Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Enersis Chile — Q1 2016 Earnings Presentation
34 slides from Enel Chile Sa's earnings presentation, March 2016
Slide 1: Enersis Chile: Generation & Distribution of Electricity
Enersis Chile Generation & Distribution of Electricity As of March, 2016
Slide 2: Investment Highlights, 1Q 2016 Financial Results, Looking forward
Enersis Chile Generation & Distribution of Electricity Investment Highlights 1Q 2016 Financial Results Looking forward 2
Slide 3: Organization & Shareholders Structure
Enersis Chile investment highlights Organization & Shareholders Structure Organization Shareholders As of March 31st, 2016 Enel SpA ITALY Enel SpA Citibank 60.6% 2% 12% ADRs (Citibank N.A.) Enersis 6% CHILE Chile 4% Brokers, Security 5% companies, Mutual Funds 99.1% 60.0% Foreign Funds 61% 10% Chile
Slide 4: Pure Chilean integrated player
Enersis Chile investment highlights Pure Chilean integrated player Enersis Chile Endesa Chilectra Chile Chile Generation Business Distribution Business #1 6,351 MW of installed capacity (Hydro: 3,456 MW) #1 14,184 GWh of contracted energy 31% market share 1 38% market share 4 2,475 GWh of hydroelect
Slide 5: Outstanding indicators
Enersis Chile investment highlights Outstanding indicators Generation Distribution Installed Capacity (MW) Customer Base (Mn clients) As of March 31st, 2016 As of March 31st, 2016 6,351 1 1.79 1.77 5,222 3,848 2,108 1 0.55 1 0.38 Enersis Chile Aesgener Colbún E.CL Chilectra CGE Chilquinta SAESA • En
Slide 6: Regulatory framework encourages stability and guarantees expansion
Enersis Chile investment highlights Regulatory framework encourages stability and guarantees expansion Generation Distribution Long term auctions for the regulated market Indefinite concessions facilitate expansion (15 – 30 years) Stable regulatory frameworks Payment based on capacity, independent o
Slide 7: High growth potential
Enersis Chile investment highlights High growth potential Electricity consumption in the world kWh/GDP (PPP) per capita • Energy demand growth is very stable, showing a growth average of 3.4% in 2015. • Chile aims to be in the group of developed countries. • There is no development without energy. S
Slide 8: 1Q 2016 Financial Results
Enersis Chile Generation & Distribution of Electricity Investment Highlights 1Q 2016 Financial Results Looking forward 8
Slide 9: Market context in the 1Q 2016
Enersis Chile 1Q 2016 financial highlights Market context in the 1Q 2016 Expected annual Average Spot Price Energy Demand (%) (US$ /MWh) CLP vs US$ growth of GDP (%)1 Distribution 0.6% 1Q16 701.4 2016* 1.8% Physical Sales 1Q16 76 Generation Physical Sales 5.4% 1Q15 624.7 2015 1Q15 151 2.1% Sales in
Slide 10: Operating highlights
Enersis Chile 1Q 2016 financial highlights Operating highlights Installed capacity (GW) Net production (GWh) Generation sales (GWh) +7.0% +5.4% + 0.0% 4,573 6,025 4,272 23 5,716 6,351 6,351 22 1,337 87 87 1,683 4.9 4.9 2,173 2,173 241 4.7 738 4.7 636 636 3,455 3,455 5.4 2,326 2,475 4.8 5.4 4.8 1Q15
Slide 11: Financial highlights (constant US$ mn)
Enersis Chile 1Q 2016 financial highlights Financial highlights (constant US$ mn1) 1Q 2015 1Q 2016 Δ YoY March 2016 Revenues 816 898 10.0% Revenues 319 Financial Statements reported to SVS, March only Contribution Margin 230 356 54.9% Contribution Margin 114 EBITDA 148 283 91.3% EBITDA 85 Financial
Slide 12: 1Q 2016 results
Enersis Chile 1Q 2016 financial highlights 1Q 2016 results (constant US$ mn1) Revenues EBITDA +91.3% + 10.0% 816 148 283 898 1Q 15 1Q 16 1Q 15 1Q 16 Attributable Net Income and EPS Net Debt +299.1% +13.9% EPS 1.258 1Q 16 163 2.32 CLP/Share 1,105 41 0.17 USD/ADR 1Q 15 0.58 CLP/Share 0.04 USD/ADR 1Q 1
Slide 13: Group EBITDA evolution by business
Enersis Chile 1Q 2016 financial highlights Group EBITDA evolution by business (constant US$ mn) + 91.3% 148 283 + 126% 21% Dx +7% Dx 37% 79% Gx Gx 63% 1Q15 Distribution Generation 1Q16 13
Slide 14: From EBITDA to Group net income
Enersis Chile 1Q 2016 financial highlights From EBITDA to Group net income (constant US$ mn1) 283 263 4 242 (20) (0) (25) 163 (79) EBITDA D&A 2 EBIT Financial Result Non Operating Income tax Group Net Minority Attributable Net Results Income Shareholders Income 1Q 15 (US$ mn) 148 (53) 95 (35) 8 (17)
Slide 15: Gross Capex
Enersis Chile 1Q 2016 financial highlights Gross Capex1 (US$ mn) By activity By business Distribution 17% 49% Maintenance 53 53 51% +29.3% +29.3% Generation Growth 83% • Los Cóndores will add 150 MW of installed capacity to the SIC. • As of March 2016, the level of completion reached 29% with a tota
Slide 16: Gross and Net Debt
Enersis Chile 1Q 2016 financial highlights Gross and Net Debt Gross and Net Debt (US$ mn) Gross Debt breakdown Credit lines +11.9% Leasing 3% 1,489 10% 1,331 231 226 50% 37% 1,105 1,258 Local Bonds International Bonds 2015 1Q 2016 Net Debt Cash 16
Slide 17: Cash Cost
Enersis Chile 1Q 2016 financial highlights Cash Cost (US$ mn) Fixed cost Cash Cost 82 -11.6% 73 112 1Q15 1Q16 + Maintenance Capex 99 30 1Q15 1Q16 26 1Q15 1Q16 • 12% decrease mostly driven by a reduction in fixed costs 17
Slide 18: Looking forward
Enersis Chile Generation & Distribution of Electricity Investment Highlights 1Q 2016 Financial Results Looking forward 18
Slide 19: Versus Targets 2016
Looking forward Versus Targets 2016 EBITDA (US$ bn) Net Income (US$ bn) 1.2 0.6 0.5 1.0 1Q16 0.2 1Q16 0.3 1Q15 0.1 1Q15 0.1 FY 15 Target 16 FY 15 Target 16 • Current results in line with our targets for 2016 19
Slide 20: Evolution of Enersis Chile's installed capacity
Looking forward Evolution of Enersis Chile’s installed capacity 6,351 6,501 1% 1% 5,611 1% GasAtacama 781 MW 1 4,477 44% 4,035 37% 44% 24% 28% Los Cóndores 150 MW 2,513 13% 76% 62% 55% 55% 72% 87% 1995 2000 2005 2010 2016 Under construction Hydro Thermal NCRE • A well diversified generation matrix a
Slide 21: Los Cóndores, project under construction
Looking forward Los Cóndores, project under construction General information • Run of the river hydro power plant, located in San Clemente, Maule Region • Installed capacity: 150 MW . • Estimated generation: 600 GWh/year. • Estimated load factor: 46%. • Total CAPEX: US$ 662 million. Permits • Gx: EI
Slide 22: Key conclusions: results aligned with 2016 targets
Enersis Chile Generation & Distribution of Electricity Improved performance driven by generation business Strong operating cash flow generation Cost reduction ahead of efficiency targets 1Q16 results aligned with 2016 targets 22
Slide 23: IR Team
Enersis Chile IR Team Susana Rey, Head of IR (56) 22630 9606 susana.rey@enel.com Enersis Chile Catalina Gonzalez, Head of IR (56) 22630 9603 catalina.gonzalez@enel.com Endesa Chile Francisco Basauri, IR Analyst (56) 22630 9585 francisco.basauri@enel.com Endesa Chile Guillermo Berguecio, IR Analyst (
Slide 24: Exhibits
Exhibits enersis chile Grupo Enel
Slide 25: Financial Highlights: Improving results in Enersis Chile
Financial Highlights Improving results in Enersis Chile US$ mn1 1Q 20152 1Q 20162 Change3 Revenues 816 898 10% Costs (586) (542) -8% Contribution Margin 230 356 55% EBITDA 148 283 91% EBIT 95 263 178% Net Financial Expenses -35 0 -99.8% Related Company Results 2 3 108% Taxes (17) (25) 43% Net Income
Slide 26: Results in the Generation business
Financial Highlights Results in the Generation business US$ mn1 1Q 20152 1Q 20162 Change3 Revenues 527 592 12% Costs (383) (329) -14% Contribution Margin 144 263 83% EBITDA 99 224 126% EBIT 57 178 211% Net Financial Expenses -40 1 -103% Related Company Results 2 3 109% Taxes (7) (19) 165% Net Income
Slide 27: Balanced commercial policy in Generation leading to revenue stability
Enersis Chile investment highlights Balanced commercial policy in Generation leading to revenue stability Physical sales: 6,025 GWh Historical revenues by type of customer (US$ mn) 5% 557 15% 507 36 357 48 77 5 86 65 373 433 287 80% 1Q 2014 1Q 2015 1Q 2016 Regulated Unregulated Regulated Unregulated
Slide 28: Leading player in generation business
Enersis Chile Leading player in generation business Installed Capacity: 6,351 MW Net Generation Market Share*: 31% Total Generation: 4,573 GWh Net generation GWh Change1 HYDRO 2,460 7% Los Molles: 18 MW COAL 738 206% Rapel-Sauzal: 466 MW Maule: 875 MW 54% Hydro OIL-GAS 1,336 (21%) 3,456 MW Laja: 940
Slide 29: Operating Exhibits 1Q 2016
Operating Exhibits 1Q 2016 Net installed capacity (GW) GW Hydro Oil-Gas Coal NCRE Total Chile 3.5 2.2 0.6 0.09 6.4 Total net production (TWh) TWh Hydro Oil-Gas Coal NCRE Total Chile 2.5 1.3 0.7 0.04 4.6 29
Slide 30: Results in the Distribution business
Financial Highlights Results in the Distribution business US$ mn1 1Q 20152 1Q 20162 Change3 Revenues 424 464 9% Costs (333) (373) 12% Contribution Margin 91 90 -1% EBITDA 57 62 7% EBIT 46 49 7% Net Financial Expenses 2 3 61% Related Company Results 0 0 -32% Taxes (11) (5) -56% Net Income 47 59 27% A
Slide 31: Distribution tariff revision schedule
Enersis Chile investment highlights Schedule for distribution tariff revisions is clear and well laid out for the following years Evolution of profitability in the regulated Tools for value creation business Reduction of losses Return % Returns increase and partial transfer of efficiencies Continuou
Slide 32: Proven experience in controlling energy losses
Enersis Chile investment highlights Proven experience in controlling energy losses EBITDA in Distribution US$ mn Energy Losses +7% 5,4% 62 57 1Q 2015 1Q 2016 5,0% How have we done it? • Controlling energy losses has been successful during the last several years, 1Q 2015 1Q 2016 increasing our margin
Slide 33: Enersis Chile, Grupo Enel
enersis chile enersis chile Grupo Enel Grupo Enel 33
Slide 34: Disclaimer
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, belief or curr