Enel Americas S.a. · BCS:ENELAM
Enel Americas — H1 2019 Earnings Presentation
38 slides from Enel Americas's earnings presentation, Jul 31, 2019
Slide 1: Enel Américas H1 2019 results
Enel Américas H1 2019 results July 31st, 2019
Slide 2: Key highlights of the period
Key highlights of the period Performance of the period driven by Brazil and Argentina EBITDA of US$ 2,070 mn, an increase of 25% vs same period 2018. Net of Fx impact EBITDA would have increased by 59% Additional efficiencies for US$ 57 mn compared last year Group net income reached US$ 544 mn, an i
Slide 3: Industrial growth: Gross Capex (US$ mn)
Industrial growth: Gross Capex (US$ mn) Distribution business captures around 90% of the total capex H1 2019 Capex by nature Total capex by business5 Total capex by country 12% 10% 21% 30% 39% 19% 705 705 705 (+8.5% yoy) (+8.5% yoy) (+8.5% yoy) 31% 88% 50% 2 Asset management Generation Argentina Bra
Slide 4: Gx operating highlights
Gx operating highlights Ensuring profitability in the Generation business through PPAs1 Net production (TWh) Energy sales (TWh) + 9% - 3% 19.8 19.3 34.8 31.9 6.8 6.3 Hydro 56.1 16.1 1.7 0.7 CCGTs 0.1 0.4 11.2 11.9 Oil-gas Coal H1 2018 H1 2019 H1 2018 H1 2019 87% of 2019-21 total production already s
Slide 5: Dx operating highlights
Dx operating highlights In the right path with tariff reviews Distributed Energy (TWh)1 Number of customers (mn) + 45 % + 0.4 % Waiting for new tariff in Enel - Codensa 59.9 65.3 18.2 24.5 24.4 21.8 Enel Dx 41.3 Enel Dx Ceará and Enel Dx Enel Dx São Paulo 3.4 São Paulo tariff review São Paulo2 highe
Slide 6: Enel X and Retail operating highlights
Enel X and Retail operating highlights Enel X: Significant increase in charging stations. Retail: Improving customers portfolio Enel X Retail1 Energy Gas Number of customers Number of customers + 11% + 15% Smart lighting (final light points, k#) PV (MWρ installed in the year) 1H2018 H1 2018 3.5 1,53
Slide 7: Efficiencies
Efficiencies Commitments in Opex reduction moving faster than as announced in the Strategic Plan 2019-21 Opex evolution (US$ mn) +17% -14% 284 1,085 (57) (91) 937 801 H1 2018 Perimeter & Other 1 H1 2018 pro forma Efficiencies CPI & Fx H1 2019 7 1. Jan-May 2018 proforma of Enel Dx São Paulo.
Slide 8: Solid progresses on SDGs
Solid progresses on SDGs Engaging local communities I&N, sustainable cities and cyber securities (mn of beneficiaries) H1 2019 1 H1 2019 High-quality, inclusive and fair education 0.4 Smart meters (k) 116.6 Charging points2 104 Access to affordable and clean energy2 3.3 Smart lighting points (k) 406
Slide 9: H1 2019 consolidated results
H1 2019 consolidated results Financial results 9
Slide 10: Financial highlights (US$ mn)
Financial highlights (US$ mn) Solid performance in the firsts six month of the years H1 2019 H1 2018 ∆ YoY Reported EBITDA 2,070 1,652 +25% Adjusted EBITDA1 1,791 1,652 + 8% Total net income 827 660 + 25% Reported Group net income2 544 403 + 35% FFO 378 627 - 40% Net debt 7,916 6,6493 + 19% 10 1. Ex
Slide 11: EBITDA by business line (US$ mn)
EBITDA by business line (US$ mn) Solid operating performance across all businesses ∆ YoY ∆ Net of Fx 1% Large hydro business’ EBITDA in line with previous year + 0% + 15% 8% 13% Distribution business’ EBITDA increased mainly due to the consolidation of Enel Dx São Paulo and past liabilities resoluti
Slide 12: Focus on Argentina (US$ m)
Focus on Argentina (US$ m) Gx in line with previous year and Dx growth driven by the past liabilities resolution Generation1 Distribution1 Total2 H1 19 H1 18 % H1 19 H1 18 % H1 19 H1 18 % Revenues 223 166 34% 893 800 12% 1,116 965 16% EBITDA 111 110 1% 293 144 104% 402 253 59% Dock Sud 846 MW* Net I
Slide 13: Focus on Argentina: Past liabilities resolution
Focus on Argentina Past liabilities resolution Total debt1 Debt offset Debt to pay AR$ 10,200 m AR$ 5,300 m Debts related to loans and energy Corresponding to fines with clients. purchases, social debts generated in 2017 and 2018 and other fines. Impact as of June, 30th 2019 27% EBITDA (US$ mn) + 27
Slide 14: Focus on Brazil (US$ mn)
Focus on Brazil (US$ mn) Significant improvement in both business also net of perimeter and Fx effect Generation1 Distribution1 Total2 H1 19 H1 18 % H1 19 H1 18 % H1 19 H1 18 % Revenues 375 460 -18% 3,948 2,603 52% 4,163 2,914 43% Fortaleza 319 MW* EBITDA 187 177 6% 608 364 67% 765 511 50% Net Incom
Slide 15: Focus on Colombia (US$ mn)
Focus on Colombia (US$ mn) Net of Fx, growth in Gx due to a good commercial strategy and in Dx driven by a higher demand and tariff Generation1 Distribution1 Total2 H1 19 H1 18 % H1 19 H1 18 % H1 19 H1 18 % Revenues 612 620 -1% 828 847 -2% 1,260 1,327 -5% EBITDA 365 368 -1% 270 254 6% 636 622 2% Cod
Slide 16: Focus on Peru (US$ mn)
Focus on Peru (US$ mn) Growth in Dx due to higher demand and tariff increase Generation1 Distribution1 Total2 H1 19 H1 18 % H1 19 H1 18 % H1 19 H1 18 % Revenues 284 296 -4% 480 463 4% 688 657 5% Enel Gx Piura 337 MW* EBITDA 148 165 -10% 133 113 18% 281 278 1% Net Income 76 90 -15% 65 52 26% 142 141
Slide 17: From EBITDA to Net income (US$ mn)
From EBITDA to Net income (US$ mn) 2,070 1,466 1,201 (604) 1 827 (266) 544 (374) (283) EBITDA D&A EBIT Net financial Non operating EBT Income tax Total Net Minority Group Net result results Income investors Income H1 18 1,652 (404) 1,249 (217) 2 1,034 (374) 660 (258) 403 Delta YoY 25.3% 49.6% 17.4%
Slide 18: Free cash flow (US$ mn)
Free cash flow (US$ mn) 2,070 (1,123) (381) 378 (188) (705) (327) (647) (975) (27) (5) (259) (1,266) 1 EBITDA NWC Taxes paid Net financial FFO Capex FCF Net dividend NCF Financial Extraordinary FX Effect Change in expenses paid receivables operations Net Debt H1 18 1,652 (417) (428) (180) 627 (650)
Slide 19: Gross debt breakdown (US$ mn)
Gross debt breakdown (US$ mn) Minimizing risk by issuing debt in operating companies in local currency Gross and Net Debt1 Gross debt breakdown by currency Gross debt breakdown by country 7.5% + 8.4% 7.3% + 8.4% 9,450 9,450 8,718 8,718 9,450 5% 1% 6% 8,718 6% 11% 7% 11% 1,535 11% 13% 19% 19% 2,069 2
Slide 20: Focus Enel Dx São Paulo
Focus Enel Dx São Paulo Strong performance in Enel Dx Sao Paulo Financial highlights Gross Debt profile Local GAAP (R$ mn) H1 18 H1 19 ∆ YoY H1 18 H1 19 ∆ YoY H1 19 (US$ mn)1 Net debt 4,206 5,095 21.1% (R$ mn) Net Revenues 11,100 11,425 +2.8% 1,767 Av. Maturity (years) 2.3 4.1 +1.8 y EBITDA 516 913
Slide 21: Focus Enel Dx São Paulo: new tariff cycle
Focus Enel Dx São Paulo New Tariff Cycle of the company was applied as of July 4th, 2019 Key assumptions Tariff review Increase average effect (R$ million) (final values) Gross RAB R$ 15.9 bn Net RAB R$ 8.6 bn WACC 8.09% 6.48% 8.46% 7.03% Regulatory Opex (year) R$ 1.764 mn SAIDI 20191 7.4 hours SAIF
Slide 22: Focus Enel Dx Goiás
Focus Enel Dx Goiás Turnaround process well on track Prêmio Abradee 2019 Financial highlights1 (US$ mn) Gross Debt profile H1 18 H1 19 ∆ YoY H1 18 H1 19 ∆ YoY Total invested since Gross debt company consolidation 428 597 +39.5% (US$ mn) Revenues 760 753 -1.0% 531 Av. Maturity -0.9 y 2.3 1.4 EBITDA 1
Slide 23: Capital Increase update
Capital Increase update Successful first phase finalization Total rights exercised Total Amount received % of total capital increase proposed First PRP results 18,224,843,129 US$ 2,954 mn 97% February March April May June July August September Key Process Milestones Board of Directors Meeting 27-Feb
Slide 24: Closing remarks
Closing remarks At EBITDA level, better results in almost all businesses than the same period previous year despite currency devaluation thanks to Enel Dx São Paulo consolidation and thanks to the past liabilities resolution in Argentina Enel Dx São Paulo´s tariff review better than expected Success
Slide 25: Exhibits
Exhibits 25
Slide 26: Market context evolution
Market context evolution Enel Américas Energy Local Currencies vs USD Annual GDP growth1 (%) demand2 (%) (YoY%)3 -2.5% -0.5% Argentina Argentina -1.4% -8.7% -36.9% Argentina -98.5% 1.1% 0.0% Brazil Brazil -7.6% 0.9% 3.7% Brazil -12.4% 2.6% 1.4% Colombia Colombia 2.5% 2.9% 2.3% Colombia -11.9% 4.0% -
Slide 27: Regulation update H1 2019
Regulation update H1 2019 • The 50% of inflation adjustment of the Dx tariff corresponding to February 2019 began to be applied on March 1st. Argentina • The Argentina Energy Secretariat issued Resolution Nº 1/2019 in march, which establishes a new remuneration system in the whole sales market. • Ag
Slide 28: Operating Exhibits H1 2019
Operating Exhibits H1 2019 Business context in H1 2019 v/s H1 2018 Spot Price Dx Sales Gx EBITDA Dx EBITDA Electricity Demand1 Gx Output (US$ m) (US$/MWh) (TWh) (US$ m) (%) (TWh) N/A Argentina N/A Brazil Colombia Peru 1. Enel Américas’ Cumulative Demand. Brazil: Enel Dx Rio, Enel Dx Ceará, Enel Dx G
Slide 29: Operating Exhibits H1 2019: Net installed capacity and production
Operating Exhibits H1 2019 Net installed capacity and Total net production: Breakdown by source and geography 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 792 731 462 0 1,986 Total 6,25
Slide 30: Operating Exhibits H1 2019: Production mix
Operating Exhibits H1 2019 Production mix (TWh) LatAm Argentina - 2.6% - 17.7% Hydro 0.4% 19.8 19.3 1.9% 7.3 3.8% 13.1% 6.0 CCGTs 8.4% 2.8% Oil-gas 34.6% 32.6% 68.3% 78.6% Coal 56.6% 61.8% 18.5% 18.7% H1 2018 H1 2019 H1 2018 H1 2019 Brazil Colombia Peru + 12.6% + 7.2% + 1.8% 1.9 6.7 7.2 5.0% 1.7 1.2
Slide 31: Operating Exhibits H1 2019: Distribution companies
Operating Exhibits H1 2019 Distribution companies Energy sold Energy losses Concession Next tariff Distributor Clients City, Country (GWh) (%) area (km2) review Edesur 2,479,371 8,258 14.8% Buenos Aires, Argentina 3,309 2022 Enel Dx Rio 2,943,234 5,772 21.8% Niteroi, Brazil 32,615 2023 Enel Dx Ceará
Slide 32: Financial Exhibits H1 2019: EBITDA
Financial Exhibits H1 2019 EBITDA (US$ mn) Generation1 Distribution1 - 1.1% + 49.2% 819 33 41 811 88 (13) 23 1,302 319 48 (157) 873 438 (399) 2 2 2 H11H 18 2 Fx impact Argentina 2018 Brazil Colombia Peru H1 19 2 1H2019 20182Fx impact Argentina H1 18 1H Brazil Colombia Peru H1 19 2 1H 2019 1. Distrib
Slide 33: Financial Exhibits H1 2019: Liquidity and credit profile
Financial Exhibits H1 2019 Liquidity and credit profile Liquidity (US$ m) Total Used Available Committed credit lines 1,417 366 1,051 Cash and cash equivalents 1 1,535 0 1,535 Total liquidity 2,952 366 2,586 Credit Profile as of Jun. 2019 S&P Fitch Moody's LT international debt BBB BBB+ Baa3 LT loca
Slide 34: Financial Exhibits H1 2019: Debt maturity
Financial Exhibits H1 2019 Debt maturity Average residual maturity (years) Debt profile (US$ mn) 3,796 2.7 2.6 3,752 1,104 798 Dec. 2018 Jun. 2019 2019 2020 2021 Balance 34
Slide 35: Ratings and acknowledgements
Ratings and acknowledgements Chile Index MILA Index Emerging markets Index New Emerging markets Index MSCI EM SRI Index Best Emerging Markets Sustainabilty category Latin America Index performers ranking (top 100) 3rd place
Slide 36: Disclaimer
H1 2019 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 presentation and include statements regarding the intent
Slide 37: Thank you. Contact us
H1 2019 Results Contact us Rafael De La Haza Head of Investor Relations Enel Américas Jorge Velis Investor Relations Manager Enel Américas Itziar Letzkus Investor Relations Enel Américas Email Javiera Rubio ir.enelamericas@enel.com Investor Relations Enel Américas Phone Gonzalo Juárez +562 23534682
Slide 38: CNC
CNC