Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Endesa Chile — Investor Presentation (June 2016)
21 slides from Enel Chile Sa's investor presentation, June 2016
Slide 1: Endesa Chile IR Presentation 1H 2016
Endesa Chile IR Presentation 1H 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 non-Chilean 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 Enersi
Slide 4: Organization structure (after Spin-Off)
Organization structure Endesa Chile (after Spin-Off) ITALY Committed Shareholders 61% CHILE 60% 18% Enersis S.A. 3% Chilean Pension Funds 3% ADRs (Citibank N.A.) Retail 16% 60% Institutional Investors CHILE PEHUENCHE, 93% CELTA, 96% GASATACAMA, 98% Average volume traded (MMUS$) 2015 2016 CHILE
Slide 5: Key investment considerations
Key investment considerations Attractive business in Chile One of the largest electricity generation companies in Chile. • Proven track record with more than 70 years of experience Well diversified portfolio of generation assets, including all types of technologies. • Hydroelectric assets prevailing
Slide 6: Well diversified generation assets
Well diversified generation assets Most relevant player in hydro generation Installed Capacity 6,351 MW 1% HYDRO 34% COAL Tarapaca OIL-GAS D. Almagro– 55% Taltal NCRE Huasco Los Molles 10% San Isidro Santiago Cachapoal Maule Bocamina Laja Bio Bío 55% of Endesa Chile’s installed capacity corresponds
Slide 7: Balanced commercial policy
Balanced commercial policy Leading to revenue stability Physical sales: 12,139 GWh Physical Sales 1H16 GWh Change1 6% REGULATED 9,578 11% 15% UNREGULATED 1,883 -9% 79% SPOT 678 0% Regulated Unregulated TOTAL 12,139 7% Spot Customers Customers Energy sales by type of customer (Million Ch$) Chile – Co
Slide 8: Financial Highlights
Financial Highlights Improving results in Chile Consolidated Income Statement1 1H 2016 1H 2015 Change3 MM US$2 2016 Revenues 848,484 735,567 15% 1,231 Costs (487,511) (528,721) -8% (707) Contribution Margin 360,973 206,846 75% 524 EBITDA 300,099 142,206 111% 435 EBITDA Margin 35.4% 19.3% 83% EBIT 23
Slide 9: Healthy debt maturity profile
Healthy debt maturity profile Solid financial ratios and investment grade category (BBB+) Financial Debt Maturity1 as of June 2016 1,200 1,085 Total Debt: US$ 1,478 MM 1,000 800 600 400 203 200 78 44 8 3 8 3 28 3 3 13 0 < 1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years and beyond Bonds Banks
Slide 10: Consolidated Cash Flow Generation (US$ million)
Consolidated Cash Flow Generation (US$ million)1 Including discontinued operations 700 600 110 500 400 379 157 300 179 200 100 217 151 0 Cash and equivalents Funds from operations Capex Financing activities & Dividend payment ² Cash and equivalents June-15 Exchange rate effects June-16 1. Referentia
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: Evolution of Endesa Chile's total installed capacity
Evolution of Endesa Chile’s total 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 construction •
Slide 13: Projects under construction
Projects under construction To support growth of the country Los Cóndores • Run-of-the-river, hydroelectric power plant. • 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 m
Slide 14: Credit Rating Agencies' Recognition
Credit Rating Agencies’ Recognition Attractive ratings since 2010 Since: Jan. 2010 Apr. 2011 Feb. 2010 Jan. 2010 Apr. 2010 BBB+ Baa2 BBB+ AA (cl) AA Affirmed: Mar. 2016 Dec. 2015 Feb. 2016 Mar. 2016 Jul. 2016 International market Chilean market RATINGS BASED ON: • Well diversified and efficient asse
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 1H 2016 USE: Public, Investor Relations
Slide 17: Endesa Chile's corporate history
Endesa Chile’s corporate history •As of December 2015, Endesa Chile and its • July 1994, Endesa Chile’s stock •September 2004, Ralco hydroelectric subsidiaries 192 electricity units with an installed begins to trade on the New York plant started operations adding 690 MW capacity of 15,147 MW Stock E
Slide 18: Installed capacity and energy generation
Installed capacity and energy generation Net Generation 1H16 GWh Change1 Installed Capacity: 6,351 MW Market Share*: 31% HYDRO 4,537 4% Total Generation: 8,912 GWh COAL 1,409 97% Los Molles: 18 MW OIL-GAS 2,921 (17%) Rapel-Sauzal: 466 MW NCRE 45 (22%) Maule: 875 MW 54% Hydro Laja: 940 MW 3,456 MW To
Slide 19: Highlights 1H16
Highlights 1H16 • Total energy sales rose by 7% in 1H16 • Improved generation mix (+ 159 GWh hydro generation, + 695 GWh coal generation) • Chilean EBITDA amounted to 435 million dollars in 1H16, increasing 111% • Net income attributable to shareholders rose 162% to 344 million dollars • Credit Rati
Slide 20: Strong financial position
Strong financial position (Million Ch$) June 2016 Dec 2015 Chg. Chg % MM US$ 20161 Gross Debt 1,012,653 945,119 67,534 7% 1,531 Cash 104,162 37,425 66,737 64% 157 Net Debt 908,491 907,694 797 0% 1,374 Leverage 1.14 1.05 0.09 9% Financial Expenses 38.62 11.23 27.39 244% Coverage ROE (%)* 13.3% 12.4%
Slide 21: 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