Enel Americas S.a. · BCS:ENELAM
Enel Americas — FY2016 Earnings Presentation
34 slides from Enel Americas's earnings presentation, February 2017
Slide 1: Enel Américas FY 2016 results
Enel Américas FY 2016 results
Slide 2: Highlights of the period and recent events
FY 2016 results Highlights of the period and recent events EBITDA of US$ 2.4 bn, an increase of 1.7%, excluding fx effects and one-offs increased by 16.1% Net Income without discontinued operations - 24.5%, net of one-offs + 23.6% Attributable Net Income of US$ 0.6 bn, in line with targets Reorganiz
Slide 3: Market context in the period
FY 2016 results Market context in the period Enel Américas Energy Average Local Currencies vs CLP Annual GDP growth 1 (%) demand2 (%) Spot Price (USD/MWh) (YoY%)3 -7.0% Colombia Colombia -2.3% Colombia 99 Colombia 2.0% -16.5% -2.6% Peru 3.9% Peru 1.6% Peru 32 Peru 2.4% 2.2% -1.1% Brazil -3.5% Brazil
Slide 4: Operating highlights
FY 2016 results Operating highlights Net Installed capacity (MW) Net production (TWh) Electricity sales (TWh) - 4.0% + 4.3% + 1% Generation 42.1 40.4 10,726 10,785 48.5 50.6 Hydro 18.8 17.3 4,740 4,753 Oil-Gas Coal 5,762 5,808 22.2 22.6 Dec. 15 Dec. 16 FY 15 FY 16 FY 15 FY 16 Electricity Distributed
Slide 5: Financial highlights
FY 2016 results Financial highlights (US$ mn) 1 Revenues EBITDA - 2.0% + 16.1% 7,835 7,681 + 1.7% +270 +73 2,771 2,387 2,429 2 FY 15 FY 16 FX effects One-Offs EBITDA ex. One-offs FY 15 FY 16 and FX effects Net Income (without discontinued operations) Net Debt4 - 24.5% - 15.6% +23.6% 1,795 1,117 1,51
Slide 6: Group EBITDA evolution by business and country
FY 2016 results Group EBITDA evolution by business and country (US$ mn) 1 Generation Distribution - 0.8% + 5.3% 1,278 1,218 +83 1,268 1,157 +89 +86 +31 +50 +6 +54 -132 -5 -73 -138 +15.3 % +17.2% Operating Performance Operating Performance 2 2 2 2 FY 15 FX Impact One-off Colombia Peru Brazil Argentin
Slide 7: Focus on Colombia
FY 2016 results Focus on Colombia (US$ mn) 1 Generation Distribution Total2 FY 15 FY 16 % FY 15 FY 16 % FY 15 FY 16 % Revenues 1,151 1,151 0% 1,307 1,365 4% 2,317 2,266 -2% Codensa EBITDA 609 646 6% 436 452 4% 1,045 1,099 5% Emgesa Clients: 3.2 mn 411 MW Ex. One-Offs 14% 12% 13% and fx effects Bogot
Slide 8: Focus on Brazil
FY 2016 results Focus on Brazil (US$ mn) 1 Generation Distribution Total2 FY 15 FY 16 % FY 15 FY 16 % FY 15 FY 16 % Fortaleza Revenues 452 572 27% 2,715 2,489 -8% 2,975 2,778 -7% 319 MW EBITDA 226 271 20% 340 414 22% 534 644 21% 21% 22% Coelce Ex. One-Offs 23% Clients: 3.9 mn and fx effects Cachoeir
Slide 9: Focus on Peru
FY 2016 results Focus on Peru (US$ mn) 1 Generation Distribution Total2 FY 15 FY 16 % FY 15 FY 16 % FY 15 FY 16 % Edelnor Clients: 1.4 mn Revenues 647 678 5% 831 865 4% 1,334 1,339 0% EBITDA 316 240 -24% 204 211 3% 520 437 -16% Ex. One-Offs 1% 6% 0% and fx effects CAPEX 49 99 100% 150 123 -18% 203 2
Slide 10: Focus on Argentina
FY 2016 results Focus on Argentina (US$ mn) 1 Generation Distribution Total2 FY 15 FY 16 % FY 15 FY 16 % FY 15 FY 16 % Revenues 314 307 -2% 898 981 9% 1,208 1,286 6% Dock Sud EBITDA 127 136 7% 176 172 -3% 303 308 1% 846 MW Ex. One-Offs 65% 51% 57% and fx effects Costanera 2.210 MW Buenos Aires CAPEX
Slide 11: Gross Capex
FY 2016 results Gross Capex (US$ mn) 1 By activity By business By country Maintenance Generation Brazil 37% 24% Argentina 1,218 1,218 21% 1,218 50% -23.9% yoy 50% -23.9% yoy -23.9% yoy 76% 24% 18% Growth Distribution Colombia Perù 1. Accrued capex during 2016., gross of contributions and connections
Slide 12: EBITDA and Net Income breakdown
FY 2016 results EBITDA and Net Income breakdown (US$ mn) 1 EBITDA by geography EBITDA by business Brazil 26% Distribution 2,429 2,429 51% 49% Colombia 44% +1.7% yoy 12% Argentina +1.7% yoy 18% Generation Perù Net Income2 by geography Net Income2 by business Perù 20% Distribution 844 844 Colombia 48%
Slide 13: From EBITDA to Group net income
FY 2016 results From EBITDA to Group net income (US$ mn) 1 2,429 1,799 -630 +15 2 -438 +170 1,014 844 Minority -531 Interest Attr. 566 Net Income EBITDA D&A EBIT Financial Result Non Operating Income tax Net Income Discontinued Group Net Income Results (without disc. oper.) Operations 1. Comparisons
Slide 14: Free cash flow
FY 2016 results Free cash flow (US$ mn) 1 + 619 2,429 -594 2,137 -317 611 Maintenance 607 Growth 919 -1,218 548 -371 279 -105 -164 EBITDA NWC Taxes paid Financial FFO Capex 2 FCF Net NCF Extr. FX Effect Change in expenses2 Dividends 3 Operation Net Debt paid paid 1. Comparisons between periods are m
Slide 15: Gross debt breakdown
FY 2016 results Gross debt breakdown Gross and Net Debt (US$ mn) 1 Gross debt breakdown by currency Gross debt breakdown by country +21.5% 9.7% 9.5% 4,273 4,273 4,273 3,517 15% 3,517 3,517 11% 11% 11% 15% 11% 20% 18% 1,722 2,757 22% 8% 22% 22% 22% 22% 1,795 1,516 47% 46% 47% 46% 47% FY 15 FY 16 FY 1
Slide 16: Reorganization process completed
FY 2016 results Reorganization process completed Yesterday Today 1 2 3 60.6% 60.6% 60.6% 51.8% (1) 60.6% 99.1% Enersis 60.0% Enersis 99.1% 60.0% Chile Enel Enel Chilectra Endesa Américas Enersis Américas Chile Chile Chile Chilectra Endesa Américas 99.1% 60.0% Américas 99.1% 60.0% Chile Argentina Bra
Slide 17: Efficiencies
FY 2016 results Efficiencies Dx Gx S&S OPEX (MUS$) OPEX (MUS$) OPEX S&S (MUS$) US$/Client kUS$/MW -8% (-77) 962 886 -10% 72,5 (-24) -12% -13% 63,0 245 (-27) 221 219 192 22,8 -10% 20,5 2015 2016 2015 2016 2015 2016 17
Slide 18: Celg-D acquisition
FY 2016 results Celg-D1 acquisition Key Drivers @ Bid After Takeover Lower due to lower capex RAB 2016 U$D 0.8 bn executed in 2016 Clients growth 17-19 + 275K (+3% yearly) Confirmed New tariff cycle Regulatory review 2017 postponement of 1 year Further improvements under Efficiencies 17-19 Opex impr
Slide 19: Regulatory framework and legal updates: focus on Argentina
FY 2016 results Regulatory framework and legal updates: focus on Argentina New model for distribution applicable from February, 1st 2017 (ENRE 64/17 1 Resolution) for the following 5 years (17-21). Current framework is the result of a significant work between the 2 Government and the companies invol
Slide 20: Regulatory framework and legal updates: focus on Argentina
FY 2016 results Regulatory framework and legal updates: focus on Argentina Methodology model • Price cap model. • VNR (Valor Neto de Reposiciòn) depreciated according to the lifetime of the assets. Regulated rate of return • WACC 12,46%. Real pre-tax. Regulated Asset Base • RAB recognition of approx
Slide 21: Regulatory framework and legal updates: focus on Argentina
FY 2016 results Regulatory framework and legal updates: focus on Argentina Investments • FY 2017-2019: U$D 0.9 Bn committed in line with the Company’s Strategic Plan presented last November. • Resolution has established a mechanism of investments control to be periodically monitored by the Regulator
Slide 22: Evolution average Tariff to final client - Edesur
FY 2016 results Evolution average Tariff to final client - Edesur In U$D/MWh (without taxes) Delayed tariff increase will be collected in 48 months VAD Dx 48 Instalments* starting from February, 2018, indexed to inflation.. +13,1% VAD Dx +15,1% 136 Gx “Precio Estacional” 2 36% 121 2 105 48 450% 2 62
Slide 23: Closing remarks: highlights
FY 2016 results Closing remarks: highlights Results in line with 2016 targets Solid EBITDA and a robust cash generation Significant efficiencies from the reorganization process Celg-D acquisition process closed in february New tariff scheme in Argentina already in force. Brazil well on track 23
Slide 24: Exhibits
Exhibits 24
Slide 25: Financial Statements Pro-forma and reported to SVS
FY 2016 results Financial Statements Pro-forma and reported to SVS (US$ mn) 1 FY 2015 FY 2016 Δ YoY FY 2015 FY 2016 Δ YoY Revenues 7,835 7,681 -2.0% Financial Statements reported to SVS Revenues 7,835 7,681 -2.0% Contribution Margin 3,730 3,772 1.1% Contribution Margin 3,730 3,772 1.1% EBITDA 2,387
Slide 26: Operating Exhibits FY 2016: Business context
Operating Exhibits FY 2016 Business context in FY 2016 v/s FY 2015 Electricity Demand Spot Price Gx Output Dx Sales Gx Ebitda Dx Ebitda (%) (US$/MWh) (TWh) (TWh) (US$ mn) (US$ mn) Colombia Brazil Perù Argentina 26
Slide 27: Net installed capacity and total net production
Operating Exhibits FY 2016 Net installed capacity and Total net production : Breakdown by source and geography Net installed capacity (GW) GW Hydro Oil-Gas Coal Total Colombia 3.0 0.2 0.2 3.4 Perù 0.7 0.3 0.0 1.0 Brazil 1.3 3.1 0.0 4.0 Argentina 0.8 1.2 0.0 4.4 Total 5.8 4.8 0.2 10.7 Total net produ
Slide 28: Production mix (TWh)
Operating Exhibits FY 2016 Production mix (TWh) LatAm Colombia - 4.0% + 9.1 % Hydro 13.7 15.0 42.1 40.4 8.4% 4.0% Oil-gas 2.7% 1.5% 2.4% 2.2% 44.6% 42.8% Coal 89.2% 93.8% 52.7% 55.8% FY 15 FY 16 FY 15 FY 16 Perù Brazil Argentina - 16.7% - 13.7% - 1.2 % 4.4 3.7 15.2 13.1 8.8 8.7 42.9% 47.1% 52.1% 53.
Slide 29: Distribution companies
Operating Exhibits FY 2016 Distribution companies Energy sold Energy losses Concession Next tariff Distributor Clients City, Country (GWh) (%) area (km2) revision Codensa 3,248,447 13,632 7.1% Bogota, Colombia 14,456 20171 Ampla 3,053,695 11,181 19.4% Niteroi, Brazil 32,615 2018 Coelce 3,889,905 11,
Slide 30: Liquidity and credit profile
Financial Exhibits FY 2016 Liquidity and credit profile Liquidity (US$ mn) Amount Outstanding Available Committed credit lines 255 0 255 Cash and cash equivalents 1 2,757 n.a. 2,757 Uncommitted lines 379 0 379 Total liquidity 3,392 0 3,392 Credit Profile as of Dec. 2016 S&P Fitch Moody's LT internat
Slide 31: Debt maturity
Financial Exhibits FY 2016 Debt maturity Debt profile (US$ Mn) Average residual maturity (years) 2,322 4.7 3.8 677 671 603 FY 15 FY 16 2017 2018 2019 2020 and beyond 31
Slide 32: Disclaimer
FY 2016 Results 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 announcement and include statements regarding the intent
Slide 33: IR Team
FY 2016 Results IR Team • Rafael De La Haza, Head of IR +56 2 2353 4682 • Jorge Velis +56 2 2353 4552 • Itziar Letzkus +56 2 2353 4681 • María Luz Muñoz +56 2 2353 4682 ir.enersis@enel.com For further information, visit our IR site at: www.enelamericas.com 33
Slide 34: CNC
CNC