Enel Américas Corporate Presentation, July 2018
Enel Américas Overview
Enel Américas overview 1 Enel Américas is Latin America ´ s largest private power company Brazil Colombia Generation Generation 1,354 MW 3,467 MW 1% Market Share in Installed capacity 21% Market Share in Installed capacity Net Production 4,034 GWh Net Production 14,765 GWh Sales 12.587 GWh Sales 18,156 GWh 3% Market Share in Sales 27% Market Share in Sales Distribution Distribution + 7.1 Eletropaulo clients 10.0 million clients 3.3 million clients Sales Dx 34,876 GWh + 42,982 Eletropaulo distributed energy Sales 13,790 GWh 9% Market Share Dx ~ 20% including Eletropaulo 22% Market Share Dx Transmission Peru 2,100 MW transmission lines Generation Argentina 1,979 MW Generation 16% Market Share in Installed capacity 4,419 MW Net Production 7,430 GWh 13% Market Share in Installed capacity Sales 10,457 GWh Net Production 14,825 GWh 15% Market Share in Sales Sales 14,857 GWh Distribution 11% Market Share in Sales 1.4 million clients Distribution Sales Dx 7,934 GWh 2.5 million clients 30% Market Share Dx Sales Dx 17,736 GWh 17% Market Share Dx Total Generation Total Distribution Installed capacity: 11,219 MW 24.3 million including Eletropaulo Clients: 17.2 million Energy sales: 56,051 GWh Energy sales: 74,337 GWh ~ 120 TWh including Eletropaulo 1.- Source: Company filings and presentations, as of December 31, 2017. 3
Enel Américas overview Financial highlights (US$ mn) FY 2017 Revenues EBITDA + 37.1% + 21.3% 10,540 + 17.7% 1,536 Celg 7,686 + 94 2,947 2,945 83 Celg 145 2,503 - 92 9,004 + 73 2,430 2,052 1 2 FY16 2016 One-off FY16 EBITDA FY17 EBITDA FX effects 2017 One-offs FY17 FY 16 FY 17 ex. One-offs ex. One-offs and FX effects 4 Net Income Net Debt + 11.0% + 121.0% 1,127 3,349 1,015 417 448 1,516 Attr. Net 709 Income 566 3 FY 16 FY 17 Dec. 16 Dec. 17 1. Related to write-off of Curibamba and Marañón proyects, and clients-related provisions in Peru for USD 73 m. 2. Related to voluntary retirement plan provisions in Celg-D for an amount of USD 51 m and update past fines in Argentina for an amount of USD 41 m. 3. Net income includes discontinued operations (170 MUSD). 4 4. Includes cash and cash equiv. + 90-day cash investments.
Enel Américas overview Ownership profile 1 51.80% 22.28% 15.51% OTHER INST. CHILEAN PENSION SHAREHOLDERS FUNDS 2.72% 7.69% Américas OTHER ADR HOLDERS SHAREHOLDERS Market Cap 2 : USD 10.13 Bn 1. As of June 30, 2018. 2. As of July 30, 2018. 5
Strategic Plan 2018-20
Macro and energy scenario South America Region (%) 1 CPI 2 Local currencies vs USD GDP -3.6 2.6 20.0 Argentina -2.9 Argentina Argentina 2.9 17.0 -2.2 14.0 3.0 -6.3 4.9 1.9 Brazil -2.9 Brazil 4.3 Brazil 2.0 -2.9 4.2 2.3 -4.8 3.7 2.7 Colombia -1.8 Colombia 3.7 Colombia 2.9 -2.6 3.5 3.1 2.5 -3.0 3.8 Peru Peru 2.9 2.5 Peru 4.0 2.5 0.0 4.1 2018 Enel Américas distributed energy Energy demand 2019 2020 2.1 Edesur 2.5 2.4 2.5 Argentina 2.7 2.8 4.7 Celg 5.2 5.3 1.8 Brazil 2.2 Enel Dx 4.0 2.5 3.4 Ceará 3.8 1.5 Colombia 2.2 3.7 Enel Dx Rio 2.5 2.5 2.8 5.1 2.4 Peru Codensa 4.2 1.5 1.4 4.4 1.3 Enel Dx Perú 4.0 1. Versus previous year. 4.1 2. Consumer Prices Index. 7
Industrial growth: Organic growth Organic growth - Capex plan 2018-20 Total capex Growth capex by business Maintenance capex by business 5% 9% 32% Generation 40% Generation Maintenance 5.2 bnUSD 3.2 bnUSD 2.1 bnUSD Free m. + e-Solutions Free m. + e-Solutions Growth 60% I&N I&N 65% 4% 85% 6% Maintenance capex by country Total capex by country Growth capex by country 12% 19% 24% 26% 25% 27% 30% Argentina Argentina Argentina 38% Peru Peru Peru 5.2 bnUSD 3.2 bnUSD 9% 2.1 bnUSD Brazil Brazil Brazil 12% Colombia Colombia Colombia 16% 29% 38% 45% I&N business captures almost 80% of total capex plan 8
Industrial growth: Organic growth Infrastructure & Networks evolution Regulatory Next regulatory RAB (bnUSD) WACC 2 EBITDA (bnUSD) cycle cycle +3.9 +93% 13.2 +0.3 3.8 3.0 +1.4 9.3 -0.4 2.4 2.0 12.5% 12.5% Argentina 5 years 2022 1.4 1.6 Rio 11.4% 12.3% 5 years 2018 +0.1 1.0 Ceará Brazil 1.5 12.3% 12.3% 4 years 2019 1.0 Celg 4 years 2018 11.4% 12.3% 0.9 3.2 13.7% 12.8% 5 years 2018 Colombia 2.4 1.8 1.1 12.0% 12.0% 4 years 2018 Peru 2017 2020 1 2020 2017E 2017E Opex Tariff/RAB Demand Fx + CPI 2020 Enel Dx Peru Codensa efficiencies Opex Celg Enel Dx Ceará Enel Dx Rio Edesur +93% of EBITDA growth and +42% of potential RAB increase 1. Not including Services & Holding. 9 2. WACC: real before tax
Industrial growth: Organic growth Generation evolution EBITDA (bnUSD) Contracted Energy (TWh) Brazil Colombia +4% 14.9 13.3 13.3 15.7 14.6 11.9 13.0 > > > > 10.1 94% 100% > 100% 100% 85% 100% 100% +0.2 89% 1.4 1.4 -0.2 2017 2018 2019 2020 2017 2018 2019 2020 Peru 11.4 11.1 10.9 10.0 Average duration of 7 95% PPA 2 (years) 92% 91% 83% Brazil 10-12 Colombia 2-4 Peru 5-7 1 2017 2018 2019 2020 2017E Volume & Capacity Fx + CPI Opex 2020 Securing profitability through long-term PPAs 1. Not including Services & Holding 2. Power Purchase Agreement. 10
Industrial growth: Organic growth Free market + e-Solutions evolution EBITDA (bnUSD) Enel Américas Free energy sold (TWh) To 2020E From 2017E Market share Market share Argentina 0.2 5% 5.0 15% +164% 3.2 3% 9.7 7% Brazil 4.3 20% 5.2 23% 4 128 Colombia 5.9 24% 7.5 25% Peru + 0.09 0.25 13.6 27.4 -0.01 + 0.07 1.2 1.9 Customers (k) 0.09 Key figures 2020 ~1.9 k power customers 1 2017E Free Market e-Solutions Fx 2020 ~ 0.1 gas customers EBITDA reaching 250 mnUSD by 2020 due to the new Global Business Line contribution 1. Not including Services & Holding. 11
Efficiencies % accomplished Accomplished Operational efficiency 1 Previous Plan New Plan 2017 3 as of 2017 2019 3 2020 4 OPEX 234 244 104% 90 S&S 2 59 55 93% 12 Cash Optimization 15 15 100% - Tax 50 50 100% - - - New Perimeter 100% 97 Total 358 364 102% 199 Efficiencies vs 2015 1,152 1,059 Efficiencies plan 2017-19 completed. 1. MUSD net of inflation and Fx changes. New Strategic Plan envisages additional efficiencies for ~ 200 mnUSD 2. Staff and Services. 3. Base year 2015. 12 4. Base year 2017,
Financial targets FFO 1 , Capex and Cash flow 2018-20 2018-20 Cash flow generation (bnUSD) 2 FFO and CAPEX (bnUSD) +64% 7.7 2.9 5.6 2.5 2.3 - 2.1 1.9 1.8 1.8 1.7 1.6 2.4 - 3.2 0.0 - 2.4 1 FFO Maintenance FFO after Growth FCF Dividends Net FCF 2017 2018 2019 2020 capex maint. capex capex paid FFO Capex Solid cash flow generation 1. Funds From Operations. 2. Opportunities in M&A and minorities buy-out not included. 3. Free Cash Flow. 13
Financial targets Guidance 2018-20 (bnUSD) Previous Plan New Plan New Plan vs Previous Plan 2018 2020 2019 2018-19 2018 2019 EBITDA 3.7 4.2 4.6 +12.9% 3.3 3.7 Capex 1.5 1.4 1.9 1.8 1.6 +27.6% Net Income 1 1.1 1.3 1.4 1.4 1.6 +16.7% Substantial Net Income growth ensures remuneration to our shareholders 1. Attributable Net Income to the controller shareholders. Improved vs previous Plan 14
Financial Targets Targets - EBITDA by country and by business EBITDA by Country EBITDA by Business 2018 2018 2020 2020 3% 5% 13% 15% 23% 25% 32% 38% 3.7 bnUSD 4.6 bnUSD 3.7 bnUSD 4.6 bnUSD 30% 33% 59% 29% 63% 32% +24% +24% Free market + Argentina Networks Brazil Colombia Peru Generation e-Solutions +24% of EBITDA increase by 2018 vs 2020 15
Financial targets New Dividend Policy Attributable Net Income (US$ bn) and paid dividends +99% 1.4 +25% 0.7 0.6 Dividends paid 2016 2017 2018E Dividend Payout 50% 40% 50% 16
Financial targets Net debt evolution (bnUSD) 1.3x 1.0x 0.9x 0.8x 4.6 4.2 3.9 3.8 3.7 3.7 3.5 2.9 4.2 3.7 3.5 2017E 2018 2019 2020 EBITDA Net Debt Net debt to EBITDA ratio Low ratio net debt to EBITDA leaves room to additional growth 17
1H2018 results
1H 2018 results Group EBITDA evolution by business and country (US$ m) Generation Distribution + 14.4% + 24.9% 109 875 (2) 819 (12) 14 24 154 21 90 701 716 (45) (74) 1 1 1 1 1H 17 Fx impact Argentina Brazil Colombia Peru 1H 18 1H 17 Fx impact Argentina Brazil Colombia Peru 1H 18 19 1. Not including Services & Holding (USD -42 m in 2018 and USD -32 m in 2017).
1H 2018 results From EBITDA to Net income (US$ m) 1,652 1,249 2 (404) 1,034 (217) 660 (374) 403 (258) EBITDA D&A EBIT Net financial Non operating EBT Income tax Net Income Minorities Attr. Net result results Income 5 - 168 206 - 401 984 - 273 374 1H 17 1,385 - 342 647 ∆ yoy 53.3% 95.8% 0.6% 26.9% -54.1% 36.8% 76.7% 19.3% 36.6% 59.9% 20
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