Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Enel Generación Chile — Q1 2017 Earnings Presentation
25 slides from Enel Chile Sa's earnings presentation, Mar 31, 2017
Slide 1: Enel Generación Chile Investor Relations Presentation
Enel Generación Chile Investor Relations Presentation as of March 31, 2017
Slide 2: Organization structure
Organization structure Enel Generación Chile ENEL SpA ITALY Committed Shareholders2 61% CHILE Enel Chile S.A. ENEL CHILE 60% 18,0% Chilean Pension Funds 2,7% ADRs (Citibank N.A.) 3,3% 60,0% Retail ENEL GENERACIÓN CHILE 16,0% Institutional PEHUENCHE, 93% Investors GASATACAMA, 97% Average daily vo
Slide 3: Key investment considerations
Key investment considerations Attractive business in Chile One of the largest electricity generation companies in Chile Proven track record with more than 70 years of experience Well diversified portfolio of generation assets, including all types of technologies Hydroelectric assets prevailing in th
Slide 4: Competitive generation mix in the electricity market
Competitive generation mix in the electricity market Most relevant player in hydro generation Los Molles: 18 MW Installed Capacity 6,351 MW Rapel-Sauzal: 466 MW 55% Hydro Maule: 875 MW 3.456 MW 1% Laja: 940 MW Ralco-Pangue: 1,157 MW GasAtacama: 780 MW HYDRO Tarapaca: 182 MW 34% COAL D. Almagro–Talta
Slide 5: Commercial Leadership: strong portfolio of contracts favors margin stability
Capacidad Innovadora – Portafolio Commercial Leadership Comercial++++++++++++++++++++++++++++++++ Strong portfolio of contracts favors margin stability 22 Negocio de Generación 20 4,3 4,3 4,2 3,4 2,0 18 3,0 2,0 1,6 2,0 16 2,0 0,5 0,4 2,0 14 1,6 5,3 TWh 5,8 5,8 12 2,0 10 0,2 17,6 18,5 17,9 17,5 8 15,
Slide 6: Balanced commercial policy
Balanced commercial policy Leading to revenue stability Physical sales: 5,794 GWh Energy sales by type of customer (Million Ch$) 350,010 390,361 2% 13,693 25,340 54.235 21% 58.541 277.776 310.786 77% 1Q17 1Q16 Regulated Free Customers Spot Regulated Unregulated Customers Spot Customers Customers Phy
Slide 7: Financial Highlights
Financial Highlights 1Q 2017 results Consolidated Income Statement (Ch$ MM)1 1Q17 1Q16 Change %2 MM US$3 1Q17 Revenues 383,413 415,283 (7.7%) 584.9 Costs (225,449) (230,478) (2.2%) (343.9) Contribution Margin 157,965 184,805 (14.5%) 240.9 EBITDA 129,017 157,461 (18.1%) 196.8 EBITDA Margin 33.6% 37.9
Slide 8: Healthy debt maturity profile
Healthy debt maturity profile Solid financial ratios and Investment grade rating (BBB+) Financial Debt Maturity1 as of March 2017 1.200 Total Debt: US$ 1,274 MM 1.067 1.000 800 600 400 200 75 45 45 8 3 8 3 3 3 4 10 0 < 1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years and beyond Bonds Banks and
Slide 9: Credit Rating Agencies’ Recognition
Credit Rating Agencies’ Recognition Attractive ratings since 2010 Since: Jan. 2010 Apr. 2011 Feb. 2010 Jan. 2010 Apr. 2010 BBB+ Baa2 BBB+ AA AA Affirmed: Feb. 2017 Dec. 2016 Feb. 2016 Feb. 2017 Jul. 2016 International market Chilean market RATINGS BASED ON: • Well diversified and efficient assets •
Slide 10: Consolidated Cash Flow (US$ million)
Consolidated Cash Flow (US$ million)1 Improved cash flow generation 500 450 400 (92) 350 174 (101) 300 (7) 191 250 200 340 150 100 175 50 0 Cash and equivalents Funds from Capex Financing activities & Funds from assets Dividend payment ² Cash and equivalents March 16 operations Exchange rate effects
Slide 11: Dividend policy
Dividend policy Pay-out ratio increasing to 70% in 2020 70% 65% 60% 55% 50% 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. • Divide
Slide 12: Strategic Plan 2017 - 2019: EBITDA evolution and drivers
Strategic Plan 2017 - 2019 EBITDA evolution and drivers +26% Drivers Normalization of hydrology since Hydrology 2018, favors an increase in hydro production, improving margin Commercial operations of 1.108 Additional Los Cóndores, increasing our 879 capacity production in 600 GWh/year approx. Contra
Slide 13: Strategic Plan 2017 - 2019: Capex
Strategic Plan 2017 - 2019 Capex Maintenance and Business Development Total 2017-2019 349 219 248 264 Mantenimiento Maintenance BD 119 439 158 18 85 101 61 2017 2018 2019 Total investment for the period 2017 – 2019: MM US$ 687: Mantenimiento Maintenance BD • New Capacity: Los Cóndores. • High enviro
Slide 14: Optimization of Bocamina
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 fie
Slide 15: Project under construction: Los Cóndores
Project under construction To support growth of the country Los Cóndores • 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. 15
Slide 16: Safety, Environment and Sustainability
Safety, Environment and Sustainability Activities involved in our day-to-day operations Safety Indicators Environment Sustainability NATIVE SPECIES REFORESTATION BOCAMINA OPTIMIZATION AGREEMENT - RALCO 0,12 1,60 1,25 1,40 0,10 -23% 1,20 0,08 0,96 1,00 0,06 0,80 0,04 0,03 0,03 0,60 0,40 ENVIRONMENTAL
Slide 17: Closing Remarks
Closing Remarks Attractive business in Chile Environmental Flexible and improvements Strong Safety as competitive and Operational relationships portfolio of our priority generation efficiency with contracts fleet communities 17
Slide 18: Contact us
Enel Generación Chile Contact us Susana Rey Catalina González Head of IR Enel Chile Head of IR Enel Generación Chile +56 2 2630 9606 +56 2 2630 9603 susana.rey@enel.com catalina.gonzalez@enel.com Guillermo Berguecio Francisco Basauri Analyst of IR Enel Generación Chile Analyst of IR Enel Generación
Slide 19: Exhibits
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Slide 20: Highlights 1Q 2017
Highlights 1Q 2017 Enel Generación Chile results • 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
Slide 21: Evolution of Enel Generación Chile’s installed capacity
Evolution of Enel Generación Chile’s installed capacity More than doubled its capacity in the last 20 years 6,501 6,351 1% 1% GasAtacama 5,611 781 MW* 1% 4,477 44% 4,035 37% 44% 24% Los Cóndores 28% 150 MW 2,513 13% 76% 62% 55% 55% 72% 87% 1995 2000 2005 2010 2016 Under construction • A well diversi
Slide 22: Operational Efficiency
Operational Efficiency Availability of our power plants Hydro CCGT Total Generation Fleet 96,9% 96,2% 95,9% 93,5% 95,5% 95,7% 92,1% 92,3% 91,9% 94,2% 94,4% 84,7% 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 92,3% 94,8% 94,3% 89,2% 89,4% 91,6% Coal Oil & Gas 2014 2015 2016 2017 2018 20
Slide 23: Installed capacity and energy generation
Installed capacity and energy generation Installed Capacity: 6,351 MW Net Generation 1Q17 GWh Change1 HYDRO 2,113 (15%) Market Share*: 28% COAL 835 13% OIL-GAS 1,412 6% Total Generation 1Q17: 4,387 GWh NCRE 26 12% Total 4,387 (4%) Historical energy generation by type of technology 6.000 5.000 4.000
Slide 24: Strong financial position
Strong financial position (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 15.1 288.9 (273.82) (95%) - Coverage ROE (%
Slide 25: Disclaimer
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 fu
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