Enel Generacin Chile Investor Relations Presentation as of June 30, - - PowerPoint PPT Presentation
Enel Generacin Chile Investor Relations Presentation as of June 30, 2017 Organization structure Enel Generacin Chile ITALY Enel Generacin Chiles ENEL SpA Shareholders 2 61% CHILE ENEL CHILE 60% ENEL GENERACIN CHILE
Investor Relations Presentation
as of June 30, 2017
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Enel Generación Chile
PEHUENCHE, 93% GASATACAMA, 97%
61% 60% ITALY CHILE Transquillota, 48% GNL Chile, 33% CHILE1
Enel Generación Chile´s Shareholders2
Average daily volume traded (MMUS$) 2015 2016 Chilean Stock Exchanges 6.0 3.9 NYSE 4.4 3.9 Total 10.4 7.8
ENEL SpA ENEL CHILE ENEL GENERACIÓN CHILE
1 Recognized as equity method investments. 2 As of June 30st , 2017.
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Attractive business in Chile
Stable regulatory framework to develop reliable long term business Best investment grade in the region. Stable ratings by Credit Rating Agencies (BBB+) Strong portfolio of contracts leading to margin stability Well diversified portfolio of generation assets, including all types of technologies
Hydroelectric assets prevailing in the Chilean Central Interconnected System (SIC) Competitive thermal assets to reduce hydrological risks
One of the largest electricity generation companies in Chile
Proven track record with more than 70 years of experience
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Most relevant player in hydro generation
Energy sales 1H17 : 11,428 GWh Energy sales 1H16 : 12,139 GWh Market Share 1 : 34%
55% 10% 34% 1%
HYDRO COAL OIL-GAS NCRE
55% of Enel Generación Chile’s installed capacity corresponds to hydro resources
Installed Capacity 6,351 MW Hydro : 3,465 MW Oil-gas : 2,173 MW Coal : 636 MW NCRE 2 : 78 MW
1:Calculated based on total sales of the country. 2: Non Conventional Renewable Energy.
Los Molles: 18 MW Rapel-Sauzal: 466 MW Maule: 875 MW Laja: 940 MW Ralco-Pangue: 1,157 MW Ojos de Agua: 9 MW
55% Hydro 3,465 MW 44% Thermal 2,808 MW
GasAtacama: 781 MW Tarapaca: 182 MW
268 MW Huasco: 64 MW San Isidro 1 and 2: 778 MW Bocamina 1 and 2: 478 MW TG Quintero: 257 MW
1% NCRE2 78 MW
Canela: 18 MW Canela II: 60 MW
17.6 18.5 17.9 17.5 15.9 14.6 13.1 10.8 10.2 10.0 4.1 5.3 5.8 5.8 5.8 4.3 4.3 4.2 3.4 3.0 2.0 1.6 1.6 0.5 0.4 0.2 2.0 2.0 2.0 2.0 2.0
2 4 6 8 10 12 14 16 18 20 22 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Regulated Customers Auction August 2016 Free Customers New Free Customers 2016
Strong portfolio of contracts favors margin stability
awarded is 5.9 TWh/year starting in 2022.
non-conventional renewable energy from EGP.
market conditions.
TWh
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Leading to revenues stability
Physical sales1: 11,428 GWh
Spot Unregulated Customers Regulated Customers Spot Free Customers
Energy sales by type of customer1 (Million Ch$) Physical Sales1 1H17 GWh Change2 REGULATED 8,650
UNREGULATED 2,622 39% SPOT 156
TOTAL 11,428
Regulated Customers
1 For the period ended June 30, 2017 2 Compared with 1H16
707,109 784,226
76% 23% 1%
540,480 618,207 138,630 102,539 27,999 63,480 1H17 1H16
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1H 2017 results
Consolidated Income Statement (Ch$ MM)1 1H17 1H16 Change %2 MM US$3 1H17
Revenues 766,990 848,484 (10%) 1,162 Costs (489,666) (487,511) 1% (742) Contribution Margin 277,324 360,973 (23%) 420 EBITDA 217,742 300,099 (27%) 330 EBITDA Margin 28% 35% (20%) 28% EBIT 158,873 234,078 (32%) 241 Net Financial Result (16,882) (6,852) 146% (26) Related Company Results (778) 5,471 (114%) (1) Net Income from other Investments 105,462 80 n/a 160 Taxes (62,766) (30,863) 103% (95) Net Income 188,153 281,520 (33%) 285 Attributable to shareholders of Enel Generación Chile 184,995 237,448 (22%) 280
1 Under IFRS, Enel Generación Chile has adopted the Chilean Peso as functional currency, comparisons between periods have been only made using Ch$. 2 When comparing 1H17 with 1H16. 3 Referential average exchange rate was Ch$ 659.98 per US$ 1.00 as of June 30, 2017.
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Solid financial ratios and Investment grade rating (BBB+)
Debt by Currency
1
Debt by Type1
Total Debt: US$ 1,269 MM Financial Debt Maturity1 as of June 2017
US$ 16 MM
US$ 314 MM
10 years
BBB+
1 Includes financial arrangements and other consolidation adjustments.
8 28 71 45 45 330 3 3 3 3 4 726
200 400 600 800 < 1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years and beyond Bonds Banks and Other
92% 8%
US$ UF + CLP
2% 98%
Others Bonds
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Attractive ratings since 2010
BBB+ Baa2 BBB+
Since: Affirmed:
AA AA
International market Chilean market
RATINGS BASED ON:
management
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Improved cash flow generation
153 29 360 212 173 173 16
50 100 150 200 250 300 350 400 450
Cash and equivalents June 16 Funds from
Capex Financing activities & Exchange rate effects Funds from assets disposal Dividend payment ² Cash and equivalents June 17
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50% 55% 60% 65% 70% 2016 2017 2018 2019 2020
results.
Note: As of March 1st , 2016, Enel Generación Chile Spin-Off became effective.
1 Considering Dividend Payments N° 61 and 62 for 2016 and N° 59 and 60 for year 2015 using the closing share price for each year.
Pay-out ratio increasing to 70% in 2020
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EBITDA evolution and drivers
Hydrology Normalization of hydrology since 2018, favors an increase in hydro production, improving margin Sale price Contractual position allows to defend margins when spot prices fall down Assets Mix Diversified generation mix mitigates hydrology risk Drivers Additional capacity Commercial operations of Los Cóndores, increasing our production in 600 GWh/year approximately. Accumulated EBITDA 2017 - 2019: MM US$ 3,095
Increasing EBITDA due to commercial portfolio and efficient generation assets
879 1,108
2016 2019
+26%
Total 2017-2019
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Total investment for the period 2017 – 2019: MM US$ 687:
Operational excellence in the generation fleet
248 439
Mantenimiento BD
Capex Maintenance and Business Development (MM US$)
85 61 101 264 158 18
349 219 119
2017 2018 2019 Mantenimiento BD
Maintenance Maintenance
Environmental improvements
suction system.
completed.
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To support growth of the country
Los Cóndores
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Activities involved in our day-to-day operations
1.25 1.28 0.03 0.03
0,00 0,02 0,04 0,06 0,08 0,10 0,12
2016 YTD 2017
0,00 0,20 0,40 0,60 0,80 1,00 1,20 1,40 1,60
Frequency Index Severity Index
Frequency Index: N° Accidents (Enel Generación + Contractors) per million hours worked (Enel Generación + Contractors)
+2%
Environment Safety Indicators Sustainability
BOCAMINA OPTIMIZATION ENVIRONMENTAL IMPROVEMENT - SAN ISIDRO NATIVE SPECIES REFORESTATION AGREEMENT - RALCO MEMORANDUM OF UNDERSTANDING - PAPOSO & TAL-TAL COMMUNITIES
Occupational health and safety as our priority Ongoing work to strengthen relationships with communities Continuous environmental improvements in our power plants
Safety as
Flexible and competitive generation fleet Operational efficiency Strong portfolio of contracts
Environmental improvements and relationships with communities Attractive business in Chile
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Susana Rey Head of IR Enel Chile +56 2 2630 9606 susana.rey@enel.com
Contact us
ir.enelgeneracionchile@enel.com
For further information, visit our IR site at:
www.enelgeneracion.cl
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Catalina González Head of IR Enel Generación Chile +56 2 2630 9603 catalina.gonzalez@enel.com Guillermo Berguecio Investor Relations Associate +56 2 2630 9506 guillermo.berguecio@enel.com Francisco Basauri Investor Relations Associate +56 2 2630 9585 francisco.basauri@enel.com
Gonzalo Juarez IR New York Office +1 (212) 520 1025 gonzalo.juarezdelarasilla@enel.com
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20
million.
Isidro power plants to cope with dry conditions.
generating a gain of US$ 118 million.
Enel Generación Chile results
Evolution of Enel Generación Chile’s installed capacity
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More than doubled its capacity in the last 20 years
87% 72% 76% 62% 55% 55% 13% 28% 24% 37% 44% 44%
1% 1% 1%
1995 2000 2005 2010 2016 Under construction 2,513 4,035 4,477 5,611 6,351 6,501
GasAtacama 781 MW* Los Cóndores 150 MW
better position to cope with hydrological risks.
* Capacity added in 2014, after its consolidation.
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Availability of our power plants
89.2% 89.4% 92.3% 91.6% 94.8% 94.3% 2014 2015 2016 2017 2018 2019
Total Generation Fleet
96.9% 96.2% 95.9% 93.5% 95.5% 95.7% 2014 2015 2016 2017 2018 2019
Hydro
28.7% 53.5% 65.0% 79.6% 90.1% 86.1% 2014 2015 2016 2017 2018 2019
Coal
92.1% 84.7% 92.3% 91.9% 94.2% 94.4% 2014 2015 2016 2017 2018 2019
CCGT
95.8% 95.9% 96.8% 90.9% 96.6% 92.7% 2014 2015 2016 2017 2018 2019
Oil & Gas
High efficiency standard in our generation assets
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1 : Compared with 1H16 2: Non Conventional Renewable Energy * Based on total installed capacity of the country.
Installed Capacity: 6,351 MW Market Share*: 28% Total Generation 1H17: 8,340 GWh
Net Generation 1H17 GWh Change1
HYDRO
3,593 (21%)
COAL
1,744 24%
OIL-GAS
2,945 1%
NCRE
58 31%
Total
8,340 (6%) Historical energy generation by type of technology
1.000 2.000 3.000 4.000 5.000 6.000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2012 2013 2014 2015 2016 2017 Hydro Coal Oil-Gas Wind
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1Amounts translated into US$ using the exchange rate as of June 30, 2017 (Ch$ 664.29 per US$). 2 Net of accrued interest and financial derivatives. 3 Leverage as of June 2017 compared with December 2016.
*The annual indexes as of June 2016 include discontinued operations.
(Million Ch$) Jun 17 Jun 16 Chg. Chg % MM US$ 1H171 Gross Debt2 838,436 989,290 (150,854) (15%) 1,262 Cash 10,620 114,486 (103,867) (91%) 16 Net Debt 827,816 874,804 (46,988) (5%) 1,246 Leverage3 0.80 0.97 (0.17) (18%) n/a Financial Expenses Coverage 11.16 38.62 27.46 (71%) n/a ROE (%)* 25.0% 13.3% 11.7% 88% n/a ROA (%)* 12.8% 7.0% 5.8% 83% n/a
DISCLAIMER This presentation does not constitute an offer to sell any securities and is not soliciting an offer to buy any securities in any jurisdiction. This presentation contains certain “forward-looking statements” regarding anticipated financial and operating results and statistics and other future events relating to Enel Generación Chile S.A. (Enel Generación) These statements are not guarantees of future performance and are subject to material risks, uncertainties, changes and other factors which may be beyond Enel Generación’ control or may be difficult to predict. These statements may constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. The inclusion of these forward-looking statements should not be regarded as an indication that Enel Generación or any other person considers such projections to be material or to be a reliable prediction of actual future results. These forward-looking statements are subjective in many respects and there can be no assurance that they will be realized or that actual results will not be significantly higher or lower than described. As a result, the inclusion of any forward-looking statements in this presentation should not be relied on as necessarily predictive of actual future events. The projections and other forward-looking statements were based on numerous variables and assumptions that are inherently uncertain. Actual results may differ materially from those projected as a result of such risks and uncertainties. In addition, the financial projections do not necessarily reflect revised prospects, changes in general business or economic conditions, or any other transaction or event that has occurred or that may occur and that was not anticipated at the time the projections were prepared. Forward looking statements include, but are not limited to, information regarding: Enel Generación' business plans, Enel Generación' cost reduction plans, trends affecting Enel Generación ' financial condition or results of operations including market trends in the electricity sector in Chile or elsewhere, supervision and regulation of the electricity sector in Chile or elsewhere, and the future effect of any changes in the laws and regulations applicable to Enel Generación' or its affiliates. The principal assumptions underlying these forecasts and targets relate to: Economic and Industry Conditions, Commercial Factors, Political/Governmental Factors, Operating Factors, and Competitive Factors. The following important factors, in addition to those discussed elsewhere in this presentation, could cause actual financial and operating results and statistics to differ materially from those expressed in our forward-looking statements, including but not limited to: changes or developments regarding the applicable regulations (which may affect the investment plan of Enel Generación regarding the regulated activities), legal restrictions applicable to the implementation of the dividends policy, environmental regulations and other legal issues; price of electricity; price and supply of raw materials; interest rates or exchange rates; availability of fuel; ability to maintain relationship with suppliers, customers and consumer and user protection groups; changes in climate conditions; widespread adoption energy efficiency measures; inherent risks in the construction of new power generation and distribution facilities; changes in general economic, political, administrative and business conditions; operating hazards and risks; tax risks; loss of senior management and key personnel; insufficiency of insurance coverage or increase of insurance costs; failure of systems and information technology and processing; inability to access the capital markets to refinance its debt and finance its capital expenditures; and other factors that could adversely affect the business and financial results of the Company. No assurance can be given that the forward-looking statements in this document will be realized. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date of this presentation. Our independent registered public accounting firm has not audited, examined or compiled the forward-looking statements and, accordingly, does not provide any assurance with respect to such statements. Neither Enel Generación nor any of its affiliates intends, nor undertakes any obligation, to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.