Alupar Investimento Sa · BMFBOVESPA:ALUP3
Alupar Investimento Sa — Q2 2018 Earnings Presentation
26 slides from Alupar Investimento Sa's earnings presentation, 2018
Slide 1: 2Q18 Corporate Presentation
2Q18 Corporate Presentation
Slide 2: Agenda
1. Company Overview 2. Business Assets 3. Financial Information 4. Assets under Construction Agenda 2
Slide 3: Company Overview
Qi Company Overview BM&FBOVESPA
Slide 4: Alupar at a Glance
Alupar at a Glance Alupar is the largest private power transmission company in Brazil, with a fast growing power generation platform Company Highlights Geographic Footprint of the Assets • Alupar is one of the most relevant power transmission players Operational Under Construction in Brazil in terms
Slide 5: Value Creation Through Greenfield Developments
Value Creation Through Greenfield Developments Alupar's focus on greenfield projects allow it to extract additional return for its shareholders with execution risks mitigated by its strong experience Alupar’s performance in energy auctions Assets Developed by Alupar Auction Lots won Regulatory Capex
Slide 6: Company's Assets
Company’s Assets 99.90% ETES V 50.02% 50.01% 50.0% T 50.02% V 100% Foz do Rio T 69.83% 50.99% STN ETB EATE EDTE 50.10% ENTE Claro 46.00% V 100% TME Ijuí T 86.66% 21.96% 50.02% ECTE 100% ETSE 38.02% 61.55% 20.00% Ferreira 100% V 50.02% 15.00% 80.00% Gomes 100% 18.45% T 50.02% ETEP ESDE STC 68.83% Lum
Slide 7: Business Assets
Business Assets 7
Slide 8: Diversified and New Transmission Assets
Diversified and New Transmission Assets Alupar has 28 transmission lines with long-term concessions and revenues protected against inflation providing stable cash flow generation Overview of Transmission Assets Geographic Footprint (1) Start Tariff 15 years Assets Stake Concession Início Extention R
Slide 9: Market Share (RAP) in Transmission Segment
Market Share (RAP) in Transmission Segment Alupar has participated of all transmission auctions since 1999 Auctioned Lines (operational) TAESA 23.13% Others 15.84% 4%1% 5% 4% 23% ESPANIARDS 14.36% 10% CHINESE 13.23% 10% 16% ELETRONORTE 9.62% 13% 14% CTEEP (Isa Group) 9.51% FURNAS 5.24% ELETROSUL 3.7
Slide 10: New and Long-term Price contracted Generation Assets
New and Long-term Price contracted Generation Assets Attractive prices adjusted by inflation and with creditworthy clients. Assets are included in the MRE mechanism which mitigates hydrologic risks Overview of Generation Assets Geographic Footprint Oper. Installed Assured Contract. Contract. Contrac
Slide 11: Financial Information
ne 4 Qi Financial Information BM&FBOVESPA,
Slide 12: High Predictability and Low Risk
High Predictability and Low Risk Revenues Adjustment per Index Declared Dividends (Alupar => Shareholders) 127.1% 100.0% 88.6% 101.6% 88.1% 100,0% 500,0 50.0% 50.9% 50,3% 25.0% 25.0% 25.0% 100,0% 24% 450,0 75,0% 46% 41% 400,0 350.0 350.0 0,0% 350,0 -100,0% 300,0 50,0% 175.0 150.2 158.2 250,0 -200,0%
Slide 13: Financial Highlights - IFRS
Financial Highlights - IFRS Ajusted Net Revenue EBITDA and EBITDA Margin (1) (2) (R$ MM) 1.600 1,514.0 1,498.0 1,417.8 2.000 86.5% 83.1%83.0%81.3% 81.2%87.8% 100% 1,338.9 80.8% 78.1% 77.7%76.2% 77.8% 1.400 78.1% 1,206.4 72.9% 1,089.4 75% 1.200 1.600 975.7 1,329.5 1.000 1,150.8 50% 813.5 1.200 1,088.
Slide 14: Financial Highlights - Regulatory
Financial Highlights - Regulatory Net Revenue EBITDA and EBITDA Margin (R$ MM) 85.4%79.3% 88.1% 80.1% 1,701.3 2.000 76.6%80.9%81.8%81.6%81.9% 80.7%80.8%78.5%76.9% 100% 1,583.5 1.600 1,416.6 70% 1,293.2 1.600 1,395.21,372.2 1,111.1 40% 1.200 1,023.8 1,160.6 909.5 1.200 1,055.6 10% 753.4 857.2 808.3 9
Slide 15: Financial Discipline leads to Strong Cash Flow - IFRS
Financial Discipline leads to Strong Cash Flow - IFRS Total Debt and Net Debt / EBITDA 5,0x 4.0x 4.1x 3.7x 3.8x 3.7x 3.7x 4,0x 3.6x 3.6x 3.4x 3.4x 3.3x 3.2x 3.3x 2.8x 3.1x 2.7x 3,0x 2.6x 2.4x 2.4x 2.3x 2,0x 1,0x 0,0x 2009 2010 2011 2012 2013 2014 2015 2016 2017 2Q18 TD/EBITDA ND/EBITDA Effective Tax
Slide 16: Debt Profile Holding Company – 2Q18
Debt Profile Holding Company – 2Q18 Debt Profile (R$ MM) Total Debt R$ 665.4 MM 638.4 (-) Cash and Cash Equivalents R$ 757.2 MM 27.0 (=) Net Debt R$ (91.8) MM Long Term Short Term Gross Debt by Index (%) Gross Debt Composition (R$ MM) 368.5 100% IPCA 296.9 Debentures - 5th Issue Debentures - 6th Iss
Slide 17: Debt Profile Consolidated – 2Q18
Debt Profile Consolidated – 2Q18 Debt Profile (R$ MM) Total Debt R$ 4,298.8 MM 902.7 (-) Cash and Cash Equivalents R$ 1,554.6 MM 3,396.1 (=) Net Debt R$ 2,744.2 MM Long Term Short Term Gross Debt by Index (%) Gross Debt Composition (R$ MM) 20.1 CDI BNDES (TJLP / IGP-M) 25.4% TJLP 585.0 Other Devolpm
Slide 18: Debt Profile – 2Q18
Debt Profile – 2Q18 757.2 172.3 20.3 281.7 189.9 190.7 1,055.4 797.4 6.0 81.1 19.3 127.0 592.4 43.1 43.1 382.9 367.0 242.8 281.5 202.3 Cash and Cash jul - dec/2018 2019 2020 2021 2022 2023 After 2023 Equivalents Subsidiaries Bridges Holding BRIDGES (MM) 2018 2019 2020 2021 La Virgen / Alupar Inversi
Slide 19: Assets under Construction
Assets under Construction 19
Slide 20: Development of the ongoing Assets - Transmission
Development of the ongoing Assets - Transmission 1 2 3 UPME 4 13/2015 – 1st Stage 13/2015 – 2nd Stage 05/2016 Total 07-2016 Auction ETAP ETC ETB EDTE2 TPE TCC ESTE2 Colombia TSM RAP per year (R$ mm) 48.5 28.1 121.6 60.0 214.7 146.0 101.0 86.83 99.1 905.8 Aneel Capex (R$ mm) 285 151 721 368 1.269 699
Slide 21: Development of the ongoing Assets
Development of the ongoing Assets Concession State Tax benefit Capex RAP Deadline Environmental Studies under REIDI Approval Priority Contract Region (MM) Contracted Start-up development Project Signing Date (MM) (Notice) IBAMA / IDEMA (RN) / IEMA (ES) MME RFB MME INEMA (BA) LI IDEMA – 09/20/17 - Su
Slide 22: Contracted Growth - RAP (R$ MM)
Contracted Growth - RAP (R$ MM) Current values1 58.4% Consolidated RAP Recomposition R$ 967 MM 201 87 104 490 294 1.826 85 1.153 RAP 2018_2019 50% Cliff Auction 13/2015 Auction 13/2015 Auction 05/2016 UPME 07/2016 Auction 13/2015 RAP 2022_2023 1st Stage 2nd Stage TSM TCE* 1st Stage ETAP | ETC TPE |
Slide 23: Transmission Assets Under Construction
Transmission Assets Under Construction ETAP • SS João Câmara III: 500 kV / 230 kV TCE (Colombia) • TL João Câmara II – João Câmara III 230kV • TL Nueva Esperanza – La Virginia 500 kV • Lenght: 20 km ETB • Length: 200 km • Start-up: 2019 • Line Voltage: 500 kV • Start-up: 2021 • ANEEL RAP*: R$ 53.8 M
Slide 24: Generation Assets Under Construction
Generation Assets Under Construction HPP La Virgen • Installed Capacity: 84 MW • Assured Energy: 49.3 MW • Start-up: 2018 • Alupar Stake: 84.58% • Partner: Empresa Peruana de Energia • Capex: US$ 145 million SHPP Antonio Dias • Installed Capacity: 23 MW • Assured Energy: 11.4 MW • Start-up: - • Alup
Slide 25: Opportunities - M&A (Brownfield)
Opportunities - M&A (Brownfield) Overview of Transmission Assets Geographic Footprints (1) Alupar Eletrobrás Concessã RAP/RBNI1 RAP/RBNI1 Assets Ativos Participação Lenght Extensão RAP/RBNI (1) Stake Stake Total Eletrobrás o % % Km R$ MM R$ MM 1. Transleste 33.71% 24.00% 150 42,5 10,2 2. Transudeste
Slide 26: IR Contact
IR Contact José Luiz de Godoy Pereira Luiz Coimbra Kassia Orsi Amendola Lucas Menezes Ph.: +55 (11) 4571-2400 ri@alupar.com.br