Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Enel Generación Chile — Investor Presentation (June 2017)
25 slides from Enel Chile Sa's investor presentation, Jun 30, 2017
Slide 1: Enel Generación Chile Investor Relations Presentation
Enel Generación Chile Investor Relations Presentation as of June 30, 2017
Slide 2: Organization structure
Organization structure Enel Generación Chile Enel Generación Chile´s ENEL SpA ITALY 61% Shareholders2 CHILE ENEL CHILE 60% ENEL GENERACIÓN CHILE PEHUENCHE, 93% GASATACAMA, 97% Average daily volume traded CHILE1 (MMUS$) 2015 2016 Chilean Stock Exchanges 6.0 3.9 Transquillota, 48% NYSE 4.4 3.9
Slide 3: Key investment considerations
Key investment considerations Attractive business in Chile One of the largest electricity generation companies in Chile Proven track record with more than 70 years of experience Well diversified portfolio of generation assets, including all types of technologies Hydroelectric assets prevailing in th
Slide 4: Competitive generation mix in the electricity market
Competitive generation mix in the electricity market Most relevant player in hydro generation Los Molles: 18 MW Rapel-Sauzal: 466 MW Installed Capacity 6,351 MW Maule: 875 MW 55% Hydro Laja: 940 MW 3,465 MW Ralco-Pangue: 1,157 MW 1% Ojos de Agua: 9 MW HYDRO GasAtacama: 781 MW 34% COAL Tarapaca: 182
Slide 5: Commercial Leadership: strong portfolio of contracts favors margin stability
Capacidad Innovadora – Portafolio Commercial Leadership Comercial++++++++++++++++++++++++++++++++ Strong portfolio of contracts favors margin stability 22 Negocio de Generación 20 4.3 4.3 4.2 3.4 2.0 18 3.0 2.0 1.6 2.0 16 2.0 0.5 0.4 2.0 14 1.6 5.3 TWh 5.8 5.8 12 2.0 10 0.2 17.6 18.5 17.9 17.5 8 15.
Slide 6: Balanced commercial policy
Balanced commercial policy Leading to revenues stability Physical sales1: 11,428 GWh Energy sales by type of customer1 (Million Ch$) 784,226 1% 707,109 63,480 23% 27,999 138,630 102,539 540,480 618,207 76% 1H17 1H16 Regulated Free Customers Spot Regulated Unregulated Customers Spot Customers Custome
Slide 7: Financial Highlights
Financial Highlights 1H 2017 results Consolidated Income Statement (Ch$ MM)1 1H17 1H16 Change %2 MM US$3 1H17 Revenues 766,990 848,484 (10%) 1,162 Costs (489,666) (487,511) 1% (742) Contribution Margin 277,324 360,973 (23%) 420 EBITDA 217,742 300,099 (27%) 330 EBITDA Margin 28% 35% (20%) 28% EBIT 15
Slide 8: Healthy debt maturity profile
Healthy debt maturity profile Solid financial ratios and Investment grade rating (BBB+) Financial Debt Maturity1 as of June 2017 800 Total Debt: US$ 1,269 MM 726 600 400 330 200 71 45 45 8 3 28 3 3 3 4 0 < 1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years and beyond Bonds Banks and Other Debt b
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 Jun. 2017 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 450 400 350 153 300 173 212 250 29 200 360 150 100 173 50 16 0 Cash and Funds from Capex Financing activities Funds from assets Dividend payment ² Cash and equivalents June 16 operations & Exchange rate disposal equivalents June 17
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 accrued 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 approximately.
Slide 13: Strategic Plan 2017 - 2019: Capex
Strategic Plan 2017 - 2019 Capex Maintenance and Business Development (MM US$) Total 2017-2019 349 219 248 264 Mantenimiento Maintenance BD 119 439 158 18 85 101 61 2017 2018 2019 Total investment for the period 2017 – 2019: MM US$ 687: Mantenimiento Maintenance BD • New Capacity: Los Cóndores. • Hi
Slide 14: Optimization of Bocamina
Optimization of Bocamina Environmental improvements • Thermal Complex with two Coal Units: • 128 MW (Unit 1). • 350 MW (Unit 2). • The following improvements were made: • Advanced technology filters for the water cooling suction system. • Inline air quality monitoring system. • Coverage of coal coll
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. • 55% progress as of June 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 +2% 1.28 1,40 0,10 1,20 0,08 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 Investor Relations Associate Investor Relations Associate +56 2 26
Slide 19: Exhibits
ene Exhibits
Slide 20: Highlights 1H 2017
Highlights 1H 2017 Enel Generación Chile results • Net income attributable to shareholders for the first semester 2017, reached US$ 280 million. • Energy generation decreased 6%, affected by poor hydrology coming from 2016. • Higher thermal generation (+ 358 GWh) due to greater availability of Bocam
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 1H17 GWh Change1 HYDRO 3,593 (21%) Market Share*: 28% COAL 1,744 24% OIL-GAS 2,945 1% Total Generation 1H17: 8,340 GWh NCRE 58 31% Total 8,340 (6%) Historical energy generation by type of technology 6.000 5.000 4.00
Slide 24: Strong financial position
Strong financial position (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 11.16 38.62 27.46 (71%) n/a Cove
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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