Enersis Value Growth Santiago/May/2015
Disclaimer This presentation contains statements that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this announcement and include statements regarding the intent, belief or current expectations of Enersis and its management with respect to, among other things: (1) Enersis ’ business plans; (2) Enersis ’ cost-reduction plans; (3) trends affecting Enersis ’ financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere; (4) supervision and regulation of the electricity sector in Chile or elsewhere; and (5) the future effect of any changes in the laws and regulations applicable to Enersis or its subsidiaries. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of various factors. These factors include a decline in the equity capital markets of the United States or Chile, an increase in the market rates of interest in the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere and other factors described in Enersis ’ Annual Report on Form 20-F. Readers are cautioned not to place undue reliance on those forward-looking statements, which state only as of their dates. Enersis undertakes no obligation to release publicly the result of any revisions to these forward-looking statements. Enersis 2 Public Santiago, May 2015
Agenda Enersis investment highlights Overview of Enersis’ capital increase Annexes Enersis 3 Public Santiago, May 2015
Owership profile CHILEAN PENSION 12.3% FUNDS 10.5% ADR HOLDERS 60.6% 14.8% OTHER INST. SHAREHOLDERS 1.8% OTHER SHAREHOLDERS Enersis 4 Public Santiago, May 2015
Enersis investment highlights Largest private power platform in Latin America • Unique and well diversified portfolio of assets • Markets with stable regulatory environment • Prudent commercial policies • Proven track record in operating utilities • Outstanding financial performance • Enersis 5 Public Santiago, May 2015
Enersis investment highlights Enersis is Latin America ´ s largest private power company Brazil Colombia #2 3,059 MW 987 MW 19% Market Share Gx 2% Market Share Gx 2.8 million clients 6.6 million clients Sales 13,667 GWh Sales Dx 22,878 GWh 23.9% Market Share Dx 6% Market Share Dx #1 Peru 2,100 MW transmission lines 1,949 MW 27% Market Share Gx Argentina #2 1.3 million clients Sales Dx 7,359 GWh 4,522 MW 30.0% Market Share Dx 19% Market Share Gx #1 Chile 2.5 million clients 6,351 MW Sales Dx 18,015 GWh 33% Market Share Gx 20% Market Share Dx 1.7 million clients Sales Dx 15,702 GWh 44% Market Share Dx Total Generation Total Distribution Installed capacity: 16,868MW Clients: 14.8 million Energy sales: 69,230 GWh Energy sales: 77.621 GWh Source: Company filings and presentations. Gx Data as of December 31, 2014; market shares calculated based on installed capacity; Dx data as of December 31, 2013 ; market shares based on energy Enersis 6 Public sales. Santiago, May 2015
Enersis investment highlights Unique portfolio of assets in the region Overview (2014) Distribution Generation Clients 14.8 million 8,819 Installed Capacity 16,868 MW 6.5 7,090 2.8 2.5 1.7 1.3 872 Hydro Oil-Gas Coal 52% of Enersis’ installed capacity is hydro, which • Enersis distributes energy in South America’s largest • represents the lowest production cost cities Enersis 7 Public Santiago, May 2015
Enersis investment highlights Oustanding indicators Distribution Generation Thousand new clients per year EBITDA / installed MW (US$) 1,6 millon 1.7 mm New clients clients 157,965 144,905 492 129,221 121,679 384 387 359 88,194 36,844 2011 2012 2013 2014 Enersis Colbún Aesgener Tractebel ECL Enersur (Gx) Enersis is the company with highest EBITDA per installed MW in the region In the past 4 years we added a “ Chilectra sized” amount of new clients Enersis 8 Source: Data as of December 30, 2014. Public Santiago, May 2015
Enersis investment highlights Well diversified by country and type of activity Overview (2014) Generation – energy sales Distribution – energy sales Peru Peru 9% Argentina Argentina 23% 14% 22% 18% Colombia Colombia Brazil 23% 10% 20% 30% Brazil 31% Total: Total: 69,230 GWh 77,621 GWh Chile Chile EBITDA 1 Argentina Peru 1% 14% Brazil 26% 56% 44% Colombia 36% Distribution Generation 23% Chile Total: MUS$ 4,032 Enersis 9 Public Santiago, May 2015 Source: Company filings; Note: 1 Assumes average FX rate of 570.4 CLP/USD
Enersis investment highlights Largest private power platform in Latin America • Unique and well diversified portfolio of assets • Markets with stable regulatory environment • Prudent commercial policies • Proven track record in operating utilities • Outstanding financial performance • Enersis 10 Public Santiago, May 2015
Enersis investment highlights Despite a complex global macro environment, Latin America offers large opportunities for growth 5,9% 3,5% 3,2% Growth in 2,6% 2,5% electricity demand as of FY 2014 vs. FY 2013 Chile Brazil Colombia Peru Argentina 4.7 2016 2015 3.7 3.5 3.5 3.4 2.8 2.8 2.8 1.9 1.9 1.7 Expected real GDP 1.2 growth 1 (%) 0.5 1.1 Chile Brazil Colombia Peru Argentina North Western America Europe S&P Rating 1 Chile Peru Colombia Argentina Brazil CDS 2 AA- BBB- BBB+ BBB SD 90.00 243.00 150.00 140.02 Enersis 11 Public 1 Latin American Consenaus Forecast as of April. 2015 Santiago, May 2015 2 Credit Default swaps as of April 2015
Enersis investment highlights High growth prospects Energy demand • growth is very stable in the countries where we operate, showing a growth average of 3.5% in 2014. Compared to • developed countries, Enersis is in a very 5.9% good position for growth 3.5% 3.2% 2.6% 2.5% -1.0% Chile Argentina Brazil Colombia Peru OECD Countries Enersis 12 Public Santiago, May 2015
Enersis investment highlights High growth prospects Enersis 13 Public Santiago, May 2015
Enersis investment highlights Generation’s regulatory framework encourages stability and creates incentives that guarantees expansion Brazil Peru Characteristics Chile Colombia Auctions for 15, 20 and Auctions for 15, 20 Auctions for 15, 20 Long term auctions for the Open contracts and 30 years 30 years regulated market facilitate and 30 years expansion • Income based on • Income based on Income based • Energy auctions for contributions during contributions during on contributions at least 20 years peak demand peak demand Payment based on capacity during peak • Recognition of dual • Recognition of dual independent of technology • Recognition of dual demand generation for gas generation for gas generation for gas turbines turbines turbines Frequency of recalculation of Calculated Calculated every Calculated every regulated guaranteed pass Calculated monthly monthly 3 – 12 months 3 – 12 months through to the end customer Markets with audited or Spot market with Spot market with Spot market with Spot market with auctioned costs auctioned costs audited costs audited costs audited costs Enersis 14 Public Santiago, May 2015
Enersis investment highlights A sound commercial policy reduces profit volatility Energy contracts with established prices (TWh) target’s 71% 66% 66% 63% 60% achievement 48.8 45.8 Argentina 45.7 43.6 41.9 11.6 Colombia 11.1 11.6 10.2 7.7 Peru 8.9 9.4 9.4 10.1 9.3 Brazil 5.1 2.7 2.7 2.7 2.7 Chile 22.6 22.4 22.0 21.4 21.4 2015 2016 2017 2018 2019 Currently, Enersis has contracted 71% of its commercial target for 2015 and Enersis 15 Public 66% for 2016 Santiago, May 2015
Enersis investment highlights High percentage of energy contracted in advance Brazil Characteristics Chile Colombia* Peru Indefinite 30 years Indefinite Long-term concessions Indefinite 1st set: 1997 1st set: 1997 1st set: 2003 1st set: 1984 Stable regulatory frameworks # of revisions: 4 #of revisions: 7 # of revisions: 3 # of revisions: 4 10.0% 12.0% 12.3% Attractive 13.9% Defined by law profitability metrics Defined by law Calculated in each Calculated in each revision (pre-tax, real terms) revision New replacement New replacement New replacement Tariffs are set using technical New replacement value based on value based on real value based on and value based on real optimized network network optimized network objective criteria network • Chamber of commerce settles disputes among There are • Regulator is the agents • Regulator settles • “Expert Panel” designated • Foundation Getulio Vargas is in charge of conflict resolution disputes among agents solves disputes authority to resolve arbitration between the mechanisms in place to conflicts and • Regulator settles disputes among regulated clients regulator and • Regulator imposes impose sanctions and imposes sanctions settle disputes effectively agents sanctions: SSPD + CREG when necessary 16 Enersis Public Santiago, May 2015
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