26 slides from Cia De Transporte De Energia Electrica Class B's investor presentation, March 2022
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. March 2022
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) 50% 50% BCBA Citelec S.A. 47.348% 52.652% 100%
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 6,766 km of 220, 132 and 66 kV lin
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 12,532 km of lines and 51 substations. Network Grid expansion projects supervision. Regulated Operates and maintains the transmission lines
Slide 11: Business Operations
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Slide 12: Significant improvement in Operating Performance
Significant improvement in Operating Performance 4.0 3.66 3.5 ( 69%) 3.0 2.5 Failures per 100km / year 2.0 ( 78%) 1.48 1.5 1.0 1.12 0.5 0.33 0.0 Transener Transba Beginning of Concession Agreement 12-month period ended March 31st., 2022 Maximum amount as per concession agreement Transener: 2.5 force
Slide 13: Financial Overview
Financial Overview
Slide 14: Current Annual Regulated Revenues
Current Annual Regulated Revenues In AR$ millions Transener Transba Special Reactive power equipments eq.; $ 5,1; 0% $ 153,1 Reactive power 1% eq. Connections $ 1.611,6 $ 1.008,6 16% Lines 22% $ 3.540,9 35% Connections Lines $ 2.705,2 Transformers $ 2.843,9 27% $ 732,5 62% 16% Transformers $ 2.148,4
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
Slide 16: Penalty System - Forced Unavailability
Penalty System Forced Unavailability of transmission lines Cumulated penalty [$] A B C TRANSENER=5 hs Period of unavailability TRANSBA=3hs [hs]
Slide 17: Penalty System - Cap
Penalty System - Cap The penalties which Transener or Transba may be required to pay in respect of any calendar month cannot exceed: 50% of Transener or Transba's non-consolidated monthly regulated revenue related to electricity transmission revenue, transmission capacity revenue and connection
Slide 18: Transener Concession Agreement
Transener Concession Agreement The Transener Concession Agreement may only be terminated: by the Government if Transener becomes bankrupt or by Transener if the Government breaches the Transener Concession Agreement On the Transener Transfer Date, Citelec created a pledge in favor of the Gov
Slide 19: Current regulatory situation
Current regulatory situation Decree No. 1020/2020, published on December 17, 2020, provided for the commencement of the RTI process applicable to natural gas and electric power transmission and distribution public service providers subject to federal jurisdiction. In general, said Decree provides
Slide 20: Current regulatory situation – recent events
Current regulatory situation – recent events On January 26th, 2022, under published Resolution No. 25/22 in the Official Bulletin, the ENRE called a new public hearing on February 17th, 2022, in order to negotiate, among other matters, the proposals from the companies of electric transportation fo
Slide 21: Revenue Breakdown
Revenue Breakdown 35.000,0 30.000,0 3.630 3.357 1.905 25.000,0 Net Non 2.930 Regulated Revenues 20.000,0 In AR$ millions Net Regulated 2.224 Revenues 15.000,0 27.453 26.397 26.215 21.657 10.000,0 15.110 5.000,0 0,0 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Values expressed in AR$ adjusted by inflation
Slide 22: Leverage Profile
Leverage Profile EBITDA Total Financial Debt 200 187,4 161,3 200 150,6 150 150 US$ millions US$ millions 94,4 * 101,9 100 99,5 100,1 93,6 100 53,6 50 50 8,5 0 0 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 2017 2018 2019 2020 2021 Financial Debt to EBITDA EBITDA to Interest Payment 3,0x 25,0x 20,5x 20,0x
Slide 23: Annual cash flow
Annual cash flow CONSOLIDATED IN U$SMM 2017 2018 2019 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Regulated EBITDA +T.I. 180 155 143 96 15 11 10 8 Non Regulated EBITDA 8 6 8 6 2 2 3 4 Capex -46 -74 -62 -48 -12 -8 -5 -12 Income Tax -37 -30 -29 -23 -4 -4 -2 -3 Working capital variation (a) -5 -2 -19 3 -9 -3
Slide 24: Cash position - evolution
Cash position - evolution 120,0 Tranar Notes in portfolio Consolidated cash position 7,0 8,3 12,5 100,0 7,0 7,0 7,0 12,5 12,5 12,5 12,5 12,5 7,0 80,0 7,0 7,0 7,0 US$ millions 60,0 103,0 102,5 99,6 95,0 97,8 90,7 88,5 89,6 85,7 85,6 84,8 85,7 40,0 77,1 0,0 74,2 74,0 0,0 0,0 0,0 20,0 0,0 38,7 31,7 35,
Slide 25: Transition period
Transition period In US$ millions Total Revenues Total EBITDA 300 160 140 250 120 200 100 150 80 151 244 60 100 194 102 169 40 ---------- 133 ---------- 50 20 54 0 0 13 2019 2020 2021 2022 2019 2020 2021 2022 Actual Adjusted by ENRE Actual Adjusted by ENRE Resolution Resolution Source: Transener
Slide 26: Financial debt evolution
Financial debt evolution 600,0 500,0 400,0 US$ millions 300,0 569 200,0 295 242 237 236 100,0 159 148 156 156 143 130 116 99 99 99 91 91 0,0 10 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Net of notes in Transener and/or Transba’s portfolio Source: Trans