Enel Americas S.A. · BCS:ENELAM
Enel Americas — Enersis Américas — Investor Presentation (2016)
18 slides from Enel Americas's investor presentation, 2016
Slide 1: Enersis Américas Strategic plan 2017-19
Enersis Américas Strategic plan 2017-19
Slide 2: Agenda
Agenda 2016-19 period Enersis Américas today and main KPIs Strategic pillars: • Efficiencies • Industrial growth • Simplification Financial targets Closing remarks 1
Slide 3: Enersis Américas today: Key figures 2016
Enersis Américas today 20161 KPIs Key figures 2016 EBITDA by technology Net Installed capacity (GW) 10.6 RAB (US$bn) 7.12 Generation 49% 2.4 US$bn 51% Distributed energy (TWh) 64.1 Networks End users (mn) 13.9 Financials (US$bn) 2016 EBITDA by country EBITDA 2.4 12% 21% Opex 1.2 Argentina Brazil Mai
Slide 4: Enersis Américas today: Generation and distribution business
Enersis Américas today 20161 Generation and distribution business Net production by technology Clients by country 2% 10% 18% Hydro Argentina 34% Oil & Gas 23% Brazil 44.5 TWh 52% 13.9 mn CCGT Colombia Coal Peru 12% 49% Net production by country Energy distributed by country 12% 20% 30% Argentina Arg
Slide 5: Strategic pillars
Strategic pillars Progress on strategic pillars vs previous guidance +10% vs previous Plan in Opex, SG&A (+3581 mnUSD Efficiencies efficiencies at 2019) +1.3 bnUSD growth in EBITDA by 2019 vs 2016 Industrial growth +0.4 bnUSD Higher EBITDA in 2019 vs previous plan Completed simplification at holding
Slide 6: Focus on efficiencies
Focus on efficiencies 2017-2019 Enersis Amèricas efficiencies mnUSD net of inflation and Fx changes 2016 2019 OLD 2019 NEW NEW vs OLD OPEX 86 220 234 +6% SG&A 20 42 59 +40% Cash Pooling 4 15 15 - Tax 50 50 50 - Total 160 327 358 10% Accelerated implementation in efficiencies, 2019 target upgraded 5
Slide 7: Main industrial KPIs
Main industrial KPIs From 2016 to 2019 Networks Free Market Hydro Generation Thermal Generation End users (mn) Large Hydro Capacity (GW) Installed Capacity (GW) Free clients power & gas („000) +0% +3% +9% +78% 9,2 13.9 15.1 1.3 5.8 5.8 4.8 5.0 0.7 2016 2019 2016 2019 2016 2019 2016 2019 Electricity
Slide 8: Focus on industrial growth: Networks regulatory scenario
Focus on industrial growth Networks: Regulatory scenario Peru Argentina Brazil Colombia 2016 WACC 12.46%. Future WACC Ampla 11.4% 13.7%1. Future WACC 12.0% real pre-tax Pending to be defined Coelce 12.3% Pending to be defined 5 years Ampla Regulatory cycle 4 years 5 years 5 years 4 years Coelce 2018
Slide 9: Networks regulatory scenario - Brazil, Argentina and Colombia
Focus on industrial growth Networks: Regulatory scenario - Brazil, Argentina and Colombia 2017-19 Current regulation New proposed framework EBITDA1 impact Recognized RAB remuneration: Expected Temporary tariff based on historical Opex and RAB 2017 ~ 2.1 bnUSD, WACC 12.5% Argentina + 0.44 Capex f
Slide 10: RAB and EBITDA Networks evolution
Focus on industrial growth RAB and EBITDA Networks evolution WACC RAB (bnUSD) EBITDA Evolution (bnUSD) +35% 9.6 +0,85 7 2.8 2,01 0.30 2.2 +33% -0,07 12.5%1 2.11 0.54 +38% 2.9 1,16 0.13 0,14 0,54 11.4%2 2.1 1.2 0,23 1.5 12.0% 1.0 +50% 13.7%3 1.8 +33% 2.4 2016 2019 2016 Fx & Inflation Opex RAB Others
Slide 11: Free Market: positioning and market liberalization
Focus on industrial growth Free Market: positioning & market liberalization 2016 total sales: focus on free market (TWh) Enersis Américas Free energy sold (TWh) (% of Total) From (2016) Market Share To (2019) Argentina 3% 4 128 132 0.2 5% 2.7 Brazil 23% 121 416 537 2.3 2% 10.4 Colombia 32% 22 46 68
Slide 12: Generation Business
Focus on industrial growth Generation Business EBITDA Evolution (bnUSD) Main drivers of volume growth +0.28 • Capacity increase (120 MW in Argentina and 50 MW and Peru) +0.26 1.52 • Higher availability in Argentina: ~ 80% load factor 1.23 +0.05 • Higher hydrology in Brazil -0.02 2016 Fx & Inflation
Slide 13: Capex plan 2017-2019
Focus on industrial growth Capex plan 2017- 2019 Total capex Growth capex by business Growth capex by country 5% 11% 8% 26% 4.3 US$bn 53% 2.3 US$bn 26% 2.3 US$bn 47% 87% 37% Maintenance Growth Networks Generation Retail Argentina Brazil Colombia Peru Growth capex concentrated in networks 12
Slide 14: Focus on simplification: Latam restructuring
Focus on simplification Latam restructuring Yesterday Today Further simplification at country level Current n. of companies in Americas: 43 60.6% 60.6% 51.8% Enel Enel Chile Americas Target to reduce below 21 Chilectra 99.1% 60.0% Endesa the number of companies Enersis Chile 99.1% 60.0% (CHI) (EOC)
Slide 15: Financial targets: EBITDA, capex and cash flow
Financial targets EBITDA, capex and cash flow 2016-19 EBITDA and CAPEX (bnUSD) 2017-19 Cash flow generation (bnUSD) +54% Oportunities in M&A and 2.0 minorities buy out not included 3.7 6.3 2.3 3.3 2.8 2.4 4.3 1.2 1.4 1.5 1.4 2.1 2.1 0.0 - 2016 2017 2018 2019 FFO Maintenance FFO after Growth FCF Divi
Slide 16: Enersis Américas post merger targets
Financial targets Enersis Américas post merger targets (bnUSD) 2017 2019 CAGR EBITDA 2.8 3.7 +14% Net Income1 0.8 1.3 +24% Capex 1.4 1.4 - Dividend Policy 50% Accelerating EBITDA, Net Income and Capex targets vs previous plan 15 1. Attributable Net Income
Slide 17: Closing remarks
Closing remarks ✔ 2016 delivery: acceleration of effIciencies and confirmation of EBITDA targets ✔ Substantial upgrade of 2019 targets thanks to higher efficiency and growth ✔ Further progress expected in structure simplification at country level ✔ Net income targets 2019 increase by +15% vs old pla
Slide 18: Disclaimer
Disclaimer This presentation does not constitute an offer to sell any securities and is not soliciting an offer to buy any securities in any jurisdiction. This presentation contains certain “forward-looking statements” regarding anticipated financial and operating results and statistics and other fu