Colbun Sa · BCS:COLBUN
Colbun Sa — Fenix Power — Investor Presentation (September 2018)
18 slides from Colbun Sa's investor presentation, September 2018
Slide 1: Corporate Presentation September 2018
CORPORATE PRESENTATION SEPTEMBER 2018
Slide 2: Agenda
AGENDA 1. Company Overview 2. Market Overview 3. Operations 4. Financial Review
Slide 3: Fenix Power: one of the most efficient CCGT in Peru
Company Overview Fenix Power: one of the most efficient CCGT in Peru1 1 KEY OPERATING HIGHLIGHTS. 2 THE COMPANY. One of the most efficient OWNERSHIP KEY FINANCIALS CCGT in Peru1 51% Colbún Based on fuel consumption LTM EBITDA 36% ADIA US$47 mm 567 MW 13% Sigma Gross effective capacity Cash 64
Slide 4: Highly experienced shareholders
Company Overview Highly experienced shareholders 51% 36% Chilean power generation company 2nd largest player in the SIC (Chile’s main 13% Established by the Government of the grid), with 23% of market share in terms of Emirate of Abu Dhabi (Aa2/AA/AA) generation One of the largest global sov
Slide 5: Agenda
AGENDA 1. Company Overview 2. Market Overview 3. Operations 4. Financial Review
Slide 6: Power industry dynamics in Peru
Market overview Power industry dynamics in Peru INSTALLED CAPACITY BY LARGE CUSTOMERS 1 2 3 SEIN DEMAND GROWTH & GDP. (%) TECHNOLOGY. (%) BREAKDOWN. (%) Power Demand GDP Thermal - 10% Diesel Combined Commerce Others 21% Cycle 16% 24% 8% 26% Thermal Simple- 6% Cycle 13,024 8% 4.0% 4% MW Renewable 5%
Slide 7: Marginal costs & demand in Peru
Market overview Marginal costs & demand in Peru Currently in a situation of oversupply and low prices. - Spot prices affected by take or pay scheme of gas contracts and by price declaration strategies. Marginal cost (US$/MWh) 27 61% 30 14 25 56% 25 75% 12 44% 10 20 33% 43% 15 21 8 Power (GW) 15 10
Slide 8: Positive gas industry trends in Peru
8 Market Overview Positive gas industry trends in Peru 1 GAS RESERVES. 3 REGULATED GAS SUPPLY TARIFFS: OVERVIEW Current proven reserves of 16 trillion cubic feet (“TCF”) Camisea Consortium is a joint venture of six companies that produce and process natural gas at the Malvinas and Expected pos
Slide 9: Agenda
AGENDA 1. Company Overview 2. Market Overview 3. Commercial Strategy 4. Financial Review
Slide 10: Commercial policy
Commercial Strategy Commercial policy Contracting a relevant portion of capacity Fenix maintains long-term power supply contracts 1 Significant base of PPAs that reduces cash flow volatility, ensuring stable revenues over time Indexation formulas PPAs indexed to dollar, in order Solid customer
Slide 11: Operational long-term contracts
Commercial Strategy Operational long-term contracts 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 NATURAL GAS SUPPLY. ECL88 Counterparty: Camisea Consortium Expiration: August 2022 2 NATURAL GAS TRANSPORT. TGP Counterparty: TGP Expiration: May 2032 3 GAS DISTRIBUTION & O&M. C
Slide 12: Stable cash flow profile supported by long-term PPAs
Commercial Strategy Stable cash flow profile supported by long-term PPAs 1 PPA PROFILE. 2 ENERGY SALES & INDEXATION. (%) Average life of long-term PPAs of 6 years. Spot 14% US PPI US$ FX adjusted and US$ denominated capacity payments. 22% ~77% contracted through 2023. Strong AAA locally-rate
Slide 13: Agenda
AGENDA 1. Company Overview 2. Market Overview 3. Operations 4. Financial Review
Slide 14: Financial results
Financial Review Financial results 1 OPERATING REVENUES. (US$ million) 2 EBITDA & EBITDA MG. (US$ million & %) 60 56 57 55 20 18 40% 52 53 52 49 48 49 17 47 47 16 35% 38% 15 14 14 30% 40 33% 12 30% 11 11 25% 25% 24% 26% 10 10 9 23% 20% 24% 7 19% 15% 20 17% 15% 5 10% 5% 0 0 0% 1Q16 2Q16 3Q16 4Q16 1Q1
Slide 15: Financial results
Financial Review Financial results 1 GROSS DEBT/EBITDA LTM. (X) 2 NET DEBT/EBITDA LTM. (X) 12 12 10 8.9 10 8.1 8.2 8 7.2 7.1 6.9 7.0 7.3 8 7.2 6.5 6.6 6.7 6.6 6.8 6.1 6.4 6.2 6.2 6.3 5.6 5.9 5.6 6 6 4 4 2 2 0 0 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
Slide 16: Debt profile 100% bonds
Financial Review Debt profile 1 DEBT PROFILE. 2 FENIX BOND ISSUANCE. Amount: US$340 mm Financial Debt Debt profile Term: 10 years US$345 100% bonds Coupon: 4.317% Date of issuance: 09-20-2017 million 100% USD Format: 144A/Reg S 100% Fixed rate Ratings (Moody´s/S&P/Fitch): Baa3 / BBB- / B
Slide 17: Key Takeaways
KEY TAKEAWAYS 1 Attractive Long- Peru's power generation industry currently affected by short-term transitory term Growth factors, but continues to exhibit high growth potential in the medium / long Prospects term 2 State-of-the-art combined-cycle dual-fueled power plant with 565 MW of effective
Slide 18: Corporate Presentation
CORPORATE PRESENTATION FEBRUARY 2018