Compania General De Electricidad S.a. · BCS:CGE
Compania General De Electricidad — Investor Presentation (December 2010)
30 slides from Compania General De Electricidad's investor presentation, December 2010
Slide 1: Presentation to Investors
Presentation to Investors As of Dec. 2010
Slide 2: One of the most important energy groups in Chile
Grupo CGE One of the most important energy groups in Chile • More than 105 years of history • Development of long-term businesses, in key sectors • Corporate Governance with a business view prevailing the strategic development of its companies. • Consolidated Group has grown strongly in the past 10
Slide 3: One of the most important energy groups in Chile
Grupo CGE One of the most important energy groups in Chile • Annual Revenues for US$ 4.3 billion and Ebitda of US$ 619 million consolidated • Main electricity distributor in Chile (2.4 million clients) • Relevant player in Chile in liquefied and natural gas distribution • Our electricity and gas ser
Slide 4: Major shareholder committed to the growth and development of its subsidiaries
Grupo CGE Major shareholder committed to the growth and development of its subsidiaries Ownership Structure - CGE Group (Dec. 2010) Indiver 11,1% Otros Grupo Familia 22,6% Marín 22,3% 3.503 accionistas Inv. Inst. y AFP 4,9% Soc. del Canal del Grupo Almería Maipo 20,7% 7,6% Grupo Familia Pérez Cruz 1
Slide 5: A Group with Focused and Strategic Business Units
Grupo CGE A Group with Focused and Strategic Business Units Electricity Electricity Liquefied Gas Liquefied Gas Electricity Electricity and Gas Distribution Services & Natural Distribution Transmission Generation Distribution in Chile Gas in Colombia in Argentina 4
Slide 6: Taking opportunities for strategic growth
Grupo CGE Taking opportunities for strategic growth Evolution of Consolidated Assets ($ billion) Evolución of Consolidated Ebitda ($ billion) 4.000 300 Patrimonio Neto 3.500 Pasivos 250 3.000 200 2.500 2.000 150 1.500 100 1.000 50 500 0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2
Slide 7: Ebitda of Electricity Sector
Grupo CGE Ebitda (1) of Electricity Sector 2% Others Transmission (2) 29% Electricity 55% Distribution 63% Generation Gas 8% 43% Ebitda Consolidated Dec-10 Ebitda Electricity Sector Dec-10 MM$ 289.671 (US$ 619 million) MM$ 159.882 (US$ 342 million) (1) Operating Result + Depreciation + Amortization
Slide 8: Electricity Distribution – Market position
Grupo CGE Electricity Distribution – Market position Physical sales Number of Customers Saesa Saesa 9,1% 12,9% Otros 2,2% CGE Distribución Otros CGE Distribución 23,1% 3,2% 24,4% Grupo CGE 40,2% Grupo CGE 43,8% Enersis Enersis 40,7% 30,2% Otras Emp. Grupo CGE Otras Emp. Grupo 17,0% CGE 19,4% Chilqui
Slide 9: Electricity Distribution
Grupo CGE Electricity Distribution 152 thsd clients 332 thsd clients 745 GWh 1.404 GWh 64 thsd clients 1.301 thsd clients 53 thsd clients 235 GWh 6.447 GWh 245 GWh 84 thsd clients 11 thsd clients 444 GWh 87 thsd clients 43 GWh 681 GWh 25 thsd clients 84 GWh 232 thsd clients 976 GWh • Generates an Eb
Slide 10: Key figures of electricity distribution business in Chile
Grupo CGE Key figures of electricity distribution business in Chile Evolution No. of Clients (thsd) Evolution of Physical Sales (GWh) 2.500 14.000 2.300 2.342 2.163 2.238 12.000 11.031 11.041 11.047 11.304 2.000 10.000 1.478 1.526 1.500 Grupo Emel 8.000 7.297 Grupo Emel 7.148 Edelmag Edelmag 6.000 1
Slide 11: Great potential of growth of electricity sector in Chile
Grupo CGE Great potential of growth of electricity sector in Chile, moved by economic development Correlation between electricity consumption and GDP 18.000 Canadá 16.000 14.000 EEUU 12.000 kWh per capita Nueva Australia 10.000 Zelandia Corea Singapur 8.000 Japón Francia Dinamarca Alemania 6.000 Esp
Slide 12: Electricity Distribution – Perspectives & Conclusions
Grupo CGE Electricity Distribution – Perspectives & Conclusions We are recovering from stable growth of electricity demand • 2008 – 2009 economic crisis (-) • 2010 earthquake (-) 2009 effects of VAD tariff setting and of services non-related to electricity supply (-) 2010 effects of tariff setting f
Slide 13: Electricity Transmission
Grupo CGE Electricity Transmission Strategic support for electricity distribution 2.604 km lines 8.749 GWh energy withdrawn (*) 9 km lines 4 km lines 128 km lines 209 km lines 75 km lines 457 km lines Empresas EMEL 873 km lines • CGE Group is the 2nd player in Chile, with 3.485 kms of sub-transmissi
Slide 14: Transnet S.A. is the main subsidiary of CGE Group
Grupo CGE Transnet S.A. is the main subsidiary of CGE Group in this activity Total Assets ($ million) Energy Withdrawn (GWh) 450.000 12.000 415.923 400.000 10.500 359.796 350.000 8.817 8.803 8.780 8.749 9.000 8.347 300.000 7.497 7.500 250.000 234.456 201.042 6.000 200.000 179.685 153.993 150.000 4.5
Slide 15: Electricity Transmission – Perspectives & Conclusions
Grupo CGE Electricity Transmission – Perspectives & Conclusions Stable business, highly specialized and strategic for CGE. Growth of this sector is correlated to the growth of the country. There is room to keep growing, beyond vegatative growth. Our infrastructured is prepared to face the future dem
Slide 16: Electricity Generation
Grupo CGE Electricity Generation Potential growth through acquisitions and own portfolio of proyects IBENER • ENERPLUS (ex CGE GENERACIÓN) acquired from Iberdrola 100% of IBENER in June 2009. • Total investment of US$ 294 million • Two hydroelectric run-of-the-river power plants: Peuchén and Mampil,
Slide 17: Own projects of electricity generation
Grupo CGE Own projects of electricity generation Projects • CGE Group has 500 MW in own water rights. All projects are run-of-the-river power plants • Most advanced project Central Ñuble 136 MW of installed capacity Estimated average generation of 667 GWh/year Estimated investment of US$ 260 million
Slide 18: Electricity Generation – Perspectives & Conclusions
Grupo CGE Electricity Generation – Perspectives & Conclusions One of the business units with most perspectives of growth for CGE Group • Through own portfolio of projects we have water rights (scarce resourse). • A portfolio of projects is currently under studty. • Sector growth algo through acquisi
Slide 19: Ebitda of Gas Sector
Grupo CGE Ebitda (1) of Gas Sector 2% Others Liquefied Gas 26% Electricity 55% Natural Gas 61% Gas 43% Storage Liquefied Gas (2) 13% Consolidated Ebitda as of Dec-10 Ebitda Gas Sector as of Dec-10 MM$ 289.671 (US$ 619 million) MM$ 124.223 (US$ 265 million) (1) Operating Result + Depreciation + Amort
Slide 20: Distribution of natural and liquefied gas
Grupo CGE Distribution of natural and liquefied gas • In this sector, CGE Group is one of the main players in Chile. • Annual Ebitda generation in Chile of US$ 265 million, representing 43% of consolidated Ebitda. • In Chile, we supply natural gas to more than 544 thousand customers. • In Argentina,
Slide 21: Key figures of our gas business
Grupo CGE Key figures of our gas business Number of clients NG Chile (thsd) Physical sales NG Chile (Million m3) 700 1.400 600 544 520 537 1.200 487 1.031 1.016 1.036 500 452 421 1.000 400 776 774 800 651 300 600 200 400 100 200 0 0 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 Physica
Slide 22: Sector Gas – Perspectivas y Conclusiones
Grupo CGE Sector Gas – Perspectivas y Conclusiones Natural Gas • Today we have certainty of supply LNG terminal. • Recovery of customers during the gas crisis especially industrial customers. • Electricity generators have consumed NG from the LNG Terminal in Quintero. • We notice an important demand
Slide 23: Service activities
Grupo CGE Service activities Ebitda * Activity $ million Activities focused on IT and telecom 7.464 Supply and logistics services 3.437 Manufacturer of transformers and 2.618 electric equipment Electricity services for distributors of 1.428 electricity Management of CGE Group's real estate 1.716 Bus
Slide 24: Evolution of CGE Group's Results
Grupo CGE Evolution of CGE Group’s Results Operating Revenues ($ bn) Ebitda ($ bn)* 2.500 350 2.012 290 300 271 2.000 1.825 1.812 262 250 236 212 219 1.500 1.286 200 942 150 1.000 852 100 500 50 0 0 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 Total Assets ($ bn) Net Income ($ bn) 4.0
Slide 25: A Group with diversified businesses
Grupo CGE A Group with diversified businesses Ebitda CGE Group (*) ($ bn) 350 290 300 262 271 236 250 212 219 200 150 100 50 0 2005 2006 2007 2008 2009 2010 Ebitda otras invers. y Holding Ebitda Electricidad Ebitda Gas Ebitda consolidado • The diversification of our businesses has allowed us to main
Slide 26: Financial Summary
Grupo CGE Financial Summary CGE Consolidated Dec. Dec. Dec. 2009 Dec. 2010 ($ billion) 2009 2010 MMUS$ MMUS$ Total Assets 3.411 3.762 6.726 8.038 Liabilities 2.092 2.299 4.125 4.913 Equity 1.319 1.463 2.601 3.125 Operating Revenues 1.812 2.012 3.573 4.298 Operating Result 186 197 367 421 Ebitda 271
Slide 27: Financial Debt Structure as of Dec. 2010
Grupo CGE Financial Debt Structure as of Dec. 2010 (*) Debt by Currency Debt by Interest Rate UF/$ Floating 94% 34% Fixed Foreign 66% 6% Tenor Debt by Type Short- term 20% Banks 44% Bonds 52% Long- Com. term Papers 80% 4% 26 * Financial Debt as of December 2010 reached $ 1.763 billion (~ USD 3.8 bil
Slide 28: Ratios financieros
Grupo CGE Ratios financieros Debt Coverage (1) Interest Coverage (2) Leverage (3) 7,0 7,00 1,80 6,0 1,73 6,0 5,7 5,76 1,75 5,5 6,00 5,2 5,46 5,35 1,70 1,70 5,0 5,00 4,60 4,33 1,65 4,0 3,7 4,00 1,59 1,60 1,57 3,0 3,00 1,55 1,50 1,50 2,0 2,00 1,45 1,0 1,00 1,40 0,0 0,00 1,35 2006 2007 2008 2009 2010 2
Slide 29: An Investment Grade Company
Grupo CGE An Investment Grade Company Commercial Local Rating Shares Bonds Papers Feller-Rate Nivel 2 AA- AA-/Nivel 1+ Fitch Ratings Nivel 2 A+ A+/F1+ Debt Debt International Rating Local Currency Foreign Currency Standard & Poor's BBB- BBB- Fitch Ratings BBB BBB Main fundamentals: • Low risk and st
Slide 30: Main Conclusions and Challenges
Grupo CGE Main Conclusions and Challenges • Consolidated Group and has grown strong over the past 10 years • Strategic view with a long-term perspective to continue responding to the energy needs of the country. • In a stage to achieve return on our investments • Adapting to changes – organizing bus
Compañía General de Electricidad S.A. (Grupo CGE) — Investor Presentation (December 2010) on 6ix