Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Enel Generación Chile — 9M 2016 Earnings Presentation
22 slides from Enel Chile Sa's earnings presentation, September 2016
Slide 1: Enel Generación Chile Investor Relations Presentation 9M 2016
Enel Generación Chile Investor Relations Presentation 9M 2016
Slide 2: Organization structure
Organization structure Enel Generación Chile (after Spin Off) ENEL SpA ITALY Committed Shareholders 61% CHILE Enersis S.A. ENEL CHILE 60% 18% Chilean Pension Funds 3% 3% ADRs (Citibank N.A.) 60% Retail ENEL GENERACIÓN CHILE 16% Institutional PEHUENCHE, 93% Investors GASATACAMA, 97% Average volum
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
Slide 4: Well diversified generation assets
Well diversified generation assets Most relevant player in hydro generation Installed Capacity 6,351 MW 1% HYDRO 34% COAL Tarapaca OIL-GAS D. Almagro– 55% Taltal NCRE Huasco Los Molles 10% San Isidro Santiago Cachapoal Maule Bocamina Laja Bio Bío 55% of Endesa Chile’s installed capacity corresponds
Slide 5: Balanced comercial policy
Balanced comercial policy Leading to revenue stability Physical sales: 17,962 GWh Physical Sales 9M16 GWh Change1 5% REGULATED 14,080 8% 17% UNREGULATED 3,087 -1% 78% SPOT 795 -31% Regulated Unregulated TOTAL 17,962 4% Spot Customers Customers Energy sales by type of customer (Million Ch$) Chile – C
Slide 6: Financial Highlights
Financial Highlights Improving results in Chile Consolidated Income Statement1 9M 2016 9M 2015 Change %2 MM US$3 2016 Revenues 1,276,246 1,131,398 13% 1,877 Costs (708,503) (712,864) (1%) (1,042) Contribution Margin 567,743 418,534 36% 835 EBITDA 439,528 320,527 37% 642 EBITDA Margin 34% 28% - 34% E
Slide 7: Healthy debt maturity profile
Healthy debt maturity profile Solid financial ratios and Investment grade rating (BBB+) Financial Debt Maturity1 as of September 2016 1.200 Total Debt: US$ 1,443 MM 1,089 1.000 800 600 400 153 200 28 87 45 8 3 8 3 3 3 12 0 < 1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years and beyond Bonds Ban
Slide 8: Consolidated Cash Flow Generation (US$ million)
Consolidated Cash Flow Generation (US$ million)1 Including discontinued operations 900 0 800 83 700 0 600 420 500 462 400 0 300 184 200 0 100 220 162 0 Cash and equivalents Funds from operations Capex Financing activities & Dividend payment ² Cash and equivalents Sept-15 Exchange rate effects Sept-1
Slide 9: Markets with high potential for growth
Markets with high potential for growth Annual growth of 3.4% in electricity demand in Chile* Direct relation between GDP and electricity demand 18,000 CANADA Electricity consumption, per capita (Kwh per year) 16,000 FINLAND 14,000 UNITED STATES 12,000 AUSTRALIA 10,000 8,000 JAPAN AUSTRIA FRANCE GERM
Slide 10: Evolution of Endesa Chile's total installed capacity
Evolution of Endesa Chile’s total installed capacity Endesa Chile has 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 •
Slide 11: Projects under construction: Los Cóndores
Projects 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. • Estimated load factor: 46%. • Total CAPEX of US$ 662 m
Slide 12: Projects under construction: Bocamina II optimization
Projects under construction To support growth of the country Bocamina II optimization – Coal field domes General information (North dome) • Construction started : August 2015 • Schedule ending construction: December 2016 • Men Hours spent: 606,000 hours. • Cubic Meter of coal accumulated in field: f
Slide 13: 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 (cl) AA Affirmed: Mar. 2016 Dec. 2015 Feb. 2016 Mar. 2016 Jul. 2016 International market Chilean market RATINGS BASED ON: • Well diversified and efficient asse
Slide 14: Strategic Plan 2017 - 2019: EBITDA Evolution
Strategic Plan 2017 - 2019 EBITDA Evolution 23% Drivers Normalization of hydrology since 1.108 1,108 Hydrology 2018, favor an increase in hydro production, improving margin 898 Commercial operations of Los Additional Cóndores starting by the end of capacity 2018, increasing our production in 600 GWh
Slide 15: Strategic Plan 2017 - 2019: Capex
Strategic Plan 2017 - 2019 Capex Maintenance and Business Development Total 2017-2019 349 219 264 248 Mantenimiento Maintenance BD 119 158 439 18 85 101 61 2017 2018 2019 Mantenimiento Maintenance BD Total investment for the period 2017 – 2019: US$ 687 MM: • New Capacity: Los Cóndores. • Higher envi
Slide 16: 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 May 24th a dividend of Ch$ 11.02 per share1. • Enel Generación Chile proforma dividend 2015 was Ch$ 23.95 per share. 1. Note: As of March 1, 2016, Enel Generación Chil
Slide 17: 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 18: Exhibits
ene Exhibits
Slide 19: Highlights 9M16
Highlights 9M16 • Total energy sales rose by 4% in 9M16. • Higher generation, despite lower hydrology, due greater coal generation (+961 GWh). • Chilean EBITDA amounted to 642 million dollars in 9M16, increasing 37%. • Net income attributable to shareholders rose 104% to 583 million dollars. • On Oc
Slide 20: Installed capacity and energy generation
Installed capacity and energy generation Installed Capacity: 6,351 MW Net Generation 9M16 GWh Change1 Market Share*: 31% HYDRO 6,674 4% Total Generation: 13,389 GWh COAL 2,296 97% Los Molles: 18 MW OIL-GAS 4,296 (17%) Rapel-Sauzal: 466 MW 54% Hydro NCRE 73 (22%) Maule: 875 MW Laja: 940 MW 3,456 MW T
Slide 21: Strong financial position
Strong financial position (Million Ch$) September 2016 Dec 2015 Chg. Chg % MM US$ 20161 Gross Debt 974,683 945,119 67,534 7% 1,479 Cash 110,174 37,425 66,737 64% 167 Net Debt 864,509 907,694 797 (5%) 1,312 Leverage 0.94 1.05 0.09 (10%) - Financial Expenses 18.29 11.23 27.39 63% - Coverage ROE (%)* 2
Slide 22: 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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