Engie Energia Peru Sa · BVL:ENGIEC1
Engie Energia Peru Sa — EnerSur — Investor Presentation (March 2014)
34 slides from Engie Energia Peru Sa's investor presentation, March 2014
Slide 1: EnerSur - Peru Corporate Presentation
EnerSur - Peru Corporate Presentation Place: Lima, Peru Date: March 2014 1
Slide 2: Content
Content Section 1 Peruvian Energy Industry and Main Challenges Section 2 Company Overview Section 3 Strategy Section 4 Financial Results Section 5 Capital Structure p. 2
Slide 3: Peruvian Electricity Market Participants
Peruvian Electricity Market Participants Generation Transmission Distribution Sales of Energy 7,776 MW 10,219 km 5 Million 35,640 GWh Total Effective Capacity Basic transmission Clients Endesa 24% ISA 61% Government 57% Mining 24% GDF Suez 22% Red Eléctrica 4% Endesa 21% Smelting 6% State Owned 19%
Slide 4: Peruvian Electricity Market Structure & Actors
Peruvian Electricity Market Structure & Actors Energy – Capacity Consumed by EnerSur COES SEIN Clients Ranking Energy – Capacity “Dispatched” CVC/CVNC Fuel Cost Operational Cost (« Opex ») Capex Dispatch Administrative Expenses (« SG&A ») p. 4
Slide 5: Peruvian Electricity Market Structure Main Concepts
Peruvian Electricity Market Structure Main Concepts Generation • Pool centralized dispatch • Spot Price: Zonal, cost-based, calculated every 15 minutes based on the marginal cost to supply demand • Volatility on spot price is mainly driven by hydro conditions, gas transport availability, main plan
Slide 6: Peruvian Electricity Market Demand – Supply Balance
Peruvian Electricity Market Demand – Supply Balance MW Reserve MW Reserve Wet Season Dry Season 20,000 100% 20,000 100% 18,000 90% 18,000 90% 16,000 80% 16,000 80% 14,000 70% 14,000 70% 12,000 60% 12,000 60% 10,000 50% 10,000 50% 8,000 40% 8,000 40% 6,000 30% 6,000 30% 4,000 20% 4,000 20% 2,000 10%
Slide 7: Content
Content Section 1 Peruvian Energy Industry and Main Challenges Section 2 Company Overview Section 3 Strategy Section 4 Financial Results Section 5 Capital Structure p. 7
Slide 8: Sponsor: GDF SUEZ
Sponsor: GDF SUEZ (A / A1) Breakdown of EBITDA Dec 2013 Breakdown of Revenues Dec 2013 Energy Europe Environment €43.5bn €8.0bn 9% By business line 17% Energy Services €14.7bn 16% Infrastructure €2.6bn €89.0bn 3% 6% Global Gas & LNG Energy International €5.7bn €14.8bn 49% Rest of the world Latin Ame
Slide 9: Sponsor: GDF SUEZ presence in Peru
Sponsor: GDF SUEZ presence in Peru ENERGY ENERGY GLOBAL INFRA- ENERGY EUROPE INTERNATIONAL GAS & LNG STRUCTURES SERVICES LATIN NORTH UK-EUROPE MIDDLE EAST, ASIA AMERICA AMERICA TURKEY & PACIFIC AFRICA GDF SUEZ Energy International GDF SUEZ participation = 61.77% Peruvian Pension Funds = 38.23% and O
Slide 10: GDF SUEZ Energy International in Latin America
GDF SUEZ Energy International in Latin America 3,539 employees Operations: 12.9 GW of capacity in operation Presence en Argentina, Brazil, Chile, Costa Rica, Panama en Peru. 4.0 GW in construction Diversified Portfolio. COSTA RICA PANAMA Innovative solutions in gas and electricity. Transport
Slide 11: Ownership Structure
Ownership Structure Ownership as of 3.31.2014 % • GDF SUEZ through International Power SA has a majority participation and controls EnerSur with International Power SA (GDF SUEZ) 61.77 61.77% (2 Independent Directors and 5 Directors IN – Fondo 2 7.65 appointed by GDF SUEZ); Rímac Internacional 5.11
Slide 12: History: Our Business
History: Our Business EnerSur has a proven track record in driving organic growth and integrating the developed projects. Committed investments for 1.3BnUSD between 2010 and 2016: ILO1 YUNCAN CHILCA CHILCA CHILCA OCGT21 1. CHILCAUNO CCGT CHILCAUNO COLD RESERVE ACQUISITON 134MW HPP OCGT11 OCGT12 200M
Slide 13: Operations (1,820MW) & Projects (612MW)
EnerSur: Operations (1,820MW) & Projects (612MW) Quitaracsa Project (hydro): NTP December 2010 Additional 112 MW ChilcaUno CCGT (Natural Gas) Yuncán Hydroelectric HPP 852 MW 134 MW Combined Cycle Project: NTP June 2010 COD November 2012 Additional 292 MW Ilo 21 (Coal) Ilo 1 (Diesel, Fuel & Steam) 13
Slide 14: Structure & Organization
EnerSur: Structure & Organization Committees & Task Forces Shareholders Assembly Executive Committee Audit Committee Operations Committee Board of Regulatory Committee Directors Commercial Committee Transaction between Affiliates Committee Development Committee Construction Committee CEO Finance & R
Slide 15: Content
Content Section 1 Peruvian Energy Industry and Main Challenges Section 2 Company Overview Section 3 Strategy Section 4 Financial Results Section 5 Capital Structure p. 15
Slide 16: EnerSur: Strategy
EnerSur: Strategy A. Development Focused on electricity generation Portfolio Balance: hydro vis-a-vis thermo Geographic: diversification and close to our clients EnerSur invested more than MUSD 700 in its first 13 years of operations In 2010 EnerSur announced new investments in 3 new proje
Slide 17: Projects +864 MW (2010-2013)
EnerSur: Projects +864 MW (2010-2013) ChilcaUno Combined Cycle The ChilcaUno Combined Cycle Project consists in adding one steam turbine and three Project HRSGs and an air cooled condenser to the three existing open cycles of ChilcaUno plant +292 MW = 852 MW currently in commercial operation, adding
Slide 18: Projects +500 MW (2014-2017)
EnerSur: Projects +500 MW (2014-2017) Nodo Energético Project Ilo The Government of Peru (“GoP”) decided to promote an investment in 1,000 MW Cold +500 MW (+/- 20%) Reserve (+/-20%) in the south of Peru in the cities of Ilo and Mollendo (“Nodo Energético” Project). EnerSur won a bid to build and ope
Slide 19: Main Challenges: Mid Term
Main Challenges: Mid Term Electricity demand in the North and South is mainly supplied with efficient generation from the Center… SEIN Total SEIN 2012 2013 Demand 5,291 MW 5,575 MW Efficient Supply 6,627 MW 6,757 MW Inefficient Supply 490 MW 1,041 MW Reserve 35 % 40 % North NORTH Project: “Gas to No
Slide 20: Projects in Development
EnerSur: Projects in Development A. Improve Operational Efficiency of existing assets: Yuncán HPP: Huangush Bajo ChilcaUno Combined Cycle: +10 MW Power Increase Ilo21: Development of export/import services in existing 1.2 km jetty B. Mapping new Hydroelectric Power Projects Mapping potential
Slide 21: Projects in Development – Gas to South Option
EnerSur: Projects in Development – Gas to South Option A. Phase 1: EnerSur filed a Private Initiative to add 100 MW of additional capacity as Cold Reserve in the south for the Peruvian Electricity System Cold Reserve Project: Potential to reach 560MW B. Phase 2: Convert existing 560 MW Cold Reserv
Slide 22: Content
Content Section 1 Peruvian Energy Industry and Main Challenges Section 2 Company Overview Section 3 Strategy Section 4 Financial Results Section 5 Capital Structure p. 22
Slide 23: 2012 - 2013 Main Highlights
EnerSur: 2012 - 2013 Main Highlights Capital Increase: On April 2012 EnerSur announced a capital increase through a preferential subscription after the approval by the General Meeting of Shareholders on February 14, 2012, by means of new monetary contributions up to the equivalent sum in PEN of 15
Slide 24: Production and Energy Balance
Production and Energy Balance Growth in Net Generation in line with Commercial Operation Date in November 2012 of ChilcaUno CCGT… 2013 / GWh 2011 2012 2013 2012 Yuncán HPP 890 16% 898 14% 948 13% 6% ChilcaUno CCGT 2,831 52% 4,222 68% 5,771 78% 37% Ilo21 (Coal) 732 13% 556 9% 837 11% 51% Ilo1 (Diesel
Slide 25: EnerSur – 2013 vs. 2012
EnerSur – 2013 vs. 2012 EBITDA increased in 44% and Net Income in 26% YoY mainly explained by full contribution of ChilcaUno CCGT, which allowed to sign new PPAs with Free and Regulated Clients and commercial operation of Cold Reserve in Ilo since June 2013… EBITDA in MUSD Net Income in MUSD 280 270
Slide 26: Generation and Financial Performance
Generation and Financial Performance Generation grew more than 200% since 2006 Generation diversified in 5 sources and 4 plants GWh Cifras Reales a: Dec-13 Cifras Reales a: Dec-13 8,000 8,000 7,000 7,000 6,000 6,000 5,000 5,000 GWh 4,000 4,000 3,000 3,000 2,000 2,000 1,000 1,000 0 0 1997 1998 1999 2
Slide 27: Content
Content Section 1 Peruvian Energy Industry and Main Challenges Section 2 Company Overview Section 3 Strategy Section 4 Financial Results Section 5 Capital Structure p. 27
Slide 28: EnerSur: Capital Structure
EnerSur: Capital Structure EnerSur’s main objectives under current financing strategy are: Current financing strategy was established to keep ratio Senior Financial Debt to EBITDA during construction of projects around 3x and maintain a AAA local rating to keep access to the local capital and bank
Slide 29: Context Funding Strategy 2010-2016
EnerSur: Context Funding Strategy 2010-2016 CAPEX plan driven by 4 growth projects for a combined investment of approx. 1,340 MUSD: Uses MUSD Sources MUSD ChilcaUno Combined Cycle - CCGT (+292MW) 320 Financial Lease ChilcaUno - CCGT 300 Cold Reserve Project Ilo (+460MW) 220 Financial Lease Cold Rese
Slide 30: Debt Structure as of March 31st 2014
EnerSur: Debt Structure as of March 31st 2014 Lender Type Currency Facility O/S Initial Date Maturity Date Rate Reference BBVA Short Term USD 40 40 11/12/2013 09/06/2014 0.900% Short Term Loan Scotiabank Short Term USD 20 20 24/12/2013 20/06/2014 Libor (1M) + 0.80% Short Term Loan BCP Short Term USD
Slide 31: Debt Structure & Hedging as of March 31st 2014
EnerSur: Debt Structure & Hedging as of March 31st 2014 • FX: EnerSur’s functional currency is the US • Interest Rate: EnerSur objective is to minimize the Dollar and only a limited portion of its G&A uncertainty of the cost of debt. and OPEX are in PEN. Its revenues are either in US Dollars or in P
Slide 32: EnerSur - Value Creation
EnerSur - Value Creation A. Development: • Committed investments for approx. 700 MUSD between 1997 and 2009, and 1.3BnUSD between 2010 and 2016 including recently awarded 500MW Nodo Energético Project B. Implementation: • During 15 years of operations run the successful construction of a new coal pl
Slide 33: EnerSur - Value Creation
EnerSur - Value Creation Installed capacity @ Dec’2012: 1,360 MW (incl. new 292 MW Chilca Uno Steam Turbine) Installed capacity @ Dec’2013: 1,820 MW (incl. new 460 MW Cold Reserve Project Ilo) Capacity under construction: 612 MW (Quitaracsa HPP and Nodo Energético Ilo) EnerSur will double in
Slide 34: Thank you
Thank you Contact Info: EnerSur www.enersur.com.pe Av. República de Panamá 3490 San Isidro, Lima, Peru (511) 616 79 79 Michel Gantois CEO Eduardo Milligan CFO [email protected] Arturo Silva Santisteban Head of Corporate Finance, Tax & Treasury [email protected] p.