Slide 1: Enersis: corporate reorganization update and 1H 2015 results
Enersis: corporate reorganization update and 1H 2015 results July 28 , 2015
Slide 2: Corporate Reorganization Update
Enersis Investor Relations Corporate Reorganization Update 2
Slide 3: Corporate structure reorganization: objectives of the transaction
Corporate structure reorganization Objectives of the transaction under analysis Enersis Investor Relations To Simplify the organizational structure and to accelerate the decision process. To simplify the To create a focused management team in each of the entities with defined responsibilities an
Slide 4: Corporate structure reorganization: business overview
Corporate structure reorganization Business overview 1 Enersis Investor Relations Chile Rest of Latam Capacity by technology2: Capacity by technology: • Installed capacity: • Installed capacity: Coal 6,351 MW Coal 10,517 MW 2% Operating Operating 10% data • Distribution clients: data • Distribution
Slide 5: Description of the transaction under analysis
Corporate structure reorganization Description of the transaction under analysis Enersis Investor Relations • This Transaction would be carried out through the following corporate transactions: EXECUTION STRUCUTRE 1. Spin-offs of Chilectra, Endesa Chile and Enersis: • Chilectra would spin-off its no
Slide 6: Pro-forma corporate structure
Corporate structure reorganization Pro-forma corporate structure Enersis Investor Relations Current Structure Post Transaction Chilean Latam1 investment Pure Chilean Group vehicle Enersis 99.1% 60.0% Enersis Enersis Chile Americas 99.1% 60.0% Endesa Chilectra Chile Endesa Chilectra ARG BRA COL PE Ch
Slide 7: SVS requirements
Corporate structure reorganization SVS requirements Enersis Investor Relations • In accordance with the “Oficio nº 15443” notified by the Chilean stock Exchange regulator (“SVS”) on July 20th 2015: • Neither the spin-offs, nor the merger, nor the combination of spin-off/merger, are considered relate
Slide 8: Indicative transaction timeline
Corporate structure reorganization Indicative transaction timeline Enersis Investor Relations Preparation of transaction reports Spin-off process: ~ 3 months Merger process: ~ 6 months BoDs to decide on EGMs to vote spin- Merger of BoDs EGMs to the execution of the offs2 and present Spin-offs Enersi
Slide 9: 1H2015 Enersis results
Enersis Investor Relations 1H2015 Enersis results 9
Slide 10: Highlights of the period
1H 2015 results Highlights of the period Enersis Investor Relations 1H15 EBITDA increased by about 8% reaching 1,606 mnUSD. Net income attributable to Enersis shareholders increased by 51% reaching 463 mnUSD. New generation portfolio reviewed and defined for more than 6 GW Distribution client base i
Slide 11: Market context in the period
1H 2015 results Market context in the period Enersis Investor Relations Enersis Demand growth (%)1 Spot prices (US$/MWh) 298 5.9% 4.0% 4.2% 4.6% 4.1% 1H 2014 176 1H 2015 149 137 129 2.2% 2.3% 1.7% 1.4% 78 1.2% 37 26 15 14 Chile Brazil Colombia Peru Argentina Chile Brazil Colombia Peru Argentina Loca
Slide 12: Enersis' operational highlights
1H 2015 results Enersis’ operational highlights Enersis Investor Relations Installed capacity (MW) Net production (GWh) + 0,9% + 2,6% (1) (1) 16.733 16.888 28.410 29.154 Hydro 6.978 7,089 Oil-Gas 872 872 Coal 8.797 8,841 1H14 1H15 1H14 1H15 Electricity distributed (GWh) Number of customers (mn) + 2,
Slide 13: Regulation – relevant updates during the period
1H 2015 results Regulation – relevant updates during the period Enersis Investor Relations • Dx: • MMC costs recognition: In January 2015 , ~ +70 US$mn Argentina • Resolution 32: Since February 1st . It will cover current expenses of operation and maintenance. EBITDA impact: ~ +195 US$mn. • Dx: Colo
Slide 14: Financial highlights (US$ mn)
1H 2015 results Financial highlights (US$ mn1) Enersis Investor Relations Revenues EBITDA + 11% + 8% 6,024 1,491 1,606 5,438 1H 14 1H 15 1H 14 1H 15 Attributable Net Income Net Debt2 + 51% + 29% 463 4.011 308 3.113 1H 14 1H 15 FY 14 1H 15 1. Comparisons between periods are made using USD. The averag
Slide 15: Group EBITDA evolution by country (US$ mn)
1H 2015 results Group EBITDA evolution by country (US$ mn) Enersis Investor Relations + 8% + 104 + 124 1,606 1,491 + 13 - 59 - 68 1H 14 Chile Brazil Colombia Peru Argentina 1H 15 +43,1% yoy -15,8% yoy -10,7% yoy +5,3% yoy n.a. yoy 15
Slide 16: Group EBITDA analysis (US$ mn)
1H 2015 results Group EBITDA analysis (US$ mn) Enersis Investor Relations By Country By business Distribution 722 Brazil Colombia 35% 318 568 20% 55% 1.606 1.606 45% 7% Argentina 109 21% 17% Generation Chile 884 345 Peru 266 All countries contributing to EBITDA 16
Slide 17: From EBITDA to Group net income (US$ mn)
1H 2015 results From EBITDA to Group net income (US$ mn1) Enersis Investor Relations 1.606 1.197 - 409 + 24 - 139 742 245 attributable - 340 to owners 463 - 279 EBITDA D&A EBIT Financial Non Operating Income Group net Minorities Atributable Net Result Results Tax Income Shareholdres Income +7,7% yoy
Slide 18: Capex (US$ mn)
1H 2015 results Capex (US$ mn)1 Enersis Investor Relations By activity By country By business Maintenance Distribution 42% 58% 22% Brazil Colombia 54% 743 743 743 46% 42% 7% 18% 11% Argentina Growth Chile Peru Generation The investments increased by 10% compared to last year 1. Net of contributions
Slide 19: Free cash flow (US$ mn)
1H 2015 results Free cash flow (US$ mn) Enersis Investor Relations FCF 1.606 - 515 - 248 - 177 270 - 396 EBITDA Taxes NWC & Financial Maintenance 1 FFO Growth Capex 1 Dividends 2 FCF Paid Others Expenses Capex FCF - 547 - 798 - 1.075 1. Gross of contributions and connections fees. 2. Including minor
Slide 20: Net debt evolution (US$mn)
1H 2015 results Net debt evolution (US$mn) Enersis Investor Relations + 29% (1) Extraordinary (2) FY14 Cash Flow Activities FX Effect 1H15 3.113 +158 + 19 - 1.075 4.011 1. As of 31 Dic. 2014 2. Net debt include cash and cash equivalence for more than 90 days 20
Slide 21: Debt and financial expenses
1H 2015 results Debt and financial expenses Enersis Investor Relations Average cost of gross debt Average residual maturity (years) 6.3 5.9 8.1 8,3 8.4 5.5 8.1 8.3% 8.4 8.1% 8.3% 2013 2014 1H 2015 2013 2014 1H 2015 Average cost of debt Gross and Net Debt US$ mn Debt profile (US$ mn) - 6,9% 6
Slide 22: Exhibits
Enersis Investor Relations Exhibits 22
Slide 23: Business context in 1H 2015 vs 1H 2014
Operating Exhibits 1H 2015 Business context in 1H 2015 v/s 1H 2014 Enersis Investor Relations Electricity Demand Spot Price Gx Output Dx Sales Gx Ebitda Dx Ebitda (%) (US$/MWh) ( TWh ) ( TWh ) ( MM US$ ) ( MM US$ ) Clients in Dx: 1.760.002 2Q 2014 4,0% 2Q 2014 175,5 2Q 2014 8,2 2Q 2014 7,8 2Q 2014 1
Slide 24: Net installed capacity: breakdown by source and geography
Operating Exhibits 1H 2015 Net installed capacity: Breakdown by source and geography Enersis Investor Relations MW Hydro Oil-Gas Coal NCRE Total Chile 3.456 2.173 636 87 6.351 Colombia 2.615 208 236 0 3.059 Peru 776 1.193 0 0 1.970 Brazil 665 322 0 0 987 Argentina 1.328 3.194 0 0 4.522 Total 8.841 7
Slide 25: Total net production: breakdown by source and geography
Operating Exhibits 1H 2015 Total net production: Breakdown by source and geography Enersis Investor Relations GWh Hydro Oil-Gas Coal NCRE Total Chile 4.352 3.538 714 86 8.691 Colombia 6.073 46 523 0 6.642 Peru 2.630 1.726 0 0 4.356 Brazil 995 1.061 0 0 2.056 Argentina 1.288 6.121 0 0 7.409 Total 15.
Slide 26: Production mix (GWh)
Operating Exhibits 1H 2015 Production mix (GWh) Enersis Investor Relations LatAm Chile Colombia + 2,6% (2) + 6,4% (3) + 8,6% (1) 28.410 29.154 8.166 8.691 8,2% 6.113 6.642 9.5% 8.4% 7,9% 4,5% 4,2% 43,0% 42,8% 35.9% 40,7% 91.3% 91,4% 52,1% 52,6% 53.5% 50,1% 1H 14 1H 15 1H 14 1H 15 1H 14 1H 15 1. NCRE
Slide 27: Distribution companies
Operating Exhibits 1H 2015 Distribution companies Enersis Investor Relations Energy Energy Current City, Concession Next tariff Distributor Clients sold losses regulatory return Country area (km²) revision (GWh) (%) (pre-tax, real) Santiago, Chilectra 1.760.002 7.850 5,5% 2.105 ROA 10% 2016 Chile Bo
Slide 28: Debt structure, liquidity and credit profile
Operating Exhibits 1H 2015 Debt structure, liquidity and credit profile Enersis Investor Relations Debt structure (US$ mn) Dec. 14 Jun. 15 % Long-term 5.421 4.831 -10,9% Short-term 695 865 24,5% Cash 1 3.003 1.685 -43,9% Net debt 3.113 4.011 28,8% Liquidity (US$ mn) Amount Outstanding Available Comm
Slide 29: Disclaimer
1H 2015 results Disclaimer Enersis Investor Relations This presentation contains statements that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this announcement and include stat
Slide 30: IR Team
1H 2015 results IR Team Enersis Investor Relations • Pedro Cañamero, Head of IR +56 2 2353 4682 • Denisse Labarca +56 2 2353 4576 • Jorge Velis +56 2 2353 4552 • Manuel Aragón +56 2 2353 4681 • Carmen Poblete +56 2 2353 4447 • María Luz Muñoz +56 2 2353 4682 ir@enersis.cl For further information, vi
Slide 31: enersis
enersis