Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Investor Presentation (December 2016)
26 slides from Enel Chile Sa's investor presentation, December 2016
Slide 1: Enel Chile: Generation & Distribution of Electricity
Enel Chile Generation & Distribution of Electricity As of December, 2016
Slide 2: Agenda
Enel Chile Agenda Sector Overview Enel Chile Looking Forward 1
Slide 3: Sector overview
Enel Chile – Sector overview Most relevant player in both generation and distribution business 56% of installed capacity Largest distribution corresponds to company in the main renewable resources electricity system Tarapaca D. Almagro– Taltal Huasco Los Molles San Isidro Santiago Cachapoal Maule Bo
Slide 4: Sector overview – Leading position
Enel Chile – Sector overview Sector overview – Leading position Generation business1 Distribution business2 Installed Capacity (MW) Physical sales (GWh) 6,351 15,893 13,538 3,635 3,282 2,114 3,238 2,888 608 Enel Chile AES Gener Engie Colbún Enel Chile CGE Saesa Chilquinta Other Main player in terms
Slide 5: Agenda
Enel Chile Agenda Sector Overview Enel Chile Looking Forward 4
Slide 6: Organization Structure – Stable shareholders base
Enel Chile Organization Structure – Stable shareholders base Enel Chile Shareholders1 Organization Enel SpA 17% 2% Chilean Pension Funds ITALY 8% ADRs (Citibank N.A.) 61% 61% 12% Others Institutional Investors CHILE Enel Chile Enel Generación Chile Shareholders1 60% 99% Enel Chile S.A. 15% 6% Chilea
Slide 7: Main industrial KPIs
Enel Chile Main industrial KPIs Generation & Trading Networks Retail Production Clients served Free clients power & gas -2% 7% 288% TWh #mn # ‘000 18.4 18.1 2.0 0.5 1.8 Renewable Coal 10.7 15.9 CCGT Smart Oil&Gas 3.7 Meters 50 1,776 0.1 3.5 0.8 1.5 ‘000 0.5 0.0 2016E 2019 2016E 2019 2016E 2019 Elect
Slide 8: EBITDA breakdown by business
Enel Chile EBITDA breakdown by business (US$ mn) + 116% 1,456 348 1,137 1,032 250 788 807 272 673 253 263 243 1,108 887 760 536 545 430 2012 2013 2014 2015 Target 2016 Target 2019 Gx Dx Improved performance driven by generation business 1. Referential average exchange rate was 680.08 Ch$/US$ as of S
Slide 9: Healthy debt maturity profile
Enel Chile Healthy debt maturity profile TOTAL DEBT1: US$ 1,443 million 1.200 1,089 1.000 800 600 400 153 200 28 87 45 8 3 8 3 3 3 12 0 < 1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years and beyond Bonds Banks and Other 12% 7% • Cash: US$ 335 MM By Type1 By Currency1 • Committed Credit Lines:
Slide 10: Capital expenditures driven by generation business
Enel Chile Capital expenditures driven by generation business (US$ mn) + 163% 1,361 674 441 482 281 65 141 183 687 59 61 376 341 222 121 2013 2014 2015 Target 2016 Target 2017 - 2019 Gx Dx Los Cóndores will add 150 MW of installed capacity to the SIC. As of September 2016, the level of completion re
Slide 11: Industrial growth 2017-2019
Enel Chile Industrial growth 2017-2019 Total Capex 2017-2019 (US$bn) Growth Capex by business (US$mn) Maintenance Capex by business (US$mn) -38% -14% 270 212 182 0.5 71 62 1.4 167 73 0.9 67 Networks Generation Renewables 124 149 Other 79 132 18 23 0 17 8 8 Growth Maintenance 2016E 2019 2016E 2019 Co
Slide 12: Dividend pay-out ratio will increase to 70% in 2020
Enel Chile Dividend pay-out ratio will increase to 70% in 2020 70% 65% 60% 55% 50% 2016 2017 2018 2019 2020 • Enel Chile will paid US$ 1.3 bn in dividends for the period 2017 – 2019. • Enel Chile paid on May 24th its first definitive dividend of Ch$ 2.09 per share1. • Enel Chile proforma dividend 20
Slide 13: 2017-19 Cash flow generation
Enel Chile 2017-19 Cash flow generation (US$bn) 0.5 0.9 3.2 2.7 1.3 1.8 0.5 FFO (1) Maintenance FFO after Net growth FCF before Dividends Paid FCF (2) capex maint. Capex capex Dividends Strong cash flow generation with a growing dividend payout ratio (1) After taxes. (2) Before extraordinary operati
Slide 14: Agenda
Enel Chile Agenda Sector Overview Enel Chile Looking Forward 13
Slide 15: Regulatory scenario: Supply market liberalization
Enel Chile – Looking forward Regulatory scenario: Supply market liberalization 2016 Total Chilean Free market sales (TWh) Enel Free market sales evolution (TWh) (% of Total) 28% 7.2 5.6 Free sales Gx 50% 34 68 TWh 34 3.3 Free sales Dx 3.8 3.9 1.8 2016E 2019 Regulated market Free market Market share
Slide 16: Margin breakdown by business: Distribution + Retail
Enel Chile – Looking forward Margin breakdown by business Distribution + Retail 2016E: US$ 389 mn 2019: US$ 509 mn 6%6% 4% 6% 6% Dx Dxregulated regulado 8% 6% 6% Subtransmisión Subtransmission 9% 389 24% 58% Mercado Free Libre Market Dx Dx 509 57% 57% 25% VASwithout sin traslado de redes 22% VAS ele
Slide 17: Others business for the future
Enel Chile – Looking forward Others business for the future (PSVA’s – Future projects) Public Lighting1 Energy efficiencies Electric Transportation Distributed Generation ▪ Presence outside our ▪ 45% market share in full ▪ 20 electric buses in 2017. ▪ Initiatives within and outside our concession ar
Slide 18: Regulatory scenario: Networks
Enel Chile – Looking forward Regulatory scenario: Networks +8% 1.8 2.0 Chile Customers (mn) 1 2016 WACC 2016E 2019 10% real pre tax +43% 2 CAPEX/OPEX 0.39 Remuneration Remuneration on 0.27 I&N scheme "efficient company ” model EBITDA (US$bn) 3 2016E 2019 Regulatory cycle 4 years +67% 4 Next regulato
Slide 19: Sales scenario: Generation
Enel Chile – Looking forward Sales scenario: Generation Regulatory Scenario Contracted sales (TWh) 22 General framework Auctions for 15, 20 and 30 years 20 18 16 Income based on contributions during peak 14 Remuneration demand and recognition of dual generation 12 scheme for gas turbines 10 8 Regula
Slide 20: Sales to regulated customers
Enel Chile – Looking forward Sales to regulated costumers 20 18 16 14 12 TWh 10 8 6 4 2 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 Endesa Colbún AES Enel Generation Chile has a competitive positions towards its peer, since it will have a higher amount of contracts with regulated clients in 2025
Slide 21: Margin improvement: Generation
Enel Chile – Looking forward Margin improvement: Generation Gross Margin (US$bn) Drivers Normalization of hydrology since 2018, +17% Hydrology favor an increase in hydro production, improving margin 1,3 1.3 1,1 1.1 Commercial operations of Los Cóndores Additional starting by the end of 2018, increas
Slide 22: Efficiencies: New 2019 target saving
Enel Chile – Looking forward Efficiencies: New 2019 target saving (US$mn) (New vs Old) 2016E 2019 OLD 2019 NEW OPEX 42 90 94 +4% Gx 34 50 53 +6% Dx 8 40 41 +3% SG&A 6 10 18 +80% Total 48 100 112 +12% Improving efficiency 2019 targets Note: Efficiency values with homogeneous costs 2014 TC (USD : 1,33
Slide 23: Closing remarks
Enel Chile Closing remarks Develop a strategy of “sustainable” growth in line with the communities needs focusing on small-middle sized projects Gx Robust long term contract portfolio perfectly hedges production capability Aggressive commercial strategy boosting the business beyond regulated market
Slide 24: Closing remarks
Enel Chile Closing remarks Strong presence in all market segments Stable growth in all businesses Further progress expected in structure simplification Confirmed dividend policy, increasing by 5% every year reaching 70% in 2020 Cost efficiency ahead of plan 23
Slide 25: Contact us
Enel Chile Contact us Susana Rey Catalina González Head of IR Enel Chile Head of IR Enel Generación Chile +56 2 2630 9606 +56 2 2630 9603 susana.rey@enel.com catalina.gonzalez@enel.com Guillermo Berguecio Francisco Basauri Analyst of IR Enel Generación Chile Analyst of IR Enel Generación Chile +56 2
Slide 26: Disclaimer
Enel Chile 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 a