Coltabaco

Celsia – Energy in action
2014
The story of a transformation
2
The transformation process at a glance
1919 – 2001
2001
2002 – 2006
2007 – 2012
Coltabaco
Coltabaco
Tobacco
Business
Tobacco Business
Investment Portfolio
Electric Utility
4th Power Generator in
Colombia
Investment Holding
Other
1%
Financial
and
Insurer
42%
Investment
Sector
42%
Hotels
2%
Tobacco
30%
Portfolio
70%
Portfolio
100%
5to distributor in Colombia
Consumer
Products
13%
Energy Portfolio
100%
Celsia: Investment Highlights
Attractive Organic
Expansion Plan
Track Record of Value
Creation
Solid Financial
Position
Track Record of
Growth and
demonstrated ability
of execution
High Growth Potential
of the Energy Industry
Key Power Sector
Player in Colombia
4
Corporate Structure
5
Celsia
A simple corporate structure:
Celsia S.A. E.S.P.
100%
100%
Colener S.A.
50,01%
Generation assets
Zona Franca Celsia S.A. E.S.P.
PCH Hidromontañitas
EPSA S.A. E.S.P.
PCH
Río Piedras
87%
CETSA S.A. E.S.P.
Meriléctrica
6
Grupo Argos (Holding)
Negocios y porcentajes de participación
60,7%
52,4%
50%
100%
100%
7
One of the most relevant players in
Colombia’s electricity sector
8
Power Generation Sector in Colombia
Installed capacity
Historic power generation
Installed capacity: 14,451 MW
International Interconnections: 871 MW (For exports)
50%
40%
30%
20%
10%
Wind and Cogeneration 0.5%
Hydro
Thermal
Jan-10
Jan-09
Jan-08
Jan-07
Jan-06
Jan-05
Jan-04
Jan-03
Jan-02
0%
Jan-98
Centrally dispatched
2.926 MW gas, 312 MW Fuel Oil, 307 MW Combustoleo (25%)
Non-centrally dispatched (minors) 83 MW (0.6%)
60%
Jan-01
Thermoelectric 31.1%
5.000
4.500
4.000
3.500
3.000
2.500
2.000
1.500
1.000
500
0
Jan-00
Centrally dispatched 9.185 MW (64.6%)
Non-centrally dispatched (minors) 573 (4%)
GWh
Jan-99
Hydroelectric 68.4%
% Thermal
Wind: 18 MW (0.1%)
Cogeneration: 56 MW (0.4%)
Data as of October 17, 2012
Data regarding capacity with declared fuels for the current term of reliability charge
9
High Growth Potential of the Energy Industry in
Colombia
Electricity Demand Growth (SIN)
140
8,00%
120
TWh
100
80
5%
4%
4%
4%
2%
60
6,00%
4%
2%
3%
2%
4,00%
2%
40
2,00%
20
-
0,00%
2006
2007
Demand (SIN)
2008
2009
2010
2011
Demand Forecast (SIN) - UPME*
2012
2013
2014
2015
2020
2030
Annual Growth (%) * UPME Forecasts (March 2011)
KWh/habitante
Electricity Per Capita Consumption
4.000
3.500
3.000
2.500
2.000
1.500
1.000
500
0
Per capita consumption
•
The electricity demand has grown 3%
annually (CAGR) in the past five years,
and it is expected to grow 4% annually
until 2030.
•
Colombia’s energy consumption is lower
than the regional average.
2.243
1.123
LATAM and Caribbean average
10
Footprint
Genco
Atlantic
610 MW (Thermo
CCGT)
Genco + Disco
Antioquia
40 MW (SHP)
372 MW (2 Hydro projects)
Valle del Cauca
624 MW (Hydro)
20 MW (Hydro project)
530.398 Customers
P
P
Project – construction stage
P
Project - design stage
Santander
167 MW (Thermo SCGT)
P
P
P
Tolima
51 MW (Hydro)
55 MW (Under
construction)
Cauca
285 MW (Hydro)
11
Energy generation – Strategic balanced portfolio
Installed capacity (MW)
1.777 MW
16
*
Thermal
(NG, simple
cycle)
9%
facilities in operation
Total SIN capacity 2013
Hydro (run
of the river)
6%
Thermal
(NG,
combined
cycle)
34%
Total SIN firm energy 2013
Celsia
12%
Celsia
11%
Other
88%
* Celsia, Zona Franca Celsia, EPSA and CETSA.
Hydro
(reservoir)
51%
Other
89%
12
Energy generation – Strategic balanced portfolio
Total generation (GWh) by 4Q2013
6.170 GWh
Hydro
Celsia
9,9%
1.499
33%
Generation by company (GWh)
1.662
80%
2.675
1.693
60%
40%
3.698
4.452
2010
2011
SIN – Energy
generated
Otros
90,1%
Generation by technologies (GWh)
1.713
62.225
GWh
67%
Thermal
100%
SIN generation
Total SINTotal
generation
(GWh) by 4Q2013
3.377
3.495
3.550
2012
2013
2010
20%
1.424
1.544
4.278
2.474
3.170
3.190
2012
2013
0%
Hydro
Thermal
* Celsia, Zona Franca Celsia, EPSA and CETSA.
% hydric - SIN
2011
EPSA
ZF Celsia
Celsia
13
Generation– Celsia
Hidromontañitas
19,9 MW
Rio Piedras
19,9 MW
Zona Franca Celsia
610 MW
Meriléctrica
167 MW
14
Generation – EPSA, major facilites
Alto Anchicayá
355 MW
Salvajina
285 MW
Bajo Anchicayá
74 MW
Prado
51 MW
Calima
132 MW
15
Electricity distribution – steady and defensive
business
Key indicators
2010
2011
2012
Amount of distribution
substations
66
67
69
115 kV substations
19
20
21
34.5 kV / 13.2 kV substations
47
47
48
19.000
19.286
19.387
Total lenght of the distribution
grid in km (<220 kV)
Fifth mayor distributor in Colombia.
Customers
544.383
Near 545.000 clients
526.603
510.842
496.025
480.953
Collections rate at 99,7% by 4Q-2013.
464.981
451.635
Low rate of losses: 8,9%
2007
2008
2009
2010
2011
2012
2013
16
Electricity distribution – steady and defensive
business
Distributed energy (GWh)
Collections (%)
100%
99,70%
99,10% 99,70%
100,10%
100%
99,91%
1.612,1
1.642,6
1.803,9
2011
2012
2013
2007
2008
2009
2010
2011
2012
2013
SAIDI – SAIFI (EPSA)
Losses (%)
42,4
13,32% 13,01% 13,37%
10,61% 11,01% 11,15% 11,01%
10,12%
9,89%
9,79%
9,71%
9,73%
9,37%
29,4
25,4
27,0
8,97%
25,9
24,1
23,70
21,5
13,5
20,20
17,5
11,5
2007
2008
Grid losses
2009
2010
2011
2012 2Q-2013
Total (includes commercial losses)
2008
2009
2010
SAIDI
2011
2012
3Q-2013
SAIFI
17
Key power sector player in Colombia
Power generation market share
4th
Power Generator in
Colombia
MW
3.500
22%
20%
15%
3.000
2.500
15%
12%
7%
8%
2.000
1.500
1.000
500
EPM
Emgesa
Other
5th
Power Distributor in
Colombia
Isagen
Celsia+EPSA
Thermal
Gecelca
AES Chivor
Hydro
Otros
% Market
Distribution market share (demand)
GWh
26%
26%
22%
7%
4%
Electricaribe
Emcali
EPSA
15%
16.000
14.000
12.000
10.000
8.000
6.000
4.000
2.000
0
Codensa
*Celsia consolidated: Celsia, ZF Celsia y EPSA –CETSA
**Source: EPSA, XM. June 2013
EPM
Otros
18
Our strategy
19
One company, two strategic business units
Fuel
procurement
Generation
Generation
Transmission
Distribution
Commercialization
Distribution
20
Two business units which together add value
Income by business units (COP billion)
Generation business
•
•
•
•
•
68% of consolidated income in 2013
Reliability, and flexibility in extreme
climate scenarios
Geographic diversification of
assets
Competitive business with the
potential of outperforming the market.
Portfolio of technologies that
provide reliability to the system.
332
279
326
278
326
340
196
192
398
381
191
207
382
440
262
230
Distribution business
• 32% of consolidated income in 2013
• Steady cash flows that leverage
188
171
183
189
193
189
195
187
growth
• Stable results
• Natural monopoly in the area
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
Distribution
Generation
21
Generation business: portfolio of technologies that provide
reliability, flexibility and stability of results.
Generation by source (GWh)
Thermal generation
•
High and stable reliability
charge
•
Highly competitive assets
•
competitive costs
•
Reliability to generate in El Niño
582
263
221
653
763
223
phenomenon
617
642
472
+
532
Hydro generation
• Competitive mean generation
• Several minor assets with particularly
550
315
1.309 1.336
1.207
1.077
860
853
788
high EBITDA margin
691
888
967
788
560
• Flexibility to take advantage of peak
hours
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
Hydro
Thermal
22
Attractive investment and expansion plan
23
Succesful strategy of organic and inorganic growth
2.000
1.800
1.600
1.400
1.200
1.000
800
600
400
200
0
EPSA
Zona Franca
Celsia
Meriléctrica,
Río Piedras
Flores IV,
Amaime
Alto Tuluá,
Hidromont
añitas
+ 189
+ 40
+ 920
1737
1.777
2012
2013
+187
+441
2007
2008
2009
2011
Acquisitions
Organic
Distribution Growth - Clients
600.000
+ 29.889
+ 7.925
500.000
Clients
MW
Generation Growth - Capacity
400.000
300.000
539.102
+480.953
200.000
100.000
0
2007
2008
2009
Aquisitions
2011
2012
2013
Organic
24
Expansion plan
Organic growth
Generation business
Generation expansion plan
1.777 MW
2013
75
20
2014
2017
Hydric
Projects – construction stage
352
2.224 MW
2018
2018
Bajo Tuluá
20 MW – 2014
Cucuana
55 MW – 2014
Thermal
Projects – design stage
Celsia has an expansion plan,
currently under execution and
development
phase,
that
will
increase its current installed capacity
by 447 MW (+25%).
Celsia is developing studies to
determine the viability of a 20 MW
hybrid solar and wind power plant in
Colombia, with the support of the
USTDA.
Alternativa 2 M.D
San Andrés
20 MW – 2017
Alternativa 1 M.D
Porvenir II
352 MW – 2018
Alternativa original M.I.
25
Expansion plan
Zona Franca Celsia
Projects in study - innovation
Distribution
•
Alférez 230kV substation to supply the south part of Cali.
Benefits go from optimization of current power flows,
losses recovery and improvement of quality levels.
•
Other projects:
•
Juanchito - Candelaria 2 115kV power line
•
Second power line to Buenaventura
•
Bahía en Buenaventura substation
•
Grid architecture in 13,2kV and 34,5kV levels
26
Key financial statistics
27
Solid financial position
Annual revenues in 2013
2% 2%
Spot sales
9%
Wholesale commercialization
44%
25%
Reliability charge
Retail commercialization
Grids use and connection
9%
Natural gas commercialization
9%
18% YoY
Other operational services
COP 2.381.116 million in 2013
28
Solid financial position
Revenues
Ebitda
Consolidated Net income
(COP billion)
(COP billion)
(COP billion)
2.750
1000
2.500
900
40,9
2.250
36,3
350
30,00
300
700
1.750
40,00
36,1
800
2.000
400
38,6
600
250
20,00
1.500
500
1.250
200
400
1.000
10,00
150
300
750
500
200
250
100
0
-
50
0
dic-10
dic-11
dic-12
dic-13
-250
100
dic-10
dic-11
dic-12
dic-13
-10,00
0
ene-10 ene-11 ene-12 ene-13
CELSIA
ZF
EPSA
Otros
CELSIA
EPSA
Margen %
ZF
Otros
29
Solid Financial Position to Leverage Growth
Debt by company (COP Bill.)
2.000.000
Debt (rate and currency)
1,77
1,69
IBR
5%
1.500.000
1.000.000
Libor
11%
USD
11%
DTF
10%
500.000
0
2012
Celsia
ZF Celsia
2013
EPSA
Total
IPC
74%
COP
89%
Key indicators
Debt profile
400.000
Dic/13
300.000
200.000
100.000
Net Debt / Ebitda
1,02x
Ebitda / Financial expenses
6,09x
Net debt / Equity
0,27
Average cost of debt
7,50%
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
0
Banca comercial
Banca multilateral
Bonos EPSA
Bonos Celsia
30
Shareholders and corporate governance
31
Track record of value creation
Stock performance (price and volume)
300%
120.000
Celsia
IGBC
Colcap
Volume (COP Mill.)
250%
200%
100.000
80.000
150%
60.000
100%
40.000
50%
20.000
Jan-08
Mar-08
May-08
Jun-08
Aug-08
Oct-08
Dec-08
Feb-09
Apr-09
Jun-09
Aug-09
Oct-09
Dec-09
Feb-10
Apr-10
Jun-10
Aug-10
Oct-10
Dec-10
Feb-11
Apr-11
Jun-11
Aug-11
Oct-11
Dec-11
Feb-12
Apr-12
Jun-12
Aug-12
Oct-12
Dec-12
Feb-13
Apr-13
Jun-13
Aug-13
Oct-13
Dec-13
Jan-14
0%
Dividend evolution (COP million)
80.000
70.000
60.000
50.000
40.000
30.000
20.000
10.000
0
Total shares outstanding
71.958
64.763
58.718
BVC: CELSIA
Dividend
29.359
+36%
2009
+100%
2010
Dividend
+10%
2011
+11%
719.584.500 shares
COP 100
Price @ end february
COP 5.110
Market cap
COP 3,6 bill
Yield
1,8%
P/Book ratio
1,38
2012
32
Ownership structure and corporate governance
Stock ownership
Corporate governance
BOARD
Other;
20,1%
Name
Grupo
Argos;
52,4%
Foreign
investors;
4,0%
José Alberto Vélez Cadavid
Gonzalo Alberto Pérez Rojas
The Colombian public company with the biggest
participation of pension funds on its ownership
structure.
Stockholders
2013
7115
2012
6612
2011
6750
2010
6684
2008
President
Ricardo Sierra Fernández
Pension
funds;
27,6%
2009
Role
Juan Benavides Estévez – Bretón*
Independent
Manuel Ignacio Dussan Villaveces*
Independent
María Fernanda Mejía Castro
Independent
María Luisa Mesa Zuleta
Independent
*Experts in energy
Board of Directors best practices:
• 7 members, 4 of them independent
• 3 Board committees
– Audit & Finance Committee
–
Corporate Governance Committee
–
Nominating & Compensations
Committee
• All members of the Audit Committee are
independent.
5122
7547
33
Thank you
Investor Relations
Celsia S.A. E.S.P.
[email protected]
www.celsia.com
A Grupo Argos company
34