Enel Chile 1Q 2018 results May 4, 2018 1Q 2018 results Chilean - - PowerPoint PPT Presentation

Enel Chile 1Q 2018 results

May 4, 2018

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 EBITDA maintained stable, amounting to US$ 212 mn, driven by a better generation mix.  Hydro generation increasing of 0.4 TWh vs previous quarter, totaling an amount of 2.5 TWh.  Higher sales to non regulated customers by 430 GWh.  EBITDA increased 13%, amounting to US$ 79 mn, driven by the regulated business.  Customers increased by 3% to 1.9 mn.  Energy sales maintained stable, amounting to 4.1 TWh with an increase in free market of 17%.

1Q 2018 results

Chilean highlights  EBITDA increased 3%, amounting to US$ 290 mn.  Net Income attributable to shareholders, excluding the effect of the sale of Electrogas in February 2017, maintained stable.  Simplification: Elqui restructuring process completed.

Enel Chile Generation Business Distribution Business

Chile Annual GDP Growth (%)1 System Energy Sales (TWh) SIC Average Spot Price (USD/MWh) Average Exchange Rate CLP vs US$

• 1. Expected GDP for 2018. Source: Latin America Concensus Forecast as of April 2018.

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1Q 2018 results

Market context in the period

1.5% 3.5%

2017 2018

16.9 17.7

1Q17 1Q18

79.7 76.6

1Q17 1Q18

655.5 601.9

1Q17 1Q18

4.4 4.0 1.2 1.7 0.1 0.0 1Q17 1Q18 4

Net production: 4.3 TWh (2.5%)

Hydro Coal Oil-Gas NCRE

Energy Sales: 5.6 TWh (2.6%)

Regulated Non regulated Spot

4.3 5.8 5.6 4.4

1Q 2018 results

Generation business – Operating highlights

2.1 2.5 1.4 0.9 0.8 0.8 0,0 0,0 1Q17 1Q18

Installed capacity: 6.4 GW +0.0% 6.4 6.4

3.5 3.5 2.2 2.2 0.6 0.6 0.1 0.1 1Q17 1Q18

1Q17 1Q18 5

Number of customers: 1.9 mn Electricity Distributed: 4.1 TWh +1.6% +2.7%

Residential Commercial Industrial Other

4.0 4.1 1,840 1,889

• 1. SAIDI: System Average Interruption Duration Index during the last twelve months.

Tolls

1Q 2018 results

Distribution business - Operating highlights

1.0 1.1 1.4 1.4 0.6 0.6 0.7 0.8 0.3 0.3

1Q17 1Q18

+7.1% SAIDI1: 246 minutes 230 246

1Q17 1Q18

1Q17 1Q18 1Q17 1Q18

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Dx regulated Subtransmission Free Market VAS

Recurrent Margin +5.9%

1Q 2018 results

Distribution margin breakdown (constant US$ mn1)

Free Market Energy Sales (GWh) +16.8% VAS2 Gross Margin (20.7%) 109 115 9 11 569 665

1 Comparisons between periods in the Financial Income Statements are made using the average exchange rate for the period 601.90 CLP/USD. 2 Value added services. 64 72 28 30 6 5 11 9

1Q17 1Q18

214 213 70 (2) 9 79 (3) (1)

1Q17 Generation Distribution 1Q18

7 1 Comparisons between periods in the Financial Income Statements are made using the average exchange rate for the period 601.90 CLP/USD.

290

Dx Gx

+3.3% 281

Dx Gx

1Q 2018 results

EBITDA by business (constant US$ mn1)

HolCo HolCo

• 1. Comparisons between periods in the Financial Income Statements are made using the average exchange rate for the period 601.90 CLP/USD.
• 2. Consider Depreciation, Amortization and Impairment profit (impairment’s reversal).

8 5.5% 72.0% (97.9%) (35.7%) (44.6%) (53.5%) 1Q17 (US$ mn) Change 281 (66) 215 (7) 173 (84) 297 104

1Q 2018 results

From EBITDA to Net Income (constant US$ mn1)

(3.6%) 3.3% (39.9%) 194 290 (64) 227 (12) 4 (54) 165 48 117 EBITDA D&A EBIT Financial Result Non Operating Results Income tax Group Net Income Minorities Shareholders Attributable Net Income

EBITDA Taxes NWC Financial Expenses FFO Capex Dividends FCF FX Effect Change in Net Debt

1Q 2018 results

Free cash flow (constant US$ mn1)

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• 1. Comparisons between periods in the Financial Income Statements are made using the average exchange rate for the period 601.90 CLP/USD.

290 (48) (82) (8) 153 (66) (91) (4) 5 1

Gross and Net Debt

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Gross Debt1 by type +122.4% 2,829 1,272

International bonds Local bonds Others CLP Dollars

Gross Debt by currency2 Liquidity breakdown;

• Cash:

US$ 683 mn

• Committed Credit Lines:

US$ 327 mn

• Average life of debt:

12 years

1. Financial debt includes financial expenses, derivatives and other consolidation adjustments. 2. Debt in UF and CLP its converted to US Dollars using the 1Q 2018 closing exchange rate 603.39 CLP/USD.

1Q 2018 results

Financial situation (US$ mn)

55% 25% 19%

1% 1Q18

Bank loans 66% 4% 30%

1Q18

UF 590 591 682 683 1.555

2017 1Q18

Net Debt Cash Bridge loan (Elqui)

43 23 44 15 11

• 1. Comparisons between periods in the Financial Income Statements are made using the average exchange rate for the period 601.90 CLP/USD.

Maintenance

1Q 2018 results

Gross Capex (constant US$ mn1)

Growth Total

1Q 2017 1Q 2018

66 59

Distribution Generation 1Q 2018 1Q 2017

5 9 6 14 Dx Gx 10 34 17 29 Dx Gx

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Elqui completed. 94% stake in Enel Generation Chile Generation, characterized by better hydrology in 1Q18 Higher dividend payout ratio, 60% for 2018, in line with our guidance

1Q 2018 results

Closing remarks

1Q18 results in line with expectations Distribution, characterized by greater margin in regulated business

1Q 2018 Results

IR Team

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Susana Rey Head of IR Enel Chile +56 2 2630 9606 susana.rey@enel.com

ir.enelchile@enel.com

For further information, visit our IR site at:

www.enelchile.cl

Catalina González Head of IR Enel Generación Chile +56 2 2630 9603 catalina.gonzalez@enel.com Francisco Basauri Investor Relations Associate +56 2 2630 9585 francisco.basauri@enel.com Gonzalo Juarez IR New York Office +1 (212) 520 1025 gonzalo.juarezdelarasilla@enel.com

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 current expectations of Enel Chile and its management with respect to, among other things: (1) Enel Chile's business plans; (2) Enel Chile's cost-reduction plans; (3) trends affecting Enel Chile's financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere; (4) supervision and regulation of the electricity sector in Chile or elsewhere; and (5) the future effect

• f any changes in the laws and regulations applicable to Enel or its subsidiaries. Such forward-looking statements are not guarantees of

future performance and involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of various factors. These factors include a decline in the equity capital markets of the United States or Chile, an increase in the market rates of interest in the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere and other factors described in Enel Chile's Annual Report and Form 20-F. Readers are cautioned not to place undue reliance on those forward-looking statements, which state only as of their dates. Enel Chile undertakes no obligation to release publicly the result of any revisions to these forward-looking statements.

1Q 2018 Results

Disclaimer

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