Enel Americas S.a. · BCS:ENELAM
Enel Americas — Enersis Américas — Investor Presentation (June 2016)
29 slides from Enel Americas's investor presentation, Jun 7, 2016
Slide 1: Enersis Américas IR Presentation
Enersis Américas IR Presentation 07/06/2016
Slide 2: 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 Americas Endesa Chilectra Chile 99.1% 60.0% Endesa Chilectra ARG BRA COL PE Chile CHI ARG BRA COL PE Chilean Chi
Slide 3: Ownership profile
Enersis Américas investment highlights Ownership profile 60.62% 11.77% 15.81% CHILEAN OTHER INST. PENSION FUNDS SHAREHOLDERS 9.71% 2.09% OTHER ADR HOLDERS SHAREHOLDERS 3 Data as of February 29, 2016
Slide 4: Why Enersis Américas
Enersis Americas Investment Highlights 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 L
Slide 5: Seasoned Sector Leadership Team
Enersis Americas Investment Highlights Seasoned Sector Leadership Team Borja Acha Chairman 25 years of corporate Experience 4 years of experience in Enel Group Graduated in Laws at Universidad Complutense of Madrid Luca Javier D’Agnese Galán CEO CFO 28 years of corporate Experience 31 years of corpo
Slide 6: 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 3,459 MW Net Production 4,398 Net Production 13,705 Sales 6,541 Sales 16,886 1% Market Share Gx 19% Market Share Gx Distribution Distribution 6.8 m
Slide 7: Unique portfolio of assets in the region
Enersis Américas investment highlights Unique portfolio of assets in the region Overview Distribution Generation 6.5 Clients 13.1 million Installed Capacity 10,951 MW 5.792 4.923 2.8 2.5 1.7 236 Hydro Oil-Gas Coal • Enersis Américas distributes energy in South America’s largest • 53.4% of Enersis Am
Slide 8: 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 10.951 405 8.765 7.700 343 343 3.862 457 457 457 3.032 1.827 338 338 338 338 2012 2013 2014 2015 ENERSIS Tra
Slide 9: Well diversified by country and type of activity
Enersis Americas 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 10: Latin America offers large opportunities for growth
Enersis Américas investment highlights Despite a complex global macro environment, Latin America offers large opportunities for growth 4,7 4,2 % Growth in electricity demand 2,2 as of FY 2015 0,7 vs. FY 2014 Brazil Colombia Peru Argentina 4,0 3,6 3,4 0.6 2,5 2,1 2,4 1,6 1,7 0,6 Expected real GDP gro
Slide 11: High growth prospects: electricity consumption
Enersis Américas investment highlights High growth prospects Electricity consumption in the world kWh/GDP (PPP) per capita 18000 16000 Canada Finland • Energy demand growth is 14000 very stable in the United States kWh per inhabitant 12000 countries where we Australia operate, showing a 10000 Japan
Slide 12: High growth prospects
Enersis Américas investment highlights High growth prospects 12 Source: CIA World Factbook and internal data, as of 2014
Slide 13: Periodic tariff revision processes
Enersis 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 Visibility of cash flows 13 1. 2014 process is still pending
Slide 14: Attractive profitability
Enersis investment highlights Attractive profitability 1 RAB (US$ million) Allowed Return (real, pre-tax) 4.477 678 Codensa 13.9% 1.113 Edelnor 12.0% 1.237 Ampla 11.4% Coelce 12.3% 1.450 Codensa Edelnor Ampla Coelce Total RAB Average allowed return: 12.4% RAB and allowed return will be defined in Ar
Slide 15: Distribution tariff revisions schedule and value creation tools
Enersis 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 Continuous effi
Slide 16: Proven experience in controlling energy losses
Enersis investment highlights Proven experience in controlling energy losses Energy Losses Evolution (from take of control to current situation) EBITDA in Distribution MUSD 21,9% 44% 1,194 829 11,3% 2009 2015 Average historical losses (1) 2015 25.3% New Technologies 22.1% 22.5% 17.3% 18.8% • Ampla C
Slide 17: Taking advantage of Enel platform
Enersis 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 Innovation synerg
Slide 18: EBITDA by country
Enersis investment highlights Enersis has achieved significant profitability among the regions EBITDA by country (MUS$)1 Relative weight on main indicators % over the total 2.715 2.651 2.483 •41% Installed Capacity 2.333 37 Argentina •19% Clients 312 499 314 359 422 •18% Installed Capacity 537 Peru
Slide 19: Overview of net income and capex
Enersis investment highlights Overview of net income and capex Net income Capex and as % of sales (MUS$)¹ (MUS$)² CAGR 12-15: 5.2% 1.424 1.279 1.330 1.317 1.176 19% 1.074 966 864 21% 15% 14% 2012 2013 2014 2015 2012 2013 2014 2015 19 Source: Company filings and presentations; 1 Refers to total net i
Slide 20: Debt position and maturity
Enersis investment highlights Enersis’ debt position allows the company to achieve growth at comfortable margins due to its rigorous financial policies Total debt as of FY 2015 3,138 Debt maturity as of (MUS$) FY2015 92 3% Argentina Bonds Bank and others 357 20% Peru 978 206 209 Colombia 52% 106 533
Slide 21: Annexes
Annexes enersis americas 21
Slide 22: 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 23: 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 24: Distribution regulatory framework
Enersis 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 # of revisio
Slide 25: Electricity Sales by Country
Electricity Sales by Country As of December 2015 TOTAL COUNTRIES 18% Contracts Spot 82% Perú Colombia Brazil 8% 10% 26% 74% 92% 90% 25
Slide 26: Leading the distribution business in South America
Enersis Americas Investment Highlights Leading the distribution business in South America Competitive Position Overview of Assets Distribution Clients in LatAm (mm) Clients in mn (Dic-15) EBITDA (US$mm) (2015) 13,4 8,9 10% 8 19% 13% 22% Argentina Argentina 21% Brasil Brasil 13.4 1,667 22% Colombia C
Slide 27: 2016-2020 Investment Plan
Enersis Americas Investment Highlights Industrial growth (USD mn) 2016-2020 Investment Plan Capex Plan v/s Used Capex 4.5 bn USD 196 mn USD 2016-2019 1Q16 Total Capex Breakdown 2016-2019 Dx By Country By Item 19% 15% 18% Argentina 26% Gx Maintenance Brazil Gx Growth 15% Colombia Dx Maintenance 25% 4
Slide 28: Enersis Américas volatility vs Peers
Enersis Americas Investment Highlights Enersis Américas volatility vs Peers1 Volatility 2 3 4 ADTV4 (US$Mn) Source: Bloomberg. Average Exchange Rate 2015 USDCLP: 654,66; USDBRL: 3,3357; USDCOP: 2.747,24; USDPEN: 3,1847. I= Integrated; G= Generation; D=Distribution (1) Circle size represents market c
Slide 29: 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