Endesa Chile IR Presentation 1Q 2016
Organization structure Endesa Chile (before Spin-off) Committed Shareholders ITALY 61% 14% CHILE Enersis S.A. 60% 6% Chilean Pension Funds 4% ADRs (Citibank N.A.) Retail 60% 16% Institutional Investors CHILE PEHUENCHE, 93% CELTA, 96% GASATACAMA, 98% CHILE 1 ARGENTINA BRAZIL 1 PERU COLOMBIA • ENEL BRASIL, 37% • GNL Quintero, 20% AMPLA, 17% • COSTANERA, 76% • Transquillota ,48% • EMGESA, 27% • EDEGEL, 62% COELCE, 22% • EL CHOCÓN, 65% • Electrogas, 43% FORTALEZA, 37% • GNL Chile, 33% CDSA, 37% CIEN, 37% 1 Recognized as equity method investments. 2 Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations
Reorganization highlights Spin-off of Latam assets to Endesa Américas Enel SpA Enel SpA Enel SpA These companies are expected to merge in 100% 100% 100% Structure as of December 2015 2H16. Enel Enel Enel Iberoamérica Iberoamérica Iberoamérica 61% 61% 61% >50% 61% Enersis Enersis Enersis Enersis Enersis Chile Américas Chile Américas Chilectra Endesa Américas Américas 99% 60% 99% 60% 99% 60% 99% 60% Chilectra Endesa Chilectra Endesa Chilectra Endesa Chilectra Endesa ARG BR COL PE Américas Américas Chile Chile Chile Chile CHI Spin - off ARG BR COL PE As of March 1 st , Endesa Chile and Endesa Americas 12/18/2015: ESMs approved the spin-off. spin-off became 03/01/2016: Spin-off of Enersis, Endesa Chile and Chilectra becomes effective. effective. 2H16: ESMs call to vote merger. 3 Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations
Organization structure Endesa Chile (after Spin-off) ITALY 61% Committed Shareholders CHILE 60% 14% Enersis S.A. 6% Chilean Pension Funds 4% ADRs (Citibank N.A.) CHILE Retail 60% 16% Institutional Investors PEHUENCHE, 93% CELTA, 96% GASATACAMA, 98% CHILE 1 GNL Quintero, 20% Transquillota ,48% Electrogas, 43% GNL Chile, 33% 1 Recognized as equity method investments. 4 Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations
Key investment considerations Attractive business in Chile One of the largest electricity generation companies in Chile. • Proven track record with more than 70 years of experience Well diversified portfolio of generation assets, including all types of technologies. • Hydrological assets predominating in the Chilean Central Interconnected System SIC. • Competitive thermal assets to reduce hydrological risks. More than doubled its installed capacity in the last 20 years. Conservative commercial policy to cope with hydrological risks. Best investment grade in the region. Stable ratings by credit risk agencies (BBB+) Stable regulatory framework to develop reliable long term business. 5 Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations
Well diversified generation assets Most relevant player in hydro Installed Capacity 6,351 MW 1% HYDRO 34% COAL Tarapaca OIL-GAS 55% D. Almagro – NCRE Taltal Huasco 10% Los Molles Santiago San Isidro Cachapoal Maule Laja Bocamina Bio Bío 55% of Endesa Chile’s installed capacity corresponds to hydro resources Hydro : 3,456 MW Energy sales 1Q16 : 6,025 GWh Oil-gas : 2,173 MW Energy sales 1Q15 : 5,716 GWh Coal : 636 MW Market Share 1 : 35% NCRE 2 : 87 MW 1:Calculated based on total sales of the country. 6 Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations 2: Non Conventional Renewable Energy.
Balanced commercial policy Leading to revenue stability Physical sales: 6,025 GWh GWh Change 1 Physical Sales 1Q16 5% 15% REGULATED 4,850 11% UNREGULATED 882 -18% SPOT 293 5% 80% TOTAL 6,025 5% Regulated Unregulated Spot Customers Customers Chile – Contracted energy with Regulated Customers (GWh) Historical revenues by type of customer (Billion Ch$) 18,437 390 18,130 17,765 355 16,361 15,344 15,030 2,541 2,374 25 2,309 2,146 34 1,673 1,762 824 12,407 250 1,806 872 54 1,795 1,775 1,775 60 812 3 1,811 7,350 6,883 6,469 5,597 5,694 5,589 46 311 4,670 261 201 7,180 6,873 7,110 7,129 6,745 6,795 5,114 1Q 2014 1Q 2015 1Q 2016 Unregulated Regulated 2016 2017 2018 2019 2020 2021 2022 Spot Customers Customers Chilectra CGE Chilquinta Saesa 7 Endesa Chile Investor Presentation 1Q 2016 1 Compared with FY14 USE: Public, Investor Relations
Financial Highlights Improving results in Chile Ch$ million 1 Change 3 MM US$ 2 1Q 2016 1Q 2016 1Q 2015 Revenues 415,283 369,804 12% 592 Costs (230,478) (268,740) -14% (329) Contribution Margin 184,805 101,064 83% 263 EBITDA 157,461 69,530 126% 224 EBIT 125,041 40,144 211% 178 Net Financial Expenses 934 (28,121) -103% 1 Related Company Results 2,452 1,175 109% 3 Taxes (13,436) (5,067) 165% (19) 194,646 124% 277 Net Income 86,924 Attributable to shareholders of Endesa Chile 152,568 39,105 290% 218 1 Under IFRS, Endesa Chile has adopted the Chilean Peso as functional currency, comparisons between periods have been only made using Ch$. 2 Referential average exchange rate was 701,43 Ch$/US$ as of March 31, 2016. 3 When comparing 1Q2016 with 1Q2015 8 Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations
Healthy debt maturity profile Solid financial ratios and investment grade category (BBB+) Financial Debt Maturity 1 as of March 2016 1,200 1,098 1,100 1,000 Total Debt: US$ 1,431 MM 900 800 700 600 500 400 300 153 200 87 43 100 14 8 8 8 3 3 3 3 0 < 1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years and beyond Bonds Banks and Other ype 1 Debt by Currency 1 Debt by T • Cash: US$ 180 MM Others UF + CLP 12% 7% • Committed Credit Lines: US$ 360MM • Non-Committed Credit Lines: US$ 168 MM • Average life of debt: 11.7 year • International Credit Rating: BBB+ US$ 93% Bonds 88% 9 Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations 1 Includes arrangements and other consolidation adjustments.
Consolidated Cash Flow Generation (US$million) 1 Including discontinued operations 450 400 350 (99) 183 300 (73) 250 (44) 200 150 213 100 172 50 0 Cash and equivalents Funds from operations Capex Financing activities & Dividend payment Cash and equivalents March-15 Exchange rate effects March-16 1. Referential average exchange rate was 701.43 Ch$/US$ as of March 31, 20156 2. Dividend payment considers cash outflows to Enersis and all minorities’ shareholders. 3. Funds from assets disposal includes sale of Tunel El Melon. 10 Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations
Markets with high potential for growth Annual growth of 3.4% in electricity demand in Chile* Direct relation between GDP and electricity demand 18,000 CANADA Electricity consumption, per capita (Kwh per year) 16,000 FINLAND 14,000 UNITED STATES 12,000 AUSTRALIA 10,000 AUSTRIA JAPAN 8,000 FRANCE GERMANY RUSSIA 6,000 SPAIN UNITED KINGDOM ITALY GREECE 4,000 CHILE CHINA ARGENTINA BRAZIL MEXICO 2,000 PERU IRELAND INDIA COLOMBIA BOLIVIA 0 0 10,000 20,000 30,000 40,000 50,000 60,000 GDP per capita (current PPP, US$) Data source: The World Bank. • Chile aims to be in the group of developed countries • There is no development without energy. * Average for 2005-2015 period. 11 Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations
Historical evolution of Endesa Chile’s installed capacity Endesa Chile has more than doubled its capacity in the last 20 years 6,501 1% 6,351 1% GasAtacama 5,611 1% 781 MW* 44% 4,477 37% 44% 4,035 24% Los Cóndores 28% 150 MW 2,513 13% 62% 55% 55% 76% 72% 87% 1995 2000 2005 2010 2016 Under construction • A well diversified generation matrix incorporating all types of generation technologies (Coal, LNG and NCRE), providing a better position to cope with the hydrologic risk • 2% increase in installed capacity through projects under construction. 12 * Capacity added in 2014. Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations
Projects under construction To support growth of the country Los Cóndores • Hydro power plant, run of the river. • Located in San Clemente, in Maule region, Chile. • 150 MW of installed capacity. • Estimated generation of 600 GWh/year. • Estimated load factor: 46%. • Total CAPEX of US$ 662 million. • 29% progress as of March, 2016. 13 Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations
Credit Risk Agencies Recognition Attractive ratings since 2010 Jan. 2010 Apr. 2011 Since: Feb. 2010 Jan. 2010 Apr. 2010 Baa2 BBB+ BBB+ AA (cl) AA Dec. 2015 Nov. 2015 Jun. 2015 Dec. 2015 Jun. 2015 Affirmed: International market Chilean market RATINGS BASED UPON: • Well diversified and efficient assets • Leading market share in the four countries where we operate • Transparent and favorable regulatory framework in Chile • Solid financials, good cash flow generation and prudent financial management • Conservative commercial policy 14 Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations
Recommend
More recommend
