01
Transelec is the most important power transmission company in Chile
Transelec is the leading high-voltage power transmission system supplier in Chile and the most important power transmission company in the country. Transelec develops and operates power infrastructure, supplying power to 98% of Chile’s population. In addition, Transelec facilities consist of 9,672 kilometers power transmission lines. These are part of Chile’s National Power Grid, which ranges between Arica to the island of Chiloé.
9.672 Km
of circuits lines
61
substations
18.535 MVA
of processing capacity
Information as of December 31, 2018
02
Financial Information
Revenues and EBITDA*
(*) EBITDA= Revenue from ordinary activities – Abs(Sales Cost) – Abs(Administrative Expenses) + Abs(Depreciation and Amortization) + Other Earnings(Losses) + percentage of capital amortized in the financial leasing period
Cash flow for the operation (CLP bn)
Revenue by system type
Revenues by customer
Revenues as of June 30, 2019
Annual and Quarterly Result
Debt
The company has obtained flexibility and several sources of financing, maintaining its Investment Grade rating at all times.
Public debt maturity profile (CLP bn)
Public debt issued by currency
Graphs as of June 30, 2019
Covenants
| Covenant | Limit | 30-06-2019 | 31-12-2018 |
|---|---|---|---|
| Capitalization Ratio* | < 0,7 | 0.63 | 0.64 |
| Minimum equity (in UF mn) | > 15 MM UF | 30.71 | 29.96 |
| Minimum equity (in CLP mn) | > B CLP 350 | 857 | 826 |
| Net Debt / EBITDA | < 7.0x | 4.37 | 4.93 |
(*) Capitalization Ratio= Total Debt/ (Total Debt + Minoritary Interest + Controller Equity + Goodwill Amortization)
| FNO/ Financial Expenses** | > 1.5 | 4.67 | 4.51 |
|---|
(**) FNO= Cash flows from operation activities + abs (financial expenses) + abs (income taxes)
Current Bonds
| Debt | Currency or Adjustment Unit | Interest Rate | Amount Issued (millions) |
|---|---|---|---|
| Series D Bond | UF | 4,25% | 13,5 |
| Series H Bond | UF | 4,80% | 3,0 |
| Series K Bond | UF | 4,60% | 1,6 |
| Series M Bond | UF | 4,05% | 3,4 |
| Series N Bond | UF | 3,95% | 3,0 |
| Series Q Bond | UF | 3,95% | 3,1 |
| 144a Senior Notes @2023 | USD | 4,625% | 300,0 |
| 144a Senior Notes @2025 | USD | 4,25% | 375,0 |
| 144a Senior Notes @2029 | USD | 3,875% | 350,0 |
04
Corporate Government
- 1. Brenda Eaton
Chair of the Board
- 2. Richard Cacchione
Director
- 3. Rui Han
Director
- 4. Alfredo Ergas Segal
Director
- Board of Directors as of
June, 2019
- 5. Blas Tomic Errázuriz
Director
- 6. Mario Valcarce Durán
Director
- 7. Patricia Nuñez Figueroa
Director
- 8. Juan Benabarre Benaiges
Director
- 9. Juan Agustín Laso Salvatore
Director (doesn't appear in photo)
- 1. Claudio Aravena Vallejo
People and Organization vice-president
- 2. David Noe Scheinwald
Corporate affairs and sustainability vice-president
- 3. Andrés Kuhlmann Jahn
Chief Executive Officer
- 4. Arturo Le Blanc Cerda
Regulatory and Legal Affairs Vice-president
- 5. Alexandros Semertzakis Pandolfi
Engineering and project development vice-president
- 6. Sebastián Fernández Cox
Business development vice-president
- 7. Francisco Castro Crichton
Chief financial officer
- 8. Rodrigo López Vergara
Chief operating officer
In March 2018, Brookfield Asset Management (BAM) sells its stake in Transelec to the chinese company Southern Power Grid International (CSG). The Transelec property is now composed of Canadian Pension Plan Investment Board (CPP), British Columbia Investment Management Corp. (bcIMC), Public Sector Pension Investment Board (PSP) and China Southern Power Grid International (CSG), who place their great financial strength and operational experience at the service of the country’s growth needs.
The profit sharing policy states that during a specific fiscal year, the Board of Directors aims to distribute 100% of the net profits reported as dividends, considering the company’s financial situation, commitments made by Transelec when the company issued bonds on the national and international markets, and considering the impacts of implementing IFRS.
No dividend may be declared if it would prevent the company from meeting its financial commitments.
With respect to a specific fiscal year, the Board of Directors may consider it appropriate to declare temporary dividends that could be distributed depending on conditions at the time. Overall temporary dividends shall not exceed 75% of the company’s profit that can be distributed for the current fiscal year according to the latest forecast available.
Our shareholders have created several committees in order to be kept informed regarding important issues and thus support the company at all levels.
Audit Committee
Creation of an Audit Committee was approved in April 2007. This committee is different from the committee indicated in the Corporations Law, whose duties include, among others, reviewing the company’s audit reports, balance sheets and other financial statements, and internal systems. The Transelec Audit Committee is comprised of four directors, who are appointed by the Board of Directors and serve for a terms two years, after which they may be re-elected. The Committee will elect a chairman from among its members and a secretary, who may be one of its members or the secretary of the Board of Directors.
Investor Advisory Committee
The Investor Advisory Committee is comprised of directors and senior executives. Its mission is to improve information submitted to the Board of Directors regarding the company’s different projects oportunities and thus facilitate decision making by the Board of Directors.
Corporate Reputation and Regulatory Committee
The Corporate Reputation and Regulatory Committee is comprised of company directors and executives. It meets twice per semester to review the Corporate Reputation and Regulatory Strategy, which will be executed in keeping with the main legal and regulatory amendments made in the power and environmental sectors, and to lead tariff setting processes for the national and zone power transmission systems.
Finance Commitee
The Finance Committee is made up of company directors and executives. It meets periodically to review the company’s financial strategy and to provide consultancy and approve different proposals that are important for the financial activities being executed by Transelec.
Human Resources Committee
The Human Resources Committee is comprised of company directors and executives. It meets at least once per year to review issues related to the people who make up the Transelec team. The issues reviewed include the revision of financial KPIs, which are the basis of the current variable bonus pyramidal structure at the company, as well as other issues related to the development of people, training, etc.
Operations Committee
The purpose of this Committee is to offer the Transelec Administration the opportunity to discuss issues of operations in detail with members of the Board. It is responsible for the supervision of health and safety programs stablished from Transelec’s recommendations on KPIs for health, safety and operation.
Corporate Governance Committee
The Corporate Governance Committee is comprised of Company directors and executives who meet twice per year to propose and nominate members of the Board of Directors and to evaluate their management. In addition, their mandate includes examination and evaluation of Transelec corporate governance guidelines and making recommendations regarding these to the Board of Directors.
Other Committees
Coordination Committees: these involve the different Transelec vice-presidencies and are held regularly in order to coordinate the most important issues for the company:
- Executive Committee
- Business Committee
- Projects Committee
- Operational Excellence and Results Committee
- Regulatory Agenda
- Innovation Committee
Integral management system committee: This committee has as it mission discuss about safety and ocupational security, envirinmental matters, and quality issues.
- 1. Brenda Eaton
Chair of the Board
- 2. Richard Cacchione
Director
- 3. Rui Han
Director
- 4. Alfredo Ergas Segal
Director
- Board of Directors as of
June, 2019
- 5. Blas Tomic Errázuriz
Director
- 6. Mario Valcarce Durán
Director
- 7. Patricia Nuñez Figueroa
Director
- 8. Juan Benabarre Benaiges
Director
- 9. Juan Agustín Laso Salvatore
Director (doesn't appear in photo)
- 1. Claudio Aravena Vallejo
People and Organization vice-president
- 2. David Noe Scheinwald
Corporate affairs and sustainability vice-president
- 3. Andrés Kuhlmann Jahn
Chief Executive Officer
- 4. Arturo Le Blanc Cerda
Regulatory and Legal Affairs Vice-president
- 5. Alexandros Semertzakis Pandolfi
Engineering and project development vice-president
- 6. Sebastián Fernández Cox
Business development vice-president
- 7. Francisco Castro Crichton
Chief financial officer
- 8. Rodrigo López Vergara
Chief operating officer
In March 2018, Brookfield Asset Management (BAM) sells its stake in Transelec to the chinese company Southern Power Grid International (CSG). The Transelec property is now composed of Canadian Pension Plan Investment Board (CPP), British Columbia Investment Management Corp. (bcIMC), Public Sector Pension Investment Board (PSP) and China Southern Power Grid International (CSG), who place their great financial strength and operational experience at the service of the country’s growth needs.
The profit sharing policy states that during a specific fiscal year, the Board of Directors aims to distribute 100% of the net profits reported as dividends, considering the company’s financial situation, commitments made by Transelec when the company issued bonds on the national and international markets, and considering the impacts of implementing IFRS.
No dividend may be declared if it would prevent the company from meeting its financial commitments.
With respect to a specific fiscal year, the Board of Directors may consider it appropriate to declare temporary dividends that could be distributed depending on conditions at the time. Overall temporary dividends shall not exceed 75% of the company’s profit that can be distributed for the current fiscal year according to the latest forecast available.
Our shareholders have created several committees in order to be kept informed regarding important issues and thus support the company at all levels.
Audit Committee
Creation of an Audit Committee was approved in April 2007. This committee is different from the committee indicated in the Corporations Law, whose duties include, among others, reviewing the company’s audit reports, balance sheets and other financial statements, and internal systems. The Transelec Audit Committee is comprised of four directors, who are appointed by the Board of Directors and serve for a terms two years, after which they may be re-elected. The Committee will elect a chairman from among its members and a secretary, who may be one of its members or the secretary of the Board of Directors.
Investor Advisory Committee
The Investor Advisory Committee is comprised of directors and senior executives. Its mission is to improve information submitted to the Board of Directors regarding the company’s different projects oportunities and thus facilitate decision making by the Board of Directors.
Corporate Reputation and Regulatory Committee
The Corporate Reputation and Regulatory Committee is comprised of company directors and executives. It meets twice per semester to review the Corporate Reputation and Regulatory Strategy, which will be executed in keeping with the main legal and regulatory amendments made in the power and environmental sectors, and to lead tariff setting processes for the national and zone power transmission systems.
Finance Commitee
The Finance Committee is made up of company directors and executives. It meets periodically to review the company’s financial strategy and to provide consultancy and approve different proposals that are important for the financial activities being executed by Transelec.
Human Resources Committee
The Human Resources Committee is comprised of company directors and executives. It meets at least once per year to review issues related to the people who make up the Transelec team. The issues reviewed include the revision of financial KPIs, which are the basis of the current variable bonus pyramidal structure at the company, as well as other issues related to the development of people, training, etc.
Operations Committee
The purpose of this Committee is to offer the Transelec Administration the opportunity to discuss issues of operations in detail with members of the Board. It is responsible for the supervision of health and safety programs stablished from Transelec’s recommendations on KPIs for health, safety and operation.
Corporate Governance Committee
The Corporate Governance Committee is comprised of Company directors and executives who meet twice per year to propose and nominate members of the Board of Directors and to evaluate their management. In addition, their mandate includes examination and evaluation of Transelec corporate governance guidelines and making recommendations regarding these to the Board of Directors.
Other Committees
Coordination Committees: these involve the different Transelec vice-presidencies and are held regularly in order to coordinate the most important issues for the company:
- Executive Committee
- Business Committee
- Projects Committee
- Operational Excellence and Results Committee
- Regulatory Agenda
- Innovation Committee
Integral management system committee: This committee has as it mission discuss about safety and ocupational security, envirinmental matters, and quality issues.