Empresa de Transporte de Pasajeros Metro S.A. Investor Presentation

Transcription

1 Empresa de Transporte de Pasajeros Metro S.A. Investor Presentation

2 Metro at a glance Key Investment Considerations Financial Information

3 Metro Serves as the Backbone of Mass Transit in Santiago Metro Overview Metro s current network Metro owns and operates the entire underground transportation system in Santiago, Chile 100% state-owned enterprise Part of Transantiago, the city s integrated public transport system To December 2014, 63% of all daily trips on public transportation in Santiago use Metro Current key subway network statistics: o 103 kilometers of track and 108 stations on 5 lines o 156 trains (1,093 cars) o 2.4 million trips per workday o million passengers in 2014 Financial highlights: o To December 2014 revenues of USD 464 million, adjusted Ebitda and operating profit of USD 131 million and USD 9 million, respectively o USD 6 billion in assets o No subsidy required to generate an operating surplus Note: We define adjusted EBITDA as gross profit less administrative expenses plus depreciation and amortization 3

4 4 Metro s Corporate History In 1968, President Eduardo Frei Montalva signed the decree that gave birth to Metro In 1989, Metro becomes a closed stock corporation and is registered with the Chilean Securities Commission (SVS). A board of directors is appointed to report to its shareholders In 2005, Metro starts operating lines 4 and 4A Between 2010 and 2011 important developments begin at Metro, with major line extensions , improvements to existing lines and construction of lines 6 and 3 In May 1975, the first test trip took place between San Pablo station and Estacion Central in Santiago. Metro s official operations begin 1997 Metro begins operation of line 5 In 2007, Metro joins Transantiago, the new integrated transportation system for the capital city 2008, Metro celebrates its 40 th anniversary July 2011, Metro announces the construction of two additional lines

5 5 Metro is the Backbone of Transantiago Transantiago Highlights Public transportation usage in Santiago (Dec. 2014) Transantiago is Santiago s integrated transport system, combining bus and subway systems Established in 2007 in order to increase network efficiency and coverage Transantiago uses a consolidated ticketing service for bus and Metro, that uses a contactless smart card (Tarjeta Bip!) Metro collects 100% Tarjeta Bip! payments Currently, there are seven private ground transportation operators (bus) in Santiago. Metro is the only operator responsible for underground transportation 63% of daily riders use Metro Metro Card Refill (POS) $ $ Ride Validation Transantigo Operators Bus Service Card Refill (POS)

6 6 Metro Grows Continuously to Serve Santiago Project 63 & Network Strengthening Program (NSP) Planned layout for lines 6 and 3 Project 63, or the construction of new lines 6 & 3, is the most significant undertaking and expansion effort in Metro s history o 28 new stations and 37 kilometers of track extensions o Driverless trains o Improved security by additional cameras in trains and stations o Overhead power line installation o State-of-the-art information system for passengers and workers Total estimated investment of USD 2.8 billion o 2/3 financed with government equity contributions o 1/3 financed: Bond 144A/REG-S for USD 500 Million, Commercial Bank Facility Agreement for USD 250 Million and ECA Multisource Facility Agreement for USD 550 Million

7 7 Metro Grows Continuously to Serve Santiago Current and Upcoming Improvement Projects 126 new cars to be added to lines 1, 2 and 5 representing a 20% increase in the total fleet for those lines Air conditioning to be installed in all line 1 cars, and 60% of line 2 and 5 cars Refurbishment of NS74 trains (Metro s oldest operating trains), extending their useful life by 20 years (1/4 of the current fleet) New elevator access throughout the Metro network Metro is upgrading the signaling system used on line 1 improve headway between trains

8 Metro at a glance Key Investment Considerations Financial Information

9 (population in millions) (population in millions) Metro Benefits from Chile s Growth and Stability The Government of Chile owns 100% of Metro Metro enjoys a stable economic backdrop Chile is the highest rated Latin American country Ministerio de Hacienda Chile s Sovereign Credit Ratings Agency Rating Outlook Moody's Aa3 Stable S&P AA- Stable Fitch A+ Stable Metro s Credit Ratings Agency Rating Outlook Moody's - - S&P (*) AA- Stable Fitch (*) A Stable Chile provides Metro with a stable political and regulatory environment in an open economy with robust growth Unemployment and GDP figures : State agency promoting entrepreneurship and innovation The Government of Chile regularly makes capital contributions to Metro Demographics : Chile Santiago Source: World Bank and INE (*) The International Rating Metro was recently ratified (04/17/15 Fitch, S & P 2/23/15) 9

10 10 Metro is Essential to Mass Transit in Santiago Public Transportation Snapshot Metro offers a comfortable, safe and reliable mode of transportation to 2.4 million passengers each day Transantiago is the city s integrated public transport system, with 3.7 million daily trips approximately to In addition, Metro, through its 5 intermodal stations, is the backbone of Santiago s transportation system allowing for seamless transfers between subways and buses Metro is the exclusive sales channel for the Tarjeta Bip!, Transantiago s contactless ticketing card By collecting 100% of Tarjeta Bip! payments, Metro ensures payment before all other Transantiago operators Metro Ridership

11 Non-Fare Revenues Contribute Towards Higher Margins 11 Non-Fare revenues For december 2014, non-fare business accounts for 20% of Metro s total revenue Card Reloading (POS): Reloading service of Tarjeta Bip! at Metro ticket booths and load network surface Intermodal: 5 intermodal stations o Metro collects fees from bus companies for the use of these stations Real Estate: Leasing of 340 stands and commercial spaces Advertising: Over 10,000 advertising spaces on trains and stations Services and Communications: 284 ATMs, 500 payphones, 18 cellular antennas, 57 kilometers fiber optics, among other services Total Revenue Sources 2014

12 Metro - Among the 14 Leading Subway Systems in the World 12 CoMET benchmark CoMET (community of metros) is an international organization of underground systems. It is a consortium of large metro systems from all over the world CoMET Members: The four main objectives of CoMET are: o Develop metrics to set industry best practices o Provide benchmark information to Metro and the government o Introduce a system of measures for management o Prioritize improvement areas Metro de Santiago became a member of CoMET in 2008 after its integration in Transantiago In 2012, Metro de Santiago was awarded with the "Best American Metro award by Metro Rail. Metro de Santiago is one of the largest Metro systems in Latin America, and has reported profitable operating activities over the past 19 years

13 Metro at a glance Key Investment Considerations Financial Information

14 Metro s Solid Financial Metrics Total Revenues (USD Million) Adjusted Ebitda (USD Million) Non-fare revenues (USD Million) Cost per Car-Km* (CLP Thousand) Note: We define adjusted EBITDA as gross profit less administrative expenses plus depreciation and amortization Figures have been converted from CLP to USD for the years 2014 & 2013 at a rate of CLP & CLP per USD 1 were used respectively; for the years ending 2012 & 2011 at a rate of CLP & CLP per USD 1 were used respectively (*) Cost per Car-Km is calculated as (Cost of sale + admin. expenses) / Total of Car-Km 14

15 Metro s Solid Financial Metrics (Cont d) Debt to Capitalization* Interest Coverage (Adjusted Ebitda/Financial Expenses) Shareholders Equity (USD Million) Debt/Equity Note: We define adjusted EBITDA as gross profit less administrative expenses plus depreciation and amortization Figures have been converted from CLP to USD for the years 2014 & 2013 at a rate of CLP & CLP per USD 1 were used respectively; for the years ending 2012 & 2011 at a rate of CLP & CLP per USD 1 were used respectively (*) Debt to Capitalization is calculated as Debt / (Debt + Equity) 15

16 Metro s Debt Breakdown Debt Structure (as of Dec. 2014) Currency Breakdown (as of Dec. 2014) Total Debt = USD 2,481 MM Loans = USD 500 MM Bonds = USD 1,966 MM Derivatives = USD 1MM Megaproject s withholding = USD 13 MM Bonds (as of Dec. 2014) Loans (as of Dec. 2014) Total Bonds = USD 1,966MM Non-Guaranteed = USD MM Government Guaranteed = USD 875 MM Total Loans = USD 500 MM Non-Guaranteed = USD 364 MM Government Guaranteed = USD 136 MM Note: Figures in local currency (CLP) converted into USD (FX rate: CLP / USD) Figures may not add up due to rounding 16

17 Financial Information Balance Sheet (USD Million) Current Assets Non-Current Assets Total Assets Short-Term Liabilities Long-Term Liabilities Total Liabilities Total Shareholders Equity Total Shareholders Equity & Liabilities Income Statement (USD Million) Revenues Cost of sales Gross Profit Gross margin (%) 14,07% 15,68% 13,26% 9,82% Admin expenses Net financial expenses Change in FX Net Income Adjusted EBITDA Adjusted Operating Profit (*) Note: Figures have been converted from CLP to USD for the years 2014 & 2013 at a rate of CLP & CLP per USD 1 were used respectively; for the years ending 2012 & 2011 at a rate of CLP & CLP per USD 1 were used respectively (*) Adjusted Operating Profit = Gross Profit Admin expenses (IFRS) 17

18 Empresa de Transporte de Pasajeros Metro S.A. Investor Presentation