Enel Americas S.a. · BCS:ENELAM
Enel Americas — 9M 2019 Earnings Presentation
35 slides from Enel Americas's earnings presentation, Oct 28, 2019
Slide 1: Enel Américas 9M 2019
Enel Américas 9M 2019 October 28th, 2019
Slide 2: Key highlights of the period
Key highlights of the period The largest capital increase ever in Chile already completed1 EBITDA of US$ 2,972 mn, an increase of 25% vs same period 2018 Net of Fx impact EBITDA would have increased by 41% mainly driven by Enel Dx Sao Paulo Additional efficiencies for US$ 35 mn compared to last year
Slide 3: Industrial growth: Gross Capex (US$ mn)
Industrial growth: Gross Capex1 (US$ mn) Distribution business captures around 90% of the total capex Total capex by nature Total capex by business5 Total capex by country 11% 11% 16% 31% 38% 1,078 1,078 22% 1,078 (+0.8% yoy) (+0.8% yoy) (+0.8% yoy) 31% 89% 51% 2 Asset management Generation Argentin
Slide 4: Gx operating highlights
Gx operating highlights Ensuring profitability in the Generation business through PPAs1 Net production (TWh) Energy sales (TWh) + 3% + 12% 30.5 31.4 54.4 9.9 10.7 48.6 2.2 1.0 0.1 0.4 Hydro CCGTs 18.3 19.3 Oil-gas Coal El Guavio reservoir 9M 2018 9M 2019 9M 2018 9M 2019 87% of 2019-21 total producti
Slide 5: Dx operating highlights
Dx operating highlights Consolidation of Enel Dx São Paulo is driving a better performance in Distribution business Distributed Energy (TWh)1 End users (mn) + 26 % + 0.4 % 89.6 24.5 24.6 71.0 Enel Dx 32.3 Enel Dx São Paulo 13.9 São Paulo2 57.1 57.3 9M 2018 9M 2019 Sep. 2018 Sep. 2019 All tariff revi
Slide 6: Enel X and Retail operating highlights
Enel X and Retail operating highlights Enel X: Significant increase in charging stations. Retail: Improving delivery points Enel X Retail1 Energy Gas Delivery points Delivery points + 16% + 10% Smart lighting (final light points, mn#) PV (MWρ installed in the year) 2,713 22 Sep. 2018 0.4 9M 2018 3.9
Slide 7: Efficiencies
Efficiencies Commitments in Opex reduction moving faster than as announced in the Strategic Plan 2019-21 Opex evolution (US$ mn) +14% -3% 224 1,352 (35) (10) 1,307 1,128 9M 2018 Perimeter & Other1 9M 2018 pro forma Efficiencies CPI & Fx 9M 2019 Efficiencies mainly driven by lower Opex in Enel Dx Sao
Slide 8: Solid progresses on SDGs
Solid progresses on SDGs Engaging local communities I&N, sustainable cities and cyber securities (mn of beneficiaries) 2015-191 9M 2019 High-quality, inclusive and fair education 0.4 Smart meters (k) 115 Charging points2 185 Access to affordable and clean energy2 3.7 Smart lighting points (k) 401 We
Slide 9: Financial highlights (US$ mn)
Financial highlights (US$ mn) Solid performance in the firsts nine months of the year 9M 2019 9M 2018 ∆ YoY Reported EBITDA 2,972 2,374 + 25% Adjusted EBITDA1 2,758 2,374 + 16% Total net income 1,221 859 + 42% Reported Group net income2 822 513 + 60% FFO 861 1,092 - 21% 3 Net debt 4,494 6,649 - 32%
Slide 10: EBITDA by business line (US$ mn)
EBITDA by business line (US$ mn) Solid operating performance across all businesses ∆ YoY ∆ Net of Fx Net of Fx, Large hydro business’ operating EBITDA increased mainly 26% due to better results in Argentina and Colombia + 0% + 11% Distribution business’ EBITDA increased mainly due to the 2,972 conso
Slide 11: Focus on Argentina (US$ m)
Focus on Argentina (US$ m) Gx in line with previous year and Dx growth driven by the past liabilities resolution Generation1 Distribution1 Total2 9M 2019 9M 2018 % 9M 2019 9M 2018 % 9M 2019 9M 2018 % Revenues 284 166 71% 1,028 744 38% 1,311 909 44% EBITDA 161 112 44% 271 124 118% 431 235 83% Dock Su
Slide 12: Focus on Brazil (US$ mn)
Focus on Brazil (US$ mn) Significant improvement in both businesses also net of perimeter and Fx effect Generation1 Distribution1 Total2 9M 2019 9M 2018 % 9M 2019 9M 2018 % 9M 2019 9M 2018 % Revenues 573 673 -15% 6,016 4,846 24% 6,346 5,302 20% Fortaleza 319 MW* EBITDA 250 186 35% 986 663 49% 1,193
Slide 13: Focus on Colombia (US$ mn)
Focus on Colombia (US$ mn) Net of Fx, growth in Gx due to a good commercial strategy and in Dx driven by a higher demand and tariff Generation1 Distribution1 Total2 9M 2019 9M 2018 % 9M 2019 9M 2018 % 9M 2019 9M 2018 % Revenues 946 953 -1% 1,229 1,284 -4% 1,896 2,016 -6% EBITDA 555 562 -1% 403 388 4
Slide 14: Focus on Peru (US$ mn)
Focus on Peru (US$ mn) Growth in Dx due to higher demand and tariff increase Generation1 Distribution1 Total2 9M 2019 9M 2018 % 9M 2019 9M 2018 % 9M 2019 9M 2018 % Revenues 427 431 -1% 709 680 4% 1,023 963 6% Enel Gx Piura 336 MW* EBITDA 219 234 -6% 196 165 18% 411 399 3% Net Income 113 130 -13% 91
Slide 15: From EBITDA to Net income (US$ mn)
From EBITDA to Net income (US$ mn) 2,972 2,160 1 1,834 (811) (327) 1,221 822 (613) (400) EBITDA D&A EBIT Net Non EBT Income tax Total Net Minority Group Net financial operating Income investors Income results result results 9M 18 2,374 (665) 1,709 (288) 2 1,423 (565) 859 (346) 513 Delta YoY 25.2% 22
Slide 16: Free cash flow (US$ mn)
Free cash flow (US$ mn) 2,972 3,041 2,155 (2) (1,168) (496) 861 (447) (1,078) (216) (644) (861) (24) EBITDA NWC Taxes paid Net financial FFO Capex 1 FCF Net dividend NCF Financial Extraordinary FX Effect Change in expenses paid receivables operations Net Debt 9M 18 2,374 (512) (496) (274) 1,092 (1,0
Slide 17: Gross debt breakdown (US$ mn)
Gross debt breakdown (US$ mn) Minimizing risk by issuing debt in operating companies in local currency Gross and Net Debt1 Gross debt breakdown by currency Gross debt breakdown by country - 27.9% 7.31% 7.28% - 27.9% 8,718 8,718 8,718 6% 6% 7% 1% 11% 2,069 6,283 13% 11% 6,283 6,283 19% 20% 1% 20% 5%
Slide 18: Focus Enel Dx São Paulo
Focus Enel Dx São Paulo Strong performance in Enel Dx Sao Paulo Financial highlights Gross Debt profile Local GAAP (R$ mn) 9M 18 9M 19 ∆ YoY 9M 18 9M 19 ∆ YoY 9M 19 (US$ mn)1 Net debt (R$ mn) 4,168 4,703 12.8% Revenues 18,063 17,828 -1.3% 2,748 Av. Maturity (years) 4.0 4.2 +0.2 y EBITDA 882.8 1,572.
Slide 19: Focus Enel Dx Goiás
Focus Enel Dx Goiás Turnaround process well on track Prêmio Abradee 2019 Financial highlights1 (US$ mn) Gross Debt profile 9M 18 9M 19 ∆ YoY 9M18 9M 19 ∆ YoY Total invested since Gross debt company’s consolidation 407 553 +35.9% (US$ mn) Revenues 1,150 1,145 -0.5% Av. Maturity -0.7 y 574 2.1 1.4 EBI
Slide 20: Enel Américas ownership structure and share performance
Enel Américas Around 99.5% of our shareholders subscribed the capital increase Ownership structure1 Share performance Other investors Capital increase completion Institutional 1.84% 20.0% Investors 10.0% $136.78; +11.6% US$ 9.45; +7.6% 15.19% 0.0% -10.0% $122.51 Local -20.0% US$ 8.78 8-Aug-2019 13-F
Slide 21: Closing remarks
Closing remarks Performance of the period mainly driven by our businesses in Brazil and Argentina All tariff review processes of our distribution companies already completed until 2022 Successful capital increase in Enel Américas lays the foundation for future growth The Company has been confirmed i
Slide 22: Exhibits
Exhibits 22
Slide 23: Ratings and acknowledgements
Ratings and acknowledgements Chile Index MILA Index Emerging markets Index New Emerging markets Index MSCI EM SRI Index Best Emerging Markets Sustainabilty category Latin America Index performers ranking (top 100) 3rd place 23
Slide 24: Market context evolution
Market context evolution Enel Américas Energy Local Currencies vs USD Annual GDP growth1 (%) demand2 (%) (YoY%)3 -0.2% -53.8% -2.5% Argentina Argentina Argentina -6.3% -48.3% -2.7% 1.1% -13.3% 1.1% Brazil Brazil Brazil 2.5% -8.0% 0.9% 1.6% 1.9% 2.6% Colombia Colombia Colombia 2.6% -12.2% 3.1% 0.2% 0
Slide 25: Regulation update 9M 2019
Regulation update 9M 2019 Argentina • Postponement of the increase in the Tariff Schedule from August to January 1, 2020. Partial deferral of VAD and Energy Cost to be recovered in 7 installments. Postponement of payment of fines to March 2020, then 6 installments. Partial payment “Acuerdo Marco” un
Slide 26: Financial Exhibits 9M 2019: EBITDA and Net Income breakdown
Financial Exhibits 9M 2019 EBITDA and Net Income breakdown EBITDA by country Net Income by country 14% 26% 32% 38% 14% 2,972 1,221 (+25% yoy) (+42% yoy) 16% 40% 20% Brazil Colombia Peru Argentina 26
Slide 27: Operating Exhibits 9M 2019
Operating Exhibits 9M 2019 Business context in 9M 2019 v/s 9M 2018 Spot Price Dx Sales Gx EBITDA Dx EBITDA Electricity Demand1 Gx Output (US$ m) (US$/MWh) (TWh) (US$ m) (%) (TWh) N/A Argentina N/A Brazil Colombia Peru 1. Enel Américas’ Cumulative Demand. Brazil: Enel Dx Rio, Enel Dx Ceará, Enel Dx G
Slide 28: Operating Exhibits 9M 2019
Operating Exhibits 9M 2019 Net installed capacity and Total net production: Breakdown by source and geography Net installed capacity (MW) MW Hydro Oil-Gas CCGT Coal Total Argentina 1,328 1,169 1,922 0 4,419 Brazil 1,035 0 319 0 1,354 Colombia 3,097 184 0 225 3,506 Peru 792 730 460 0 1,982 Total 6,25
Slide 29: Operating Exhibits 9M 2019
Operating Exhibits 9M 2019 Production mix (TWh) LatAm Argentina + 3.0% - 6.4% Hydro 0.3% 30.5 31.4 1.4% 10.7 3.3% 10.0 CCGTs 7.4% 11.0% 2.2% 32.5% 34.0% Oil-gas 67.5% 78.2% Coal 59.9% 61.3% 21.5% 19.6% 9M 2018 9M 2019 9M 2018 9M 2019 Brazil Colombia Peru + 23.1% + 7.8% + 1.6% 3.4 11.0 11.8 6.1 6.2 0
Slide 30: Operating Exhibits 9M 2019
Operating Exhibits 9M 2019 Distribution companies Energy sold Energy losses Concession Next tariff Distributor Clients City, Country (GWh) (%) area (km2) review Edesur 2,487,683 12,751 15.1% Buenos Aires, Argentina 3,309 2022 Enel Dx Rio 2,882,699 8,303 22.1% Niteroi, Brazil 32,615 2023 Enel Dx Cear
Slide 31: Financial Exhibits 9M 2019
Financial Exhibits 9M 2019 Liquidity and credit profile Liquidity (US$ m) Total Used Available Committed credit lines 1,360 350 1,010 Cash and cash equivalents 1 1,788 0 1,788 Total liquidity 3,148 350 2,798 Credit Profile as of Sep. 2019 S&P Fitch Moody's LT international debt BBB A- Baa3 LT local
Slide 32: Financial Exhibits 9M 2019
Financial Exhibits 9M 2019 Debt maturity Average residual maturity (years) Debt profile (US$ mn) 3,640 3.5 2.7 895 963 784 Dec. 2018 Sep. 2019 2019 2020 2021 Balance 32
Slide 33: Disclaimer
9M 2019 results Disclaimer 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 presentation and include statements regarding the intent
Slide 34: Thank you.
9M 2019 Results Contact us Rafael De La Haza Head of Investor Relations Enel Américas Jorge Velis Investor Relations Manager Enel Américas Itziar Letzkus Investor Relations Enel Américas Email Javiera Rubio ir.enelamericas@enel.com Investor Relations Enel Américas Phone Gonzalo Juárez +562 23534682
Slide 35: CNC
CNC