITDA 8 6 8 6 2 2 Capex -46 -74 -62 -48 -12 -8 Income Tax -37 -30 -29 -23 -4 -4 Working capital variation (a) -5 -2 -19 3 -9 -3 Consolidated operational cash fl

  23. Slide 23: Cash position - evolution

    Cash position - evolution 120,0 Tranar Notes in portfolio Consolidated cash position 7,0 8,3 100,0 7,0 7,0 7,0 12,5 12,5 12,5 12,5 12,5 7,0 80,0 7,0 7,0 7,0 US$ millions 60,0 103,0 102,5 95,0 97,8 90,7 88,5 89,6 85,7 85,6 84,8 85,7 40,0 77,1 74,2 74,0 20,0 0,0 may.-20 jun.-20 jul.-20 ago.-20 sep.-20

  24. Slide 24: Transition period

    Transition period In US$ millions Total Revenues Total EBITDA 300 160 140 250 120 200 100 150 80 151 244 60 100 194 102 178 183 40 77 73 ---------- ---------- 50 20 0 0 2019 2020 2021 2022 2019 2020 2021 2022 Actual As requested to ENRE Actual As requested to ENRE Source: Transener

  25. Slide 25: Financial debt evolution

    Financial debt evolution 600,0 500,0 400,0 US$ millions 300,0 569 200,0 295 242 237 236 100,0 159 156 156 ----------- 148 143 130 116 99 99 99 91 91 86 0,0 10 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2Q2021 3Q2021 E Net of notes in Transener and/or Transba

Transener — Investor Presentation (September 2021) on 6ix