11Empresa de Energía de Bogotá - EEBA Regional Leader in the Energy Sector
New ControllingshareholderDiversification Verticallyintegrated privatesector companyserving theBogota market EEB acquire...
EEB Strategy and OverviewKey facts Regional leader in the energy sector; major player in the entireelectricity and natura...
4Electricity transmissionMarket share (%)(Km of 220-138 kV lines ) 62.0%# 1 PeruElectricity transmissionMarket share (%)(K...
Focus on natural monopolies
Consistent Revenue Growth ** Total revenues by company2009 2010 2011 2012Electricity Distribution - COP MMCODENSA DECSA EM...
7ElectricityTransmissionGeneration Distribution DistributionTransportNatural Gas* ENFICC is a reliability charge which is ...
Growth through controlled subsidiariesImagenGrowth through controlled subsidiaries
9*Includes dividends declared based on an early close of Gas Natural’s, Emgesa’s and Codensa’sfinancial statements. Such d...
Strong Presence in Attractive MarketsSources: UPME, ANH, MEM y OSINERMIN8438848318949942009 2010 2011 2012 2015ENatural Ga...
strong Presence in Attractive MarketsSources: UPME, MEM and IARNA54,679 56,148 57,157 59,36766,0442009 2010 2011 2012 2015...
Ambitious under execution projectsImagenAmbitious projects under execution
13Electricity Transmission – Peru Capex USD 94 mm Expansions and newconcessions Starts operation in 2012Electricity Tra...
Financial plan 2013 - 2017142.24 1.741.711.811.884.54Q 11 1Q 12 2Q 12 3Q 12 4Q 12Net Debt/ Consolidated adjusted EBITDA LT...
Sound regulatory frameworkImagenSound regulatory framework
ColombiaPeruGuatemala Regulatory framework developed since1993 Independent regulatory (CREG), planning(UPME), and audit ...
Access to Capital MarketsImagenAccess to Capital Markets
Proven Track-recordEEB – USD 610 mmLocal AAAMoody’s Baa3, stableS&P BB+; stableFitch BBB-; stable,TGI – USD 750 mmMoody’s ...
Financial HighlightsImagenFinancial Highlights
Financial Highlights20* The value of dividend payments made prior to 2011 are adjusted for the 100:1stock split effective ...
Debt indicators212.24 1.741.711.811.884.54Q 11 1Q 12 2Q 12 3Q 12 4Q 12Net Debt/ Consolidated adjusted EBITDA LTMNet Debt/ ...
 Ticker EEB:CB Market cap of USD 7,061 millionas of 31 March 2013 Trading volume has tripled since theNov. 2011 stock p...
Experienced Management and World-class PartnersImagenExperienced Management and World-class Partners
Corporate Governance24Board of DirectorsDecides, controls andevaluates companypolicies.Nine members, threeindependentAudit...
Management team with proven track recordBoard of Directors - Principals Gustavo Petro Fernando Arbelaez Bolaños Maurici...
Cautionary StatementsThe information provided here is for informational and illustrative purposes onlyand is not, and does...
Annex: Acquisitions and Recent ProjectsTransaction2007: the second interconnection line with Ecuador started operations: ...
61 million40 countriesUSD 94,418 millionAnnex : World-class PartnersClients:Coverage:Sales 11:20 million25 countriesUSD 24...
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EEB corporate presentation

  1. 1. 11Empresa de Energía de Bogotá - EEBA Regional Leader in the Energy Sector
  2. 2. New ControllingshareholderDiversification Verticallyintegrated privatesector companyserving theBogota market EEB acquires 40% of the shares ofREP (2002) and CTM (2006) Contugas created in Peru (2008) EEB, through DECSA, acquires EEC (2009) TRECSA created in Guatemala (2009) TGI capitalized by CVCI in USD 400 million(2010) to finance expansion plan. Equity Offering: USD 400 MM in capital (2011) Acquisition of a control stake in Calidda in Peruand a minority participation in Promigas inColombia (2011) EEB was awarded with four transmissionprojects in Colombia : (2012) Armenia / Alferéz /Tesalia and (2013) Chivor ProjectOur BeginningInternationalizationExpansion City of Bogotaacquires 100% of thecompany Capitalization by Endesa:separation of the generation(Emgesa) and distribution(Codensa) businesses Public-private model EEB acquires Transcogas (2005)and TGI (2007); the two companieshave been merged EEB and TGI issue USD 1.36billion in international bonds toacquire Ecogas (2007)Over a Century of Energy2002 2006199719591896 2009Transformation2012-20132
  3. 3. EEB Strategy and OverviewKey facts Regional leader in the energy sector; major player in the entireelectricity and natural gas value chains (except E&P). Operations in Colombia, Peru, and Guatemala. More than 100 years’ experience in the sector; founded in 1886. Largest stockholder is the District of Bogota - 76.2%. Stock listed on the Colombia stock exchange; EEB adheres toglobal standards of corporate governance. The EEB Group is one of the biggest issuers of equity and debt inColombia.Focus onnaturalmonopoliesAmple accessto capitalmarketsAmbitiousprojects inexecutionGrowth incontrolledsubsidiariesSoundregulatoryframeworkExperiencedmanagementand partnersStrategy Transportation and distributionof energy368.1%25%15.6%ElectricityTransmission40%40%1.8%98.4%Generation51.5% *2.5%Distribution51.5% *16.2%51%82%DistributionTransportationNatural Gas75%60%100%99.94%*EEB is not the controllingshareholder and is a party to signedshareholder agreements.40%25%USD Million F 12Operating revenue 896Operating income 316Consolidated EBITDA LTM 724Net Income 391Consolidated - Covenants F 12Leverage Ratio 1.88Interest Coverage Ratio 8.82
  4. 4. 4Electricity transmissionMarket share (%)(Km of 220-138 kV lines ) 62.0%# 1 PeruElectricity transmissionMarket share (%)(Km of lines)8.1%# 2 ColombiaElectricity distributionMarket share (%)(Electricity distributed Kwh)26.6%# 1 ColombiaElectricity generationMarket share (%)(Generation)# 2 Colombia22.2%4Gas distributionMarket share (%)(No. clients) 59.0%# 1 ColombiaGas transportationMarket share (%)(Average volume transported)# 1 Colombia87.7%Gas distributionMarket share (%)(No. clients)# 1 Peru100.0%Leader in Natural Gas and Electricity
  5. 5. Focus on natural monopolies
  6. 6. Consistent Revenue Growth ** Total revenues by company2009 2010 2011 2012Electricity Distribution - COP MMCODENSA DECSA EMSA3,302,501 3,311,7013,511,2073,699,2452009 2010 2011 2012Electricity Transmission - COP MMREP CTM EEB Transmission291,068310,176352,579366,5522009 2010 2011 2012Natural Gas Tansportation - COP MMTGI PROMIGAS853,053948,514746,463769,1612009 2010 2011 2012Natural Gas Distribution - COP MMGAS NATURAL CÁLIDDA1,043,3491,295,4501,466,8721,581,0406
  7. 7. 7ElectricityTransmissionGeneration Distribution DistributionTransportNatural Gas* ENFICC is a reliability charge which is regulated.81% of Revenues from Regulated BusinessesPredictability andstability in regulatedrevenues
  8. 8. Growth through controlled subsidiariesImagenGrowth through controlled subsidiaries
  9. 9. 9*Includes dividends declared based on an early close of Gas Natural’s, Emgesa’s and Codensa’sfinancial statements. Such dividends would normally have been declared in 2011.**Includes dividends declared by Codensa early in 2011 by value of COP 167,941 MMConsolidating the Strategy85%59%56% 55%80%39%45%15%41%44%45%20%61%55%2006 2007 2008 2009 2010* 2011 2012**Dividends vs. EBITDividends EBITInvestment plan 2013 – 2017USD 3 billionCOP 1,4 Billion
  10. 10. Strong Presence in Attractive MarketsSources: UPME, ANH, MEM y OSINERMIN8438848318949942009 2010 2011 2012 2015ENatural Gas Demand- Colombia - mmcfd8.57.16.67.12009 2010 2011 2012Reservas Gas Natural - Colombia - Tcf26.023.121.5 21.52009 2010 2011 2012*Natural Gas Reserves - Peru - Tcf3334174845289502009 2010 2011 2012 2015ENatural Gas Demand - Peru - mmcfd10
  11. 11. strong Presence in Attractive MarketsSources: UPME, MEM and IARNA54,679 56,148 57,157 59,36766,0442009 2010 2011 2012 2015EElectricity Demand - Colombia - GWh27,00332,31436,77940,94052,3122009 2010 2011 2012 2015EElectricity Demand - Peru - GWh8,013 8,276 8,513 8,55710,8162009 2010 2011 2012 2015EElectricity Demand - Guatemala - GWh11
  12. 12. Ambitious under execution projectsImagenAmbitious projects under execution
  13. 13. 13Electricity Transmission – Peru Capex USD 94 mm Expansions and newconcessions Starts operation in 2012Electricity Transmission - Peru Capex USD 324 mm Expansions and newconcessions in operation2012/2013Natural Gas Transportationand Distribution - Colombia Capex USD 123 mm Starts operation in 2014Electricity Generation -Colombia Capex USD 837 mm Starts operation in 2014 Additional capacity 400 MWConsolidating the StrategyNatural Gas Transportation -Colombia Capex USD 633 mm La Sabana 2Q14,Electricity Transmission -Guatemala Capex USD 411 mm Starts operation in 2014Transportation and distributionof natural gas - Peru Capex USD 499 mm First residential client wasconnected in 1Q12;construction completed 2013.Natural Gas Distribution - Peru Capex USD 540 mm Plans to connect 455,000customers by 2016EEB Transmission - Colombia Capex USD 287 mm Substations in operationbetween 2013-2015Distribution of Electricity -Colombia Capex USD 140 mm In operation 2011/ 2012EEB and its consolidated subsidiaries will invest USD831 mm in 2013EEB’s unconsolidated affiliates will invest USD 902mm in 2013Engineering and services Capex USD 74 mm Sugarmills connected tonational grid in operation in2014
  14. 14. Financial plan 2013 - 2017142.24 1.741.711.811.884.54Q 11 1Q 12 2Q 12 3Q 12 4Q 12Net Debt/ Consolidated adjusted EBITDA LTMNet Debt/ Consolidated adjusted EBITDALTM CovenantUSD MillionCash Generation 1,263Loans 1,306Equity 430TOTAL 3,000 Leverage ratio target: 2.5xEBITDA.CashGeneration42%Credits44%Equity14%
  15. 15. Sound regulatory frameworkImagenSound regulatory framework
  16. 16. ColombiaPeruGuatemala Regulatory framework developed since1993 Independent regulatory (CREG), planning(UPME), and audit (SSP) agencies Laws 142 and 143 of 1994 give CREG theauthority to regulate public servicemonopolies where competition is notpossible, and to promote competitionamong providers of public services in allother cases CREG implemented an objectivemethodology in order to: i) supply demandbased on economic and financial viabilitycriteria and ii) ensure efficient, safe, andreliable operation. The Government of Peru restructured theelectricity sector in 1992 and privatized some ofthe most important electricity companies The transmission system is in private sectorhands and returns are ensured throughconcession agreements Tariffs for natural gas transportation anddistribution are established in accordance withthe conditions of the concession during aninitial period. Thereafter, they are determinedperiodically based on the NRV of actual andprojected investments Independent regulators: COES, OSINERGMIN,MINAM-OEFA, INDECOPIStable and Effective Regulation for Strategic Sectors Regulatory framework based on the GeneralElectricity Law of 1996 Flexible and investor-friendly regulations are amodel for the rest of Central America MEM is responsible for elaborating energy policiesand the CNEE is responsible for regulating theelectricity subsectorChile Regulatory framework established in 1982 Independent regulatory (CNE), audit (SEC),and coordination (CDEC) agencies CNE defines tariff and revenue structure basedon objective economic and financial criteria There is no legal monopoly in favor of a soleprovider for high and extra-high tensiontransportation lines16
  17. 17. Access to Capital MarketsImagenAccess to Capital Markets
  18. 18. Proven Track-recordEEB – USD 610 mmLocal AAAMoody’s Baa3, stableS&P BB+; stableFitch BBB-; stable,TGI – USD 750 mmMoody’s Baa3; stableS&P BBB-; stableFitch BBB-; stableOutstanding bonds USD millionTotal USD 4,179 mm18EMGESA – USD 1655 mmLocal AAAS&P BBB-; stableFitch BBB-; stableCodensa – USD 556 mmLocal AAAFitch AAA; estableCTM Perú – USD 450 mmLocal AAAPromigas – USD 487 mmLocal AAAISAGEN – USD 460 mmLocal AA+External BB+ISA – USD 596 mmLocal AAATotal USD 6,154 mmCálidda – USD 320 mmMoody´s Baa3; estableS&P BBB-;estableFitch BBB-; estableGas Natural – USD 270 MMLocal AAATGI Bond750EEB Bond610EEB´s BondDebtManagement8.75% a 6.125%610Re-IPO400TGI´s BondDebtManagement9.5% a 5.7%750Cálidda Bond3202007 2011 2012 2013
  19. 19. Financial HighlightsImagenFinancial Highlights
  20. 20. Financial Highlights20* The value of dividend payments made prior to 2011 are adjusted for the 100:1stock split effective 06.20.11. Shares outstanding as of Nov. 2011: 9,181,177,0171,053,9421,601,3541,082,0471,279,3942009 2010 2011 2012Consolidated EBITDA LTM – COP MM723,2131,092,944305,294690,7012009 2010 2011 2012Net Income - COP MM33.9582.0234.8543.961Q 10 4Q 10 1Q 11 1Q12 1Q13Dividends declared - Per Share**Electricity distribution includes dividends declared by Condensa early in2011 by value of COP 167,941 MMEEBTransmission,Trecsa &EEBIS5% TGI37%Decsa/EEC6%Cálidda &Contugás7%Emgesa22%Codensa16%Gas Natural4%Others3%EBITDA´s Breakdown 2012COP 1,447,335 MM*
  21. 21. Debt indicators212.24 1.741.711.811.884.54Q 11 1Q 12 2Q 12 3Q 12 4Q 12Net Debt/ Consolidated adjusted EBITDA LTMNet Debt/ Consolidated adjusted EBITDALTM Covenant4.786.51 7.417.97 8.822.54Q 11 1Q 12 2Q 12 3Q 12 4Q 12Consolidated Adjusted EBITDA/interestConsolidated adjusted EBITDA/interest Covenant100.1 119.335.5 35.5203.935.5 35.59.1610.0750.02013 2014 2015 2016 2017 2018 2019 2020 2021 2022EEB Consolidated Debt Maturity Profile2009 2010 2011 2012Foreign Currency 3,048,717 2,851,455 3,161,498 2,975,251COP 151,061 101,205 213,420 89,797COPMillionDebt Composition by Currency3,199,7782,952,6603,374,9183,065,048
  22. 22.  Ticker EEB:CB Market cap of USD 7,061 millionas of 31 March 2013 Trading volume has tripled since theNov. 2011 stock placement.Actually the average volume is2,394,171 EEB is part of IGBC, COLCAP andCOL20 indexes. COLCAP is atradeable Index.Stock indicators22Recomendation Target Price DateCorredores Asociados Buy COP 1,600 23/04/2013Credicorp Capital Buy COP 1,675 24/04/2013Acciones y Valores Buy COP 1,550 15/04/2013Serfinco Buy COP 1,652 30/05/2013Average Target Price COP 1,619COLCAPEEB
  23. 23. Experienced Management and World-class PartnersImagenExperienced Management and World-class Partners
  24. 24. Corporate Governance24Board of DirectorsDecides, controls andevaluates companypolicies.Nine members, threeindependentAudit CommitteeMade up by threeindependent boardmembersCorporate GovernanceCommitteeThree board members. At leastone of them must beindependentContracts CommitteeAnalysis of contractingprocedures andrecommendations to theExecutive CommitteeCEOAppointed for a 4 yearterm; may be reappointedor removed freelyExecutive CommitteePolicies, guidelines anddecisions related tooperating and financialmanagementExternal controlsTax Review, External Audit,specialized audits, CityControllers Office,SSPD and SFCShareholders’ MeetingPeak governance bodyGlobal ResponsibilityCommitteeApproval of materialissues in the context ofsustainable
  25. 25. Management team with proven track recordBoard of Directors - Principals Gustavo Petro Fernando Arbelaez Bolaños Mauricio Trujillo Uribe Alberto José Merlano Alcocer Jorge Reinel Pulecio Yate Saúl Kattan Cohen Mauricio Cabrebra Galvis Claudia Lucia Castellanos Mauricio Cárdenas MüllerIndependentboard members25Chief Executive OfficerSandra Stella Fonseca(Appointed in 2013)Electric Engineer. Master in Energy Studies at the University of Sheffield in UK (United Kingdom) and MBA in IndustrialManagement University of Sheffield also in UK. Has held management in a Energy and Regulation consultant company andhas participated in energy (electricity and gas) sector projects, economic impact studies, technical and socio-environmentalinvestment.Economist with a Masters in Public Policy. directorsof budget in the Executive Direction of the LegalAdministration, Secretary of Hábitat de Bogotá,Planning Secretary of Bogotá; among other publicoffices.Financial VPJorge Pinzón Barragán(Appointed in 1997)Economist. Former Consultant at the Institute ofTerritorial Credit. Analyst of Economic Analysis Divisionof the Office of Exchange Banco de la República. Mr.Pinzon has held several management positions at EEBsince 1982.EEB´s Shareholders Outstanding shares %Distrito Capital de Bogotá 7,002,392,200 76.3Ecopetrol S.A 631,098,000 6.9AFP 547,571,338 6.0Corficolombiana S.A 327,150,500 3.6Retail Investors 672,964,979 7.3Total 9,181,177,017 100Electrical Engineer with two postgraduatesdegrees in Marketing and Business Admin.Former Consultant at INETEC. Mr. Moreno hasheld several positions at EEBTransmissionVPErnesto MorenoRestrepo(Appointed in 1997)Public services VPCatalina Velasco(Appointed in 2011)
  26. 26. Cautionary StatementsThe information provided here is for informational and illustrative purposes onlyand is not, and does not seek to be, a source of legal or financial advice on anysubject. This information does not constitute an offer of any sort and is subjectto change without notice.EEB expressly disclaims any responsibility for actions taken or not taken basedon this information. EEB does not accept any responsibility for losses thatmight result from the execution of the proposals or recommendationspresented. EEB is not responsible for any content that may originate with thirdparties. EEB may have provided, or might provide in the future, information thatis inconsistent with the information herein presented.26
  27. 27. Annex: Acquisitions and Recent ProjectsTransaction2007: the second interconnection line with Ecuador started operations: 387 km long -COP 152,000MM2012-13: EEB was awarded with 4 transmission projects to build transmission assets worth USD 287MMResults2007: EEB acquired the assets of Ecogás for USD 1,360 billions. TGI was created to manage theseassets with equity of approximately USD 340 MM (98% held by EEB); the balance of the transactionwas financed with debt2010: CVCI capitalized TGI and acquired 31.9% of its equity for USD 400 MMThe three expansion projects (Guajira,Cusiana Phase I and II) are now in operation increasingtransportation capacity by about 53%. 2009: EEB (51%) and Codensa (49%), through Decsa, acquired 82% of EEC. 2012: A restructuring of the company, seasonal effect and an increase of rates have brought about a 10% increase of the EBITDA margin. 2011: Cálidda was acquired; the company has strong growth potential. It is expected to reach a total of1.5 million clients by 2020. 2012: By December achieved 103,000 commercial y residential consumers. In November, the firstcapitalization tranche was paid by USD 35 MM, from the total capital increase authorized, USD 60 MM.100%68%51%66% 2009: The most important energy infrastructure project in Guatemala, with approx. 850 km oftransmission lines, and serving the entire country 2012: Obtained 47% of municipal guarantees required. 2009: Construction and operation of a network for transportation and distribution of natural gas to meetdemand in southern Peru The market area is expected to have the highest growth in demand for gas in coming years as theresult of steel, agro-industrial, and petrochemical projects that are being developed in the region. 2012: By 3Q 12’ the project was 60% completed.98%75%27
  28. 28. 61 million40 countriesUSD 94,418 millionAnnex : World-class PartnersClients:Coverage:Sales 11:20 million25 countriesUSD 24,944 million2 million4 countriesUSD 127 million9 countriesUSD 2,465 million25 countriesUSD 7 billion**Resources invested or comitted28

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