Enersis Américas IR Presentation September 2016
Company Description 2
Reorganization process A more simple and streamline organization Previous Structure Post Transaction Enersis Pure Chilean Group Latam 1 investment vehicle 99.1% 60.0% Enersis Enersis Chile Américas Chilectra Endesa Endesa Américas Américas Chilectra Chile 99.1% 60.0% Endesa Chilectra ARG BRA COL PER Chile CHI ARG BRA COL PE Chilean Chilean Distribution and Generation Dx player Gx player Cross shareholder participations Listed A unique South American footprint 3 1 Ex-Chile
Ownership profile 60.62% 15.91% 11.52% OTHER INST. CHILEAN SHAREHOLDERS PENSION FUNDS 1.88% 10.07% OTHER ADR HOLDERS SHAREHOLDERS Market Cap Ch$ 5,537.66 bn US$ 8,160.79 mn 4 Data as of August 31, 2016
Why Enersis Américas Presence in a Macro …Leading to Increasing Environment with Cash Flows, with a Multiple Growth 6 1 Strong Capital Structure Opportunities Unique and Diversified Focused Expansion 5 2 Investment Vehicle for Strategy… the LatAm Power Sector Leading the distribution Seasoned Sector 4 3 business in South Leadership Team America Current scenario 5 New scenario
Seasoned Sector Leadership Team Borja Acha Chairman 25 years of corporate Experience 4 years of experiencie in Enel Group Graduated in Laws Universidad Complutense de Madrid Luca Javier D’agnese Galán CEO CFO 31 years of corporate Experience 28 years of corporate Experience 4 years of experiencie in Enel 5 years of experiencie in Enel Group Economist Graduated in Physics at Scuola Universidad Complutense de Madrid Normale Superiore di Pisa Master in Business Administration in Master in Business Administration in Instituto de Empresas de Madrid Business School INSEAD Experienced Board Members and Management Team 6 6
Enersis Américas investment highlights Enersis Américas is Latin America ´ s largest private power company Brazil #2 Generation Colombia 987 MW Generation 1% Market Share in Installed capacity 3,459 MW #2 Net Production 4,398 GWh 21% Market Share in Installed capacity Sales 6,541 GWh Net Production 13,705 GWh 1% Market Share in Sales Sales 16,886 GWh Distribution 19% Market Share in Sales #1 6.8 million clients Distribution Sales Dx 22,776 GWh 2.9 million clients 6% Market Share Dx Sales 13,946 GWh Transmission 24% Market Share Dx 2,100 MW transmission lines #1 Peru Generation #2 Argentina 1,983 MW Generation 20% Market Share in Installed capacity #2 4,522 MW Net Production 8,801 GWh 14% Market Share in Installed capacity Sales 9,283 GWh Net Production 15,204 GWh 23% Market Share in Sales Sales 15,770 GWh Distribution 12% Market Share in Sales 1.3 million clients Distribution Sales Dx 7,624 GWh 2.5 million clients 30.0% Market Share Dx Sales Dx 18,492 GWh 20% Market Share Dx Total Generation Total Distribution Installed capacity: 10,951 MW Clients: 13.5 million 7 Energy sales: 48,481 GWh Energy sales: 62,838 GWh Source: Company filings and presentations, as of December 31, 2015
Enersis Américas investment highlights Unique portfolio of assets in the region Overview Distribution Generation Clients 13.5 million Installed Capacity 10,951 MW 6.8 5,792 4,923 53% of 2.9 installed 2.5 capacity 1.3 236 Hydro Oil-Gas Coal • Enersis Américas distributes energy in South America’s largest • 53.4% of Enersis Américas’ installed capacity is hydro, which cities represents the lowest production cost 8 Data as of December 31, 2015
Enersis Américas investment highlights Outstanding indicators Distribution Generation thousand new clients per year Installed MW as of December 31, 2015 ~1.5 million new clients every 4 years 10,951 1,543 8,765 405 7,700 1,138 343 343 795 3,862 3,032 457 457 457 1,827 338 338 338 338 ENERSIS Tractebel CEMIG SADESA Isagen Enersur 2012 2013 2014 2015 Américas In the past 4 years we added a “mid size distribution company” Enersis Américas is the private company with highest taking into account new clients. installed capacity in the region 9
Enersis Américas investment highlights Latin America offers large opportunities for growth 4.7 4.2 2.2 % Growth in 0.7 electricity demand 1 Brazil Colombia Peru Argentina 2016 2017 4.2 3.7 3.3 2.9 2.2 2.3 1.5 1.5 1.2 1.0 Expected real GDP growth 2 (%) -1.5 -3.2 Brazil Colombia Peru Argentina North America Europe Moody’s S&P Fitch Enersis Américas Baa3 BBB BBB Ratings Stable Negative Stable Investment Grade Investment Grade Investment Grade 10 1. FY2015 2. Latin American Consensus Forecast as of August, 2016
Enersis Américas investment highlights Well diversified by country and type of activity Overview (2015) Generation – energy sales Distribution – energy sales Peru Peru 19% Argentina 12% Argentina 30% 33% 22% Colombia Colombia 35% 36% 13% Brazil Total: Total: Brazil 48,481 GWh 62,838 GWh EBITDA 1 Argentina 22% Peru 13% Distribution 22% Brazil 22% 47% 53% Generation 43% Colombia Total: MUS$ 2,467 11 Source: Company filings; Note: 1 Assumes average FX rate of 654.66 CLP/USD
Enersis Américas investment highlights High growth prospects Electricity consumption in the world kWh/GDP (PPP) per capita 18,000 Canada 16,000 Finland • Energy demand growth is 14,000 very stable in the United States kWh per inhabitant countries where we 12,000 operate, showing a Australia 10,000 growth average of 3.0% Japan Austria in 2015. 8,000 France Germany 6,000 Ireland Spain United Kingdom Italy 4,000 China • Compared to developed Chile Brazil Argentina countries, Enersis Peru Mexico 2,000 Colombia Américas is in a very 0 good position for growth. 0 10,000 20,000 30,000 40,000 50,000 60,000 GDP per capita (PPP, US$) 12 Source: CIA World Factbook and internal data, as of 2014
Enersis Américas investment highlights High growth prospects 13 Source: CIA World Factbook and internal data, as of 2014
Enersis Américas investment highlights Enersis has achieved significant profitability among the regions EBITDA by country (MUS$) 1 Relative weight on main indicators % over the total 2.715 2.651 • 41% Installed Capacity Highest Installed 2.483 Argentina 2.333 • 19% Distribution Clients 37 Capacity 312 499 314 359 422 • 18% Installed Capacity Peru 537 • 10% Distribution Clients 910 949 842 552 • 9% Installed Capacity Highest Number Brazil • 50% Distribution Clients of clients 1,269 1,076 1,080 1,040 • 32% Installed Capacity Colombia • 21% Distribution Clients -15 2012 2013 2014 2015 14 1. Using average exchange rate of 2015 ($654.66) for every year.
Enersis Americas Investment Highlights Dividend Yield – Post merger 2016 2017 2019 3.3 EBITDA 2.8 2.4 36% 33% 37% EBITDA Margin Net Income 1.1 0.6 0.9 Dividend Policy 50% 50% 50% * Dividend Yield 4.0% 6.0% 7.4% 85% 50% Dividend Yield Growth 15 * Last Price as of May 31st: ENIA 105,0 CLP.
Enersis Américas investment highlights Overview of net income and capex Net income Gross Capex (MUS$) ¹ (MUS$)² 1,330 1,317 1,600 1,564 1,176 1,361 23% 23% 49% 77% Attributable Attributable Attributable 77% Net Income Net Income Net Income 51% 695 604 738 Maintenance (52%) (51%) (56%) Growth 2013 2014 2015 2013 2014 2015 16 Source: Company filings and presentations; 1 Refers to total net income, converted to US$ using 2015 average exchange rate ($654.66). 2 Includes only purchases of plant, property & equipment
Enersis Américas Investment Highlights Capex (US$ bn) 2016-2019 Capex Plan 4.5 1.7 0.5 FY 2015 2016-2019 1H16 Total Capex Breakdown 2016-2019 By Country By Generation By Distribution By Nature 13% 14% 17% 20% 22% Gx 18% 26% 35% Gx Maintenance 3.1 1.4 4.5 Gx Growth 28% 15% Dx 23% 25% Dx Maintenance 38% 44% 20% Dx Growth 41% 17 Argentina Brazil Colombia Peru
Focus on Generation Activities 18
Enersis Américas Investment Highlights Leading the generation business in South America 1 Overview of Assets Competitive Position Installed Capacity (MW) Installed Capacity (MW) EBITDA (US$mm) 10,950 8,765 7,700 10% Colombia 32% 18% 3,862 41% Peru 3,032 47% 10,950 1,321 1,827 Brazil Argentina 25% 18% 9% ENERSIS Tractebel CEMIG SADESA Isagen Enersur Américas 19 1. Data as of December, 2015. Assumes average FX rate of 654.66 CLP/USD
Enersis Américas investment highlights Generation’s regulatory framework encourages stability and creates incentives that guarantees expansion CHARACTERISTICS Colombia Peru Brazil Auctions for 15, 20 and 30 Long term auctions for the Auctions for 15, 20 Open contracts years regulated market facilitate and 30 years expansion • Income based on • Energy auctions for at • Income based on contributions during peak least 20 years demand contributions during peak Payment based on capacity • Recognition of dual demand • Recognition of dual independent of technology generation for gas generation for gas turbines turbines Frequency of recalculation of Calculated every Calculated every regulated guaranteed pass Calculated monthly 3 – 12 months 3 – 12 months through to the end customer Spot market with auctioned Spot market with audited Spot market with audited Markets with audited or auctioned costs costs costs costs 20
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