Enel Americas S.A. · BCS:ENELAM
Enel Americas — Investor Presentation (February 2019)
25 slides from Enel Americas's investor presentation, Feb 27, 2019
Slide 1: Enel Américas Capital Increase
Enel Américas Capital Increase February 27th, 2019
Slide 2: Table of Contents
Table of Contents Our Track Record Transaction Rationale Transaction Structure Closing Remarks 2
Slide 3: Our Track Record
Our Track Record 3
Slide 4: Proposed Equity Capital Increase Facilitates Pursuit of Proven Growth Strategy
Proposed Equity Capital Increase Facilitates Pursuit of Proven Growth Strategy Formation of Successful Up to US$ 3.5 Bn Continued the Largest Delivery of Capital Increase Growth Private Utility Growth and Capital Structure Strategy & Company in Shareholder Optimization to Consolidation LatAm Val
Slide 5: Our Track Record
Our Track Record Sustainability, Growth, Efficiencies and Value Creation 2016 2018 I&N(3) End users MM 14.1 24.5 EBITDA US$ Bn 2.4 3.4 Growth Net Income US$ Bn 1.0 1.7 CAPEX US$ Bn 1.2 1.7 Group simplification Number of companies 43 32(4) Opex reduction Cumulated efficiencies(1,5) US$ MM ~ 130 ~ 420
Slide 6: Enel Américas Today
Enel Américas Today LatAm Distribution Sector Landscape(1) Brazil Colombia Peru Argentina MM Clients in 2017 MM Clients in 2018 MM Clients in 9M18 MM Clients in 2017 Enel 17.1 2.9 Player 1 3.4 Enel Dx Perú 1.4 Dx Brasil Dx Colombia Dx Perú Neoenergi (2) 13.6 Player 2 3.2 Luz del Sur 1.1 2.5 a Dx Arg
Slide 7: Proven Track Record Executing Value-Unlocking Investments
Proven Track Record Executing Value-Unlocking Investments Focus on Enel Dx Goiás and Enel Dx São Paulo Enel Dx Goiás EBITDA Enel Dx São Paulo EBITDA US$ Bn US$ Bn +39% +167% +177% 0.3 0.8 0.1 0.4 0.2 0.2 0.3 (1) 0.3 0.1 0.1 0.2 2016 Realized 2018 Expected 2021E 2018 Efficiencies Operating 2021E Impr
Slide 8: Enel X Segment Can Boost Benefits of Consolidation
Enel X Segment Can Boost Benefits of Consolidation EBITDA US$ MM Growth based on business in Brazil and Colombia, leveraged on: +251% 135 • Market opportunities and the experience of Enel Group in public lighting concessions (Smart Lighting) 38 43 • Commercial position and Dx customer base with fina
Slide 9: Transaction Rationale
; Transaction Rationale enel
Slide 10: Strategic Benefits of the Proposed Transaction
Transaction Rationale Strategic Benefits of the Proposed Transaction Facilitate • Increased balance sheet capacity to fund strategic investment opportunities Growth Strategy ̶ Minority investors buyouts Execution ̶ Privatization and consolidation • Overall net income increase given the reduction of
Slide 11: Facilitate Growth Strategy Execution
Facilitate Growth Strategy Execution Upcoming Growth Opportunities From Minority Investors Buyout, And… Potential Minority Investors Buyout Investment Opportunity (Equity in US$ Bn)(1) Colombia Distribution 0.5 Brazil Generation & Transmission 0.7 Distribution 0.2 Total 1.2 Peru Argentina Distributi
Slide 12: Facilitate Growth Strategy Execution (Cont'd)
Facilitate Growth Strategy Execution (Cont’d) … Privatization and Consolidation Transactions in our Chosen Distribution Markets Enel Position Key Market Opportunities #1 market position by number of Highly fragmented sector with ongoing consolidation customers Several distribution companies re
Slide 13: Cash Flow Optimization
Cash Flow Optimization Net Income and Dividends Paid Pre and Post-Transaction(1) Total Net Income Total Dividends Paid 2019E-2021E Cumulative - US$ MM 2019E-2021E Cumulative - US$ MM +45% Enel Brasil Consolidated +196% 838 2,704 1,866 631 952 321 Pre-Transaction Increase Post-Transaction Pre-Transac
Slide 14: Credit Enhancement
Credit Enhancement The Transaction Could Strengthen Enel Américas’ Credit Profile, Balance Sheet and Capital Structure(1) 2018 Net Debt Net Debt / EBITDA US$ MM x 2.0x 1.7x 2.0x 1.2x 1.4x 1.0x 1.1x 0.7x 0.5x 6,649 2,650 n.a. 2018 2019E 2020E 2021E 3,999 FFO(2) / Net Debt % 138.5% 95.0% 54.2% 45.9% 4
Slide 15: Higher Market Capitalization, Float and Liquidity
Higher Market Capitalization, Float and Liquidity Reinforcing 3 Enel Américas as a Preeminent Investment Vehicle Higher Market Capitalization(1,3) Top 10 Largest Chilean Companies by Market Capitalization US$ MM +30% Pre-Transaction Post-Transaction(1) 3,500 15,104 11,604 # Company Market Cap (3) #
Slide 16: Transaction Structure
Transaction Structure 16
Slide 17: Enel Américas Proposed Capital Increase
Enel Américas Proposed Capital Increase Transaction Terms and Conditions Registration of common shares in the Santiago Stock Exchange, Electronic Stock Exchange and CMF(1) Offering Structure Concurrent SEC(2) registration of ADSs for trading in NYSE Pricing Mechanism Price setting mechanism: R
Slide 18: Transaction Structure
Transaction Structure Preemptive Right Periods (PRP) in both Chile and the United States 1 2 Additional Voluntary PRP Mandatory PRP With the remaining shares after the Mandatory PRP, Enel Américas plans to hold one Mandatory Preemptive Rights Period (PRP) to be held for 30 days in Chile addition
Slide 19: Timing Considerations
Timing Considerations Comprehensive Market Communication Process for ESM with AFPs and Other Local Investors, Global Accounts, and Ratings Agencies February March April May June July August September Key Process Milestones Board of Directors Meeting 27-Feb Board Call for Extraordinary Shareholder's
Slide 20: Price-Setting Mechanism
Price-Setting Mechanism Fixed Price Set by Pre-Determined Formula The price for the proposed Rights Offering will be determined by a price-setting formula calculated prior to the Mandatory PRP commencement Description The Board of Directors will propose a formula (detailed below) for approval by
Slide 21: Closing Remarks
Closing Remarks 21
Slide 22: Closing Remarks
Closing Remarks A Enel Américas is the largest private utility company in South America and has delivered against its stated goals since the 2016 reorganization Successful delivery since 2016 evidences Enel América’s capacity for creating long term value through organic and in- B organic means A
Slide 23: Disclaimer
Disclaimer Important Legal Information This presentation does not constitute an offer to sell securities and is not soliciting an offer to buy any securities in any jurisdiction. This presentation should in no way be deemed to be an offer or an invitation to participate in the proposed capital incre
Slide 24: Thank you.
Enel Américas Capital Increase 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 Javiera Rubio Email Investor Relations Enel Américas ir.enelamericas@enel.com Phone Gonzalo Juárez
Slide 25: CNC
CNC
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