Enel Americas S.a. · BCS:ENELAM
Enel Americas — Enersis Américas — Investor Presentation (September 2016)
41 slides from Enel Americas's investor presentation, September 2016
Slide 1: Enersis Américas IR Presentation
Enersis Américas IR Presentation September 2016
Slide 2: Company Description
enersis americas Grupo Enel Company Description
Slide 3: Reorganization process
Reorganization process A more simple and streamline organization Previous Structure Post Transaction Enersis Pure Chilean Group Latam1 investment vehicle 99.1% 60.0% Enersis Enersis Chile Chilectra Américas Endesa Endesa Américas Américas Chilectra Chile 99.1% 60.0% Endesa Chilectra ARG BRA COL PER
Slide 4: Ownership profile
Ownership profile 60.62% 11.52% 15.91% CHILEAN OTHER INST. PENSION FUNDS SHAREHOLDERS 10.07% 1.88% OTHER ADR HOLDERS SHAREHOLDERS Market Cap Ch$ 5,537.66 bn US$ 8,160.79 mn 4 Data as of August 31, 2016
Slide 5: Why Enersis Américas
Why Enersis Américas …Leading to Increasing Presence in a Macro Cash Flows, with a Environment with 1 Multiple Growth Strong Capital Structure 6 Opportunities Unique and Diversified Focused Expansion 5 2 Investment Vehicle for Strategy… the LatAm Power Sector Leading the distribution Seasoned Sector
Slide 6: Seasoned Sector Leadership Team
Seasoned Sector Leadership Team Borja Acha Chairman 25 years of corporate Experience 4 years of experiencie in Enel Group Graduated in Laws Universidad Complutense de Madrid Luca Javier D’agnese Galán CEO CFO 28 years of corporate Experience 31 years of corporate Experience 5 years of experiencie in
Slide 7: Latin America's largest private power company
Enersis Américas investment highlights Enersis Américas is Latin America´s largest private power company Brazil Colombia #2 Generation 987 MW Generation 1% Market Share in Installed capacity 3,459 MW 21% Market Share in Installed capacity #2 Net Production 4,398 GWh Sales 6,541 GWh Net Production 13
Slide 8: Unique portfolio of assets in the region
Enersis Américas investment highlights Unique portfolio of assets in the region Overview Distribution Generation Clients 13.5 million Installed Capacity 10,951 MW 6.8 5,792 4,923 53% of 2.9 installed 2.5 capacity 1.3 236 Hydro Oil-Gas Coal • Enersis Américas distributes energy in South America’s lar
Slide 9: Outstanding indicators
Enersis Américas investment highlights Outstanding indicators Distribution Generation thousand new clients per year Installed MW as of December 31, 2015 ~1.5 million new clients every 4 years 10,951 1,543 8,765 405 7,700 1,138 343 343 795 3,862 457 457 457 3,032 1,827 338 338 338 338 2012 2013 2014
Slide 10: Latin America offers large opportunities for growth
Enersis Américas investment highlights Latin America offers large opportunities for growth 4.2 4.7 2.2 % Growth in 0.7 electricity demand1 Brazil Colombia Peru Argentina 2016 2017 3.7 4.2 3.3 2.9 2.2 2.3 1.5 1.5 1.0 1.2 Expected real GDP growth2 (%) -1.5 -3.2 Brazil Colombia Peru Argentina North Ame
Slide 11: Well diversified by country and type of activity
Enersis Américas investment highlights Well diversified by country and type of activity Overview (2015) Generation – energy sales Distribution – energy sales Peru Peru 19% Argentina 12% Argentina 33% 30% Colombia 22% Colombia 35% 13% 36% Total: Brazil Total: Brazil 48,481 GWh 62,838 GWh EBITDA1 22%
Slide 12: High growth prospects
Enersis Américas investment highlights High growth prospects Electricity consumption in the world kWh/GDP (PPP) per capita 18,000 16,000 Canada Finland • Energy demand growth is 14,000 very stable in the United States kWh per inhabitant 12,000 countries where we Australia operate, showing a 10,000 J
Slide 13: High growth prospects
Enersis Américas investment highlights High growth prospects 13 Source: CIA World Factbook and internal data, as of 2014
Slide 14: Significant profitability among the regions
Enersis Américas investment highlights Enersis has achieved significant profitability among the regions EBITDA by country (MUS$)1 Relative weight on main indicators % over the total 2.715 2.651 2.483 •41% Installed Capacity Highest Installed 2.333 37 Argentina •19% Distribution Clients Capacity 312
Slide 15: Dividend Yield – Post merger
Enersis Americas Investment Highlights Dividend Yield – Post merger 2016 2017 2019 EBITDA 2.4 2.8 3.3 EBITDA Margin 33% 36% 37% Net Income 0.6 0.9 1.1 Dividend Policy 50% 50% 50% Dividend Yield * 4.0% 6.0% 7.4% Dividend Yield Growth 50% 85% 15 * Last Price as of May 31st: ENIA 105,0 CLP.
Slide 16: Overview of net income and capex
Enersis Américas investment highlights Overview of net income and capex Net income Gross Capex (MUS$)¹ (MUS$)² 1,330 1,317 1,600 1,564 1,176 1,361 23% 23% 49% 77% Attributable Attributable Attributable Net Income Net Income Net Income 77% 51% 695 604 738 (52%) (51%) (56%) Maintenance Growth 2013 201
Slide 17: 2016-2019 Capex Plan
Enersis Américas Investment Highlights Capex (US$ bn) 2016-2019 Capex Plan 4.5 1.7 0.5 FY 2015 2016-2019 1H16 Total Capex Breakdown 2016-2019 By Country By Generation By Distribution By Nature 17% 13% 14% 20% 22% 18% Gx 35% 26% Gx Maintenance 4.5 1.4 28% 3.1 15% Gx Growth 25% 23% Dx Dx Maintenance 3
Slide 18: Focus on Generation Activities
Focus on Generation Activities 18
Slide 19: Leading the generation business in South America
Enersis Américas Investment Highlights Leading the generation business in South America1 Competitive Position Overview of Assets Installed Capacity (MW) Installed Capacity (MW) EBITDA (US$mm) 10,950 8,765 7,700 10% 32% Colombia 3,862 41% 18% 3,032 Peru 10,950 1,321 47% 1,827 Brazil Argentina 18% 25%
Slide 20: Generation's regulatory framework
Enersis Américas investment highlights Generation’s regulatory framework encourages stability and creates incentives that guarantees expansion CHARACTERISTICS Colombia Peru Brazil Long term auctions for the Auctions for 15, 20 and 30 Auctions for 15, 20 Open contracts regulated market facilitate yea
Slide 21: Focus on Distribution Activities
Focus on Distribution Activities 21
Slide 22: Leading the distribution business in South America
Enersis Américas Investment Highlights Leading the distribution business in South America1 Competitive Position Overview of Assets Distribution Clients in LatAm (mm) Clients (mn) EBITDA (US$mm) 13.5 8.9 10% 13% 8.0 19% 22% Argentina 21% Brasil 13.5 1,667 22% Colombia Perú 0.8 50% 43% Enersis América
Slide 23: Periodic tariff revision processes
Enersis Américas investment highlights Periodic tariff revision processes 2016 2017 2018 2019 2020 Every 4 Edelnor years Every 5 Codensa1 years Every 4 Coelce years Every 5 Ampla years To be Edesur2 define Visibility of cash flows 23 1. 2014 process is still pending. It is expected to start the proc
Slide 24: Distribution tariff revision schedule
Enersis Américas investment highlights Schedule for distribution tariff revisions is clear and well laid out for the following years Evolution of profitability in the regulated Tools for value creation business Reduction of losses Return % Returns increase and partial transfer of efficiencies Contin
Slide 25: Proven experience in controlling energy losses
Enersis Américas investment highlights Proven experience in controlling energy losses Energy Losses Evolution (from take of control to current situation) EBITDA in Distribution MUSD 1,194 20.1% 44% 829 12.2% Historical1 2009 2015 Current2 Average historical losses Average current losses 22.3% 22.8%
Slide 26: Attractive profitability
Enersis Américas investment highlights Attractive profitability 1 RAB (US$ million) Allowed Return (real, pre-tax) Codensa 13.9% 678 Edelnor 12.0% 4,477 1,113 Ampla 11.4% 1,237 Coelce 12.3% 1,450 Codensa Edelnor Ampla Coelce Edesur Total RAB Average allowed return: 12.4% Clients: 2.9 mn Clients: 1.3
Slide 27: Distribution regulatory framework is stable
Enersis Américas investment highlights Distribution regulatory framework is stable and encourages investment Characteristics Colombia Peru Brazil LONG-TERM CONCESSIONS Indefinite Indefinite •30 years 1st set: 1997 1st set: 1997 STABLE REGULATORY •1st set: 2003 # of revisions: 4 # of revisions: 3 # o
Slide 28: Capital Structure Focus on Debt
Capital Structure Focus on Debt 28
Slide 29: Debt position and debt profile
Enersis Américas investment highlights Enersis Américas’ debt position allows the company to achieve growth at comfortable margins due to its rigorous financial policies Total debt as of June 30, 2016: 4,000 Debt profile as of (MUS$) June 30, 2016 (MUS$) Argentina 2% Brazil 2,208 26% Colombia 547 66
Slide 30: Consolidated Gross Debt
Enersis Américas investment highlights Gross Debt1 (US$ mn) Enersis Américas EBITDA 1: 2,467 Gross Debt 4,000 Gross Debt 287 Holding Consolidated Gx Gross Debt 1,829 2 Dx Gross Debt 1884 Cash 1,065 Cash 1,808 Net Debt/EBITDA 0.9x Net Debt/EBITDA - Endesa EBITDA 1: 1,031 Chilectra Américas Américas G
Slide 31: Gross Debt Breakdown
Enersis Américas investment highlights Gross Debt Breakdown1 (US$ mn) 4,000 4,000 4,0002 4,000 Argentina 2% Others 5% Chile 7% PEN 11% Fixed Cost Peru 16% USD 13% ~7% Banks 27% Fixed 36% 38% Brazil 25% BRL 25% Average of ~10% Variable Cost Bonds 68% Colombia 49% 49% Variable 64% COP 62% ~13% By type
Slide 32: Maximum Leverage Capacity
Enersis Américas investment highlights Maximum Leverage Capacity (US$ Bn) Short Term LongTerm 5.8 4.2 (1.75x Net Debt/EBITDA) (1.75x Net Debt/EBITDA) Maximum 2.0 Maximum Leverage 3.3 3.6 Leverage Capacity 2.4 Capacity 2.2 2.2 1 EBITDA FY2016 Current Net Debt 1 EBITDA FY2019 Current Net Debt 32 1. Ne
Slide 33: Annexes
Annexes 33
Slide 34: Taking advantage of Enel platform
Enersis Américas investment highlights Taking advantage of Enel platform Commodities sourcing Suppliers management Presence IT synergies 32 countries Net installed capacity R&D transfer 89 GW Energy management Customers ~61 million Ancilliary services/businesses Employees development 71,394 Innovati
Slide 35: EV/EBITDA and Dividend Yield
EV/EBITDA and Dividend Yield Enersis Américas and Peers Dividend Yield Enersis Américas EV/EBITDA (US$ mn) 5.0 4.39% Adjusted 4.5 861 Net Debt 4.0 EV/EBITDA: 6.3x 3.5 3.10% 3.0 2.5 Market 2.0 1.69% Cap 8,414 1.59% 1.5 1.0 0.72% 1,472 0.5 0.0 Cesp AES Tiete Copel Enersis EDP BR Américas Adjusted Adju
Slide 36: EV/EBITDA and Dividend Yield – Peers
EV/EBITDA and Dividend Yield Enersis Américas and Peers 14 12 CESP (G) Cemig (I) 10 EV/EBITDA 8 AES Tiete(G) Enersis Américas (I) 6 4 Copel (I) EDP BR (I) 2 0 0 1 2 3 4 5 6 Dividend Yield The size of the circles represents liquidity. Liquidity defined as % of free float on Market cap. 36 I: Electric
Slide 37: 1H16 Free cash flow
Enersis Américas Investment Highlights Enersis Américas 1H16 Free cash flow (US$ mn1) 1,266 -128 -383 612 -143 321 -290 -200 -278 -157 EBITDA NWC & Others Taxed paid Financial FFO Maintenance FCF Growth Capex Net Dividens CF expenses Capex paid 1. Comparisons between periods are made using the avera
Slide 38: Board of Directors
Board of Directors Non-Independent Directors Independent Directors F. de Borja Acha President Controlling shareholder Lawyer Spanish Hernán Somerville Directors’ Committee President Enrico Viale Lawyer Director Chilean Hidraulic Engineer Italian José Antonio Vargas Vice President Patricio Gómez Saba
Slide 39: Installed capacity added in 2015
Installed capacity added in 2015 Colombia El Quimbo (400MW) • Hydro power plant, located in the Huila Department, Colombia • Utilizes the flow coming from the Magdalena River. • Estimated: generation of 2,093 GWh/year, Load factor: 60% • Total CAPEX of US$ 1,231 million*. El Quimbo began commercial
Slide 40: Interconnections in LatAm
Enersis Américas investment highlights Interconnections in LatAm Venezuela Colombia Symbology Ecuador Pecem Interconnections Lines Operative Peru Brazil Under Construction Proyect Bolivia Pampa Melchorita Paraguay Bahía TRBA Mejillones Paso Agua Negra Gas Bahía de Guanabara Punta Colorada Gas pipeli
Slide 41: Disclaimer
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 curr
Enersis Américas — Investor Presentation (September 2016) on 6ix