Enel Americas S.A. · BCS:ENELAM
Enel Americas — Merger or Acquisition (December 2020)
18 slides from Enel Americas's merger presentation, Dec 1, 2020
Slide 1: Merger of EGP Américas' Assets
Merger of EGP Américas’ Assets December 1st, 2020 Américas
Slide 2: Positive Transaction in All Relevant Aspects
Positive Transaction in All Relevant Aspects Merger of EGP Américas’ Assets benefits all ENIA shareholders Américas • Exchange ratio in line with mid-point of independent valuators/appraisers implying: ü ‒ ENIA at 40% premium vs. unaffected share price(1) commensurate with a typical M&A control prem
Slide 3: Constructive Valuation Approach to ENIA and EGPA
ü Valuation Constructive Valuation Approach to ENIA and EGPA ENIA at significant premium to market price and EGPA below public peers Américas Significant Premium to Enel Américas’ Share Price EGPA Implied Multiple lower than direct public peers(2) EBITDA 2020-2022 CAGR Valuation Implied Share Price(
Slide 4: The Right Path to an Improved Cost of Capital
ü Valuation The Right Path to an Improved Cost of Capital A greener generation matrix would lead to additional value for Enel Américas’ shareholders Américas Lower Cost of Debt Reduced Risk Perception Mid Yield to Maturity (US$)(1) - Last 2 Months Avg.(2) Unlevered Beta(3) 0,66 5.34% 0,59 0,60 -16%
Slide 5: Energy Transition Increasingly a Theme Driving Premium Valuations
ü Valuation Energy Transition Increasingly a Theme Driving Premium Valuations Américas Positive correlation between carbon emission reduction and relative valuation (US Example) ESG Positioning Considerations Carbon Emissions Reduction Target (%) vs. 2021 P/E Multiple(1) Target deadline year of 2030
Slide 6: Positive Market Reaction
Market ü Reaction Positive Market Reaction Share price increased +10% since transaction announcement Américas Share Price Performance Since Transaction Announcement Considerations Indexed to 100 on September 22nd , 2020 • ENIA share price has outperformed LatAm utilities MSCI since announcement 3 •
Slide 7: Positive Market Reaction
Market ü Reaction Positive Market Reaction Américas Research Analysts Views Rating Agencies Views Fitch believes ENIA’s announced proposed merger with EGP Americas (EGP) is Our opinion is that the relative valuations We think the valuations are fair (our TP for credit positive and solidifies its 'A-
Slide 8: Media Reaction
Market ü Reaction Media Reaction La Tercera, Diario Financiero, El Mercurio, and Superintendencia de Pensiones Américas Enel Américas’ Board Enel Américas will supports merger with absorb renewable EGPA in the region: Enel Américas’ Board supports assets in the Enel SpA will increase merger and summ
Slide 9: Transaction Rationale
Strategic ü Rationale Transaction Rationale Américas Integrate with the largest non-conventional renewable platform in LatAm with 3.3 GW in operation, 2.2 GW in execution 1 and 2.4 GW in advanced development stage, as well as 22.1 GW pipeline as of September 2020 Boost Enel Américas’ energy transiti
Slide 10: EGPA Assets Contribute With Long Term Cash Flows
Strategic ü Rationale EGPA Assets Contribute With Long Term Cash Flows Considering assets in the business plan (not considering further growth) Américas Enel Americas’ and EGPA’s average asset life Américas Américas 48 Considers only in operation / 44 in execution assets Incremental average asset li
Slide 11: Contract Level Improvement in Key Regions
Strategic ü Rationale Contract Level Improvement in Key Regions Volumes, % Contracted, Prices and Average Duration Américas Country PPAs(1) Volume (TWh) & % Contracted(2) Monomic PPAs Price (US$ / MWh)(3) EGPA Free Market (%) Avg. PPAs Duration 93% 86% 94% 92% 78% 67% 2020 2022 22,2 24,5 64,3 61,9 6
Slide 12: EGP Américas' Assets Load Factor
Strategic ü Rationale EGP Américas’ Assets Load Factor High quality assets that will enhance Enel Américas’ generation profile Américas Country Solar (%) Wind (%) Hydro (%) 64% 64% 64% 64% 64% 56% 56% 52% 49% 40% 27% 31% 30% 28% 30% BRAZIL 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021
Slide 13: Sound Governance Principles
ü Governance Sound Governance Principles Enel Américas will maintain the highest governance standards among Chilean listed companies Américas Enel Américas’ Market Capitalization Enel Américas' Corporate Governance Principles Pre-Transaction Post-Transaction(1) • Unanimous approval from the Board of
Slide 14: Transparent Process
Negotiation ü and Process Transparent Process Advisors were provided with identical information for their analyses Américas Advisor Appointed By Scope Activities Performed • Inform the shareholders: Enel Américas' Management Presentations Independent That the transaction is being covering business d
Slide 15: Merger Timetable
Merger Timetable Process structured to strictly follow the Regulator’s guidelines Américas Indicative Timetable & Next Steps 21 September 12 November 18 December By Mid January By the end of 2020 2020 2020 2021 Q2 2021 CLP 109.79 / ü Transaction ü Board calls for ESM votes on the merger Withdrawal r
Slide 16: Disclaimer
Merger of EGP Américas’Assets Disclaimer Américas Important Legal Information This presentation does not constitute an offer to sell securities and is not soliciting an offer to buy any securities in any jurisdiction. This presentation should in no way be deemed to be an offer or an invitation to pa
Slide 17: Thank you.
Merger of EGP Américas’ Assets Contact Us Américas Contacts Email [email protected] Channels Website Mobile App www.enelamericas.com Enel Américas Investors Rafael de la Haza Head of Investor Relations Download App iOS Android Investor Relations team Jorge Velis Javiera Rubio Nicolás Gracia F
Slide 18: Américas
Américas 18 Enel Américas Investor Relations
Enel Américas — Merger or Acquisition (December 2020) on 6ix