Enel Amricas Capital Increase February 27 th , 2019 Table of - PowerPoint PPT Presentation

Enel Américas Capital Increase February 27 th , 2019

Table of Contents Our Track Record Transaction Rationale Transaction Structure Closing Remarks 2

Our Track Record 3

Proposed Equity Capital Increase Facilitates Pursuit of Proven Growth Strategy   Formation of Successful Up to US$ 3.5 Bn Continued the Largest Delivery of Capital Increase Growth Private Utility Growth and Capital Structure Strategy & Company in Shareholder Optimization to Consolidation LatAm Value Unlock Growth  Created Americas-  Facilitates execution of  Minority investors buyout Organic focused growth vehicle growth strategy  Captured efficiencies  Privatization and with leading market  Cash flow optimization consolidation position  Expanded Free Market and Enel X segments  Credit enhancement  Enel X expansion  Unlocked efficiencies  Higher market Inorganic  Simplified structure capitalization, float and  Acquired Enel Dx São  Reduced leakage liquidity Paulo and Enel Dx Goiás evidencing strong value creation capabilities 4

Our Track Record Sustainability, Growth, Efficiencies and Value Creation 2016 2018 I&N (3) End users 14.1 24.5 MM 2.4 3.4 EBITDA US$ Bn Growth 1.0 1.7 Net Income US$ Bn 1.2 1.7 CAPEX US$ Bn 43 32 (4) Group simplification Number of companies Opex reduction ~ 130 ~ 420 Cumulated efficiencies (1,5) US$ MM 0.3 0.5 Shareholder return Total Dividends US$ Bn Value creation 1.4 2.7 People benefited (1) MM (cumulated) Sustainability commitment 0 4 (2) Index Member Number of indexes 5 3. Infrastructure & Networks Notes: 1. Base year 2015 4. Not including acquired companies 2. Enel Américas is member of 4: DJSI (Chile, EM and MILA) and FTSE4Good 5. 2016 refers only to 2016 while 2018 refers to cumulative efficiencies captured from 2016 to 2018

Enel Américas Today LatAm Distribution Sector Landscape (1) Brazil Colombia Peru Argentina MM Clients in 2017 MM Clients in 2018 MM Clients in 9M18 MM Clients in 2017 Enel 17.1 2.9 Player 1 3.4 Enel Dx Perú 1.4 Dx Brasil Dx Perú Dx Colombia Neoenergi (2) 13.6 2.5 Player 2 Luz del Sur a 3.2 1.1 Dx Argentina (3) CPFL 9.3 1.8 Player 3 Hidrandina 2.6 0.9 Cemig 8.3 Player 4 Electrocentro 1.3 0.7 0.8 Energisa Player 5 0.5 Electro Sur Este 0.5 6.6 1.0 Leading share in premium markets positions Company to capture upcoming opportunities Sources: Companies Filings, Osinergmin and SUI (Sistema Único de Información de Servicios Públicos) Notes: 6 1. Top 5 players by country 2. Considers figures from EMPRESAS PÚBLICAS DE MEDELLIN E.S.P. and ELECTRIFICADORA DE SANTANDER S.A. E.S.P. 3. Includes EDEA, EDELAP, EDEN, EDES and EDESA

Proven Track Record Executing Value-Unlocking Investments Focus on Enel Dx Goiás and Enel Dx São Paulo Enel Dx Goiás EBITDA Enel Dx São Paulo EBITDA US$ Bn US$ Bn +39% +167% +177% 0.3 0.8 0.4 0.1 0.2 0.2 0.3 (1) 0.3 0.1 0.1 0.2 2016 Realized 2018 Expected 2021E 2018 Efficiencies Operating 2021E Improvement improvement (2) (2) Value Drivers  • Leverage Enel competences for OPEX reduction and distribution grid digitalization  • Growth in Free Market sales and Enel X services for customers 7 Notes: 1. US$ 0.3 Bn includes annualized pro-forma EBITDA of Enel Dx São Paulo 2. Net of Fx & Opex CPI

Enel X Segment Can Boost Benefits of Consolidation EBITDA Growth based on business in Brazil and Colombia, leveraged on: US$ MM 135 Market opportunities and the experience of Enel Group in public lighting • +251% concessions ( Smart Lighting ) Commercial position and Dx customer base with financial services connected to • 43 38 electricity bill ( Microinsurance and Third Party Billing and Collection Services) 2017 2018 2021E • Strategic focus in e-Mobility plan ( Charging Stations ) Proforma e-City e-Industries e-Home e-Mobility Third party billing & Public Charging Station Smart Lighting PV + Storage Microinsurance collection services Total charging stations installed (#) Final Light Points (k#) Active contracts (k#) Installed (MWp) Transactions per year (k#) +74% +2.462% +80% +4.075% +13.834% +51% +4% 758 2,500 38,165 44.7 9,196 +94% +215% +1.220% 421 406 1,436 953 766 1,489 0.3 1.1 5 66 2017 2018 2021E 2017 2018 2021E 2017 2018 2021E 2017 2018 2021E 2017 2018 2021E 8

Transaction Rationale 9

̶ ̶ ̶ Transaction Rationale Strategic Benefits of the Proposed Transaction • Increased balance sheet capacity to fund strategic investment opportunities Facilitate Minority investors buyouts Growth Strategy Execution Privatization and consolidation • Overall net income increase given the reduction of financial expenses and tax optimization Cash Flow • Potential increase of dividend payout levels at Enel Brasil from the current 25%, supporting Enel Américas cash Optimization flow • Capital increase proceeds used to reduce indebtedness of Enel Brasil (from 3.0x to 1.3x) (1,2) resulting in a Credit reduction at Enel Américas (from 1.7x to 1.0x) (1,2) on a consolidated basis Enhancement Balance sheet to be strongly positioned to capitalize on upcoming opportunities in the sector • Equity offering expected to increase Enel Américas’ free float (2,3) by up to US$ 1.7 Bn and market cap (2,3) by up to Higher Market ~30% Capitalization, − Higher float correlated with increased stock liquidity Float & Liquidity Notes: 10 1. Net Debt / EBITDA as of 2019E, 2. Assuming a US$ 3.5 Bn capital increase 3. As of Feb 6 th , 2019

Facilitate Growth Strategy Execution Upcoming Growth Opportunities From Minority Investors Buyout, And… Potential Minority Investors Buyout Investment Opportunity (Equity in US$ Bn) (1) Colombia Distribution 0.5 Brazil 0.7 Generation & Transmission Distribution 0.2 Total 1.2 Argentina Peru Distribution 0.1 Distribution 0.1 Generation & Transmission 0.2 Generation & Transmission 0.2 Total 0.3 Total 0.3 ~US$ 2.0 Bn potential investments in minority investors buyout opportunities 11 Notes: Generation Distribution 1. As of 3Q18

̶ ̶ Facilitate Growth Strategy Execution (Cont’d) … Privatization and Consolidation Transactions in our Chosen Distribution Markets Enel Position Key Market Opportunities  #1 market position by number of  Highly fragmented sector with ongoing consolidation customers  Several distribution companies requiring operational and financial restructuring  High exposure to urban environments in Brazil trading attractively the largest metropolitan areas in Latin  Expected new regulatory framework to favor economies of scale America São Paulo, Rio de Janeiro, Lima and Bogota  Government announced intention to privatize selected regional distribution  High density grids supportive of companies Colombia digitalization rollout  Financial sponsor-held assets could eventually trade  Enel X deployment catering to premium clients with high relative purchasing power  Substantial footprint of state-owned distribution companies  Proven operational turnaround track- record Government has previously shown a potential interest in launching a privatization Peru process  Ability to replicate Enel Dx Goiás and Enel Dx São Paulo playbook  Potential strategic exiting the market 12

Cash Flow Optimization Net Income and Dividends Paid Pre and Post-Transaction (1) Total Net Income Total Dividends Paid 2019E-2021E Cumulative - US$ MM 2019E-2021E Cumulative - US$ MM +45% Enel Brasil Consolidated +196% 838 2,704 1,866 631 952 321 Pre-Transaction Increase Post-Transaction Pre-Transaction Increase Post-Transaction +19% +15% 910 Enel Américas 5,605 4,695 281 2,144 1,863 Pre-Transaction Increase Post-Transaction Pre-Transaction Increase Post-Transaction 13 Note: 1. Assuming a US$ 3.5 Bn capital increase and Enel Brasil’s dividend payout increasing from 25% in the pre-transaction scenario up to 50% in the post-transaction scenario.

Credit Enhancement The Transaction Could Strengthen Enel Américas ’ Credit Profile, Balance Sheet and Capital Structure (1) 2018 Net Debt Net Debt / EBITDA US$ MM x 2.0x 1.7x 2.0x 1.2x 1.4x 1.1x 1.0x 0.7x 0.5x 6,649 2,650 n.a. 2018 2019E 2020E 2021E FFO (2) / Net Debt 3,999 % 138.5% 95.0% 54.2% 45.9% 44.3% 30.6% 27.8% n.a. Enel Américas Debt Post-transaction 2018 2019E 2020E 2021E Net Debt Repayment Pro-Forma Net Debt Balance sheet to be strongly positioned to capitalize on upcoming opportunities in the sector Net Debt / EBITDA Pre-Transaction Post-Transaction 14 Note: 1. Post-transaction figures assumes a US$ 3.5 Bn capital increase 2. Funds from Operations