Central Puerto Sa · BCBA:CEPU
Central Puerto Sa — Investor Presentation (June 2018)
27 slides from Central Puerto Sa's investor presentation, June 2018
Slide 1: Company Presentation June 2018
C O M PA N Y P R E S E N TAT I O N June 2018
Slide 2: Disclaimer
Disclaimer Additional information about Central Puerto can be found in the Investor Support section on the website at www.centralpuerto.com . This presentation does not constitute an offer to sell or the solicitation of any offer to buy any securities of Central Puerto, in any jurisdiction. Securiti
Slide 3: Overview, Growth Strategy, Financials, Appendix
OVERVIEW GROWTH STRATEGY FINANCIALS APPENDIX
Slide 4: Central Puerto at a glance: Key highlights
Central Puerto at a glance Key highlights Largest private sector power generator in Argentina, with a total installed capacity of 3,663MW1 Geographically and technologically diversified operating assets Largest private player2 in 3 companies operating combined cycles totaling 2,554 MW under a consor
Slide 5: Central Puerto at a glance (cont'd)
Central Puerto at a glance (cont’d) Operating and financial highlights Generation assets and potential projects breakdown by technology (MW)1 Additional stakes in 3 companies operating Potential Projects combined cycles totaling 6,168 2,554 MW (2) Awarded and under construction / 255 626 development
Slide 6: Largest private sector power generator in Argentina with diversified portfolio
Largest private sector power generator in Argentina with a diversified portfolio of high quality assets Largest private sector power generator in Argentina with a diversified asset base Private sector power generation market shares (GWh) SADI’s total power generation by private sector companies and
Slide 7: Central Puerto at a glance (cont'd): Portfolio of generation assets
Central Puerto at a glance (cont’d) Portfolio of generation assets Current geographic footprint Assets under Installed capacity Assets in FONINVEMEM construction / (MW)2 operation Plants development 816MW 1 Puerto 1,714 - - 9 2 Piedra del Aguila 1,440 - - 10 3 7 4 3 7 8 3 3 Lujan de Cuyo 509 93 - 1
Slide 8: High quality assets with strong and stable operational performance
Largest private sector power generator in Argentina with a diversified portfolio of high quality assets (cont’d) High quality assets with strong and stable operational performance Assets with high availability… …a strong generation track record… Average availability of thermal units Central Puerto M
Slide 9: Overview, Growth Strategy, Financials, Appendix
OVERVIEW GROWTH STRATEGY FINANCIALS APPENDIX
Slide 10: Central Puerto's growth strategy based on clear pillars
Attractive growth profile (cont’d) Central Puerto’s growth strategy based on 3 clear pillars A Expansion in conventional energy B Expansion in renewable energy C Industry normalization Central Puerto’s goal is to become the Potential upside from price increases to New awarded thermal projects to add
Slide 11: Attractive growth profile: New capacity
Attractive growth profile Generation assets and potential projects by technology (MW) Awarded Potential Projects Renewables Under construction /Development Co Generation Steam 1,456 255 6,168 CC Hydro 371 4,457 423 3,663 (=) Current (+) Co-generation (+) Wind projects (=) Adj. Current (+) Thermal (+
Slide 12: New awarded thermal projects to add 423MW of contracted capacity
Attractive growth profile (cont’d) A Conventional energy New awarded thermal projects to add 423MW of contracted capacity 1 2 Expansion of Lujan de Cuyo Terminal 6 San Lorenzo Power 93 MW (for the winter) 330 MW (for the winter) capacity Technology Cogeneration US$91mm US$284mm 2 Capex (US$45mm alre
Slide 13: Central Puerto is ready to participate in the sale of government plants
2 Attractive growth profile (cont’d) A Conventional energy Central Puerto is ready to participate in the sale of the government’s plants Central Puerto is ready to participate in the sale of the government plants Central Termica Brigadier Lopez 280 MW + CAPACITY 140 MW under Selected state owned ass
Slide 14: Central Puerto is well positioned ahead of future expansion opportunities
Attractive growth profile (cont’d) A Conventional energy Central Puerto is well positioned ahead of future expansion oportunities Government targets significant capacity additions Turbines and land for future projects To further enhance its position ahead of future auctions, Central Puerto has alrea
Slide 15: Largest private player in FONI consortium operating combined cycles
Attractive growth profile (cont’d) A Conventional energy Largest private player in FONI consortium operating combined cycles totaling 2,554 MW Assets under the FONINVEMEM program 1 San Martín 2 Manuel Belgrano 3 Vuelta de Obligado Combined cycle Combined cycle Combined cycle Plant 865 MW 873 MW 816
Slide 16: Renewable energies also present excellent growth opportunities
B Renewable energy Attractive growth profile (cont’d) Renewable energies also present excellent growth opportuinities Minimum renewable energy share of total consumption ◼ To promote renewable energy, a Promotional Regime was enacted ◼ Energy must be intended for the WEM Regulations ◼ Projects must
Slide 17: Development of awarded renewable energy projects
Attractive growth profile (cont’d) B Renewable energy Development of awarded renewable energy projects Central Puerto’s awarded wind farm projects1 RenovAr Program Term Market (MATER) 1 La Castellana 2 Achiras 3 La Genoveva I 4 La Castellana II 5 Achiras II 6 La Genoveva II Capacity 99 MW 48 MW 86.6
Slide 18: Argentine Government is adjusting the regulatory framework
Industry Attractive growth profile (cont’d) C normalization The Argentine Government is adjusting the regulatory framework to attract private investment 2016 - 2017 2018/2019 Transition scheme Industry normalization ◼ Goal is to improve sector sustainability ◼ Potential changes under discussion: ◼ F
Slide 19: Argentine government is increasing remuneration to generators
Industry Attractive growth profile (cont’d) C normalization The Argentine government is increasing remuneration to generators Key changes in the Energía Base framework Monomic price without fuel Consumer end-price components Generators’ tariff 19,05 Further 17.94 increase in Average Monomic Price 20
Slide 20: Price increases for Energía Base narrowing the gap with auction prices
Attractive growth profile (cont’d) Industry C normalization Price increases for Energía Base are narrowing the gap with prices awarded in new energy auctions Energía Base price evolution (US$/MW month)1 Average Res. 21/2016 20,9513 Average Res. 287/2017 20,5683 Price Convergence Energía Base – Therm
Slide 21: Potential additional margin if fuel purchasing shifts back to generators
Attractive growth profile (cont’d) C Industry normalization Central Puerto expects to benefit from an additional operating margin if the responsibility of buying fuel is shifted back to generators Central Puerto’s scale and leadership position provides for potential to capture margins on fuel purcha
Slide 22: Overview, Growth Strategy, Financials, Appendix
OVERVIEW GROWTH STRATEGY FINANCIALS APPENDIX
Slide 23: Strong cash flow generation and financial position
Strong cash flow generation and financial position US$ based revenues supported by additional FONINVEMEM cash flows Net revenues from continuing operations Adj. EBITDA form cont. operations excluding COVSA effect (US$mm)1,2 (US$mm)1,2 In Ps.mm: 3,563 +67.2% 5,957 +11.7% 6,653 In Ps.mm: 2,342 +46.8%
Slide 24: Additional sources of funding and non-core assets
Additional sources of funding and non-core assets Favorable financial position and potential cash from non-core assets Cash Position as of March 31, 2018 (US$ mm) CENTRAL PUERTO SUBSIDIARIES CONSOLIDATED 166 166 181 Project Finance Long-Term Debt 34 - 15 Financial Debt = 0 -147 -132 -147 Cash Financ
Slide 25: Appendix: Adjusted EBITDA Reconciliation
OVERVIEW GROWTH STRATEGY FINANCIALS APPENDIX Adjusted EBITDA Reconciliation
Slide 26: Adjusted EBITDA Reconciliation
Appendix Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation 2016 2017 LTM 1Q Million Ps. 2018 ◼ Total Adjusted EBITDA for the 2017 was Ps. Net Income of the year 1,769 3,494 10,471 3,439 million, Finance Expenses 620 698 823 approximately US$ 209 Finance Income -421 -932 -732 million Shar
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