Enel Americas S.a. · BCS:ENELAM
Enel Americas — H1 2020 Earnings Presentation
40 slides from Enel Americas's earnings presentation, Jul 28, 2020
Slide 1: Enel Américas H1 2020 Consolidated results
Enel Américas H1 2020 Consolidated results July 28th, 2020 Américas
Slide 2: Key highlights of the period
Key highlights of the period Américas COVID-19 Regulation Financial impacts Financial position Pandemic effects Stable net debt vs peaked in Q2 “Conta COVID” EBITDA down by 46% previous year secures financial vs Q2’19 and 29% vs Company has sustainability in H1’19 mainly due to FX, Solid liquidity t
Slide 3: Main impacts: market context and key KPIs
Main impacts Further deterioration of market context and key KPIs Américas Currencies vs USD1 (YTD) Electricity distributed (TWh) Collection (%) ∆ yoy ∆ yoy 8.1 95.1 USD/ARS -17% ARGENTINA - 2% -9.2 pp ARGENTINA 8.3 104.4 37.5 94.4 BRAZIL -7% -3.7 pp USD/BRL -35% BRAZIL 40.4 98.1 6.7 92.6 COLOMBIA -
Slide 4: Main impacts: recovery signs in June
Main impacts Recovery signs in June on electricity distributed and collection Américas Electricity distributed (TWh) Argentina Brazil Colombia Peru 1.53 1.44 1.44 6.91 1.40 1.36 6.85 6.85 6.68 6.75 1.42 1.42 1.30 0.74 1.41 6.34 1.22 1.22 0.71 0.71 0.70 1.38 1.34 6.76 6.76 6.74 1.19 1.19 1.15 1.16 0.
Slide 5: COVID Operational Initiatives
COVID Operational Initiatives Our determined commitment to face the pandemic Américas Our people Our clients Our operations Around 50% of our total workforce is • Digitalization to mitigate impacts in • Infrastructure is fully operational on all working remotely collection geographies Security m
Slide 6: Brazil: Conta COVID (Decree nº 10.350/20)
Brazil: Conta COVID (Decree nº 10.350/20) Executive summary Américas 1 The decree provided guidelines on the financing package to mitigate Covid-19 impacts to discos (Provisional Measure 950/20) and final structure was defined by ANEEL under Normative Resolution 885/20. Total amount available for th
Slide 7: Financial highlights (US$ mn)
Financial highlights (US$ mn) Américas Reported Adjusted EBITDA1 Net Income1 EBITDA2 Net Income2 EBITDA for Q2 and H1 are 623 1,002 explained by currency devaluation Q2 2020 166 379 vs USD in all countries, COVID-19 -46% -42% +14% +23% effects and a high comparison base2. Q2 2019 1,161 511 882 308 N
Slide 8: Industrial growth: Gross CAPEX (US$ mn)
Industrial growth: Gross CAPEX (US$ mn) Net of Fx effect, H1 CAPEX increased 8% Américas Total CAPEX by nature Total CAPEX by business4 Total CAPEX by country 4% 2% 3% 6% 10% 10% 31% Q2 2020 300 42% 300 23% 300 (-22.2% YoY) (-22.2% YoY) (-22.2% YoY) 57% 27% Thermal generation 85% Argentina Asset man
Slide 9: Reinforcing our commitment to ESG and SDGs
Reinforcing our commitment to ESG and SDGs Projects in Support of Local Communties Américas ENEL AMERICAS Charitable activities in response to the Covid-19 crisis OVERALL 1H 2020 TOTAL INITIATIVES 76 SDG Contribution PROJECTS 355 HEALTH (57) SOCIO ECONOMIC (19) 7 projects 104,9K beneficiaries BENEFI
Slide 10: Financial results
Financial results
Slide 11: Financial highlights (US$ mn)
Financial highlights (US$ mn) Negative Fx and operational impact vs a high comparison base Américas Q2 2019 Q2 2020 ∆ YoY H1 2019 H1 2020 ∆ YoY Reported EBITDA 1,161 623 - 46.4% 2,070 1,471 - 28.9% Lower EBITDA mainly due to currency devaluation vs USD in all countries, COVID-19 Adjusted EBITDA1 882
Slide 12: FX and COVID-19 impact on demand and bad debt
FX and COVID-19 impact on demand and bad debt (US$ mn) Américas Net of Q2 2020 Ordinary FX Demand Bad Debt COVID-19 & FX EBITDA 623 192 187 1,002 D&A (265) 52 Net Income 166 143 55 14 379 Net of H1 2020 Ordinary Fx impact Demand Bad Debt COVID-19 & FX EBITDA 1,471 339 187 1,997 D&A (568) 52 Net Inco
Slide 13: EBITDA breakdown (US$ mn)
EBITDA breakdown (US$ mn) COVID-19 effects were felt across all businesses, strongest impact on Networks Américas EBITDA evolution EBITDA by country and business - 46% 1% 6% 7% 7% - 29% 18% 1,161 279 Q2 2020 882 17 2 623 30% 623 32% (24) (17) (39) 623 (-46% YoY) (-46% YoY) (198) 53% 46% Thermal 2 3
Slide 14: Generation operating highlights
Generation operating highlights Lower energy sales compared to the previous year Américas Installed capacity (MW) Net production (TWh) Energy sales (TWh) + 0.0% - 1% - 9% 11,253 11,269 19.3 19.2 34.8 2,703 2,701 31.8 6.3 6.4 - 4% - 9% 2,084 2,090 0.7 0.3 0.4 0.5 225 225 8.9 8.5 16.6 15.2 2.6 2.5 0.3
Slide 15: Distribution operating highlights
Distribution operating highlights Distributed energy down vs last year, but with significant improvement in quality indicators Américas Electricity distributed (TWh)1 End users (mn) Quality indicators - 6% SAIDI SAIFI Energy losses (hours) (tim es) 59.9 + 1% 56.0 Distributor H1 2019 H1 2020 H1 2019
Slide 16: Enel X and Retail operating highlights
Enel X and Retail operating highlights Enel X: Strong growth in e-Mobility across all countries Américas Retail: Improving delivery points Enel X and new infrastructures Retail1 H1 2019 H1 2020 Smart lighting -3% (final light points, mn#) 401 390 Delivery points Energy sold (TWh) +3% Microinsurance
Slide 17: Focus by country
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Slide 18: Focus on Argentina (US$ m)
Focus on Argentina (US$ m) 2019’s one-off, frozen tariffs in Dx, and “Pesification” process of Gx affect results Américas Generation 1 Distribution 1 Total 2 Q2 2019 Q2 2020 % Q2 2019 Q2 2020 % Q2 2019 Q2 2020 % Revenues 93 40 -57% 615 183 -70% 708 223 -69% OPEX -20 -17 -12% -92 -48 -48% -112 -65 -4
Slide 19: Focus on Brazil (US$ mn)
Focus on Brazil (US$ mn) Deterioration of Fx and market conditions hurt results Américas Generation 1 Distribution 1 Total 2 Q2 2019 Q2 2020 % Q2 2019 Q2 2020 % Q2 2019 Q2 2020 % Revenues 170 99 -42% 1,888 1,398 -26% 1,975 1,435 -27% Fortaleza 319 MW* OPEX -11 -6 -46% -244 -188 -23% -268 -214 -20% E
Slide 20: Focus on Colombia (US$ mn)
Focus on Colombia (US$ mn) Fx impact drags financials down, operational results remain resilient Américas Generation Distribution Total 1 Q2 2019 Q2 2020 % Q2 2019 Q2 2020 % Q2 2019 Q2 2020 % Revenues 307 277 -10% 410 357 -13% 622 550 -12% OPEX -17 -14 -18% -37 -31 -15% -54 -46 -16% Enel Codensa EBI
Slide 21: Focus on Peru (US$ mn)
Focus on Peru (US$ mn) COVID-19 effects impact Gx and Dx businesses Américas Generation 1 Distribution 1 Total 2 Q2 2019 Q2 2020 % Q2 2019 Q2 2020 % Q2 2019 Q2 2020 % Revenues 125 105 -16% 233 205 -12% 336 277 -17% Enel Gx Piura OPEX -17 -16 -9% -16 -14 -10% -33 -30 -9% 336 MW* EBITDA 74 55 -26% 64
Slide 22: Financial performance
WY FZ Financial performance YT ene
Slide 23: Profit & loss (US$ mn)
Profit & loss (US$ mn) Américas Q2 2020 Q2 2019 D yoy H1 2020 H1 2019 D yoy Reported EBITDA 623 1,161 -46% 1,471 2,070 -29% D&A1 -265 -317 -16% -569 -604 -6% EBIT 358 844 -58% 903 1,466 -38% Net financial results -61 -116 -47% -175 -266 -34% Non operating results 2 1 +98% 3 1 +301% EBT 299 729 -59%
Slide 24: Cash flow (US$ mn)
Cash flow (US$ mn) Américas 1,471 (514) 462 (353) (142) (600) (138) 590 (399) 93 (9) (935) (1,073) 1 2 3 4 5 EBITDA NWC Taxes paid Net financial FFO CAPEX FCF Net dividend NCF Financial Extraordinary FX Effect Change in H1 2020 expenses paid receivables operations Net Debt H1 19 2,070 (1,123) (381)
Slide 25: Debt (US$ mn)
Debt (US$ mn) Stable debt vs last year, with lower cost Américas Gross and net debt1 Gross debt breakdown by currency Gross debt breakdown by country Dec. 19 Jun. 20 Dec. 19 Jun. 20 1% 1% - 2.4% 8% 10% 9% 11% 17% 15% 6,289 6,140 25% 41% 41% 26% 25% 24% 6,289 50% 23% 6,140 6,289 50% 6,140 2,002 1,454
Slide 26: Financial position
Financial position Solid liquidity and debt metrics Américas Current liquidity Debt amortization (US$ mn) Net debt/EBITDA Net debt/EBITDA: 1.4x 36% 3.8 Total liquidity US$ 2,258 mn 2,684 64% 1,504 4.7 1,243 3.4 767 709 476 Committed credit lines Cash and cash equivalents EBITDA Net debt Q3 2020 Q4 2
Slide 27: 2020 Financial Guidance change
- 01 02 - 01 02 - 01 04 - 01 04 - 01 06 - 01 06 - 01 08 - 01 08 - 01 10 - 01 10 - 01 12 - 01 12 - 01 14 - 01 14 - 01 16 - 01 16 - 01 18 - 01 18 - 01 20 - 01 20 59.8 - 01 22 - 01 22 3,272 - 01 24 - 01 24 Jan. 1 Jan. 1 - 01 26 - 01 26 - 01 28 - 01 28 - 01 30 - 01 30 - 02 01 - 02 01 - 02 03 - 02 03 - 0
Slide 28: Closing remarks
Closing remarks Américas Solid financial Management FX and COVID-19 Guidance 2020 position to face actively working on were the main drags shows a 17%-22% short-term mitigating a on results, but with impact on EBITDA challenges, as well challenging signs of recovery in mainly due to Fx as room for f
Slide 29: Annexes
Annexes
Slide 30: Financial exhibits
Financial exhibits Américas 2Q 2019 2Q 2020 D YoY 1H 2019 1H 2020 D YoY Revenues 3,642 2,485 -31.8% 7,228 5,701 -21.1% Gross Margin 1,636 983 -39.9% 3,015 2,280 -24.4% OPEX -475 -361 -24.1% -945 -808 -14.4% Reported EBITDA 1,161 623 -46.4% 2,070 1,471 -28.9% Adjusted EBITDA 1 882 1,002 13.6% 1,791 1
Slide 31: Financial exhibits: EBITDA and Net Income breakdown
Financial exhibits EBITDA and Net Income breakdown Américas EBITDA by country Net Income by country Q2 2020 H1 2020 Q2 2020 H1 2020 7% 18% 25% 29% 17% 6% 40% 623 46% 1,471 166 476 (-46% yoy) (-29% yoy) (-67% yoy) (-42% yoy) 75% 71% 30% 36% Brazil Colombia Peru Argentina 31
Slide 32: Operating exhibits
Operating exhibits Net installed capacity and Total net production: Breakdown by source and geography Américas Net installed capacity (MW) MW Hydro Oil-Gas CCGT Coal Total Argentina 1,328 1,169 1,922 0 4,419 Brazil 1,035 0 319 0 1,354 Colombia 3,097 184 0 225 3,506 Peru 792 737 460 0 1,989 Total 6,2
Slide 33: Operating exhibits: Distribution companies
Operating exhibits Distribution companies Américas Energy sold Energy losses Concession Next tariff Distributor Clients City, Country (GWh) (%) area (km2) review Edesur 2,498,691 8,132 15.9% Buenos Aires, Argentina 3,309 2022 Enel Dx Rio 2,964,092 5,471 22.4% Niteroi, Brazil 32,615 2023 Enel Dx Cear
Slide 34: Financial exhibits: Liquidity and credit profile
Financial exhibits Liquidity and credit profile Américas Liquidity (US$ m) Total Used Available Committed credit lines 1,684 880 804 Cash and cash equivalents 1 1,454 0 1,454 Total liquidity 3,138 880 2,258 Credit Profile as of June 2020 S&P Fitch Moody's LT international debt BBB A- Baa3 LT local d
Slide 35: COVID-19: working with regulators to mitigate regulatory impacts
COVID-19: working actively with regulators and governments to mitigate regulatory impacts Américas Argentina Mandatory quarantine would be extended until July 17th Res. 3/2020 ENRE: Instructs that all commercial offices be closed, and that only the human resources necessary for the continuity of the
Slide 36: COVID-19: working with regulators to mitigate regulatory impacts
COVID-19: working actively with regulators and governments to mitigate regulatory impacts Américas Colombia Mandatory quarantine extended until August 1st (Decree 749) COVID-19: Due to the pandemic, the government has passed the following resolutions: Res. 108/2020 Extension until July 31st of Res 5
Slide 37: Brazil: “Cuenta COVID” (Decree nº 10.350/20)
Brazil: “Cuenta COVID” (Decree nº 10.350/20) Américas 1 How it works 2 Coverage Pool of banks lead by BNDES; Financial effects of overcontraction; CCEE structures the operation with CVA Balance (Parcel A variation account); $ borrowed from banks and transfers it to CDE account; CVA balance
Slide 38: H1 2020 results
H1 2020 results Disclaimer Américas 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 presentation and include statements regarding t
Slide 39: Thank you.
H1 2020 consolidated results Contact us Américas Contacts Email ir.enelamericas@enel.com Channels Website Mobile App www.enelamericas.com Enel Américas Investors Rafael de la Haza Head of Investor Relations Download App iOS Android Investor Relations team Jorge Velis Javiera Rubio Nicolás Gracia Gon
Slide 40: Américas
Américas Américas Américas