Enel Américas H1 2020 Consolidated results July 28 th , 2020 Américas
Key highlights of the period Américas COVID-19 Regulation Financial impacts Financial position Pandemic effects Stable net debt vs “ Conta COVID” peaked in Q2 EBITDA down by 46% previous year vs Q2’19 and 29% vs secures financial H1’19 mainly due to FX, Company has sustainability in Solid liquidity to COVID-19 and one-off 1 commited to varied Brazilian Dx support our operations initiatives (1) Edesur’s past liabilities resolution in 2019 2
Main impacts Further deterioration of market context and key KPIs Américas Currencies vs USD 1 (YTD) Electricity distributed (TWh) Collection (%) ∆ yoy ∆ yoy 8.1 95.1 - 2% -9.2 pp ARGENTINA USD/ARS -17% ARGENTINA 8.3 104.4 37.5 94.4 -7% -3.7 pp BRAZIL BRAZIL USD/BRL -35% 40.4 98.1 6.7 92.6 -5% -3.8 pp COLOMBIA COLOMBIA 7.0 USD/COP -15% 96.4 3.7 81.2 -12% -17.0 pp PERU PERU 4.2 98.2 -7% USD/PEN H1 2019 H1 2019 H1 2020 H1 2020 3 (1) Fx devaluation from January 1, 2020 to June 30, 2020.
Main impacts Recovery signs in June on electricity distributed and collection Américas Electricity distributed (TWh) Argentina Brazil Colombia Peru 1.53 1.44 1.44 6.91 1.40 6.85 6.85 1.36 6.68 6.75 1.30 0.74 1.42 1.42 1.41 6.34 1.22 1.22 0.71 0.71 0.70 1.19 1.19 1.34 6.76 1.38 1.16 0.67 6.76 6.74 1.15 0.66 0.70 0.70 1.20 6.08 1.14 1.14 0.54 0.50 0.64 0.60 1.08 1.06 5.70 0.96 0.98 5.49 Jan Feb Mar Apr May June Jan Feb Mar Apr May June Jan Feb Mar Apr May June Jan Feb Mar Apr May June Collection (%) Argentina Brazil Colombia Peru 105% 100% 112% 103% 101% 112% 100% 111% 99% 101% 101% 98% 100% 98% 98% 95% 100% 98% 94% 93% 104% 99% 104% 90% 96% 105% 105% 93% 96% 95% 98% 103% 78% 93% 91% 82% 91% 95% 98% 86% 92% 92% 59% 85% 89% 85% 74% 80% Jan Feb Mar Apr May June Jan Feb Mar Apr May June Jan Feb Mar Apr May June Jan Feb Mar Apr May June 2019 2020 4
COVID Operational Initiatives Our determined commitment to face the pandemic Américas Our people Our clients Our operations • • Around 50% of our total workforce is Digitalization to mitigate impacts in Infrastructure is fully operational on all working remotely collection geographies • Reinforcement of critical infrastructure Security measures to ensure the safety of Website revamp to ease the client workforce on the field, along with experience as a key concern for the Company specialized training during COVID-19 • • Increased focus on apps as payment Faster emergency response to ensure the Insurance policy for all Enel Américas’ channels and communication tools continuity of service employees. First ever of its kind in the • • Restart in some cases manual billings and Reinforcement of security protocols and world. Cash allowance for hospitalized billing distribution with all the preventative COVID-19 measures employees health measures 5
Brazil: Conta COVID (Decree nº 10.350/20) Executive summary Américas The decree provided guidelines on the financing package to mitigate Covid-19 impacts to discos (Provisional Measure 1 950/20) and final structure was defined by ANEEL under Normative Resolution 885/20. Total amount available for the sector was R$ 16.1 bn, with R$ 3.2 bn formalized with Enel Américas Dx Companies. Amounts 2 related to (i) overcontracting; (ii) sector charges neutrality; (iii) CVA balance from Apr/20 to Dec/20, and (iv) Parcel B anticipation, if company chooses to disburse, will be transferred monthly. Financial aid is positive : preserve the sector’s chain of payments providing liquidity to discos and protecting gencos and transcos 3 and reduce the impact on tariffs for consumers in 2020. Resources shall be paid back in 54 months, starting 2021 after an 11-month grace period. The repayment of the financial aid (and its financial costs) will be passed through to consumers. Costs related to discos´ over-contracted exposure caused by reduction in volumes due to Covid-19 will be treated as involuntary 4 and recognize distribution companies' right to request an extraordinary tariff review (‘RTE”) . Amount requested Enel Dx Río Enel Dx Ceará Enel Dx Goiás Enel Dx Sao Paulo by Company: R$ 0.8 bn R$ 0.5 bn R$ 0.5 bn R$ 1.4 bn 6
Financial highlights (US$ mn) Américas Reported Adjusted Net Income 1 Net Income 2 EBITDA 1 EBITDA 2 EBITDA for Q2 and H1 are 623 166 1,002 379 explained by currency devaluation Q2 2020 vs USD in all countries, COVID-19 -46% +14% effects and a high comparison -42% +23% base 2 . 1,161 511 882 308 Q2 2019 Net Income for Q2 and H1 were 1,471 476 1,997 711 also affected by Fx devaluation, H1 2020 COVID-19 and one-off, partially -29% +11% -67% +14% offset by a better financial result and lower taxes. 2,070 827 1,791 624 H1 2019 7 (1) Ordinary figures; (2) Excludes FX effect, COVID-19 effect and Edesur’s past liabilities resolution in 2019
Industrial growth: Gross CAPEX (US$ mn) Net of Fx effect, H1 CAPEX increased 8% Américas Total CAPEX by nature Total CAPEX by business 4 Total CAPEX by country 4% 2% 3% 6% 10% 10% 31% Q2 2020 42% 23% 300 300 300 (-22.2% YoY) (-22.2% YoY) (-22.2% YoY) 57% Thermal 27% 85% generation Argentina Asset management 1 Renewables Brazil Asset Networks development 2 Colombia 3% 1% 3% Retail Customers 3 Peru 7% 10% 10% Enel X 32% H1 2020 21% 600 43% 600 600 (-14.9% YoY) (-14.9% YoY) (-14.9% YoY) 59% 25% 86% (1) CAPEX related to investments for recurring asset maintenance; (2) Growth investments in generation and networks (quality programs & smart metering); (3) CAPEX related to customers (Retail, Enel X (e-Home, 8 e-Industries), Network connections); (4) Thermal generation business’ includes trading business.
Reinforcing our commitment to ESG and SDGs Projects in Support of Local Communties Américas Charitable activities in response to the Covid-19 crisis ENEL AMERICAS OVERALL 1H 2020 TOTAL INITIATIVES 76 SDG Contribution PROJECTS 355 HEALTH (57) SOCIO ECONOMIC (19) 7 projects 104,9K beneficiaries BENEFICIARIES 942 K • • Monetary contributions to hospitals or Donation of basic food baskets to civil protection bodies . families in situation of social vulnerability 57 projects • • Enel spaces made available for Family kit (house & personal preventive 240,7K beneficiaries medical needs (field hospitals, spaces cleaning) for quarantine, etc..) • Use of the daycare centers maintained • Deliver DPIs to people, doctors and by Enel to receive children from 32 projects nurses around our assets electricians and health professionals of 29,7K beneficiaries public hospitals who are working in • Supply of basic materials as personal quarantine protection elements and support for • patients Campaign to disseminate behaviors to 130 projects face the crisis and to “stay at home” • Donate Enel's own resources and 342,6K beneficiaries • monetary contribution to produce fast Manufacturing of handmade masks for tests to detect Coronaviru s people in risk group in communities. 73 projects • • Donation of intensive care machinery Support of vulnerable clients such as “ electrodependientes ” and people with 93K beneficiaries • Free supply of all the necessary disability “field energy and building for hospital” . 8 projects 32K beneficiaries
Financial results
Financial highlights (US$ mn) Negative Fx and operational impact vs a high comparison base Américas ∆ YoY ∆ YoY Q2 2019 Q2 2020 H1 2019 H1 2020 Lower EBITDA mainly due to Reported EBITDA 1,161 623 - 46.4% 2,070 1,471 - 28.9% currency devaluation vs USD in all countries, COVID-19 effects and a high comparison Adjusted EBITDA 1 882 1,002 +13.6% 1,791 1,997 + 11.5% base in Argentina. OPEX -475 -361 - 24.1% -945 -808 - 14.4% Net income also below last year due to currency depreciation and high comparison base. Total net income 511 166 - 67.5% 827 476 - 42.5% Lower financial expenses Reported Group net income 2 340 89 -73.7% 544 297 - 45.4% related to lower debt in Enel Brazil. FFO 310 + 8.0% 378 462 + 22.1% 335 Higher debt in USD is partially offset by currency depreciation. Net debt (H1 2020 vs FY 2019) 4,287 4,686 + 9.3% (1) H1’20: Excludes Fx impact (- US$ 339 mn) and COVID-19 impact (-US$ 187 mn ); Q2’20: Exludes Fx impact (-US$ 192 mn) and COVID impact (-US$ 187 mn), and Edesur’s past liabilities resolution in 2019 11 (+ US$ 279 mn); (2) Attributable net income to controlling shareholders.
FX and COVID-19 impact on demand and bad debt (US$ mn) Américas Net of Q2 2020 Ordinary FX Demand Bad Debt COVID-19 & FX EBITDA 623 192 187 1,002 D&A (265) 52 Net Income 166 143 55 14 379 Net of H1 2020 Ordinary Fx impact Demand Bad Debt COVID-19 & FX EBITDA 1,471 339 187 1,997 D&A (568) 52 Net Income 476 166 55 14 711 COVID-19 12 impact
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