Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Endesa Chile — Q1 2016 Earnings Presentation
22 slides from Enel Chile Sa's earnings presentation, March 2016
Slide 1: Endesa Chile IR Presentation 1Q 2016
Endesa Chile IR Presentation 1Q 2016
Slide 2: Organization structure (before spin-off)
Organization structure Endesa Chile (before Spin-off) ITALY Committed Shareholders 61% CHILE 14% Enersis S.A. 60% 6% Chilean Pension Funds 4% ADRs (Citibank N.A.) Retail 60% 16% Institutional Investors CHILE PEHUENCHE, 93% CELTA, 96% GASATACAMA, 98% COLOMBIA PERU ARGENTINA BRAZIL1 CHILE1 • ENE
Slide 3: Reorganization highlights
Reorganization highlights Spin-off of Latam assets to Endesa Américas Enel SpA Enel SpA Enel SpA These companies are 100% 100% 100% expected to merge in Structure as of December 2015 2H16. Enel Enel Enel Iberoamérica Iberoamérica Iberoamérica 61% 61% 61% >50% 61% Enersis Enersis Enersis Enersis Ener
Slide 4: Organization structure (after spin-off)
Organization structure Endesa Chile (after Spin-off) ITALY 61% Committed Shareholders CHILE 60% 14% Enersis S.A. 6% Chilean Pension Funds 4% ADRs (Citibank N.A.) CHILE Retail 60% 16% Institutional Investors PEHUENCHE, 93% CELTA, 96% GASATACAMA, 98% CHILE1 GNL Quintero, 20% Transquillota ,4
Slide 5: 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. • Hydrological assets predominati
Slide 6: Well diversified generation assets
Well diversified generation assets Most relevant player in hydro 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 to hydro re
Slide 7: Balanced commercial policy
Balanced commercial policy Leading to revenue stability Physical sales: 6,025 GWh Physical Sales 1Q16 GWh Change1 5% 15% REGULATED 4,850 11% UNREGULATED 882 -18% SPOT 293 5% 80% Regulated Unregulated TOTAL 6,025 5% Spot Customers Customers Historical revenues by type of customer (Billion Ch$) Chile
Slide 8: Financial Highlights
Financial Highlights Improving results in Chile Ch$ million1 1Q 2016 1Q 2015 Change3 MM US$ 2 1Q 2016 Revenues 415,283 369,804 12% 592 Costs (230,478) (268,740) -14% (329) Contribution Margin 184,805 101,064 83% 263 EBITDA 157,461 69,530 126% 224 EBIT 125,041 40,144 211% 178 Net Financial Expenses 9
Slide 9: Healthy debt maturity profile
Healthy debt maturity profile Solid financial ratios and investment grade category (BBB+) Financial Debt Maturity1 as of March 2016 1,200 1,098 1,100 1,000 900 Total Debt: US$ 1,431 MM 800 700 600 500 400 300 200 153 87 43 100 8 3 8 3 8 3 3 14 0 < 1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 yea
Slide 10: Consolidated Cash Flow Generation (US$ million)
Consolidated Cash Flow Generation (US$million)1 Including discontinued operations 450 400 350 (99) 300 183 250 (73) 200 (44) 150 100 213 172 50 0 Cash and equivalents Funds from operations Capex Financing activities & Dividend payment Cash and equivalents March-15 Exchange rate effects March-16 1. R
Slide 11: Markets with high potential for growth
Markets with high potential for growth Annual growth of 3.4% in electricity demand in Chile* Direct relation between GDP and electricity demand 18,000 CANADA Electricity consumption, per capita (Kwh per year) 16,000 FINLAND 14,000 UNITED STATES 12,000 AUSTRALIA 10,000 8,000 JAPAN AUSTRIA FRANCE GERM
Slide 12: Historical evolution of Endesa Chile's installed capacity
Historical evolution of Endesa Chile’s installed capacity Endesa Chile has more than doubled its capacity in the last 20 years 6,501 1% 6,351 1% 5,611 GasAtacama 1% 781 MW* 4,477 44% 4,035 37% 44% 24% Los Cóndores 28% 150 MW 2,513 13% 76% 62% 55% 55% 72% 87% 1995 2000 2005 2010 2016 Under constructi
Slide 13: Projects under construction
Projects under construction To support growth of the country Los Cóndores • Hydro power plant, run of the river. • Located in San Clemente, in Maule region, Chile. • 150 MW of installed capacity. • Estimated generation of 600 GWh/year. • Estimated load factor: 46%. • Total CAPEX of US$ 662 million.
Slide 14: Credit Risk Agencies Recognition
Credit Risk Agencies Recognition Attractive ratings since 2010 Since: Jan. 2010 Apr. 2011 Feb. 2010 Jan. 2010 Apr. 2010 BBB+ Baa2 BBB+ AA (cl) AA Affirmed: Jun. 2015 Dec. 2015 Nov. 2015 Jun. 2015 Dec. 2015 International market Chilean market RATINGS BASED UPON: • Well diversified and efficient asset
Slide 15: Endesa Chile's Investor Relations Team
Endesa Chile’s Investor Relations Team Susana Rey Catalina Gonzalez Head of Investor Relations Head of Investor Relations Enersis Chile Endesa Chile (56) 22630 9606 (56) 22630 9603 susana.rey@enel.com catalina.gonzalez@enel.com Guillermo Berguecio Francisco Basauri Investor Relations Analyst Investo
Slide 16: EXHIBITS
EXHIBITS 16 Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations
Slide 17: Endesa Chile's corporate history
Endesa Chile’s corporate history •September 2004, Ralco hydroelectric •As of December 2015, Endesa Chile and its subsidiaries 192 electricity units with an installed • July 1994, Endesa Chile’s stock plant started operations adding 690 MW capacity of 15,147 MW begins to trade on the New York of inst
Slide 18: Highlights 1Q16
Highlights 1Q16 • Total energy sales rose by 5% in 1Q16 • Improved generation mix (+ 150 GWh hydro generation, + 497 GWh coal generation) • Chilean EBITDA amounted to 224 million dollars in 1Q16, increasing 126% • Net income attributable to shareholders rose 290% to 218 million dollars • Credit Rati
Slide 19: 1Q16 Results
1Q16 Results ENDESA CHILE Million US$ 1Q16 1Q15 Chg % Revenues 592 533 12% EBITDA 224 99 126% EBITDA MARGIN 38% 19% 49.6% Physical Sales (GWh) 6,025 5,716 5% 19 Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations
Slide 20: Installed capacity and energy generation
Installed capacity and energy generation Installed Capacity: 6,351 MW Net Generation 1Q16 Gwh Change1 Market Share*: 31% HYDRO 2,460 7% Total Generation: 4,573 GWh COAL 738 206% Los Molles: 18 MW OIL-GAS 1,336 (21%) Rapel-Sauzal: 466 MW 54% Hydro NCRE 39 (2%) Maule: 875 MW Laja: 940 MW 3,456 MW Tota
Slide 21: Strong financial position
Strong financial position (Million Ch$) March 2016 Dec 2015 Chg. Chg % MM US$ 20161 Gross Debt 997.332 945.119 52.213 5% 1.404 Cash 120.384 37.425 82.959 69% 170 Net Debt 876.948 907.694 (30.746) (4%) 1.235 Leverage 1.22x 1.05x 0.17x 16% Financial Expenses (289)X 4.51x - (102%) Coverage ROE (%) 11.8
Slide 22: Forward-looking statements
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 statements regarding the intent, belief or current expecta