Enel Americas S.a. · BCS:ENELAM
Enel Americas — Q1 2020 Earnings Presentation
38 slides from Enel Americas's earnings presentation, May 4, 2020
Slide 1: Enel Américas Q1 2020 Consolidated results
Enel Américas Q1 2020 Consolidated results May, 4th 2020 Américas
Slide 2: Key highlights of the period
Key highlights of the period Américas Enel Américas has implemented early measures to prevent COVID-19 and is periodically monitoring the situation to ensure its operational activities EBITDA of US$ 848 mn, a decrease of 7% vs same period 2019 Net of Fx impact EBITDA would have increased by 9% mainl
Slide 3: COVID-19: Swift response to face the challenges of the emergency
COVID-19 Swift response to face the challenges of the emergency Américas Our people Our clients 8,660 are working remotely, around 50% of our Increased focus on digitalisation and collection total workforce through digital channels Revamping of websites to ease the client 100% of workers that can
Slide 4: COVID-19: Constant monitoring of operations and support of stakeholders
COVID-19 Constant monitoring of operations and support of stakeholders Américas Our operations Our stakeholders Infrastructure is fully operational on all Donations by our subsidiaries to combat geographies COVID-19 Reinforcement of critical infrastructure as a Enel Argentina increased the elect
Slide 5: Governments measures: general and for the electric utilities sector
COVID-19 Governments measures: general and for the electric utilities sector Américas Argentina • Mandatory quarantine extended until May 10th • Closing of commercial offices; only personnel needed for the continuity of service of the network can be mobilized • Limits suspensions of basic services f
Slide 6: Industrial growth: Gross CAPEX (US$ mn)
Industrial growth: Gross CAPEX (US$ mn) Américas Net of Fx effect CAPEX increased more than 10% Total CAPEX by nature Total CAPEX by business4 Total CAPEX by country 2% 1% 3% 10% 7% 10% 11% 6% 34% 19% 301 44% 301 301 (-6.6% YoY) (-6.6% YoY) (-6.6% YoY) 22% 79% 87% 60% Thermal generation Renewables A
Slide 7: ESG embedded in our business strategy
ESG embedded in our business strategy Américas Engaging local communities I&N, sustainable cities and cyber securities (mn of beneficiaries) 2015- I Q 2020 E1 I Q 2020 High-quality, inclusive and fair education 0.5 Charging points2 589 Smart lighting points (k) 390 Access to affordable and clean ene
Slide 8: Q1 2020 Financial results
Q1 2020 Financial results
Slide 9: Financial highlights (US$ mn)
Financial highlights (US$ mn) Américas Negative Fx impact due to higher market volatility during the period Q1 2019 Q1 2020 ∆ YoY Reported EBITDA 909 848 - 6.7% Sound operational performance offset by Fx depreciation in most Adjusted EBITDA1 909 995 + 9.5% countries Lower financial expenses related
Slide 10: EBITDA breakdown (US$ mn)
EBITDA breakdown (US$ mn) Américas In operational terms Renewables and Distribution businesses significantly increased EBITDA evolution EBITDA by business - 7% 1% 55 5 6% 11% 47 909 (4) 848 (25) (138) 848 (-7% YoY) 32% 49% Thermal generation Renewables 2 Distribution Retail Q1 2019 1Q Thermal Renewa
Slide 11: Generation operating highlights
Generation operating highlights Américas Lower trading activities compared to the previous year Installed capacity (MW) Net production (TWh) Energy sales (TWh) + 0.1% + 3% - 9% 10.4 10.6 11,253 11,269 18.2 16.6 2,701 2,701 3.7 3.9 Hydro 0.4 0.2 2,079 2,090 CCGTs 0.3 0.3 224 225 Oil-gas 6.2 6,249 6,2
Slide 12: Distribution operating highlights
Distribution operating highlights Américas Distributed energy in line with the previous year Distributed Energy (TWh)1 End users (mn) Quality indicators SAIDI SAIFI - 1% + 1% (hours) (times) 30.5 30.2 25.4 6.9 2.8 25.2 12.5 6.9 8.7 2.8 7.8 11.2 4.4 6.9 5.7 23.8 3.2 19.8 10.7 9.1 11.7 13.2 4.9 14.4 5
Slide 13: Enel X and Retail operating highlights
Enel X and Retail operating highlights Américas Enel X: Accelerated infrastructure deployment Retail: Improving delivery points Enel X Retail1 Delivery points Smart lighting (final light points, mn#) PV (MWρ installed in the year) + 10% - 6% - 57% 0.4 2,795 3,069 413 390 0.2 Mar. 2019 Mar. 2020 Q1 2
Slide 14: Q1 2020 Focus by country
Q1 2020 Focus by country
Slide 15: Focus on Argentina (US$ m)
Focus on Argentina (US$ m) Américas Results affected due to frozen tariffs in Dx business and “Pesification” process of Gx business Generation1 Distribution1 Total2 Q1 2019 Q1 2020 % Q1 2019 Q1 2020 % Q1 2019 Q1 2020 % Revenues 130 84 -35% 278 226 -19% 408 311 -24% OPEX -15 -14 -7% -64 -62 -2% -79 -
Slide 16: Focus on Brazil (US$ mn)
Focus on Brazil (US$ mn) Américas CAPEX increase mainly on Dx businesses Generation1 Distribution1 Total2 Q1 2019 Q1 2020 % Q1 2019 Q1 2020 % Q1 2019 Q1 2020 % Revenues 205 191 -7% 2,060 1,834 -11% 2,188 1,958 -11% Fortaleza 319 MW* OPEX -8 -7 -11% -260 -255 -2% -289 -274 -5% EBITDA 123 78 -37% 296
Slide 17: Focus on Colombia (US$ mn)
Focus on Colombia (US$ mn) Américas Gx and Dx businesses improved against the previous year, despite Fx impact Generation Distribution Total1 Q1 2019 Q1 2020 % Q1 2019 Q1 2020 % Q1 2019 Q1 2020 % Revenues 305 302 -1% 418 400 -4% 638 618 3% OPEX -16 -16 1% -42 -38 -9% -57 -54 -6% Enel Codensa Emgesa
Slide 18: Focus on Peru (US$ mn)
Focus on Peru (US$ mn) Américas Investments in Dx and lower costs in Gx led to mixed results Generation1 Distribution1 Total2 Q1 2019 Q1 2020 % Q1 2019 Q1 2020 % Q1 2019 Q1 2020 % Revenues 158 133 -16% 247 237 -4% 352 330 -6% Enel Gx Piura OPEX -17 -17 -2% -21 -21 -1% -38 -38 -1% 336 MW* EBITDA 74 7
Slide 19: Q1 2020 Financial performance
Q1 2020 Financial performance
Slide 20: From EBITDA to net income (US$ mn)
From EBITDA to net income (US$ mn) Américas 848 545 (303) 1 432 (114) 310 (122) 208 (102) EBITDA D&A1 EBIT Net financial Non EBT Income tax Total Net Minority Group Net Group net Q1 2020 result operating Income investors income Income results Q1 2020 Q1 19 909 (287) 622 (150) 0 472 (156) 316 (112) 2
Slide 21: Free cash flow (US$ mn)
Free cash flow (US$ mn) Américas 848 626 490 (498) (122) 127 (101) (183) (56) 98 (15) (162) (219) EBITDA NWC1 Taxes paid Net financial FFO2 CAPEX 3 FCF 4 Net dividend NCF 5 Financial Extraordinary FX Effect Change in expenses paid receivables operations Net Debt Q1 19 909 (537) (154) (151) 68 (319)
Slide 22: Capital increase update
Capital increase update Enel SP pension fund plan approved by the Brazilian pension funds regulator (Previc) Américas February April August September March 2020 2019 2019 2019 2019 Capital increase Capital increase approval Payment of the debt used Successful completion Previc approved Enel announce
Slide 23: Gross debt breakdown (US$ mn)
Gross debt breakdown (US$ mn) Américas Lower cost of debt due to the payment of Enel Brasil's debt (acquisition of Dx Sao Paulo) and lower interest rates in the market Gross and net debt1 Gross debt breakdown by currency Gross debt breakdown by country - 13.0% 7.10% - 13.0% 5.90% 6,289 6,289 6,289 1
Slide 24: Financial position: Solid liquidity profile
Financial position Solid liquidity profile Américas Liquidity profile Rating agencies Rating Outlook Moodys Baa3 Positive 36% Reaffirmed on March 25th, 2020 Total liquidity 64% US$ 2,602 mn S&P1 BBB Negative Reaffirmed on March 27th, 2020 Fitch Ratings A- Stable Reaffirmed on Sept. 9th, 2019 Committ
Slide 25: Financial position: Debt Maturity and ratio Net debt to EBITDA
Financial position Debt Maturity and ratio Net debt to EBITDA Américas Debt profile (US$ mn) Net debt/EBITDA Net debt/EBITDA: 1.0x 6.0 Maximum 2,787 leverage capacity1 3.9 3.9 3.8 1,149 975 561 663 440 148 Q2 2020 Q3 2020 Q4 2020 2020 2021 2022 Balance EBITDA 1 12M Net2debt EBITDA (Last 12 months) N
Slide 26: Closing remarks
Closing remarks Américas Enel Américas is well prepared to face the current COVID-19 situation Solid performance of our businesses despite the negative Fx impact The company significantly increased CAPEX in local currency vs previous year Strong liquidity position and relevant debt capacity to atten
Slide 27: Annexes
Annexes
Slide 28: Ratings and acknowledgements
Ratings and acknowledgements Américas Emerging markets Index Chile Index MILA Index Latin America Index Emerging markets Index New MSCI EM SRI Index Best Emerging Markets Best company in performers ranking (top 100) Chile by ALAS20 26
Slide 29: Market context evolution
Market context evolution Américas Enel Américas Energy Local Currencies vs USD Annual GDP growth1 (%) demand2 (%) (YoY%)3 -2.2% -68.0% Argentina Argentina 1.7% Argentina -5.4% -47.6% 1.1% -14.3% Brazil Brazil -1.7% Brazil -3.2% -18.4% 3.3% Colombia 0.0% Colombia 1.8% Colombia -2.0% -13.0% 2.2% Peru
Slide 30: Regulation update Q1 2020
Regulation update Q1 2020 Américas • On February 27th, 2020, Resolution SE No. 31/2020 of the Ministry of Energy was published, which replaces Resolution SRR & ME No. 1/2019, Argentina effective as of February 1, 2020. It pesified prices of the remuneration at the exchange rate $ 60 = 1 USD and esta
Slide 31: Financial exhibits Q1 2020
Financial exhibits Q1 2020 Américas Q1 2019 Q1 2020 ∆ YoY Gross margin 1,379 1,296 - 6.0% OPEX (470) (448) - 4.7% Reported EBITDA 909 848 - 6.7% Adjusted EBITDA1 909 995 + 9.5% Total net income 316 310 - 2.0% Reported Group net income2 204 208 + 1.6% 1. Excludes Fx impact (- US$ 147 mn) 2. Attributa
Slide 32: Financial exhibits Q1 2020
Financial exhibits Q1 2020 Américas EBITDA and Net Income breakdown EBITDA by country Net Income by country 7% 7% 15% 37% 848 30% 310 (-7% yoy) (-2% yoy) 62% 41% 1% Brazil Colombia Peru Argentina 32
Slide 33: Operating exhibits Q1 2020
Operating exhibits Q1 2020 Américas 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 792 737 460 0 1,989 T
Slide 34: Operating exhibits Q1 2020
Operating exhibits Q1 2020 Américas Distribution companies Energy sold Energy losses Concession Next tariff Distributor Clients City, Country (GWh) (%) area (km2) review Edesur 2,496,533 4,286 15.8% Buenos Aires, Argentina 3,309 2022 Enel Dx Rio 2,950,941 3,066 22.0% Niteroi, Brazil 32,615 2023 Enel
Slide 35: Financial exhibits Q1 2020
Financial exhibits Q1 2020 Américas Liquidity and credit profile Liquidity (US$ m) Total Used Available Committed credit lines 1,281 350 931 Cash and cash equivalents 1 1,671 0 1,671 Total liquidity 2,952 350 2,602 Credit Profile as of April 2020 S&P Fitch Moody's LT international debt BBB A- Baa3 L
Slide 36: Disclaimer
Q1 2020 results Américas 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 t
Slide 37: Thank you.
Q1 2020 consolidated results Américas Contact us Enel Américas is participating in ALAS20 voting The access to the voting is available in our website https://www.enelamericas.com/ Contacts Email ir.enelamericas@enel.com Rafael de la Haza Head of Investor Relations Channels Website Mobile App Investo
Slide 38: Américas
Américas Américas