Enel Americas S.a. · BCS:ENELAM
Enel Americas — FY2019 Earnings Presentation
38 slides from Enel Americas's earnings presentation, Feb 26, 2020
Slide 1: Enel Américas FY 2019 results
Enel Américas FY 2019 results February 26th, 2020 Américas
Slide 2: Key highlights of the period
Key highlights of the period Américas Solid results despite macro conditions in the Region EBITDA of US$ 3,994 mn, an increase of 19% vs same period 2018 Net of Fx impact EBITDA would have increased by 35% mainly driven by Enel Dx Sao Paulo and Edesur Additional efficiencies for US$ 119 mn compared
Slide 3: Main milestones of the period
Main milestones of the period Américas Fitch Ratings upgrades Enel Américas rating from BBB+ to A- Closing the bell in the US$ 3.0 bn capital NYSE2 to celebrate 25 Moody's upgrades Enel Prêmio increase approved years of listing Americas’ outlook rating Abradee by the ESM1 2019 from 'stable’ to ‘Posi
Slide 4: Operating performance
Operating performance
Slide 5: Generation operating highlights
Generation operating highlights Américas Stable business with solid increase in energy sales Installed capacity (MW) Net production (TWh) Energy sales (TWh) + 0.1% + 5% + 11% 11,267 39.9 41.8 72.6 11,257 65.3 2,708 2,701 13.4 14.2 Hydro 1.4 2,077 2,089 2.6 0.6 225 CCGTs 0.2 224 Oil-gas 25.6 23.7 6,2
Slide 6: Distribution operating highlights
Distribution operating highlights Américas Positive performance mainly driven by Enel Dx Sao Paulo Distributed Energy (TWh)1 End users (mn) Quality indicators SAIDI SAIFI + 19% + 0.6% (hours) (times) 2.8 7.3 120 24.7 7.0 9.0 2.8 24.5 11.8 11.1 100.9 7.0 6.8 Enel Dx 6.3 4.1 43.1 3.5 24.7 Enel Dx Sao
Slide 7: Enel X and Retail operating highlights
Enel X and Retail operating highlights Américas Enel X: Contributing for a better quality of life in the Region Retail: Increasing our presence in Free market Enel X Retail1 Delivery points Smart lighting (final light points, mn#) PV (MWρ installed in the year) + 17% + 1% + 43% 2,706 12 417 8 411 2,
Slide 8: Financial highlights (US$ mn)
Financial highlights (US$ mn) Américas One offs partially offsetting the negative Fx impact in the period YoY FY 2019 FY 2018 ∆ YoY Reported EBITDA 3,994 3,358 + 19.0% Adjusted EBITDA1 3,791 3,358 + 12.9% Total net income 2,170 1,667 + 30.2% Reported Group net income2 1,614 1,201 + 34.4% Adjusted Gr
Slide 9: EBITDA breakdown (US$ mn)
EBITDA breakdown (US$ mn) Américas Solid operating performance in our main businesses EBITDA evolution EBITDA by country + 19% 751 113 3 14% 3,994 31% 186 128 3,358 (544) 14% 3,994 (+19% YoY) 41% FY 2018 Thermal Renewables Distribution Retail Enel X Fx & Others 2 FY 2019 Colombia Brazil Peru Argenti
Slide 10: Industrial growth: Gross CAPEX (US$ mn)
Industrial growth: Gross CAPEX (US$ mn) Américas Distribution business captures ~80% of the total CAPEX Total CAPEX by nature Total CAPEX by business4 Total CAPEX by country 3% 3% 10% 12% 15% 26% 6% 38% 1,647 1,647 23% 1,647 (-4.8% YoY) (-4.8% YoY) (-4.8% YoY) 50% 35% 79% Thermal generation Renewabl
Slide 11: Focus on Argentina (US$ m)
Focus on Argentina (US$ m) Américas Gx in line with previous year and Dx growth including a one off effect from the past liabilities resolution Generation1 Distribution1 Total2 FY 2019 FY 2018 % FY 2019 FY 2018 % FY 2019 FY 2018 % Revenues 436 328 33% 1,347 1,190 13% 1,783 1,516 18% EBITDA 245 218 1
Slide 12: Focus on Brazil (US$ mn)
Focus on Brazil (US$ mn) Américas Solid results in Gx business and important contribution of Enel Dx Sao Paulo in Dx business Generation1 Distribution1 Total2 FY 2019 FY 2018 % FY 2019 FY 2018 % FY 2019 FY 2018 % Revenues 778 854 -9% 8,154 6,922 18% 8,609 7,490 15% Fortaleza 319 MW* EBITDA 321 244 3
Slide 13: Focus on Colombia (US$ mn)
Focus on Colombia (US$ mn) Américas Both businesses Gx and Dx in line with the previous year Generation1 Distribution1 Total2 FY 2019 FY 2018 % FY 2019 FY 2018 % FY 2019 FY 2018 % Revenues 1,247 1,259 -1% 1,665 1,714 -3% 2,539 2,671 -5% EBITDA 710 707 0% 557 523 6% 1,267 1,230 3% Codensa Emgesa Clie
Slide 14: Focus on Peru (US$ mn)
Focus on Peru (US$ mn) Américas Growth in Dx due to higher demand and efficiencies Generation1 Distribution1 Total2 FY 2019 FY 2018 % FY 2019 FY 2018 % FY 2019 FY 2018 % Revenues 596 596 0% 950 913 4% 1,383 1,311 5% Enel Gx Piura 336 MW* EBITDA 322 334 -4% 257 232 11% 561 564 0% Net Income 174 192 -
Slide 15: Efficiencies
Efficiencies Américas OPEX reduction achieved during 2019 goes better than expected in the efficiency plan OPEX evolution (US$ mn) OPEX reduction by country +6% -9% 21% 284 1,925 1,752 1,641 (119) (54) 79% Brazil Argentina 1 FY 2018 Perimeter 2018 Proforma Efficiencies CPI & FX FY 2019 42% of total
Slide 16: 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) 2015-191 2019 High-quality, inclusive and fair education 0.5 Smart meters (k) 122 Charging points2 448 Access to affordable and clean energy2 4.0 Smart lightin
Slide 17: Financial performance
Financial performance
Slide 18: From EBITDA to net income (US$ mn)
From EBITDA to net income (US$ mn) Américas 3,994 2,769 15 2,406 (1,225) 2,170 (378) (236) 1,614 (556) EBITDA D&A1 EBIT Net financial Non EBT Income tax Total Net Total net Minority Group Net Group net 2019 result operating Income income investors income Income results 2019 2019 FY 18 3,358 (923) 2,
Slide 19: Free cash flow (US$ mn)
Free cash flow (US$ mn) Américas 3,994 (790) 2,935 2,362 (592) 2,147 (324) (465) 500 (1,647) (724) (224) (25) EBITDA NWC 1 Taxes paid Net financial FFO 2 CAPEX 3 Capex FCF 4 Net dividend NCF 5 Financial Extraordinary6 FX Effect Change in expenses paid receivables operations Net Debt FY 18 3,358 (538
Slide 20: Gross debt breakdown (US$ mn)
Gross debt breakdown (US$ mn) Américas Keeping the same strategy of minimizing risks by issuing debt in operating companies in local currency Gross and net debt1 Gross debt breakdown by currency Gross debt breakdown by country - 27.9% 7.31% - 27.9% 7.10% 8,718 8,718 8,718 6% 1% 6% 7% 11% 2,069 13% 6
Slide 21: Shareholder value creation
Shareholder value creation Américas Higher dividends vs guidance and solid performance of the share in the S&P IPSA index EPS & DPS (US$/ADR) Share performance2 Market cap3: + 1.4% US$ 13.72 bn 1.1 0.60 1.1 1.1 0.53 50.0% 1.0 1.1 0.55 1.0 40.0% 0.50 1.0 30.0% EPS 0.42 1.0 20.0% 0.45 +16.6% DPS 1.0 1
Slide 22: Focus Enel Dx Sao Paulo
Focus Enel Dx Sao Paulo Américas Strong performance in Enel Dx Sao Paulo driven by the new tariff in place since July 2019 Financial highlights Gross Debt profile Local GAAP (R$ mn) FY 2018 FY 2019 ∆ YoY FY 2018 FY 2019 ∆ YoY FY 19 (US$ mn)1 Net debt (R$ mn) 4,388 3,812 -13.1% Net Revenues 14,490 14
Slide 23: Focus Enel Dx Goiás
Focus Enel Dx Goiás Américas Turnaround process and quality improvements well on track Prêmio Abradee 2019 Financial highlights Gross Debt profile Local GAAP (R$ mn) FY18 FY19 ∆ YoY FY19 (US$ mn)1 FY 18 FY 19 ∆ YoY Total invested since company’s Revenues 5,425 6,023 +11.0% 1,545 Gross debt +41.4% co
Slide 24: Closing remarks
Closing remarks Américas Good performance of the period mainly driven by the Distribution business Tariff reviews in Enel Dx Sao Paulo and Ceará completed and significant improvement of quality indicators in Enel Dx Goiás All-time record dividend to be distributed to our shareholders. Enel Américas
Slide 25: Annexes
Annexes
Slide 26: 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 27: Market context evolution
Market context evolution Américas Enel Américas Energy Local Currencies vs USD Annual GDP growth1 (%) demand2 (%) (YoY%)3 -2.5% -0.2% Argentina Argentina -68.0% -2.5% -4.3% Argentina -59.0% 1.3% 1.1% Brazil Brazil -14.3% 1.1% 2.5% Brazil -8.1% 2.6% 1.6% Colombia Colombia 0.0% 3.2% 2.0% Colombia -11.
Slide 28: Regulation update FY 2019
Regulation update FY 2019 Américas Argentina • On Friday, December 27, 2019, the ENRE, as per Article 7 of Law No. 27541, instructed EDESUR not to modify the current Tariff despite the fact that it no longer belongs to the federal jurisdiction . • In December 2019, through Resolution 12/2019, the Go
Slide 29: Financial exhibits FY 2019
Financial exhibits FY 2019 Américas EBITDA and Net Income breakdown EBITDA by country Net Income by country 14% 18% 31% 29% 14% 3,994 1,614 13% (+19% yoy) (+34% yoy) 41% 40% Brazil Colombia Peru Argentina 29
Slide 30: Financial highlights (US$ mn)
Financial highlights (US$ mn) Américas Net of Fx effects and one offs operating Group net income would have increased by ~3% QoQ 1Q 2019 2Q 2019 3Q 2019 4Q 2019 4Q 2018 ∆ QoQ Reported EBITDA 909 1,161 901 1,023 983 + 4.0% Total net income 317 511 394 1,020 809 + 26.1% Reported Group net income1 205
Slide 31: Operating exhibits FY 2019
Operating exhibits FY 2019 Américas Business context in FY 2019 v/s FY 2018 Spot Price Gx Output Dx Sales Gx EBITDA Dx EBITDA Electricity Demand1 (US$/MWh) (TWh) (TWh) (US$ m) (US$ m) (%) N/A 13.9 Argentina N/A 13.0 1,006.2 Brazil 80.7 1,382.6 Colombia Peru 1. Enel Américas’ Cumulative Demand. Brazi
Slide 32: Operating exhibits FY 2019
Operating exhibits FY 2019 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 792 735 460 0 1,987 T
Slide 33: Operating exhibits FY 2019
Operating exhibits FY 2019 Américas Distribution companies Energy sold Energy losses Concession Next tariff Distributor Clients City, Country (GWh) (%) area (km2) review Edesur 2,490,449 16,798 15.5% Buenos Aires, Argentina 3,309 2022 Enel Dx Rio 2,867,318 11,089 22.5% Niteroi, Brazil 32,615 2023 En
Slide 34: Financial exhibits FY 2019
Financial exhibits FY 2019 Américas Liquidity and credit profile Liquidity (US$ m) Total Used Available Committed credit lines 1,275 350 925 Cash and cash equivalents 1 2,002 0 2,002 Total liquidity 3,276 350 2,926 Credit Profile as of Dec. 2019 S&P Fitch Moody's LT international debt BBB A- Baa3 LT
Slide 35: Financial exhibits FY 2019
Financial exhibits FY 2019 Américas Debt maturity Average residual maturity (years) Debt profile (US$ mn) 3.6 2.7 3,087 1,394 989 818 Dec. 2018 Dec. 2019 2020 2021 2022 Balance 35
Slide 36: Disclaimer
FY 2019 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.
FY 2019 consolidated results Américas Contact us Contacts Email ir.enelamericas@enel.com Channels Rafael de la Haza Website Mobile App Head of Group Investor Relations www.enelamericas.com Enel Américas Investors Investor Relations team Jorge Velis Download App Javiera Rubio iOS Android Gonzalo Juár
Slide 38: Américas
Américas Américas