PRESENTATION BTG Pactuals North Andean Investor Trip Colombia & - - PowerPoint PPT Presentation

BTG Pactual’s North Andean Investor Trip Colombia & Peru April 2018

CORPORATE PRESENTATION

AGENDA

1. Company overview 2. Next steps for strong long– term success 3. Financial review

1.

COMPANY OVERVIEW

Company overview

The company Key financials

Installed capacity

2.399 MW

Power plants

28 facilities

Market share

COL 10% | CA 12%

Transmission

291 km

Distribution

20.473 km

Retail

+600k clients

Regulated & non–regulated in Colombia

Total assets

COP 9,8 trillion

Cash

COP 174 billion

Ebitda

COP 1,13 trillion

Net debt / Ebitda

2,5x

Rating

COL Celsia AA+ Epsa AAA PA Alternegy A-

Well diversified generation assets

Hydro: 1.195 MW Solar: 9,8 MW Thermal: 1.144 MW Wind: 50 MW

Alto Anchicayá 355 MW Bajo Anchicayá 74 MW Calima 132 MW Río Cali I y II 1,8 MW Nima I y II 6,7 MW Cucuana 58 MW Salvajina 285 MW Rumor 2,5 MW Río Frio I 1,7 MW Río Frio II 10 MW Tuluá Alto 19,9 MW Tuluá Bajo 19,9 MW Amaime 19,9 MW Hidroprado 51 MW

Central America

Panamá Costa Rica

Colombia

Solar Yumbo 9,8 MW Hidromontañitas 20 MW Río Piedras 20 MW ZFC 610 MW Merieléctrica 167 MW PEG 50 MW Dos Mares 118 MW Cativá 87 MW BLM 280 MW

Annual Ebitda COL COP 543 bn CA USD 88 mn

Relevant transmission and distribution assets

291 km

Transmission grid (≥220kV)

20.473 km

Distribution grid (<220 kV)

16 substations 84 substations Annual equiv. Ebitda

COP 304 bn (USD 103 M)

RAB

COP 2,13 tn (USD 714 mn)

WACC 12,4% 2018 11,8% >2019 New regulatory environment Assets valuation

Corporate structure

100%

Zona Franca Celsia

61,3%

EPSA

100%

Planta Eólica Guanacaste S.A.

51%

BLM Corp.

98% 1

Cetsa

Colombia

52,9% 1,87%

Costa Rica Panama

1 Direct and indirect stake in Cetsa E.S.P.

100%

Complejo Hidroeléctrico Dos Mares

In 2009, Grupo Argos partnership was decisive in order to acquire control in EPSA

2.

NEXT STEPS FOR STRONG LONG– TERM SUCCESS

Compelling projects that provide attractive returns

Stability on revenues

Contract price indexed to COL PPI for 25 years

No demand Risk

Only commitments are to maintain quality of service standards to avoid penalties

Significant incremental cashflow opportunities

Current projects represent an increase of 20% Dx business

Attractive returns

High profitability margins with attractive returns on investment Financial closing in Colombian pesos with leasing facilities. Tenor: 10 years of amortization and 2 years grace period

Plan5Caribe -Improving the grid throughout the Caribbean region

Additional opportunities in P5C stage II

STN & STR Investments up to COP 1,0 trillion Subject to auctions

A sustainable strategy | Focus on renewables and non-conventional renewables

19,9 MW

Capacity

167 GWh-year

Expected output

Capex: COP 170 billion Under construction

Andritz Hydro (Turbines), Estyma S.A. and HB Estructuras (civil works and equipment)

La Guajira 330 MW

Capacity

Other regions ex–La Guajira ~70 MW

Capacity

San Andres Wind Projects

First mover on utility-scale solar PV projects

Diversified mix of energy resources Attractive returns Taking advantage of existing substations and transmission lines Tax incentives through law 1715 Focus on low-carbon energy sources

Commited to COP21 goals

Increasing the pace of digitalization with

NOVA

Control an automation of electrical power assets - Brand new SCADA

Supervisory Control and Data Acquisition. Brand new control system architecture for high-level process supervisory management.

Smart metering infrastructure

Advanced metering unit

Work Force Management

Computer-based data integration and management process

Highly innovative project - Colciencias

Endorsed by the Colombian Administrative Department of Science, Technology and Innovation (Colciencias)

Key takeaways

Substantial expertise in electric utilities management

Leading electricity generation company 4th in Colombia – Vertically integrated 2nd in Panama Solid asset base well–diversified by geography, business type and fuel source Steady cash flows that contribute to revenue stability and predictability Development of renewable energy sources Best in operational metrics

3.

FINANCIAL REVIEW

Consolidated financial results

Revenues (COP trillion) Net income (COP billion) Ebitda I Ebitda Mg. (COP billion I %) Debt / Ebitda I Net debt / Ebitda (x)

2,4 2,6 3,7 3,8 3,1 2.013 2.014 2.015 2.016 2.017 1Q 2Q 3Q 4Q Total 36% 35% 19% 27% 36% 2.013 2.014 2.015 2.016 2.017 1Q 2Q 3Q 4Q Ebitda margin 568 332

• 52

171 251 2.013 2.014 2.015 2.016 2.017 1Q 2Q 3Q 4Q Total 3,1 6,0 3,8 3,4 2,7 2,9 5,1 3,4 3,2 2,5 2,014 2,015 2,016 2,017 2018-feb Debt/EBITDA Net debt/EBITDA

Consolidated debt profile

Debt profile Amortization structure

COP 3,1 trillion

COP 1,8 trillion USD 446 million

70% bonds

Celsia COP 716 bn Epsa COP 514 bn Alternegy USD 320 mn

Debt cost

COP 9,1% USD 6,0%

50 100 150 200 250 300 350 400 450 500 3 4 5 6 7 9 10 11 12 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2033

COP Billion Colener ALT ZF Celsia EPSA Celsia BLM