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GRUPO ENERGÍA DE BOGOTA Third Quarter 2013 Results
November 19th, 2013
Disclaimer
The information provided herein is for informational and illustrative purposes
only and is not, and does not seek to be, a source of legal or financial advice
on any subject. This information does not constitute an offer of any sort and is
subject to change without notice.
EEB expressly disclaims any responsibility for actions taken or not taken based
on this information. EEB does not accept any responsibility for losses that
might result from the execution of the proposals or recommendations
presented. EEB is not responsible for any content that may originate with third
parties. EEB may have provided, or might provide in the future, information that
is inconsistent with the information herein presented.
2
Table of contents
1. EEB strategy and overview
2. Third Quarter Highlights
3. Expansion Projects Review
4. Financial Review -3Q 2013
5. Questions and Answers
Appendix
1. Natural Regulated Monopolies
2. Leadership Market Position
3
1. EEB Strategy and Overview
4
EEB Strategy and Overview
Key facts
More than 100 years’ experience in the sector; founded in 1896.
Regional leader in the energy sector; major player in the entire electricity and natural gas value
chains (except E&P); operations in Colombia, Peru, and Guatemala.
Largest stockholder is the District of Bogota - 76.2%.
Stock listed on the Colombia stock exchange; EEB adheres to global standards of corporate
governance.
The EEB Group is one of the largest issuers of equity and debt in Colombia
68.1%
25%
15.6%
Electricity
Transmission
40% 40%
1.8%
98.4%
Generation
51.5% *
2.5%
Distribution
51.5% *
16.2%
51%
82%
Distribution Transportation
Natural Gas
75%
60%
100%
*EEB is not the controlling
shareholder and is a party to
signed shareholder
agreements.
40%
25%
100%
100%
5
Transportation and distribution of energy with involvement in other areas in the
energy sector.
Guatemala
Colombia
Peru
Current Markets
Potential Markets
Operations in countries with strong growth potential
– Colombia: regional leader in electricty and natural gas and a center for
energy exports
– Peru: regional leader in mining and energy-intensive industries
– Guatemala: a window for future investments in Central America
Exploration of opportunities in America
Focus on
natural
monopolies
Ample access
to capital
markets
Ambitious
projects in
execution
Growth in
controlled
subsidiaries
Sound
regulatory
framework
Experienced
management
and partners
EEB Strategy and Overview
6
2. Third Quarter Highlights
7
Third Quarter Highlights
03.07.13
MHCP Resolution 2121 Debt Operations of USD 479 Millions
15.08.13
EEB received the approval form the BoD to participate in ISAGEN
3Q- 16,238 new connections. Total Clients: 165,850 New tariff scheme´s proposal presented to Peruvian’s regulator
Syndicated loan USD 310 mm
3Q – 2,950 clients
16,000 residential sales
13,000 installations built and pending to be habilitated
17.09.13
27.08.13
Colombian Mines and Energy Ministry adopts Expansion Plan 2013.2027
24.10.13
EEB’s share keeps its participation within COLCAP and COEQTY Indexes
30.09.13
30.09.13 01.11.13
EEB and TGI keep their ratings BBB- Stable outlook
CTM BoD approved the right of cession of new transmission line . 550 kV. Length 900 Km Investment: USD 413mm. REP will manage this project.
Company Highlights 3Q-2013
Gas Natural Highlights Electric Sector Highlights
14,473
8,218
1,282
0 5,000 10,000 15,000 20,000
Installed capacity - MW
45,379
29,485
2,247
0 20,000 40,000 60,000
Demand - GWh
Sources: XM, UPME, COES – Perú, AMM – Guatemala
Reserves, proved and
probable - TCF (2012) 5.7
Domestic demand - GBTUD 1,262*
Reserves, proved and
probable - TCF (2012) 23.1
Domestic demand - GBTUD 1,219
Sources: UPME, CON, MEM, Osinergim *Only includes July/August 2013
15.11.13
EEB reopens bond 2021 for USD 112 mm
27.11.13
Second and last payment of dividends to the Capital district, amounting to COP 153.9 billon
8
3. Expansion Projects Review
9
Guatemala Colombia
Perú
Expansion Projects Controlled Subsidiaries
Natural Gas Transportation
• CAPEX : USD 369 mm
• Construction: Estación Sabana. (3Q 14)
• Planification: Cusiana/Apiay (4Q 15)
Sist. Regionales (4Q 14)
Electricity Transmission
• CAPEX : USD 308 mm
• Under Construction 3Q:
• Armenia – 67%
• Alferez – 95%
• Tesalia – 59%
• Chivor II Norte – 10%
• SVC Tunal – 4%
Natural Gas Distribution
• CAPEX: USD 500 mm
• By the end of 2006 it is
expected to have 455,000
customers connected.
Natural Gas Transportation and
Distribution
• CAPEX: USD 350 mm
• Under construction:3Q 13: 86%.
• Full operation 1Q 14
Electricity Transmission
• CAPEX: USD 376 mm
• Start operation (partially) 2013
• Under construction:3Q 13: 59.6%.
• Delivered 2015
Engineering and Services
• CAPEX: USD 44 mm
• Sugarmills under construction
• 2014-15
CAPEX 2013 – GEB
USD 814.6 Millions
10
Colombia
Perú
Expansion Projects Non Controlled Subsidiaries
Electricity Generation
• CAPEX USD 837 mm
• Quimbo. Under construction 3Q-13: 51.7%
• Capacity 400 MW
Electricity Distribution
• CAPEX: USD 77.9 mm
Executed until 3Q 13
• Under Operation 2013
Electricity Transmission
• CAPEX: USD 606 mm
• Extensions and new
concessions; 2013- 2014
Electricity Transmission
• CAPEX: USD 94.5 mm
• Extensions and new
concessions; 2013 - 2014
CAPEX 2013 – Non Controlled Subsidiaries
USD 902 Millions
Natural Gas Transportation
and Distribution
• CAPEX: USD 137 mm
• Under Construction 2014
11
4. Financial Review -3Q 2013
12
Consistent Financial Performance Consolidated Results - Operational
7% 5%
18% 15%
44% 45%
31%
35%
As of 3Q -12 As of 3Q -13
Operating Revenues by segment
Natural gas distribution
Natural gas transportation
Electricity distribution
Electricity transmission
1,161,375
1,451,107
9% 7%
9% 5%
69%
79%
12%
9%
As of 3Q -12 As of 3Q -13
Operating Profit by segment
Natural gas distribution
Natural gas transportation
Electricity distribution
Electricity transmission
416,207
535,747
Operating Revenues (+24.9%): Growth is explained mainly by increase of
revenues in natural gas business: transport in Colombia, TGI, (new tariff scheme
2013 and coming on stream of Cusiana Phase II) and distribution in Peru,
Cálidda.
Operating Profit (+28.7%): A sound behavior of revenues and decreased
growth in operational expenses in the natural gas transport business
3Q 13 3Q 12 $ %
Operating revenue 1,451,107 1,161,375 289,732 24.9%
Cost of sales 749,282 597,582 151,700 25.4%
Gross profit 701,825 563,793 138,032 24.5%
Operating expenses 166,078 147,586 18,492 12.5%
Operating profit 535,747 416,207 119,540 28.7%
Operating margin 37% 36%
Consolidated Adjusted EBITDA LTM 1,668,543 1,455,541 213,002 14.6%
COP Million Variance
Consolidated Adjusted EBITDA (+14.6%): Increased is explained by
improved operational results generated from controlled subsidiaries. Also,
there is an increase in revenues on account of dividends, resulting from
improved performance of participated companies 13
Consistent Financial Performance Consolidated Results – Non Operational
Dividends: Increase of COP 276 billion in terms
of decreed dividends in favor of EEB,
particularly those from Emgesa, Codensa, Gas
Natural and Promigas.
3Q 13 3Q 12 $ %
Operating profit 535,747 416,207 119,540 28.7%
Dividends 799,853 523,953 275,900 52.7%
Non-operating expenses 431,744 167,045 264,699 158.5%
Net income before taxes and minority
interest 903,856 773,115
130,741 16.9%
Minority interest 52,280 83,250 -30,970 -37.2%
Provision for income tax 67,279 54,109 13,170 24.3%
Net income 784,297 635,756 148,541 23.4%
Consolidated Adjusted EBITDA LTM 1,668,543 1,455,541 213,002 14.6%
COP Million Variance
Foreign Exchange Account: The
devaluation of the Colombian peso during the
first nine months of 2013, had a negative
impact on the foreign exchange account, as a
result of updating financial obligations of the
Group denominated in USD, which is only for
accounting purposes and does not
correspond to cash expenditures.
Non Operating Expenses:
Financial Expenses: a reduction in COP
156 billion, related to EEB and TGI’s debt
management operations performed in recent
years
Net Income : Increase in 23%
* EMSA, ISA, ISAGEN, REP-CTM, Otros
66% 51%
13%
33%
12%8%
6% 5%3% 4%
0%
20%
40%
60%
80%
100%
120%
As of 3Q - 12 As of 3Q - 13
Dividends declared by Non - controlled Companies
Emgesa Codensa Gas Natural Promigás Otros*
COP 523,953 mm COP 799,853 mm
14
Sept/2013: Operational Profits from controlled subsidiaries participate with 55% of the total adjusted
EBITDA, compared to 15% of participation in 2006. Dividends from non-controlled companies
participates with the remaining 45%
EBITDA Evolution
Consolidated Results
EEB Transmission, Trecsa & EEBIS
4.4%
TGI40.4%
Decsa/EEC4.4%
Cálidda & Contugás6.2%
Emgesa22.3%
Codensa15.1%
Gas Natural3.4%
Others3.7%
Consolidated Adjusted EBITDA LTM by subsidiary
85%59% 50% 49% 53% 47% 51%
45%
15%
41% 50%51%
47%53%
49%
55%
2006 2007 2008 2009 2010 2.011 2.012 2013-jun(UDM)
Dividends (*) and Adjusted EBITDA
Dividendos EBITDA Operacional
• 2010 excludes dividends declared based on an early close of Gas Natural’s, Emgesa’s and
Codensa’s financial statements. These figures are included in 2011, when such dividends
would normally have been declared.
152.7
USD MM
485.6
USD MM 397.9
USD MM
504.9
USD MM
591.9
USD MM 537.7
USD MM
605.4
USD MM
871.5
USD MM
2013-Sep
(UDM)
15
LTM
202,007 176,861
1,010,355
232,594 248,733
3Q 12 4Q 12 1Q 13 2Q 13 3Q 13
Consolidated Adjusted EBITDA QuarterlyCOP Millions
1,455,541
1,279,394
1,604,916 1,621,817 1,668,543
3Q 12 4Q 12 1Q 13 2Q 13 3Q 13
Consolidated Adjusted EBITDA LTMCOP Millions
-12% 25% 1% 3%
7 14 14 14
128
14
229
7
610
750
320
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Consolidated Debt Maturity Profile – USD MM
USD 1,565 USD 1,542 USD 1,737 USD 1,807 USD 1,995
4.72% 3.43% 6.36% 4.95%
95.28% 96.57% 93.64% 95.05% 100%
2009 2010 2011 1S 2012 1S 2013
Consolidated Debt Composition - USD MM
Deuda Total %COP % USD
2013-Sep 2012
Debt Indicators
Consolidated Results
Indebtedness in USD increased as a result of an issuance of a bond in Cálidda and the new syndicated loan in
Contugas. 16
EEB Share Performance
Ticker EEB:CB
On November 18, 2013 the EEB market capitalization was
USD 7,555 million.
Trading volumen tripled after the Equity Offering Nov 2011.
The stock is part of IGBC, COL20, COLCAP and COLEQTY * Values for years prior to the 2011 dividend were adjusted to split 100:1 which enforced the
20.06.11 stocks. Shares outstanding from Nov. 11: 9,181,177,017
* In 4Q 10 there was an advance cut of financial statements, reason why during 1Q 11 EEB
decreed no dividends. 1Q 12 normalizes this effect
0,016 0,018 0,018
0,043
0,000
0,020 0,023
1T 08 1T 09 1T 10 4T 10 1T 11 1T 12 1T 13
Dividend per Share – USD
17
EEB Share Price Performance 2012 -2013
5. Questions and Answers
18
Investor Relations
For more information about Grupo Energía de Bogotá contact our Investor Relations team:
http://www.eeb.com.co
http://www.grupoenergiadebogota.com/en/investors
Fabian Sánchez Aldana Investor Relations Advisor GEB
+57 (1) 3268000 – ext 1897 [email protected]
Antonio Angarita Investor Relations Officer GEB
+57 (1) 3268000 - ext 1546 [email protected]
Rafael Andres Salamanca Investor Relations Advisor GEB
+57 (1) 3268000 – ext 1675 [email protected]
19
Appendix
20
Natural Regulated Monopolies
ENFICC: Reliability - Regulated Entry Fee.
13% Of revenues from Emgesa are derived from the charge
for reliability (ENFICC), an income secured by the regulation
Transmission Generation Distribution Distribution
Regulated 81%
Non-regulated
16.5%
ENFICC * 2.5%
Electricity
Transport
Natural Gas
Spot 30%
Bilateral Contracts
70%
Predictability and stability in regulated
revenues. 81% of revenues comes from
regulated business.
21
Leadership Market Position
Electricity transmission
Market share (%)
(Km of 220-138 kV lines )
Electricity transmission
Market share (%)
(Km of lines)
Electricity distribution
Market share (%)
(Kwh)
Electricity generation
Market share (%)
(Generation)
# 1 Peru
# 2 Colombia
# 1 Colombia
# 2 Colombia
Gas distribution
Market share (%)
(No. clients) 59.0%
Gas transportation
Market share (%)
(Average volume transported) 85.0%
Gas distribution
Market share (%)
(No. clients)
100.0%
# 1 Colombia
# 1 Colombia
# 1 Perú
57.6%
8.0%
26.6%
20.9%
22