Slide 1: Quarterly Report CFE Fibra E Q1 2018
QUARTERLY REPORT CFE FIBRA E Q12018 Friday, April 27, 2018
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: CFE Fibra E is a new investment vehicle managed by CFECapital
CFE Fibra E is a new investment vehicle managed by CFECapital. Our objective is to invest in Controlling interest in FIBRA E 1 activities under CFE’s mandate. Direct affiliate of CFE Holding and We will take advantage of the Manager of CFE FIBRA E 2 fiscal structure of a FIBRA E1 in Mexico.2 Provide
Slide 4: The energy sector in Mexico has compelling opportunities for investors
The energy sector in Mexico has compelling opportunities for investors. Graph 1. Expected gross energy consumption (TWh) The electric power sector in Mexico grew at an average annual rate of 4.1% from 2006 to 2016.1 500 445 458 450 433 398 410 421 400 376 387 Gross power consumption is expected to g
Slide 5: Four key entities involved in the transaction
Four key entities involved in the transaction. Promoted CFE Transmisión Trust Fibra E 5
Slide 6: CFE Transmisión is a CFE subsidiary and the only provider of public electricity transmission
CFE Transmisión is a CFE Subsidiary that has proven industry experience and is currently the only provider of public electricity transmission in Mexico. Promoted CFE Transmisión Trust Fibra E 2.5x Earth’s circumference in transmission and sub transmission lines: ~107,000 kms of 69-400 kV lines2 CFE
Slide 7: Through the Promoted Trust, CFE Transmisión assigned its collection rights for 30 years
Through the creation of a Promoted Trust, CFE Transmisión assigned its collection rights for a period of 30 years. Promoted CFE Transmisión Trust Fibra E Collection rights Transmission tariffs Transmission tariffs are determined and Agreement regulated by CRE1 based on the Required Income,2 which gu
Slide 8: Initial public offering on February 8 raised MXN $16,210 million
On February 8, an initial public offering was made. After the stabilization period, and partially exercising the over-allotment option, MXN $16,210 million pesos were raised. Promoted CFE Transmisión Trust Fibra E Beneficiary rights of the CFE FIBRA E promoted trust Assets as of March 31, 2018 0.18%
Slide 9: During Q1 2018 the Promoted Trust started its operations
During the Q120181 the Promoted Trust started its operations. Its Technical Committee had the first session. Promoted CFE Transmisión Trust Fibra E • The CENACE Agreement operated as established. o This agreement allows CFE Transmisión to assign the Collection Rights in favor of the Promoted Trust.
Slide 10: IPO proceeds will be used for expansion and modernization of the transmission network
The proceeds from the initial public offering will be used for expansion and modernization of the national transmission network through projects included in the PRODESEN.1 Promoted CFE Transmisión Trust Fibra E • Investment in PRODESEN projects have a dual positive effect: 1) they enable the growth
Slide 11: CFECapital started operations and consolidated corporate governance
CFECapital started operations, ensuring compliance with all regulatory obligations of CFE Fibra E and consolidating its corporate governance. Promoted CFE Transmisión Trust Fibra E • The first decision-making sessions of the governing bodies of CFE Fibra E took place: Technical1 and Audit2 committee
Slide 12: CFECapital is working to provide relevant information to investors
CFECapital is working to provide relevant information to our investors timely and efficiently. Promoted CFE Transmisión Trust Fibra E • On our website: www.cfecapital.com.mx, investors and interested audience may find information and assistance: o On the public site, we will be publishing financial
Slide 13: During 2018, we will be tracking key value drivers for the initial asset
During 2018, we will be tracking key value drivers for the initial asset. I. Transparency and oversight of the II. Distribution policy of CFE Fibra E Promoted Trust expenditures Our distribution dates: June 29, September 28, and December 31. Collaborate with CFE1 on following expenditures and reimbu
Slide 14: The payment process from CENACE has four stages
The regular1 process for the payments from CENACE has four stages: electricity transmission, billing, invoice submitting, and payment. Electricity Billing and Deadline for Collection Payment W1 transmission reconciliation invoice submitting (CP W1) Days of operation of Daily account reports Each mar
Slide 15: The quarterly flow of revenues comprises 12 weeks
Therefore, the quarterly flow of revenues comprises, on a regular quarter, 12 weeks. Month 1 Month 2 Month 3 Month 4 Q1 Next collection period Collection Payments CPW1 CPW2 CPW3 CPW4 CPW5 CPW6 CPW7 CPW8 CPW9 CPW10 CPW11 CPW12 Weeks 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Collection period Distributio
Slide 16: The minimum quarterly distribution for this collection period
The minimum quarterly distribution1 (MQD) for this collection period used as part of the waterfall calculations will be MXN 0.575*(1.19) per CBFE. Feb March April May June Collection Payments CPW1 CPW2 CPW3 CPW4 CPW5 CPW6 CPW7 CPW8 CPW9 CPW10 CPW11 CPW12 CPW13 12 Feb Weeks 1 2 3 4 5 6 7 8 9 10 11 12
Slide 17: Revenues fluctuate during the year due to seasonal factors
Revenues fluctuate during the year, primarily due to the impact that seasonal factors have on electricity consumption and demand. Collection rights 1,500 1,250 The charts show the weekly 1,000 Collecting Rights received from CENACE. 750 In summer the electricity 500 demand is higher than Jul-16 Oct-
Slide 18: CFE Capital
O CFE Capital