Colbun Sa · BCS:COLBUN

Colbun Sa — Fenix Power — Q3 2020 Earnings Presentation

20 slides from Colbun Sa's earnings presentation, 2020

  1. Slide 1: Corporate Presentation 3Q20

    CORPORATE PRESENTATION 3Q20

  2. Slide 2: Agenda

    AGENDA 1. COMPANY OVERVIEW 2. MARKET OVERVIEW 3. COMMERCIAL STRATEGY 4. FINANCIAL REVIEW

  3. Slide 3: Fenix Power: a relevant & efficient CCGT in Peru

    Company overview Fenix Power: a relevant & efficient CCGT in Peru THE COMPANY MARKET SHARE1 (%) Others 27% Engie 13% Orazul 4% One of the most efficient Huallaga 4% CCGT in Peru Kallpa 15% Statkraft 5% Based on Heat Rate 40 miles south of Lima 5% Electroperu Capital of Peru and largest city of the E

  4. Slide 4: Highly experienced shareholders

    Company overview Highly experienced shareholders 51% 13% 36% BLUE BOLT1  Chilean power generation company  One of the largest investment  Established by the Government of the funds managers in Peru Emirate of Abu Dhabi (Aa2/AA/AA)  3rd largest player in the SEN (Chile’s main grid), with 16% of m

  5. Slide 5: Agenda

    AGENDA 1. COMPANY OVERVIEW 2. MARKET OVERVIEW 3. COMMERCIAL STRATEGY 4. FINANCIAL REVIEW

  6. Slide 6: Power industry dynamics in Peru

    Market overview Power industry dynamics in Peru GENERATION LTM Others  Stable regulatory framework 6% Hydro 62%  US$ currency denominated market 49,225 GWh  Investment grade country Natural Gas 32%  High growth potential INSTALLED CAPACITY BY DEMAND GROWTH (12 month average %) TECHNOLOGY SEIN Th

  7. Slide 7: Marginal cost & demand in Peru

    Market overview Marginal cost & demand in Peru  Oversupplied market in the last years has pushed down marginal costs  Marginal costs are affected by take or pay schemes of gas contracts and by price declaration strategies 30 27 75% 64% 14 Marginal cost (US$/MWh) 25 25 52% 51% 12 21 56% 44% 10 Powe

  8. Slide 8: COVID19 potential impacts

    Market overview COVID19 potential impacts SEIN STATUS Growth m/m (%) Growth y/y (%) Marginal Cost (US$/MWh) 11.7 12.4 8.3 8.5 9.2 7.5 4.6 5.2 3.4 Jan Feb Mar Apr May Jun Jul Aug Sep SEIN Demand growth (%) m/m 0.3% (4.5)% (9.1)% (23.9)% 10.0% 12.3% 10.2% 3.4% (2.1)% y/y 2.4% 6.2% (12.9)% (30.0)% (25.

  9. Slide 9: Agenda

    AGENDA 1. COMPANY OVERVIEW 2. MARKET OVERVIEW 3. COMMERCIAL STRATEGY 4. FINANCIAL REVIEW

  10. Slide 10: Commercial policy

    Commercial strategy Commercial policy Contracting a relevant portion of capacity Fenix maintains a relevant base of long-term PPAs 1 2 3 Solid customers base Indexation formulas Creditworthy counterparties PPAs indexed to dollar and fuel Most of Fenix PPAs are signed with the prices, in order to mit

  11. Slide 11: Operational long-term contracts

    Commercial strategy Operational long-term contracts 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 1. NATURAL GAS SUPPLY ECL88  Counterparty: Camisea Consortium  Expiration: December 2029 2. NATURAL GAS TRANSPORT TGP  Counterparty: TGP  Expiration: May 2032 3. GAS DISTRIBUTION & O&M

  12. Slide 12: Gas Supply Agreement

    Commercial Strategy Gas Supply Agreement 1 PLUSPETROL NEW CONTRACT – KEY FACTORS Previous Contract Current Contract Expiration August 2022 December 2029 45% in average Take or Pay 90% (Seasonal Take or Pay) Maintenance period stipulated 20 days 45 days 12

  13. Slide 13: Stable cash flow profile supported by long-term PPAs

    Commercial strategy Stable cash flow profile supported by long-term PPAs PPAs PROFILE ENERGY SALES LTM (%)  Average life of long-term PPAs of 4 years Spot 19%  US$ indexation  ~76% contracted until 2023  Strong AAA locally-rated off takers PPAs 81% PPAs PORTFOLIO (TWh) 1.3 1.3 1.1 0.5 1.0 2.2 2.

  14. Slide 14: Agenda

    AGENDA 1. COMPANY OVERVIEW 2. MARKET OVERVIEW 3. COMMERCIAL STRATEGY 4. FINANCIAL REVIEW

  15. Slide 15: Financial figures

    Financial review Financial figures 1 2 1. OPERATING REVENUES (US$ million) 2. EBITDA (US$ million) 217 70 68 193 202 175 163 56 54 36 2016 2017 2018 2019 3Q20 2016 2017 2018 2019 3Q20 LTM LTM 3. GROSS DEBT/EBITDA LTM (x) 2 4. FINANCIAL EXPENSES COVERAGE (x) 9.8x 3.8x 3.6x 6.5x 6.6x 6.6x 6.8x 2.6x 2.

  16. Slide 16: Long term debt profile

    Financial review Long term debt profile 1. DEBT PROFILE 2. FENIX BOND ISSUANCE  Amount outstanding: US$305 mm US$305 million - Bond  Average life: 5.2 years  Coupon: 4.317% US$117 million – Calidda Leasing1  Maturity: Sept-27  Format: 144A/Reg S US$14 million – CTM Leasing  Repayment profile:

  17. Slide 17: Cash Support Agreement

    Financial review Cash Support Agreement  Fenix’s shareholders signed a Cash Support Agreement that provides Fenix additional liquidity to meet its debt service payments.  The agreement provides Fenix with a committed credit line from Colbún and the support from the remaining shareholders in case o

  18. Slide 18: Fenix news

    Fenix news Fenix presents Plan for the Fenix gives 1500 serological Fenix performs "First Day of the Vigilance, Prevention and tests to Microred de Salud de Fenix Client“ Control of COVID-19 Chilca Fenix performs "First Day of the Fenix In order to establish guidelines for the This action is part of

  19. Slide 19: Key takeaways

    Key takeaways 1. Attractive long-term growth prospects: 4. Strategic investment for its shareholders: Peru's generation industry is currently affected by Strong sponsorship from highly experienced short-term factors, but continues to exhibit high shareholders, including a key power generation player

  20. Slide 20: Corporate Presentation 3Q20

    CORPORATE PRESENTATION 3Q20

Fenix Power — Q3 2020 Earnings Presentation on 6ix