Enel Américas Corporate Presentation, April 2019
Enel Américas Overview
Enel Américas overview 1 Enel Américas is Latin America ´ s largest private power company Brazil Colombia Generation Generation 1,354 MW 3,499 MW 1% Market Share in Installed capacity 20% Market Share in Installed capacity Net Production 3,755 GWh Net Production 14,052 GWh Sales 22,236 GWh Sales 18,544 GWh 5% Market Share in Sales 27% Market Share in Sales Distribution Distribution 17.1 million clients 3.4 million clients Sales Dx 79,549 GWh 2 Sales 14,024 GWh 19% Market Share Dx 18% Market Share Dx Transmission Peru 2,100 MW transmission lines Generation Argentina 1,985 MW Generation 15% Market Share in Installed capacity 4,419 MW Net Production 8,106 GWh 12% Market Share in Installed capacity Sales 10,597 GWh Net Production 13,949 GWh 21% Market Share in Sales Sales 13,952 GWh Distribution 11% Market Share in Sales 1.4 million clients Distribution Sales Dx 8,045 GWh 2.6 million clients 31% Market Share Dx Sales Dx 17,548 GWh 16% Market Share Dx Total Generation Total Distribution Installed capacity: 11,257 MW Clients: 24.5 million Energy sales: 65,329 GWh Energy sales: 119,166 GWh 2 1.- Source: Company filings and presentations, 2018. 2,- Enel Distribución Sao Paulo’s (Ex Eletropaulo) sales annualized. 3
Enel Américas overview Ownership profile 1 ENEL SPA 51.80% Enel Américas ’ shares are traded on: OTHER 2.58% SHAREHOLDERS Américas 12.53% CHILEAN PENSION FUNDS Market Cap 2 : USD 10.10 bn 24.25% 8.84% OTHER INST. SHAREHOLDERS ADR HOLDERS 1. As of March 31, 2019. 2. As of April 3 rd , 2019. 4
Delivery 2016-18
Delivery 2016-18 Main milestones in the period Total investments of US $ 3.5 bn in acquisitions Enel Dx Sao Paulo (Ex Eletropaulo) acquisition Volta Grande consolidation Second phase of the 1. Paid price: US$2,235 million 1. Paid price: US$ 436 million Reorganization completed 2. Clients: 7.2 million 2. Installed capacity: 380 MW (the “Merger”) 3. Location: Sao Paulo 3. Location: State of Minas Gerais 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 16 16 16 16 17 17 17 17 18 18 18 18 Enel Dx Goiás (Celg) consolidation Purchase of 7.5% stake in First phase of the 1 1. Paid price: US$ 720 million Enel Dx Perú from minorities Reorganization completed 2. Clients: 2.9 million (the “Spin - offs”) Paid price: US$ 80 million 3. Location: State of Goiás 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 6 1. Stake in Enel Dx Perú after the 7.5% acquisition.
Delivery 2016-18 Sustainability, growth, efficiencies and value creation 2016 2018 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 65.3 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 2018 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 8
Delivery 2016-18 Shareholders return Total Dividend (US$ bn) Earnings per ADR 1 (US$) Dividend per ADR 1 (US$) + 68% + 114% + US$ 0.2 bn 0.42 0.5 1.05 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 9 1. 1 ADR = 50 shares of Enel Américas.
Enel Américas today
Enel Américas today 2018 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% 12% Argentina 36% Large hydro generation: 42% 17% Generation Brazil US$ 3.4 bn US$ 3.4 bn 6.2 GW capacity Colombia Infrastructure & Networks 56% of total Enel Américas’ capacity 51% Peru 1 Retail and Enel X 35% Thermal generation: 5.0 GW capacity Highly flexible and efficient assets Total Net Income 1.7 Opex 1.6 Free market (energy + gas): 1.4 k free customers Asset Management 2 0.7 Attributable Net Income 1.2 17 TWh energy sales Asset Development 3 0.6 Net Debt 6.6 Enel X: 421 k Public lighting Customers 4 0.4 105 Charging infrastructure (cumulated Market Cap 5 10.1 facilities, k#) 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) 11 4. Capex related to customers (Retail, Enel X (e-Home, e-Industries), Network connections). 5. As of April 3 rd , 2019. 6. VNR in Peru.
Enel Américas today 2018 Generation and I&N Net production by technology End users by country 0.4% 6% 10% 14% Argentina Hydro 33.7% Oil & Gas Brazil Enel Dx Sao Paulo 24.5 m CCGT 39.9 TWh Colombia Coal 40% Peru 59.4% 29% 6.4% Net production by country Distributed energy by country 8% 17% 20% 14% Argentina Argentina 35% Brazil Enel Dx Sao Paulo Brazil 39.9 TWh 100.9 TWh Colombia Colombia Peru Peru 24% 35% 36% 9% Almost 60% of our generation mix is hydro Brazil represents 70% in terms of end users and 60% of the total distributed energy 12
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 15 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) 2018 1 2018 1 / Group 2020 High-quality, inclusive and fair education 0.9 0.8 38% 0.4 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 2018 Climate change 2018 2018 2020 Reduction of CO 2 specific emissions (kg/kWh eq ) 0.39 <0.35 0.17 54% Enel Américas is a constituent of: Sustainability commitment is present along the whole business value chain 16 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 16.8 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 17 1. Consumer and industrial.
Strategic Plan 2019-21
Strategic Plan 2019-21 Strategic Pillars Industrial Shareholders Efficiencies growth return US$ 321 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 2018. 19 2. M&A not included.
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