Enel Américas Corporate Presentation, December 2018
Enel Américas Overview
Enel Américas overview 1 Enel Américas is Latin America ´ s largest private power company Brazil Colombia Generation Generation 1,354 MW 3,501 MW 1% Market Share in Installed capacity 21% Market Share in Installed capacity Net Production 4,153 GWh Net Production 14,561 GWh Sales 21.639 GWh Sales 18,572 GWh 3% Market Share in Sales 26% Market Share in Sales Distribution Distribution 17.1 million clients 3.4 million clients Sales Dx 79,596 GWh 2 Sales 13,993 GWh 17% Market Share Dx 22% Market Share Dx Transmission Peru 2,100 MW transmission lines Generation Argentina 1,985 MW Generation 16% Market Share in Installed capacity 4,419 MW Net Production 8,181 GWh 13% Market Share in Installed capacity Sales 10,527 GWh Net Production 14,153 GWh 22% Market Share in Sales Sales 14,163 GWh Distribution 10% Market Share in Sales 1.4 million clients Distribution Sales Dx 7,985 GWh 2.6 million clients 31% Market Share Dx Sales Dx 18,304 GWh 16% Market Share Dx Total Generation Total Distribution Installed capacity: 11,259 MW Clients: 24.5 million Energy sales: 64,900 GWh Energy sales: 119,602 GWh 2 1.- Source: Company filings and presentations, 2018 expected. 2,- Eletropaulo’s sales annualized. 3
Enel Américas overview Ownership profile 1 ENEL SPA 51.80% Enel Américas ’ shares are traded on: OTHER 2.60% Américas SHAREHOLDERS 15.35% Market Cap 2 : USD 9.96 Bn CHILEAN PENSION 23.06% FUNDS 7.19% OTHER INST. SHAREHOLDERS ADR HOLDERS 1. As of September 30, 2018. 2. As of November 30, 2018. 4
Delivery 2016-18
Delivery 2016-18 Main milestones in the period Total investments of US $ 3.5 bn in acquisitions Second phase of the Volta Grande Reorganization completed Eletropaulo acquisition consolidation (the “Merger”) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 16 16 16 16 17 17 17 17 18 18 18 18 First phase of the Purchase of 7.5% stake in 1 Enel Dx Goiás (Celg) Reorganization completed Enel Dx Perú from consolidation (the “Spin - offs”) minorities Key Drivers Stable and Capacity to add Capacity to add attractive Profitability Simplification value new businesses Regulation Creating value in every transaction completed since 2016 4 1. Stake in Enel Dx Perú after the 7.5% acquisition.
Delivery 2016-18 Sustainability, growth, efficiencies and value creation 2016 2018E People benefited 1 1,437 2,687 Thousand (cumulated) Sustainability commitment 0 4 2 Index Member Number of indexes I&N End users 14.1 24.5 Million Growth Gx Energy sales 64.9 TWh 50.6 43 32 3 Group simplification Number of companies Opex reduction Cumulated ~ 130 ~ 420 US$ m efficiencies 4 3.8 5.0 Gross Margin US$ bn Value creation Shareholder return 0.25 0.42 DPADR 5 US$ 7 1. Base year 2015. 2. Enel Américas is member of 4: DJSI (Chile, EM and MILA) and FTSE4Good. 3. Not included acquired companies. 4. Base year 2015. 5. Dividend per ADR (1 ADR = 50 shares of Enel Américas).
Delivery 2016-18 Financial highlights (US$ bn) EBITDA Gross Capex + 42% + 42% 3.4 3.4 1.7 1.2 2.4 2.4 2016 2018E 2016 2018E Opex evolution Net Income + 70% - 15% Minorities 0.5 1.7 0.1 (0.3) 1.2 Attributable 0.5 1.6 1.0 1.3 0.6 1.1 0.4 1.2 0.6 2016 Fx & Opex CPI Fx & CPI Efficiencies 2018E without Perimeter 2018E 2016 2018E perimeter Financial results significantly improved since 2016 6 E: Expected
Delivery 2016-18 Shareholders return Total Dividend (US$ bn) Earnings per ADR 1 (US$) Dividend per ADR 1 (US$) + 68% + 112% + US$ 0.2 bn 0.42 0.5 1.04 0.31 0.4 0.25 0.3 0.62 0.49 2016 2017 2018E 2016 2017 2018E 2016 2017 2018E Total dividend has increased by about 70% since 2016 E: Expected 9 1. 1 ADR = 50 shares of Enel Américas.
Enel Américas today
Enel Américas today 2018E KPIs and Financial numbers (US$ bn) EBITDA by country EBITDA by business I&N: 24.5 m end users US$ 11.8 bn RAB 6 7% 13% 16% Argentina Large hydro generation: 42% Generation Brazil Eletropaulo US$ 3.4 bn US$ 3.4 bn 6.2 GW capacity Colombia 28% Infrastructure & Networks 55% of total Enel Américas’ capacity Peru 51% 37% 1 Retail and Enel X 6% Thermal generation: 5.0 GW capacity Highly flexible and efficient assets Total Net Income 1.7 Opex 1.6 Free market: 1.6 k free customers Asset Management 2 0.7 Attributable Net Income 1.2 17 TWh energy sales Asset Development 3 0.6 Net Debt 7.0 Enel X: 421 k Public lighting Customers 4 0.4 Market Cap 5 9.5 105 Charging infrastructure Enel Américas is the largest private utility company in LatAm 1. Retail includes free market business. 2. Capex related to investments for recurring asset maintenance. 3. Growth investments in generation and networks (quality programs & smart metering) 9 4. Capex related to customers (Retail, Enel X (e-Home, e-Industries), Network connections). 5. As of November 23 rd , 2018. 6. VNR in Peru.
Enel Américas today 2018E Generation and I&N Net production by technology End users by country 1% 6% 10% Argentina 14% Hydro Brazil Eletropaulo 34% Oil & Gas Colombia 24.5 m 41.0 TWh CCGT Peru 59% 41% Coal 29% 6% Net production by country Distributed energy by country 8% 18% 20% 14% Argentina Argentina 34% Brazil Eletropaulo Brazil 101 TWh 41.0 TWh Colombia Colombia Peru 24% 36% Peru 36% 10% Almost 60% of our generation mix is hydro Brazil represents 70% in terms of end users and 60% of the total distributed energy 10
Energy transition and new opportunities in LatAm: our vision
Energy transition and new opportunities The role of Enel Américas 1 2 Urbanization Communities & People Concentration in urban areas Access to affordable energy Demand growth Emission reduction Grid development and automation Energy efficiency Interconnections Corporate governance 4 3 New businesses e-City Market Competition e-Industries Liberalization e-Home e-Mobility Enel Américas is ready to capture new opportunities in LatAm 14
Energy transition and new opportunities 1 Urbanization % of people living in urban areas 1 Change in primary energy demand 2000-2016 2 Mtoe 4 1970 2014 2050 Eurasia 106 EU -89 54 % 66 % 30 % United States Latam & Caribe Japan Middle China -73 -94 388 East 1888 Southeast 296 Asia 3 India Latam & Caribe 269 Africa 453 Latin America 242 Asia Africa Emerging economies have increased their energy demand as opposed to mature economies year A Region in continuous development; population concentrated in megacities and a trend of energy demand increase 13 1. United Nations 2014. 2. Source: IEA, WEO 2017, Enerdata, EC statistics. 3. Source: RED 2017 CAF-banco de desarrollo de América Latina. 4. Million Tonnes of Oil Equivalent .
Energy transition and new opportunities 2 Communities and people Enel Group Enel % Enel Américas Américas Target Engaging local communities (m beneficiaries) 2018E 1 2018E 1 / Group 2020 High-quality, inclusive and fair education 0.9 0.8 38% 0.3 Access to affordable and clean energy 2.2 2 3.0 2.0 92% mainly in Africa, Asia and Latin America Employment and sustainable and 1.8 3.0 0.3 18% inclusive economic growth 2018E Climate change 2018E 2018E 2020 Reduction of CO 2 specific emissions (kg/kWh eq ) 0.39 <0.35 0.21 54% Enel Américas is a constituent of: Sustainability commitment is present along the whole business value chain 14 1. Cumulated figures since 2015. 2. In the whole Group perimeter, 4.9 m beneficiaries were reached. Target already achieved before 2020
Energy transition and new opportunities 3 Enel X 4 Market competition Energy sales (TWh) Demand response and storage solutions ~ 2x Smart lighting for cities for C&I 1 customers 32.0 Electric mobility in LatAm Energy efficiency solutions 17.3 2018E 2021 Enel X Gross capex 2019-21 (US$ m) Energy market liberalization Starting over sales in the free market 2% 19% Increase of power sales plan and Market growth and development start of gas sales plan of gas free market ~ 350 ~ 350 47% 51% Uncertanty in power prices due Opportunities in the new scenario and to the situation of Ituango P.P. potential development of gas sales 81% Brazil Asset Development Commercial strategy redefinition to Colombia Low availability of energy for the develop the business free market Customers Rest of countries Growing contribution of Enel X and Retail businesses in Enel Américas’ 2019 -21 Strategic Plan 15 1. Consumer and industrial.
Strategic Plan 2019-21
Strategic Plan 2019-21 Strategic Pillars Industrial Shareholders Efficiencies growth return US$ 285 m + 68% EBITDA +97% DPS Opex Saving 1 growth 1 - 2 growth 1 Sustainable Sustainability long-term value commitment creation A sustainable and solid growth to increase shareholders return 1. Base year 2018E. 17 2. M&A not included.
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