Enel Amricas Corporate Presentation, June 2017 Enel Amricas - PowerPoint PPT Presentation

Enel Américas Corporate Presentation, June 2017

Enel Américas Overview and Macro Context

Enel Américas overview 1 Enel Américas is Latin America ´ s largest private power company Brazil Generation Colombia 974 MW Generation 1% Market Share in Installed capacity 3,467 MW Net Production 1,882 GWh 21% Market Share in Installed capacity Sales 5,505 GWh Net Production 7,443 GWh 2% Market Share in Sales Sales 8,690 GWh Distribution 27% Market Share in Sales 9.8 million clients Distribution Sales Dx 16,850 GWh 3.3 million clients 9% Market Share Dx Sales 6,783 GWh Transmission 23% Market Share Dx 2,100 MW transmission lines Peru Generation Argentina 1,978 MW Generation 16% Market Share in Installed capacity 4,419 MW Net Production 3,409 GWh 14% Market Share in Installed capacity Sales 5,057 GWh Net Production 7,779 GWh 21% Market Share in Sales Sales 7,802 GWh Distribution 12% Market Share in Sales 1.4 million clients Distribution Sales Dx 4,058 GWh 2.5 million clients 29% Market Share Dx Sales Dx 9,090 GWh 16% Market Share Dx Total Generation Total Distribution Installed capacity: 10,838 MW Clients: 17.0 million 3 Energy sales: 27,054 GWh Energy sales: 36,781 GWh 1.- Source: Company filings and presentations, as of June 30, 2017 – CELG is consolidated in these figures.

Enel Américas overview Operating highlights post CELG consolidation (1H 2017) Net Installed capacity (MW) Net production (TWh) Electricity sales (TWh) + 0.9% + 2.2% + 9.1% Generation 10,740 10,838 20.1 20.5 27.1 224 224 Hydro 8.6 9.1 4,750 4,763 4,759 4,797 24.8 Oil-Gas 0.5 0.1 Coal 5,817 11.0 11.3 5,754 5,757 5,817 1H 16 1H 17 1H 16 1H 17 1H 2016 1H 2017 5.5 Electricity Distributed (TWh) Number of customers (m) Distribution + 15.7% + 25.2% 17.0 36.8 13.6 2.9 CELG CELG 31.8 5.5 14.1 31.3 4 Jun. 16 Jun. 17 1H 16 1H 17

Enel Américas overview Financial highlights (US$ mn) FY 2016 1 Revenues EBITDA + 16.1% - 2.0% 7,835 2,771 + 1.7% +73 +270 7,681 646 2,429 2,387 4,245 2 FY 2015 FY 2016 FX Effects One-Off EBITDA ex. FY 2015 FY 2016 One-offs and FX effects Net Income (without discontinued operations) Net Debt 3 - 24.5% + 103.1% 1,117 3,079 844 1,516 FY 2015 FY 2016 Dec. 16 Jun. 17 1. Comparisons between periods are made using the average USD FX rate for FY 2016 equal to 676.67 CLP only for information purposes. Original data is in chilean pesos. 5 2. Related to write-off of Curibamba and Marañón proyects, and clients-related provisions in Peru. 3. Includes cash and cash equiv. + 90-day cash investments.

Enel Américas overview Ownership profile 1 51.80% 20.95% 14.87% OTHER INST. CHILEAN PENSION SHAREHOLDERS FUNDS 2.65% 9.73% Américas OTHER ADR HOLDERS SHAREHOLDERS Market Cap 2 : USD 11.34 Bn 6 1. As of June 30, 2017. 2. As of August 04, 2017.

Macro context Market context in 2Q Local Currencies vs USD Enel Américas Energy Average Annual GDP growth 1 (%) demand 2 (%) Spot Price (USD/MWh) (YoY%) 4 Colombia 2.0% Colombia 35 Colombia 6.3% Colombia 0.6% Brazil 0.4% 3 Brazil 72 Brazil -2.0% Brazil 14.1% Peru 2.6% Peru 9 Peru 3.2% Peru 3.1% Argentina 2.7% Argentina -4.8% Argentina N/A Argentina -9.6% 1. GDP (e) for 2017. Source: Latin America Consensus Forecast as of July 2017 2. Cumulative Demand. Brazil: Ampla and Coelce (Brazil Energy demand does not include Celg-D), Colombia: Codensa, Peru: Edelnor, Argentina: Edesur. 7 3. Southeast / Central-West region. 4. YoY. Source: Internal.

Strategic Plan 2017-2019 (1) 1. Strategic Plan does not include Celg-D consolidation effects

Strategic Plan 2017-2019 Industrial and ESG pillars Digitalization Industrial pillars ESG pillars  Engaging the local communities  Operational efficiency  Engaging the people we work with  Industrial growth  Aiming at operating efficiency and innovation  Group simplification  Decarbonizing the energy mix Customer Focus 9

Industrial Pillars

Industrial Pillars Operational efficiency 1 % accomplished as of 1H 2017 2016 2019 June, 2017 OPEX 122 210 234 90% SG&A 32 54 59 92% Cash Optimization 11 4 15 73% Tax 50 50 50 100% Total 208 325 358 91% Efficiencies vs 2015 Already accomplished more than 90 % of total efficiencies announced 1.- MUSD net of inflation and Fx changes 11 * Annualized value .

Industrial Pillars Industrial Growth - Capex 2017 - 2019 Total capex Growth capex by business Growth capex by country 5% 11% 8% 26% 2.3 US$bn 2.3 US$bn 4.3 US$bn 47% 26% 53% 87% 37% Networks Generation Retail Argentina Brazil Colombia Peru Maintenance Growth Growth capex concentrated in Networks Initial Capex estimated for CELG-D USD 0.8 bn on top of the Strategic Plan figures 12

Industrial Pillars Industrial Growth - New regulatory cycles 2020 2016 2017 2018 2019 Every 4 Enel Distribución Perú years Every 5 Codensa 1 years Every 4 Enel Distribuição Ceará years Every 5 + 160 mm USD (3) Enel Distribuição Rio years Every 4 Celg-D years Every 5 + 440 mm USD (3) Edesur 2 years RTI in Argentina approved 4 th regulatory cycle for Enel Dx Rio already signed 1. 2014 process is still pending. It is expected to start the process by 1Q 2018. 13 2. New tariff scheme in Argentina in place from February 01 st , 2017 3. Strategic Plan 2017-2019

Industrial Pillars Industrial growth – New regulatory cycles 2017-19 EBITDA 1 impact Regulation @ Strategic Plan 2017-2019 New Regulation expected @ Strategic Plan 2017-2019  Recognized RAB remuneration: Expected  RAB 2017 ~ 2.1 bnUSD, WACC 12.5% Argentina Temporary tariff based on historical Opex and + 0.44 (Edesur) Capex from February 2016  Recognized Opex at 2016 level  Depreciation: 2.7% yearly   4 th cycle starting from 2018 (WACC 12.3%) 3rd cycle until 2019 (WACC 11.4%) Brazil   (Enel Dx Bad debt recognition updated every 5 years Recognition of bad debt updated yearly + 0.16 Rio)   Recognized losses: based on ANEEL model Recognized losses: new target from 2017  RAB calculation: revenue cap model updated  RAB calculation: price cap model with investments  RAB updated every 5 years Colombia  New Opex as a % of new assets and historical -0.06  (Codensa) Opex connected to quality indicators recognized Opex  WACC: 13.7%  WACC: Pending to be defined Total + 0.54 1. (bnUSD) cumulative 14

Industrial Pillars Industrial growth – New regulatory cycles – Argentina (Edesur) Methodology model • Price cap model. • VNR (Valor Neto de Reposiciòn) depreciated according to the lifetime of the assets. Regulated rate of return • WACC 12,46%. Real pre-tax. Regulated Asset Base • RAB recognition of approximately U$D 2.5 Bn (VNR depreciated model) – Internal source VAD ( Valor Agregado de Distribución ) • VAD recognition of approximately U$D ~ 914 Mn. • Tariff increase will be applied in 3 different steps: February 2017 (42%); November 2017 (12%); February 2018 (12%). • VAD determined in real terms adjusted by inflation VAD. Adjusted also by an efficiency factor (X) and by investments (Q). Investments • FY 2017-2019: U$D 0.9 Bn committed in line with the Company’s Strategic Plan presented last November. • Resolution has established a mechanism of investments control to be periodically monitored by the Regulator. Economic and Financial impacts • Upside in EBITDA versus 2017-2019 Strategic Plan • Improvement also in Cash Flow although lower than effect on EBITDA Others commitments (Edesur) • Improve current levels of SAIDI and SAIFI increasing quality and reducing penalties. • Increase control in energy losses. Regulatory target (10%) to be reached by 2019. Current level of losses 12%. • Upgrade quality of customers care. 15

Industrial Pillars Industrial growth – New regulatory cycles – Brazil (Enel Distribuição Rio) New limits of non-technical losses % over low tension market  Enel Río Tariff Review anticipation for 2018 24.40% (Previous was 2019) The values of 2019 - 2023 will be defined based on 19.4%  Regulatory non-technical losses review: new 18.5% the Aneel methodology revision in 2018/19 limits for 2017 and 2018, with partial recognition of losses in areas with high criminal levels as an exception of socio-economic model 15.7%  14.7% Regulatory Bad Debt: annual adjustment based 13.6% on the regulatory revenue requirement established 12.6% 11.5% in the tariff readjustment process New Limits Original Limits 2016 real values  Components A costs neutrality: Calculated for energy, transmission, bad debt and other financial costs.  Adequacy of quality indicators: Definition of a 2017 2018 2019 2020 2021 path to adapt the DECi / FECi indicators to FECi Limits regulatory limits from 2018 yo 2022 DECi Limits 22.06 12.02 frequency Hours  Efficiency in economic and financial management: The establishment of new 21.08 11.6 10.22 objectives for economic and financial management 17.91 8.53 14.01  7.1 The non-compliance for 2 consecutive years or 6.73 10.71 9.86 in 2022 of the new quality and economic and financial management objectives, will trigger a process for the termination of the concession 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Contractual Limits 2016 real values Contractual Limits 2016 real values