Enel Americas S.a. · BCS:ENELAM

Enel Americas — FY2018 Earnings Presentation

32 slides from Enel Americas's earnings presentation, Feb 27, 2019

  1. Slide 1: Enel Américas FY 2018 results

    Enel Américas FY 2018 results February 27th, 2019

  2. Slide 2: Highlights of the period

    FY 2018 results Highlights of the period EBITDA of 3,358 mUSD, an increase of 14% vs 2017 despite the negative Fx scenario in Argentina and Brazil. Net of Fx effect EBITDA would have increased by 33% Distribution business EBITDA increased by 25%, reaching 1,941 mUSD mainly due to the consolidation o

  3. Slide 3: Market context evolution

    FY 2018 results Market context evolution Enel Américas Energy Local Currencies vs USD Annual GDP growth 1 (%) demand2 (%) (YoY%)3 -4.1% -12.4% 2.9% Argentina Argentina Argentina -1.1% -68.0% -2.4% 1.0% -0.9% 8.4% Brazil Brazil Brazil 1.3% 1.1% -14.3% 1.8% 1.2% 3.2% Colombia Colombia Colombia 2.6% 1.

  4. Slide 4: Regulation update

    FY 2018 results Regulation update • On August 1st, 2018, it was applied the inflation adjustment of the Dx tariff. This adjustment was for 50% of the inflation of the period Argentina which was an 8% increase in Dx tariff, and the remaining 50% was applied since February 2019. Also, since February 2

  5. Slide 5: Operating highlights

    FY 2018 results Operating highlights Net production (TWh) Energy sales (TWh) - 2.9% + 16.6% Generation 41.1 39.9 65.3 18.3 16.0 56.1 0.1 0.2 Hydro Oil-Gas 22.6 23.7 Coal FY 17 FY 18 FY 17 FY 18 Distributed Energy (TWh) Number of customers (m) Distribution + 35.8 % + 42.3% 100.9 24.5 74.3 24.7 Enel D

  6. Slide 6: Operating highlights

    FY 2018 results Operating highlights Enel X Free Market Energy Gas Number of customers Number of customers Smart lighting (final light points, k#) PV + storage (MWρ installed in the year) 2017 406 + 10% + 25% 2017 0.3 2018 421 2018 1.1 1,411 20 1,279 16 Dec. 17 Dec. 18 Dec. 17 Dec. 18 Energy sold (T

  7. Slide 7: Financial highlights

    FY 2018 results Financial highlights 2018 2018 target1 2017 ∆ YoY ✔ Gross margin (US$ bn) 5.0 5.0 4.6 10.7% ✔ EBITDA (US$ bn) 3.4 3.4 2.9 13.9% ✔ Attr. net income (US$ bn) 1.2 1.2 0.7 69.4 % ✔ Dividend per ADR (US$) 0.42 0.42 0.31 36.5 % Net debt (US$ bn) 6.6 7.0 3.4 98.5% 7 1. 2018 target announced

  8. Slide 8: EBITDA (US$ m)

    FY 2018 results EBITDA (US$ m) EBITDA by country EBITDA by business1 Generation business’ EBITDA increased mainly due to Volta Grande consolidation, offset by Fortaleza situation 12% 36% Brazil 17% 44% Distribution 3,358 Colombia 3,358 Distribution business’ EBITDA increased +13.9% yoy Peru 56% +13.

  9. Slide 9: Gross Capex (US$ m)

    FY 2018 results Gross Capex (US$ m) 1 Total capex 2018 total capex by business and country + 2.6% 17% 12% 15% 1,686 1,730 1,730 23% 1,730 (+2.6% yoy) (+2.6% yoy) 446 590 50% 557 83% 446 650 727 Argentina Generation Distribution Brazil FY 17 FY 18 Colombia Asset management Asset development Customer

  10. Slide 10: Focus on Argentina (US$ m)

    FY 2018 results Focus on Argentina (US$ m) Generation Distribution Total1 FY 18 FY 17 % FY 18 FY 17 % FY 18 FY 17 % Revenues 328 300 9% 1,190 1,223 -3% 1,516 1,520 0% EBITDA 218 171 28% 179 158 14% 396 327 21% Dock Sud 846 MW* Net Income 175 135 30% 104 11 137% 289 148 137% Costanera Capex 101 78 30

  11. Slide 11: Focus on Brazil (US$ m)

    FY 2018 results Focus on Brazil (US$ m) Generation Distribution Total1 FY 18 FY 17 % FY 18 FY 17 % FY 18 FY 17 % Revenues 854 830 3% 6,922 4,613 50% 7,490 5,133 46% Fortaleza 319 MW* EBITDA 244 302 -19% 1,006 649 55% 1,200 907 32% Net Income 151 179 -16% 596 117 411% 555 269 106% Enel Dx Ceará Clien

  12. Slide 12: Focus on Colombia (US$ m)

    FY 2018 results Focus on Colombia (US$ m) Generation Distribution Total1 FY 18 FY 17 % FY 18 FY 17 % FY 18 FY 17 % Revenues 1,259 1,160 9% 1,714 1,538 11% 2,671 2,384 12% EBITDA 707 682 4% 523 521 0% 1,230 1,203 2% Codensa Emgesa Clients: 3.4 m 406 MW* Net Income 346 300 15% 206 211 -2% 552 511 8% 1

  13. Slide 13: Focus on Peru (US$ m)

    FY 2018 results Focus on Peru (US$ m) Generation Distribution Total1 FY 18 FY 17 % FY 18 FY 17 % FY 18 FY 17 % Revenues 790 730 8% 913 879 4% 1,506 1,400 8% Enel Dx Perú Clients: 1.4 m EBITDA 334 312 7% 232 230 1% 564 539 5% Net Income 192 153 26% 105 105 0% 292 257 13% Capex 72 74 -3% 141 123 14% 2

  14. Slide 14: From EBITDA to Net income (US$ m)

    FY 2018 results From EBITDA to Net income (US$ m) 3 (923) 3,358 2,435 (333) 2,105 (438) (466) 1,667 1,201 EBITDA D&A EBIT Net financial Non EBT Income tax Net Income Minorities Attr. Net result operating Income results ∆ YoY 13.9% 26.8% 9.7% 42.9% -63.8% 27.9% -15.6% 48.0% 11.5% 69.4% 14

  15. Slide 15: Free cash flow (US$ m)

    FY 2018 results Free cash flow (US$ m) 3,358 (538) (596) 1,848 (376) 118 (1,730) (589) (471) (202) 83 (2,710) (3,300) 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 1. Capex accrued gross

  16. Slide 16: Gross debt breakdown (US$ m)

    FY 2018 results Gross debt breakdown1 (US$ m) Gross and Net Debt Gross debt breakdown by currency Gross debt breakdown by country 7.9% 7.1% + 74.8% + 74.8% 8,718 8,718 8,718 1% 6% 7% 358 13% 11% 1,710 20% 4,988 20% 4,988 4,988 1% 3,132 9% 12% 16% 13% 1,639 40% 61% 40% 61% 47% 3,349 3,518 35% 35% Dec

  17. Slide 17: Focus Enel Dx São Paulo

    FY 2018 results Focus Enel Dx São Paulo Milestones of the year Financial highlights1 (US$ m) Gross Debt profile 2017 2018 ∆ YoY Av. Maturity 3.0 3.9 Revenues 2,459 +0.9 y (years) EBITDA 244 Effective rate2 8.5 -1.3 p.p. (%) 9.8 Total Net Income 22 Av. Spread 2.0 1.0 -1.0 p.p. (%) Gross Capex 236 Gro

  18. Slide 18: Our commitment to SDGs and Human Capital

    FY 2018 results Our commitment to SDGs1 and Human Capital Engaging local communities (m beneficiaries) Innovation and infrastructure/Sustainable cities 2 2018 Cumulated 2018 107 High-quality, inclusive and fair education 0.4 Smart meters (th) Lighting points (th) 421 Access to affordable and clean e

  19. Slide 19: Ratings and acknowledgements

    FY 2018 results Ratings and acknowledgements Chile Index MILA Index Emerging markets Index Emerging markets Index Sustainabilty category Best Emerging Markets Latin America Index 3rd place performers ranking (top 100) 19

  20. Slide 20: Closing remarks: highlights

    FY 2018 results Closing remarks: highlights Results in line with our guidance 2018 announced in November 26th and better compared to the previous year despite the adverse macro scenario and currency devaluation in Argentina and Brazil Energy sales in generation and distribution businesses significan

  21. Slide 21: Exhibits

    Exhibits 21

  22. Slide 22: Financial highlights (US$ m)

    FY 2018 results Financial highlights (US$ m) 1 2 FY Pro-forma IAS 29 IAS 21 FY 18 FY 17 ∆ yoy Revenues 13,336 283 -434 13,184 10,438 26.3% Contribution Margin 5,107 146 -212 5,041 4,555 10.7% EBITDA 3,390 79 -112 3,358 2,947 13.9% EBIT 2,505 8 -79 2,435 2,219 9.7% Net Financial Income -580 250 -3 -3

  23. Slide 23: EBITDA evolution (US$ m)

    FY 2018 results EBITDA evolution (US$ m) + 13.9% 276 669 (350) 3,358 (178) 370 2,947 (376) 1 FY 2017 EBITDA Fx impact Perimeter 2 Margin growth Efficiencies Opex Inflation FY 2018 EBITDA 1. Argentinean Fx impact: USD 376 m. 2. Enel Dx Goiás: USD 12 m, Enel Dx São Paulo: USD 279 m and Volta Grande: U

  24. Slide 24: Operating Exhibits FY 2018

    Operating Exhibits FY 2018 Business context in 9M 2018 v/s 9M 2017 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

  25. Slide 25: Net installed capacity and total net production

    Operating Exhibits FY 2018 Net installed capacity and Total net production: Breakdown by source and geography Net installed capacity (MW) MW Hydro Oil-Gas Coal Total Argentina 1,328 3,091 0 4,419 Brazil 1,035 319 0 1,354 Colombia 3,093 182 224 3,499 Peru 792 1,193 0 1,985 Total 6,248 4,785 224 11,25

  26. Slide 26: Production mix (TWh)

    Operating Exhibits FY 2018 Production mix (TWh) LatAm Argentina - 2.9% - 5.9 % Hydro 41.1 39.9 14.8 13.9 0.3% Oil-gas 0.4% Coal 44.6% 40.1% 87.1% 79.5% 55.1% 59.4% 12.9% 20.5% FY 17 FY 18 FY 17 FY 18 Brazil Colombia Peru - 6.9% - 4.8% + 9.1 % 4.0 0.9% 14.8 8.1 3.8 14.1 7.4 0.4% 14.2% 47.9% 52.5% 46.

  27. Slide 27: Distribution companies

    Operating Exhibits FY 2018 Distribution companies Energy sold Energy losses Concession Next tariff Distributor Clients City, Country (GWh) (%) area (km2) revision Edesur 2,529,953 17,548 14.2% Buenos Aires, Argentina 3,309 2022 Enel Dx Rio 2,959,220 11,019 21.0% Niteroi, Brazil 32,615 2023 Enel Dx C

  28. Slide 28: Liquidity and credit profile

    Financial Exhibits FY 2018 Liquidity and credit profile Liquidity (US$ m) Total Used Available Committed credit lines 1,620 350 1,270 Cash and cash equivalents 1 2,069 0 2,069 Total liquidity 3,689 350 3,339 Credit Profile as of Dec. 2018 S&P Fitch Moody's LT international debt BBB BBB+ Baa3 LT loca

  29. Slide 29: Debt maturity

    Financial Exhibits FY 2018 Debt maturity Average residual maturity (years) Debt profile (US$ m) 4.3 2,426 Enel Dx São Paulo 2.7 acquisition debt 2,825 1,698 797 972 FY 17 FY 18 2019 2020 2021 Balance 29

  30. Slide 30: Disclaimer

    FY 2018 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

  31. Slide 31: Thank you.

    FY 2018 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

  32. Slide 32: CNC

    CNC

Enel Américas — FY2018 Earnings Presentation on 6ix