Enel Generacin Chile Investor Relations Presentation as of March - - PowerPoint PPT Presentation

Enel Generación Chile

Investor Relations Presentation

as of March 31, 2017

60,0% 16,0% 3,3% 2,7% 18,0%

Enel Chile S.A. Chilean Pension Funds ADRs (Citibank N.A.) Retail Institutional Investors

Organization structure

2

Enel Generación Chile

 PEHUENCHE, 93%  GASATACAMA, 97%

61% 60% ITALY CHILE  Transquillota ,48%  GNL Chile, 33% CHILE1

Committed 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 March 31st , 2017.

Key investment considerations

3

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

Competitive generation mix in the electricity market

4

Most relevant player in hydro generation

Energy sales 1Q17 : 5,794 GWh Energy sales 1Q16 : 6,025 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 : 3,456 MW Oil-gas : 2,173 MW Coal : 636 MW NCRE 2 : 87 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

55% Hydro 3.456 MW 44% Thermal 2.808 MW

GasAtacama: 780 MW Tarapaca: 182 MW

• D. Almagro–Taltal:

268 MW Huasco: 64 MW San Isidro 1 and 2: 778 MW Bocamina 1 and 2: 478 MW TG Quintero: 257 MW

1% ERNC2 87 MW

Canela: 18 MW Canela II: 60 MW Ojos de Agua: 9 MW

Capacidad Innovadora – Portafolio Comercial++++++++++++++++++++++++++++++++ Negocio de Generación

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

Posición activa en clientes libres nos permite capturar todas las

• portunidades de mercado dada la flexibilidad del portafolio

Commercial Leadership

Strong portfolio of contracts favors margin stability

• Enel Generación Chile was awarded 50% approximately of the energy tendered by the Authority in 2016. The amount

awarded is 5.9 TWh/year starting in 2022.

• The Company made a competitive offer based on its own generation mix with its existing plants and the contribution of

non-conventional renewable energy from EGP.

• Our strategic vision enables us to remain leaders in the energy commercialization in Chile, anticipating changes and new

market conditions.

TWh

5

77% 21% 2%

Balanced commercial policy

6

Leading to revenue stability

Physical sales: 5,794 GWh

Spot Unregulated Customers Regulated Customers Spot Free Customers

Energy sales by type of customer (Million Ch$) Physical Sales 1Q17 GWh Change1 REGULATED 4,42

• 8%

UNREGULATED 1,221 38% SPOT 130

• 55%

TOTAL 5,794

• 4%

Regulated Customers

1 Compared with 1Q16

350,010 390,361

277.776 310.786 58.541 54.235 25,340 13,693 1Q17 1Q16

Financial Highlights

7

1Q 2017 results

Consolidated Income Statement (Ch$ MM)1 1Q17 1Q16 Change %2 MM US$3 1Q17

Revenues 383,413 415,283 (7.7%) 584.9 Costs (225,449) (230,478) (2.2%) (343.9) Contribution Margin 157,965 184,805 (14.5%) 240.9 EBITDA 129,017 157,461 (18.1%) 196.8 EBITDA Margin 33.6% 37.9% 4.3%

• EBIT

98,880 125,041 (20.9%) 150.9 Net Financial Expenses (7,385) 934 (890.6%) (11.3) Related Company Results (695) 2,452 (128.3%) (1.0) Net Income from other Investments 104,902 34

• 160.0

Taxes (42,066) (13,436) 213.1% (64.2) Net Income 153,636 194,646 (21.1%) 234.4 Attributable to shareholders of Enel Generación Chile 152,157 152,568 (0.3%) 232.1

1 Under IFRS, Enel Generación Chile has adopted the Chilean Peso as functional currency, comparisons between periods have been only made using Ch$. 2 When comparing 1Q17 with 1Q16 3 Referential average exchange rate was 644,49 Ch$/US$ as of March 31, 2017.

Healthy debt maturity profile

8

Solid financial ratios and Investment grade rating (BBB+)

Debt by Currency

1

Debt by Type1

Total Debt: US$ 1,274 MM Financial Debt Maturity1 as of March 2017

• Cash:

US$ 336 MM

• Committed Credit Lines:

US$ 314 MM

• Average life of debt:

10 years

• International Credit Rating:

BBB+

1 Includes arrangements and other consolidation adjustments.

92% 8%

US$ UF + CLP

2% 98%

Others Bonds

8 8 75 45 45 1.067 3 3 3 3 4 10

200 400 600 800 1.000 1.200 < 1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years and beyond Bonds Banks and Other

Credit Rating Agencies’ Recognition

9

Attractive ratings since 2010

BBB+ Baa2 BBB+

Since: Affirmed:

• Jan. 2010
• Apr. 2011
• Feb. 2010
• Feb. 2017
• Dec. 2016
• Feb. 2016

AA AA

• Jan. 2010
• Apr. 2010
• Feb. 2017
• Jul. 2016

International market Chilean market

RATINGS BASED ON:

• Well diversified and efficient assets
• Leading market position in Chile
• Transparent and stable regulatory framework in Chile
• Solid financials, good cash flow generation and prudent financial

management

• Balanced commercial policy

Consolidated Cash Flow (US$ million)1

10

Improved cash flow generation

• 1. Referential average exchange rate was 655.49 Ch$/US$ as of March, 2017.
• 2. Dividend payment considers cash outflows to Enel Chile and all minorities’ shareholders.

(101) (7) (92) 191 174 175 340

50 100 150 200 250 300 350 400 450 500

Cash and equivalents March 16 Funds from

• perations

Capex Financing activities & Exchange rate effects Funds from assets disposal Dividend payment ² Cash and equivalents March 17

11

50% 55% 60% 65% 70% 2016 2017 2018 2019 2020

• Enel Generación Chile paid on Jan 27th an interim dividend of Ch$ 7.25 per share.
• On May 26th, the Company paid a definitive dividend of Ch$ 21.56 per share also charged to 2016

results.

• Dividend Yield1 increased from 2.7% in 2015 to 6.5% in 2016.

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

Dividend policy

12

Strategic Plan 2017 - 2019

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 approx. 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

13

Total investment for the period 2017 – 2019: MM US$ 687:

• New Capacity: Los Cóndores.
• High environmental standards.
• Maintaining high standard of operational efficiency.

Operational excellence in the generation fleet

248 439

Mantenimiento BD

Capex Maintenance and Business Development

85 61 101 264 158 18

349 219 119

2017 2018 2019 Mantenimiento BD

Strategic Plan 2017 - 2019

Maintenance Maintenance

Optimization of Bocamina

Environmental improvement

• Thermal Complex with two Coal Units:
• 128 MW (U1)
• 350 MW (U2).
• The following improvements were made:
• Advanced technology filters for the water cooling

suction system.

• Inline air quality monitoring system.
• Coverage of coal collection fields, North dome

completed.

• Construction of South dome started in 2017.

14

Project under construction

15

To support growth of the country

• Run-of-the-river, hydroelectric power plant.
• Located in San Clemente, in Maule region, Chile.
• 150 MW of installed capacity.
• Estimated generation of 600 GWh/year.
• 50% progress as of April 2017.

Los Cóndores

16

Safety, Environment and Sustainability

Activities involved in our day-to-day operations

1,25 0,96 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)

• 23%

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

Closing Remarks

Safety as

• ur priority

Flexible and competitive generation fleet Operational efficiency Strong portfolio of contracts

Environmental improvements and relationships with communities Attractive business in Chile

17

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

18

Catalina González Head of IR Enel Generación Chile +56 2 2630 9603 catalina.gonzalez@enel.com Guillermo Berguecio Analyst of IR Enel Generación Chile +56 2 2630 9506 guillermo.berguecio@enel.com Francisco Basauri Analyst of IR Enel Generación Chile +56 2 2630 9585 francisco.basauri@enel.com

Enel Generación Chile

19

Exhibits

Highlights 1Q 2017

20

• Net income attributable to shareholders reached US$ 232 million, similar to the figure for

the same period of the previous year.

• Energy generation decreased 4%, as a consequence of the poor hydrology.
• Higher thermal generation (+ 173 GWh) due to greater availability of Bocamina and San

Isidro power plants to cope with dry conditions.

• Enel Generación Chile materialized the sale for its shareholding in Electrogas S.A. for US$

118 million, accounted in 1Q17 results.

Enel Generación Chile results

Evolution of Enel Generación Chile’s installed capacity

21

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

• A well diversified generation matrix incorporating different types of generation technologies (Coal, LNG and NCRE), providing a

better position to cope with hydrological risks.

* Capacity added in 2014.

Operational Efficiency

22

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

Installed capacity and energy generation

23 1 : Compared with 1Q17 2: Non Conventional Renewable Energy * Based on total installed capacity of the country.

Installed Capacity: 6,351 MW Market Share*: 28% Total Generation 1Q17: 4,387 GWh

Net Generation 1Q17 GWh Change1

HYDRO

2,113 (15%)

COAL

835 13%

OIL-GAS

1,412 6%

NCRE

26 12%

Total

4,387 (4%) 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 2012 2013 2014 2015 2016 2017 Hydro Coal Oil-Gas CHP / Renewables

Strong financial position

24

1Amounts translated into US$ using the exchange rate as of December (Ch$ 655.49 per US$). Includes arrangements and other consolidation adjustments. 2 Leverage as of March 2017 compared with December 16.

*The annual indexes as of March 2016 include discontinued operations

(Million Ch$) Mar 17 Mar 16 Chg. Chg % MM US$ 1Q171 Gross Debt 877,049 879,713

• 2,664

0% 1,331 Cash 222,809 114,486 108,323 95% 338 Net Debt 654,239 765,226 (110,987) (15%) 993 Leverage2 0.85 0.97 (0.12) (12%)

• Financial Expenses

Coverage 15.1 288.9 (273.82) (95%)

• ROE (%)*

28.1 11.9 16.2 136%

• ROA (%)*

13.9 7.6 6.3 83%

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.