Slide 1: Company Presentation
C O M PA N Y P R E S E N TAT I O N November 15, 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
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 3,810 MW 1 Geographically and technologically diversified operating assets Largest private player2 in 3 companies operating combined cycles totaling 2,554 MW under a cons
Slide 5: Central Puerto at a glance (cont’d): Operating and financial highlights
Central Puerto at a glance (cont’d) Operating and financial highlights Generation assets and projects under development breakdown by technology (MW)1 Additional stakes in 3 companies Awarded and under construction / operating combined cycles totaling development 2,554 MW (2) 4,469 236 383 3,810 423
Slide 6: Largest private sector power generator in Argentina with a 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: Portfolio of generation assets
Central Puerto at a glance (cont’d) Portfolio of generation assets Current geographic footprint Assets under Power capacity Assets in FONINVEMEM construction / (MW)2 operation Plants development 816MW 8 1 Puerto 1,714 - - 2 Piedra del Aguila 1,440 - - 10 11 3 7 4 3 3 Lujan de Cuyo 509 93 - 3 9 7 1 4
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: Growth Strategy
OVERVIEW GROWTH STRATEGY FINANCIALS APPENDIX
Slide 10: Central Puerto’s growth strategy based on 3 clear pillars
Attractive growth profile (cont’d) Central Puerto’s growth strategy based on 3 clear pillars Growth strategy based on 3 clear pillars CAPACITY PROFITABILITY A Expansion in conventional C Industry normalization energy B Expansion in renewable energy 9
Slide 11: Attractive growth profile: Conventional energy growth
A Conventional Attractive growth profile energy growth Generation assets and potential projects by technology (MW) Awarded Under construction 236 4,469 423 3,810 (=) Current Capacity (+) Co-generation projects (+) Renewable projects (=) Adj. Current and awarded capacity Renewables Co Generation Luja
Slide 12: New awarded thermal projects to add 423MW of contracted capacity
A Attractive growth profile (cont’d) Conventional energy organic growth 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 Estimated Total 2 US$91
Slide 13: Central Puerto is well positioned ahead of future expansion opportunities
A Attractive growth profile (cont’d) Conventional energy organic growth 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 (or potent
Slide 14: 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 inorganic growth 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 8
Slide 15: Attractive growth profile: Renewable energy
B Renewable Attractive growth profile energy Generation assets and potential projects by technology (MW) Renewables Co Generation Awarded under construction/ Steam development CC Hydro 236 4,469 423 3,810 (=) Current Capacity (+) Co-generation projects (+) Renewable projects (=) Adj. Current and awa
Slide 16: Renewable energies also present excellent growth opportunities
B Attractive growth profile (cont’d) Renewable energy 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 18% 20% 16% ◼ La
Slide 17: Development of awarded renewable energy projects
B Attractive growth profile (cont’d) Renewable energy Development of awarded renewable energy projects Central Puerto’s renewable projects1 RenovAr Program Term Market (MATER) 1 La 2 3 La 4 La 5 6 La 7 Achiras I Achiras II El Puesto Castellana I Genoveva I Castellana II Genoveva II 99 MW 48 MW 86.6
Slide 18: Argentine Government is adjusting the regulatory framework
Attractive growth profile (cont’d) C Industry The Argentine Government is adjusting the regulatory framework to normalization attract private investment and gain efficiency 2016 - 2018 2018/2019 Transition scheme Industry normalization ◼ Goal is to improve sector sustainability ◼ Res. 70/2018. Retur
Slide 19: Res. 70/18 allowed generation companies to self procure their fuel
Attractive growth profile (cont’d) C Industry normalization Res. 70/18 allowed generation companies to self procure their fuel again, which could provide us an additional operating margin Central Puerto’s scale and leadership position provides for potential to capture margins on fuel purchases LTM 4
Slide 20: Energía Base competitive compared to prices awarded in new auctions
Attractive growth profile (cont’d) Industry C normalization Energía Base are competitive compared to prices awarded in new energy auctions Key changes in the Energía Base framework Energía Base price evolution (US$/MW month)1 Energía Base payments as a % of total energy price1 Average Res. 21/2016 2
Slide 21: Financials
OVERVIEW GROWTH STRATEGY FINANCIALS APPENDIX
Slide 22: Strong cash flow generation and financial position
Strong cash flow generation and financial position US$ based revenues supported by additional FONINVEMEM cash flows Revenues from continuing operations Adj. EBITDA excluding CVOSA effect, FX differences and (US$mm)1 interest on FONI receivables (US$mm)1 In Ps.mm: 5,957 +57.0% 9,354 In Ps.mm: 3,187 +
Slide 23: Favorable financial position and stake in non-core assets
Favorable financial position and stake in non-core assets Cash Position as of September 30, 2018 (US$ mm)1 CENTRAL PUERTO SUBSIDIARIES CONSOLIDATED Project Finance Long-Term Debt 33 33 42 9 Cash 0 Financial Debt Net Cash Financial Debt = 0 (121) Position (163) (154) (163) Stake in natural Gas Distri
Slide 24: Appendix
OVERVIEW GROWTH STRATEGY FINANCIALS APPENDIX Adjusted EBITDA Reconciliation Foreign Exchange rate
Slide 25: Adjusted EBITDA Reconciliation
Appendix Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation 2017 LTM 3Q Million Ps. 2018 Net Income of the year 3,494 18,264 Finance Expenses 698 3,610 Finance Income (932) (1,586) Share of the profit of associates (715) (1,323) Income tax expense 1,052 6,684 Depreciation and Amortization
Slide 26: Foreign Exchange Rate Evolution
Appendix Foreign Exchange Rate Evolution Exchange rate quoted by Banco de la Nación Argentina for wire transfers (“divisas”) Year Month High Low Average End 1Q 2017 16.0800 15.3600 15.6795 15.3900 2017 2Q 2017 16.6300 15.1900 15.7575 16.6300 3Q 2017 17.7900 16.8000 17.2870 17.3100 4Q 2017 19.2000 17
Slide 27: Central Puerto
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