Enel Americas S.a. · BCS:ENELAM
Enel Americas — 9M 2020 Earnings Presentation
34 slides from Enel Americas's earnings presentation, Nov 4, 2020
Slide 1: Enel Américas 9M 2020 Consolidated results
Enel Américas 9M 2020 Consolidated results November 4th, 2020 Américas
Slide 2: Key highlights of the period
Key highlights of the period Américas COVID-19 Operational highlights Financial impacts EGP Américas Significant Gradual return to Proposal to merge Steady recovery from improvement in FFO normal operations in EGP Américas’ assets COVID-19 in 3Q despite EBITDA our businesses announced decline of 20%
Slide 3: Main impacts: Fx devaluation and operational improvement
Main impacts Steady operational improvement vs Q2’20, but Fx devaluation remains Américas Currencies vs USD1 (YTD) Electricity distributed (TWh) Collection (%) ∆ yoy ∆ yoy USD/ARS -27% 12.1 95.4 ARGENTINA - 5% -7.3 pp ARGENTINA 12.8 102.7 57.1 96.5 USD/BRL -40% BRAZIL -5% BRAZIL -2.4 pp 60.0 98.9 10
Slide 4: Main impacts: Demand recovery in Brazil, Colombia and Peru
Main impacts Demand recovery in Brazil, Colombia and Peru Américas Electricity distributed(1) (TWh) Argentina Brazil Colombia Peru 6.68 6.75 6.65 6.52 6.52 1.53 1.57 1.57 6.34 6.58 1.30 1.36 1.35 6.44 6.44 1.22 1.22 1.22 0.70 1.15 1.20 0.67 1.08 0.66 0.66 0.66 0.65 1.41 1.38 1.38 6.08 1.34 1.15 1.15
Slide 5: Industrial growth: Gross CAPEX (US$ mn)
Industrial growth: Gross CAPEX (US$ mn) Net of Fx, 9M CAPEX increased 14% vs previous year; quality plan maintained Américas Total CAPEX by nature Total CAPEX by business4 Total CAPEX by country 4% 4% 4% 5% 7% 11% 19% Q3 2020 38% 25% 381 381 381 (+2.4% YoY) (+2.4% YoY) (+2.4% YoY) 43% 57% Thermal ge
Slide 6: Reinforcing our commitment to ESG and SDGs
Reinforcing our commitment to ESG and SDGs Projects in Support of Local Communties Américas Charitable activities in response to the COVID-19 crisis ENELAMERICAS OVERALL SEPT 2020 TOTAL INITIATIVES >100 SDG Contribution PROJECTS >460 HEALTH SOCIO ECONOMIC 23 projects 164.5K beneficiaries BENEFICIARI
Slide 7: Financial results
Financial results
Slide 8: FX and COVID-19 impact on demand and bad debt
FX and COVID-19 impact on demand and bad debt (US$ mn) Américas Net of Q3 2020 Ordinary FX Demand Bad Debt COVID-19 & FX EBITDA 725 156 195 1,076 D&A (244) 19 Net Income 273 64 53 6 396 Net of 9M 2020 Ordinary Fx impact Demand Bad Debt COVID-19 & FX EBITDA 2,196 495 382 3,073 D&A (813) 70 Net Income
Slide 9: Financial highlights (US$ mn)
Financial highlights (US$ mn) Negative Fx and operational impacts remain the main factors for the lower result Américas Q3 2019 Q3 2020 ∆ YoY 9M 2019 9M 2020 ∆ YoY Quarter highlights Reported EBITDA 901 725 - 19.5% 2,971 2,196 - 26.1% Lower EBITDA and net income mainly due to currency devaluation vs
Slide 10: EBITDA breakdown (US$ mn)
EBITDA breakdown (US$ mn) Mixed results across the board, FX remains the biggest headwind Américas EBITDA evolution EBITDA by country and business - 20% 5% 15% 5% 12% 6% 901 3 35 Q3 2020 (18) (1) 725 (41) (153) 725 725 (-20% YoY) 40% (-20% YoY) 30% 40% 47% Thermal 1 2 3 Argentina generation Q3 2019
Slide 11: Generation operating highlights
Generation operating highlights Lower energy sales compared to the previous year Américas Installed capacity (GW) Net production (TWh) Energy sales (TWh) + 0.0% - 4% - 9% 11.3 11.3 54.4 31.4 30.2 49.4 2.7 2.7 - 9% 10.7 9.8 2.1 2.1 12.1 11.0 1.0 0.7 - 10% 0.2 0.2 0.4 0.6 4.4 3.4 0.3 0.4 19.5 0.1 17.6
Slide 12: Networks operating highlights
Networks operating highlights Distributed energy down vs last year, but with significant improvement in quality indicators Américas Electricity distributed (TWh)1 End users (mn) Quality indicators - 6% SAIDI SAIFI 90.1 Energy losses (hours) (tim es) 84.9 + 2% Distributor 9M 2019 9M 2020 9M 2019 9M 2
Slide 13: Enel X and Retail operating highlights
Enel X and Retail operating highlights Enel X: Strong growth in e-Mobility across all countries Américas Retail: Improving delivery points Enel X and new infrastructures Retail1 9M 2019 9M 2020 Smart lighting -1% (final light points, mn#) 802 797 Delivery points (#) Energy sold (TWh) -1% Microinsura
Slide 14: Focus by country
Focus by country Quarterly analysis
Slide 15: Focus on Argentina (US$ m)
Focus on Argentina (US$ m) Frozen tariffs in Dx and “Pesification” process of Gx affect results Américas Generation 1 Networks 1 Total 2 Q3 2019 Q3 2020 % Q3 2019 Q3 2020 % Q3 2019 Q3 2020 % Revenues 60 56 -7% 134 199 48% 194 255 31% OPEX -10 -19 88% -32 -49 53% -42 -70 68% Dock Sud EBITDA 50 38 -26
Slide 16: Focus on Brazil (US$ mn)
Focus on Brazil (US$ mn) Deterioration of Fx and market conditions hurt results Américas Generation 1 Networks 1 Total 2 Q3 2019 Q3 2020 % Q3 2019 Q3 2020 % Q3 2019 Q3 2020 % Revenues 198 151 -24% 2,068 1,607 -22% 2,183 1,693 -22% Fortaleza 319 MW* OPEX -10 -7 -32% -217 -180 -17% -243 -197 -19% EBIT
Slide 17: Focus on Colombia (US$ mn)
Focus on Colombia (US$ mn) Fx impact drags financials down, operational results remain resilient Américas Generation 1 Networks 1 Total 2 Q3 2019 Q3 2020 % Q3 2019 Q3 2020 % Q3 2019 Q3 2020 % Revenues 334 292 -13% 401 377 -6% 635 567 -11% OPEX -17 -21 29% -30 -38 26% -46 -59 27% Enel Codensa EBITDA
Slide 18: Focus on Peru (US$ mn)
Focus on Peru (US$ mn) Solid improvement on results compared to Q2’20 Américas Generation 1 Networks 1 Total 2 Q3 2019 Q3 2020 % Q3 2019 Q3 2020 % Q3 2019 Q3 2020 % Revenues 143 128 -11% 229 213 -7% 334 305 -9% Enel Gx Piura OPEX -17 -19 11% -17 -19 13% -34 -38 11% 336 MW* EBITDA 71 66 -7% 63 47 -24
Slide 19: Financial performance
WY FZ Financial performance YT ene
Slide 20: Cash flow (US$ mn)
Cash flow (US$ mn) Américas 2,196 (246) (404) 1,376 (169) 403 (974) 40 656 1 (977) (574) (40) 1 2 3 4 5 EBITDA NWC Taxes paid Net financial FFO CAPEX FCF Net dividend NCF Financial Extraordinary FX Effect Change in 9M 2020 expenses paid receivables operations Net Debt 9M 19 2,971 (1,166) (496) (447)
Slide 21: Gross debt
Gross debt Lower debt vs last year, at a lower cost Américas Gross and net debt1 Gross debt breakdown by currency Gross debt breakdown by country Dec. 19 Sep. 20 Dec. 19 Sep. 20 1% 1% - 5.7% 8% 8% 9% 9% 6,289 17% 15% 5,932 27% 40% 40% 25% US$ 6,289 mn 50% US$ 5,932 mn US$ 6,289 mn 50% US$ 5,932 mn 2
Slide 22: Merger proposal of EGP Latam assets
Merger proposal of EGP Latam assets Transaction to be completed in Q2 2021 Américas 4 2 EGM votes on the merger Independent evaluators and appraisers present their Related Party reports: Transaction: 2/3 of the share capital Corporate interest Bylaws amendment: 75% Market terms and condition
Slide 23: Closing remarks
Closing remarks Américas Management Significant Signs of recovery Due diligence of the actively working on improvement in in demand seen in EGP Américas mitigating a cash flow despite June continued merger proposal challenging challenging during the Q3 well on track environment environment 23
Slide 24: Annexes
Annexes
Slide 25: Financial exhibits
Financial exhibits Américas Q3 2019 Q3 2020 D YoY 9M 2019 9M 2020 D YoY Revenues 3,348 2,820 -15.8% 10,576 8,521 -19.4% Gross Margin 1,276 1,098 -14.0% 4,291 3,378 -21.3% OPEX -375 -373 -0.6% -1,320 -1,181 -10.5% Reported EBITDA 901 725 -19.5% 2,971 2,196 -26.1% Adjusted EBITDA 1 901 1,076 19.4% 2,7
Slide 26: Macro scenario
Macro scenario Américas Fx vs USD1 Sep-19 Sep-20 Δ% Argentina 57.33 76.12 33% Brazil 3.89 5.08 31% Colombia 3,239 3,706 14% Peru 3.33 3.46 4% 26 (1) Average FX, except for Argentina, which uses end-of-period FX due to hyperinflation
Slide 27: Financial exhibits
Financial exhibits Américas Q3 2020 Q3 2019 D yoy 9M 2020 9M 2019 D yoy Reported EBITDA 725 901 -20% 2,196 2,971 -26% D&A1 (244) (207) +18% (813) (811) +0% EBIT 481 694 -31% 1,383 2,160 -36% Net financial results (109) (61) +80% (285) (327) -13% Non operating results 4 0 >100% 7 1 >100% EBT 375 633
Slide 28: Financial exhibits: EBITDA and Net Income breakdown
Financial exhibits EBITDA and Net Income breakdown Américas EBITDA by country Net Income by country Q3 2020 9M 2020 Q3 2020 9M 2020 2% 5% 6% 17% 15% 16% 27% 40% 40% 43% 725 2,196 273 749 (-20% yoy) (-26% yoy) 19% (-31% yoy) (-39% yoy) 7% 64% 40% 38% 21% Brazil Colombia Peru Argentina 28
Slide 29: Operating exhibits: Net installed capacity and production
Operating exhibits Net installed capacity and Total net production: Breakdown by source and geography Américas 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 793 737 460 0 1,989 Total 6,2
Slide 30: Operating exhibits: Distribution companies
Operating exhibits Distribution companies Américas Energy sold Energy losses Concession Next tariff Distributor Clients City, Country (GWh) (%) area (km2) review Edesur 2,502,444 12,118 18.4% Buenos Aires, Argentina 3,309 2022 Enel Dx Rio 2,966,278 8,194 22.5% Niteroi, Brazil 32,615 2023 Enel Dx Cea
Slide 31: Financial exhibits: Liquidity and credit profile
Financial exhibits Liquidity and credit profile Américas Liquidity (US$ m) Total Used Available Committed credit lines 1,677 817 860 Cash and cash equivalents 1 1,687 0 1,687 Total liquidity 3,365 817 2,547 Credit Profile as of Sept. 2020 S&P Fitch Moody's LT international debt BBB A- Baa3 LT local
Slide 32: Disclaimer
9M 2020 results Disclaimer Américas 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 33: Thank you.
9M 2020 consolidated results Contact us Américas Contacts Email ir.enelamericas@enel.com Channels Website Mobile App www.enelamericas.com Enel Américas Investors Rafael de la Haza Head of Investor Relations Download App iOS Android Investor Relations team Jorge Velis Javiera Rubio Nicolás Gracia Fra
Slide 34: Américas
Américas Américas Américas