Enel Americas S.A. · BCS:ENELAM
Enel Americas — Merger or Acquisition (2018)
19 slides from Enel Americas's merger presentation, 2018
Slide 1: Eletropaulo
Eletropaulo Enel Américas’ 2018 Analyst Update Meeting Luca D’Agnese CEO Enel Américas Carlo Zorzoli Country Manager Enel Brasil
Slide 2: Eletropaulo at a Glance
Eletropaulo at a Glance Largest Metropolitan Area of the Most Developed and Industrialized State in Brazil 7.2m Clients 43TWh Energy Sold State of São Paulo Brasil 1.6k/km2 Customer Density 6.0 MWh/yr Avg. Consumption Eletropaulo’s Concession 24 Cities 9.7% Losses Eletropaulo is a distribution compa
Slide 3: Eletropaulo at a glance
Eletropaulo at a glance Eletropaulo’s historical EBITDA, Clients and Distributed Energy evolution EBITDA (US$m) Clients and Distributed Energy EBITDA pre-pension funds EBITDA margin 403 7,155 46,415 355 302 108 88 222 99 Eletropaulo 7.0 % 80 6,742 42,982 295 268 Avg. Enel Dx Brazil 204 12.5 % 142 20
Slide 4: Eletropaulo at a glance
Eletropaulo at a glance Eletropaulo Capex by clients 25 23.8 7,600 7,280 7,355 7,400 7,165 7,200 Eletropaulo n. of employees 20 7,000 6,800 15 Eletropaulo SAIDI (hours per year) 13.2 15.9 6,600 6,400 10 6,152 11.7 6,200 6,000 5 5,800 5,600 0 5,400 2014 2015 2016 2017 Capex/Client (US$) 24.0 24.5 31.
Slide 5: Investment Rationale
Investment Rationale Eletropaulo Represents an Attractive Investment, Operating in Brazil’s Most Important Region Opportunity to consolidate Enel Américas’ presence in Brazil becoming a leading integrated player in that country Leverage on Enel competences for opex reduction and digitalization of di
Slide 6: Investment Rationale
Investment Rationale Eletropaulo EBITDA evolution 2017-2021 (US$m) ~ 50 ~ 750 ~ 100 ~ 700 ~100-150 ~ 150-200 295 EBITDA 2017 Efficiencies RAB growth & Quality Volume growth EBITDA 2021E Enel X & Retail Total EBITDA 2021E contribution to Enel Américas Group EBITDA/MWh 6.86 Eletropaulo 2017 EBITDA/MWh
Slide 7: Investment Rationale
Investment Rationale Potential efficiencies Opex/client1 benchmark (US$) Main initiatives Pension Fund 15 • Leverage on global procurement • Alignment in service contracts to Enel’s standard procedures Opex/client (excl. Pension Fund) 65 • Deployment of smart technologies 42 • Technical Opex: Conver
Slide 8: Investment Rationale
Investment Rationale RAB growth opportunity Capex evolution (US$m) 300 Total Capex 2019-21 (US$bn) 224 13% Smart Meters 20% Other ICT 5% Quality Avg. 2015-17 Avg. 2019-21 10% ~0.9 21% Connections & Tx Losses RAB evolution (US$bn) Maintenance 2.6 2.2 32% 2.0 2017 2019 2021 Tariff review Original valu
Slide 9: Investment Rationale
Investment Rationale RAB per client evolution (US$) +24% +123% 1,170 411 389 345 278 184 2017 2021 2017 2021 2017 2017 Eletropaulo Enel Goiás Avg. Enel Rio and Ceará Enel Dx Chile High potential value creation from RAB increase Original values in BRL translated into USD using an Exchange rate of 3.6
Slide 10: Investment Rationale
Investment Rationale Additional contributions to the Enel Américas’ EBITDA Energy sales to free market Distributed Generation / Storage Presence in key markets for commercial / industrial Financial services connected to electricity bill clients Green products for the home Additional opport
Slide 11: Enel Américas Positioning
Enel Américas Positioning Strategically Positioned as Largest Dx player in Brazil Number of Customers (m) 17.1 13.6 9.9 9.3 8.3 7.2 7.0 6.6 5.0 4.6 4.6 4.5 3.4 2.9 1.7 Enel 3 Neoenergia Enel 2 CPFL Cemig Eletropaulo Enel 1 Energisa Equatorial Copel Light Eletrobras edp Celesc CEEE Goiás Goiás Enel A
Slide 12: Main Transaction Terms
Main Transaction Terms Tender Offer for Eletropaulo Eletropaulo Enterprise Value Build-Up (US$ bn) Enel Américas has made the best offer to acquire Eletropaulo. +0.2 4.6 +0.4 +0.8 Final price: 45.22 BRL per share. + 1.0 2.1 Enterprise Value of US$ 4.6 bn. Tender offer successfully finalized
Slide 13: Closing remarks
Closing remarks ✔ Largest individual distribution concession in Brazil located in the most developed and industrialized state in the Country ✔ Enel Américas would become the market leader in the distribution business in Brazil ✔ Key value driver: Opportunity to increase efficiency and improve EBITDA
Slide 14: Exhibits
Exhibits
Slide 15: Main Macro assumptions
Main Macro assumptions Favorable Macro and Sector Dynamics GDP Brazil (% YoY) CPI (%) 2.6 4.9 2.3 4.3 4.2 1.9 2.0 4.2 2.8 1.0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Energy Distributed1 (TWh) Fx Rate BRL/USD 42.06 38.74 40.30 37.32 34.88 3.70 3.55 3.45 3.35 3.19 2017 2018 2019 2020 2021 20
Slide 16: AES Eletropaulo Historical Data
AES Eletropaulo Historical Data Historical Data: Financials (US$m) 2014 2015 2016 2017 CAGR EBITDA (pre-pension fund) 222 355 302 403 +22.0% Pension Fund Provision 80 88 99 108 +10.5% EBITDA (Local GAAP) 142 268 204 295 +27.6% Net Income (36) 28 6 (235) -86.9% Net Financial Debt* 601 853 612 824 +11
Slide 17: Disclaimer
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, belief or curr
Slide 18: Contact us
AES Eletropaulo Contact us Rafael De La Haza Head of Investor Relations Enel Américas Jorge Velis Investor Relations Enel Américas Itziar Letzkus Email Investor Relations Enel Américas ir.enelamericas@enel.com Javiera Rubio Phone Investor Relations Enel Américas +562 23534682 Gonzalo Juarez Web site
Slide 19: CNC
CNC