Cfe Fibra E Series A · BMV:FCFE/18
Cfe Fibra E Series A — CFE Fibra E — Santander's 27th Annual Latin American Conference 2023
36 slides from Cfe Fibra E Series A's conference presentation, January 2023
Slide 1: CFE FIBRA E (FCFE18)
CFE FIBRA E (FCFE18) Santander´s 27th Annual Latin American Conference Cancún, Mexico, January 2023
Slide 2: Disclaimer
Disclaimer IMPORTANT: You must read the following before continuing. This presentation has been prepared by CFECapital, S. de R.L. de C.V. (“CFECapital” or the “Manager”) and is being provided to you for informational purposes only. Neither the Manager nor any of its affiliates or representatives ma
Slide 3: Índice
Índice 1 MEXICAN ELECTRIC SECTOR 5 2 CFE TRANSMISSION 19 3 CFE FIBRA E 26 4 ANNEX 35
Slide 4: Mexican Electric Sector
1 MEXICAN ELECTRIC 2 SECTOR CFE 3 TRANSMISSION 4 CFE FIBRA E ANNEX
Slide 5: Mexican Electric Sector
Mexican Electric Sector • Mexican electricity sector is ranked 7th among OECD countries and 14th worldwide. • According to IMF, Mexican economy is the 2nd with the highest expected growth over the next 10 years. Graph 1. Electric power generation in OECD Graph 2. Expected GDP growth of OECD countrie
Slide 6: CFE the largest integrated electric company in America
CFE the largest integrated electric company in America • The Federal Electricity Commission is the largest electricity company in Mexico, and in America by its installed generation capacity and the 4th by the value of its assets. Graph 3. Installed generation capacity2 Graph 4. Total Assets3 59,343
Slide 7: Current structure of the CFE
Current structure of the CFE Corporate CFE Generation Transmission Distribution Commercialization Others Distribution Basic Telecommunications Qualified Legacy Fuel Trade Nuclear Generation Transmission Supply and Internet for All Supply Contracts (CFEnergia) Generation Companies (CFE ICL) (Laguna V
Slide 8: Gas Pipeline Network in Mexico
Gas Pipeline Network in Mexico Figure 1. Map of the Gas Pipeline Network in Mexico The Federal Electricity Commission has anchored and developed the largest system of gas pipelines in Mexico. Gas Pipelines CENAGAS Private Pipelines at CFE Service Private Gas Pipelines Under Construction at CFE Servi
Slide 9: Ranking of Natural Gas Marketers in North America 2021
Ranking of Natural Gas Marketers in North America 2021 9
Slide 10: Federal Electricity Commission X-ray
Federal Electricity Commission X-ray The CFE contributes to maintaining the reliability of the National Electric System to achieve continuity of electricity supply to the end user and with the necessary quality attributes that users require. 110,424 km 161 generation 70 plants generate transmission
Slide 11: Strengthening of the CFE in this administration
Strengthening of the CFE in this administration Strategic Alliances with Private Sector Generation capacity towards Strategic alliances and agreements with transnational companies in the transportation the energy transition and export of natural gas Invest 9,000 million dollars expanding 9,000 MW of
Slide 12: Generation Projects
Generation Projects CCI Mexicali Oriente CCI Parque Industrial CFV Puerto CCI o CCC Clean Energy Projects Peñasco Lerdo CCS San Luis Combined Cycle Projects Potosí CTG González Ortega II CCC El Sauz II C.H. CCC González Zimapan Ortega CCC Tuxpan Fase I CCC Baja California Sur C.H. CCC Mérida Portazu
Slide 13: Transmission Projects in Execution
Transmission Projects in Execution Transfer Bank 5 Bank 3 Kila Transfer • Transformation and transmission • Bank 1 Sustitution • Capacity compensation Panamerican Bank 3 Modernization of transmission lines Tractor Electrical Substation SET 2 Y 3 Interconnection Tepic II- Cerro Blanco • Bank 3 Transf
Slide 14: Transmission Projects in process
Transmission Projects in process Chihuahua 1 project Sonora 2 projects Coahuila 2 projects Nuevo León 5 projects North Baja California 2 projects Campeche 1 project Veracruz Yucatán Sinaloa 1 project 5 projects 4 projects Jalisco 1 project Michoacán 1 project Quintana Roo Querétaro 8 projects 5 proj
Slide 15: Strategic Alliances with Private Sector
Strategic Alliances with Private Sector • Rerouting of the Guaymas-El Oro gas pipeline • Natural gas liquefaction plant in Topolobambo, Sinaloa. • While the CFE provides the gas molecule, Sempra will give a percentage of participation to the CFE. January 2022 • Extension of the marine pipeline- Puer
Slide 16: CFE Transmission
1 MEXICAN ELECTRIC 2 SECTOR CFE TRANSMISSION 3 CFE FIBRA E 4 ANNEX
Slide 17: National Transmission Network (RNT)
National Trasnmission Network (RNT) Tt is important to highlight that although the transmission lines, substations, transformers, towers, etc., are part of the assets of CFE Transmissopm, the underlying asset referenced to CFE Fibra E are the transmission collection rights. 110,421 km of transmissio
Slide 18: Volumes of electric power in the RNT
Volúmenes de energía eléctrica en la RNT Graph 5. Volume of Electric Power (TWh1) The volumes of electrical energy2 have increased 34 annually 32 3.79% vs. 2021 30 28 7.54% vs. 2020 26 5.19% vs. 2019 24 22 7.52% vs. 2018 20 11.30% vs. 2017 2017 2018 2019 2020 2021 2022 Source: CFE Transmission with
Slide 19: Regulatory Framework for Regulated Transmission Tariffs
Regulatory Framework for Regulated Transmission Tariffs • The transmission sector in Mexico has tariffs regulated by the Energy Regulatory Commission (CRE). Regulatory Framework Art. 12 section IV, The Energy Transmission Values Objective 138 and 139 of the Regulatory tariff Electricity Industry Com
Slide 20: Composition of the electricity rate
Composition of the electricity rate 63.6% 21.7% 6.9% 7.2% 0.4% 0.2% Generation Distribution Transmission Supply CENACE Charge for cost and Charge Charge Charge Charge Related capacity Services 100% Basic supply fee Source: Data from the CFE, taken from the presentation "Constitutional change for a n
Slide 21: Regulated Tariffs of the Transmission Sector
Regulated Tariffs of the Transmission Sector Chart 1. Electricity Transmission Tariff 2023 MXN/ kWh Generators Interconnected Consumers Voltage level generators Supply services MXN/KWh Voltage ≥ 220kv 0.0595 0.0772 Voltage < 220kv 0.1077 0.1758 Source: Energy Regulatory Commission, January 2023. 21
Slide 22: Historical collection rights (2019 - 2022)
Historical collection rights (2019 - 2022) Graph 6. CENACE collection rights (2019 - 2022) (Millions of MXN) 2000 The average collection rights increased 7.17% 1800 during 2022 compared to 2021 and 11.53% in relation to 2020. 1600 . 1400 1200 1000 800 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Slide 23: CFE Fibra E
1 MEXICAN ELECTRIC 2 SECTOR CFE 3 TRANSMISSION 4 CFE FIBRA E ANNEX
Slide 24: Flow Collection Rights
Flow Collection Rights Collection Rights Distributions Promoted (6.78%) Distributions (93.22%) Trust Manager Costs and expenses CFE reimbursements Fibra E Certificate Holders Owner of 100% of the assets of the RNT and sole operator and Series “A” Series “B” provider of the public 75% 25% service of
Slide 25: Revenue composition per CBFE (2018-2022)
Revenue composition per CBFE (2018-2022) Graph 7. Revenue Composition of CFE FIBRA E distribution (MXN per CBFE) (2018- 2022) 0.368 0.400 0.266 0.233 0.272 0.283 0.200 0.235 0.198 0.145 0.187 0.091 0.123 0.040 0.059 0.022 - 0.684 0.575 0.575 0.575 0.575 0.575 0.575 0.575 0.575 0.575 0.575 0.575 0.57
Slide 26: Performance CFE FIBRA E
Performance CFE FIBRA E Chart 2 . Dividend Yield1 Indicative of CFE FIBRA E Vs. Other REITs (2019 -2022) |% Instrument 2019 2020 2021 2022 FCFE18 12.77 11.93 10.81 12.28 FUNO11 5.18 4.20 5.09 9.86 DANHOS13 5.17 7.62 5.37 10.26 FNOVA17 8.09 8.87 8.89 7.52 FIBRAMQ 5.08 4.76 7.37 7.03 FIBRAPL 5.99 5.39
Slide 27: Performance CFE FIBRA E
Performance CFE FIBRA E Graph 8. Price and volumen CFE FIBRA E (February 7th, de 2018 to January 16th, 2023) Millones CBFEs1 MXN $29.61* 30 31 $29.61* 29 25 27.20 27 20 25 19.00 23 15 21 10 19 17 5 15 0 13 Volume Last Price Average daily Closing IPO $19.00 688,6340 Price $27.20 volume 02/07/18 01/16
Slide 28: CFE FIBRA E analyst coverage
CFE FIBRA E analyst coverage Analyst Estimated Target Price Graph 9. Observed 12- month average target price MXN January 13th, 2023 $33.90 $32.00 $29.91 $32.50 $30.00 10% $28.00 $25.00 $26.00 $27.20 $24.00 $25.00 $22.00 $20.00 $30.00 $33.00 Target Price 12M Price $30.00 Potential Growth 10% Source:
Slide 29: Corporate Governance
Corporate Governance CFE Fibra E has a solid corporate governance that aligns the interests between the Promoted Trust, the Administrator, the CFE and CFE Transmission, the Fibra and the holders of the CBFEs. • Approve leverage • Changes in the CENACE Promoted standards ² and changes agreement¹ Trus
Slide 30: Annex
1 MEXICAN ELECTRIC 2 SECTOR CFE 3 TRANSMISSION 4 CFE FIBRA E ANNEX
Slide 31: Investment Programs 2022-2026
Investment Programs 2022-2026 Chart 3. Investment Projects and Programs (Million pesos) Process 2021 2022 2023 2024 2025 2026 + Total Investment Generation 39,959 79,046 73,479 57,030 22,727 13,489 285,730 Transmission 11,129 23,038 23,134 49,470 7,252 13,468 127,492 Distribution 9,184 16,199 18,541
Slide 32: FIBRA E is an attractive financing strategy for CFE
Solid Investment Program • Relatively high cost Alternative Investments • Share risk with third parties Graph 10. Total investment per • Mainly associated with (CKD,CERPIs, others) process 2021-2026 development projects • You are not required to pay a (as a % of the total) coupon + 3.4% • Share risk
Slide 33: Performance Indicators CFE Transmission
Performance Indicators CFE Transmition Graph 11. Transmission Losses1 Graph 12. System Average Interrumption Duration Index (Porcentage) (SAIDI) 2 (Minutes) 2.77% 4.26 3.30 2.44% 2.38% 2.21 2020 2021 2022 2020 2021 2022 Graph 13. Energy not delivered3 Graph 14. National Transmission Network5 (MWh4)
Slide 34: CFE FIBRA E: FIBRA Sui Géneris
CFE FIBRA E: FIBRA Sui Géneris Equity instrument Defensive and Exposure to the Resilient Instrument Mexican Electricity Sector Profitability above its Unique Exposure to the peers Transmission Sector Solid, Clear and Transparent Corporate Stable and Governance Predictable Flows Positive Track Record
Slide 35: Calculation and Updating of the Transmission Fee
Calculation and Updating of the Transmission Fee TFt = (OPEX + (D + ROA + Interest expense and Commissions) * AFt Energy Transmission Fee TFt = RI / Energy • Energy = Energy injected and withdrawn from the National Transmission Network determined on the estimates made by CENACE for the year of the v
Slide 36: CFE Capital
O CFE Capital
CFE Fibra E — Santander's 27th Annual Latin American Conference 2023 on 6ix