Colbun Sa · BCS:COLBUN
Colbun Sa — Fenix Power — Corporate Update (2022)
20 slides from Colbun Sa's corporate update, 2022
Slide 1: Corporate Presentation 4Q21
CORPORATE PRESENTATION 4Q21
Slide 2: Agenda
AGENDA 1. COMPANY OVERVIEW 2. MARKET OVERVIEW 3. COMMERCIAL STRATEGY 4. FINANCIAL REVIEW
Slide 3: Fenix Power: a relevant & efficient CCGT in Peru
Company overview Fenix Power: a relevant & efficient CCGT in Peru THE COMPANY MARKET SHARE2 (%) Others; 29% Kallpa; 17% One of the most efficient CCGT in Peru Electroperú; 13% Based on Heat Rate Orazul; 5% 40 miles south of Lima Statkraft; 5% Enel; 13% Capital of Peru and largest city of the Engie;
Slide 4: Highly experienced shareholders
Company overview Highly experienced shareholders 51% 13% 36% BLUE BOLT1 ▪ Chilean power generation company ▪ One of the largest investment ▪ Established by the Government of the funds managers in Peru Emirate of Abu Dhabi (Aa2/AA/AA) ▪ 3rd largest player in the SEN (Chile’s main grid), with 13% of m
Slide 5: Agenda
AGENDA 1. COMPANY OVERVIEW 2. MARKET OVERVIEW 3. COMMERCIAL STRATEGY 4. FINANCIAL REVIEW
Slide 6: Power industry dynamics in Peru
Market overview Power industry dynamics in Peru GENERATION LTM Others; 7% ▪ Stable regulatory framework ▪ US$ currency denominated market Natural Gas; 36% 53,986 ▪ Investment grade country GWh Hydro; 57% ▪ High growth potential INSTALLED CAPACITY BY DEMAND GROWTH (12 month average %) TECHNOLOGY 15.0
Slide 7: Marginal cost & demand in Peru
Market overview Marginal cost & demand in Peru ▪ Oversupplied market in the last years has pushed down marginal costs ▪ Marginal costs are affected by take or pay schemes of gas contracts and by price declaration strategies 30 16 Marginal cost (US$/MWh) 25 75% 25 14 21 56% 55% 54% 53% 52% 12 Power (
Slide 8: COVID19 potential impacts
Market overview COVID19 potential impacts SEIN STATUS Growth m/m (%) Growth y/y (%) Marginal Cost (US$/MWh) 28.3 27.7 24.2 24.8 23.3 22.1 12.7 13.2 7.2 9.7 8.2 6.1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec SEIN Demand growth (%) m/m (%) (0.6) (8.8) 11.2 (6.3) 4.7 (2.0) 1.0 2.0 (2.3) 3.4 (1.8)
Slide 9: Recent developments in regulatory framework
Market overview Recent developments in regulatory framework LATEST CHANGE: Calculation of Variable Costs of Generation Units ▪ Variable costs of generation units are used to determine the marginal cost applied to spot market sales. ▪ On May-21, OSINERGMIN published the modification of the technical
Slide 10: Agenda
AGENDA 1. COMPANY OVERVIEW 2. MARKET OVERVIEW 3. COMMERCIAL STRATEGY 4. FINANCIAL REVIEW
Slide 11: Commercial policy
Commercial strategy Commercial policy Contracting a relevant portion of capacity Fenix maintains a relevant base of long-term PPAs 1 2 3 Solid customers base Indexation formulas Creditworthy counterparties PPAs indexed to dollar and fuel Most of Fenix PPAs are signed with the prices, in order to mit
Slide 12: Operational long-term contracts
Commercial strategy Operational long-term contracts 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 1. NATURAL GAS SUPPLY ECL88 ▪ Counterparty: Camisea Consortium ▪ Expiration: December 2029 2. NATURAL GAS TRANSPORT TGP ▪ Counterparty: TGP ▪ Expiration: May 2032 3. GAS DISTRIBUTION & O&M
Slide 13: Stable cash flow profile supported by long-term PPAs
Commercial strategy Stable cash flow profile supported by long-term PPAs 1 PPAs PROFILE 2 ENERGY SALES LTM Spot ▪ Average life of long-term PPAs of 3 years 23% ▪ US$ indexation 3,352 ▪ Strong AAA locally-rated off takers GWh PPAs 77% 3 PPAs PORTFOLIO (TWh) 1.4 1.1 1.3 1.3 1.0 1.2 1.2 0.8 1.7 1.7 1.9
Slide 14: Agenda
AGENDA 1. COMPANY OVERVIEW 2. MARKET OVERVIEW 3. COMMERCIAL STRATEGY 4. FINANCIAL REVIEW
Slide 15: Financial figures
Financial review Financial figures 1 2 1. OPERATING REVENUES (US$ million) 2. EBITDA (US$ million) 70 70 193 202 65 175 172 54 159 36 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 3. GROSS DEBT/EBITDA LTM (x) 2 4. FINANCIAL EXPENSES COVERAGE (x) 3.6x 9.8x 2.6x 2.7x 7.1x 2.4x 6.6x 6.6x 6.2x 2.0x
Slide 16: Long term debt profile
FINANCIALS LONG TERM DEBT PROFILE 1. DEBT PROFILE1 2. FENIX BOND ISSUANCE ▪ Amount outstanding: US$281 mm US$281 million - Bond ▪ Average life: 4.3 years ▪ Coupon: 4.317% US$109 million – Calidda Leasing2 ▪ Maturity: Sept-27 ▪ Format: 144A/Reg S US$13 million – CTM Leasing ▪ Repayment profile: Amort
Slide 17: Cash Support Agreement
Financial review Cash Support Agreement ▪ Fenix’s shareholders signed a Cash Support Agreement that provides Fenix additional liquidity to meet its debt service payments. ▪ The agreement provides Fenix with a committed credit line from Colbún and the support from the remaining shareholders in case o
Slide 18: Fenix news
Fenix news First Vacunafest held in Fenix holds the third annual Fenix achieves for the third Chilca meeting of Public Accounts with consecutive time the Asociación The activity carried out by the Micro the community de Buenos Empleadores (ABE) Health Network of Chilca in alliance With the aim of in
Slide 19: Key takeaways
Key takeaways 1. Attractive long-term growth 4. Strategic investment for its shareholders opportunities Strong sponsorship from highly experienced shareholders, including a key power generation player in Peru's generation industry is currently affected by Chile and leading asset managers short-term
Slide 20: Corporate Presentation 4Q21
CORPORATE PRESENTATION 4Q21