Enel Americas S.a. · BCS:ENELAM
Enel Americas — Q1 2019 Earnings Presentation
37 slides from Enel Americas's earnings presentation, Apr 25, 2019
Slide 1: Enel Américas 1Q 2019 results
Enel Américas 1Q 2019 results April 25th, 2019
Slide 2: Highlights of the period
1Q 2019 results Highlights of the period EBITDA of 909 mUSD, an increase of 11% vs same period 2018. Net of Fx impact EBITDA would have increased by 33% Better results in Networks business thanks to Enel Dx São Paulo consolidation and good performance in Enel Dx Goiás Reduction of 12% in OPEX1 Total
Slide 3: Gross Capex
1Q 2019 results Gross Capex (US$ m) 1 Total capex by activity Total capex by business5 Total capex by country 7% 9% 16% 34% 34% 22% 319 319 319 (+27.1% yoy) (+27.1% yoy) (+27.1% yoy) 53% 32% 93% 2 Argentina Asset management Generation Brazil Asset development 3 Customers 4 Distribution Colombia Peru
Slide 4: Operating highlights
1Q 2019 results Operating highlights Net production (TWh) Energy sales (TWh) + 1.4% + 13.3% Generation 10.2 10.4 Reduction of CO2 emissions 4.1 65.3 18.2 4.6 56.1 16.1 87% of 2019-21 total 0.3 Hydro 0.1 production already sold 5.6 6.0 Oil-Gas Coal forward 1Q 18 1Q 19 1Q 18 1Q 19 Distributed Energy (
Slide 5: Operating highlights: Enel X and Retail
1Q 2019 results Operating highlights Enel X Retail1 Energy Gas Number of customers Number of customers + 3% + 16% Smart lighting (final light points, k#) PV + storage (MWρ installed in the year) 1.507 1.547 22 1Q 18 408 1Q 18 0,1 19 1Q 19 413 1Q 19 1,8 Mar. 18 Mar. 19 Mar. 18 Mar. 19 Energy sold (TW
Slide 6: 1Q 2019 consolidated results
1Q 2019 consolidated results Financial results 6
Slide 7: Financial highlights (US$ m)
1Q 2019 results Financial highlights (US$ m) 1Q 19 1Q 18 ∆ yoy Net of Fx Revenues 3,587 2,734 31.2% Contribution Margin 1,379 1,230 12.1% EBITDA 909 820 10.9% 33.2% EBIT 622 631 -1.3% Net Financial Result (150) (127) -17.7% Others 0 1 n.m. EBT 472 504 -6.3% Taxes (156) (170) -8.5% Total Net Income 3
Slide 8: EBITDA (US$ m)
1Q 2019 results EBITDA (US$ m) Generation business’ EBITDA increased mainly due to better results in Argentina, EBITDA by country EBITDA by business1 Brazil and Colombia 1% 1% 8% Distribution business’ EBITDA increased Distribution 15% mainly due to the consolidation of Enel 33% Brazil Generation Dx
Slide 9: Focus on Argentina
1Q 2019 results Focus on Argentina (US$ m) Generation Distribution Total1 1Q 19 1Q 18 % 1Q 19 1Q 18 % 1Q 19 1Q 18 % Revenues 130 83 56% 278 441 -37% 408 524 -22% EBITDA 62 54 14% 9 91 -90% 71 145 -51% Dock Sud 846 MW* Net Income 62 39 56% (16) 22 -172% 49 63 -22% Costanera Gross Capex 4 8 -52% 47 31
Slide 10: Focus on Brazil
1Q 2019 results Focus on Brazil (US$ m) Generation Distribution Total1 1Q 19 1Q 18 % 1Q 19 1Q 18 % 1Q 19 1Q 18 % Revenues 205 241 -15% 2,060 1,066 93% 2,188 1,230 78% Fortaleza 319 MW* EBITDA 123 106 16% 296 166 78% 400 255 57% Net Income 87 64 35% 39 48 -18% 44 91 -52% Enel Dx Ceará Clients: 3.9 m
Slide 11: Focus on Colombia
1Q 2019 results Focus on Colombia (US$ m) Generation Distribution Total1 1Q 19 1Q 18 % 1Q 19 1Q 18 % 1Q 19 1Q 18 % Revenues 305 307 -1% 418 407 3% 638 647 -1% EBITDA 176 176 0% 125 116 7% 301 293 3% Codensa Emgesa Clients: 3.5 m Net Income 93 82 13% 51 45 14% 144 127 14% 408 MW* Gross Capex 12 8 37%
Slide 12: Focus on Peru
1Q 2019 results Focus on Peru (US$ m) Generation Distribution Total1 1Q 19 1Q 18 % 1Q 19 1Q 18 % 1Q 19 1Q 18 % Revenues 158 150 5% 247 236 4% 352 333 6% Enel Gx Piura 337 MW* EBITDA 74 77 -4% 70 56 25% 143 133 8% Net Income 38 41 -8% 34 27 26% 72 68 6% Gross Capex 7 4 52% 23 21 8% 29 25 16% Enel Gx
Slide 13: From EBITDA to Net income (US$ m)
1Q 2019 results From EBITDA to Net income (US$ m) 909 622 Due to Enel Dx (287) (89) São Paulo acquisition (61) 0 472 316 (156) 204 (112) EBITDA D&A EBIT Net financial Non operating EBT Income tax Total Net Minority Group Net result results Income investors Income 1Q 18 820 (189) 631 (127) 1 504 (170
Slide 14: Free cash flow (US$ m)
1Q 2019 results Free cash flow (US$ m) 909 (537) (154) 68 (151) (319) -251 (134) (385) (2) (22) (409) (0) 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 1Q 18 820 (541) (153) (137) (12) (2
Slide 15: Gross debt breakdown (US$ m)
1Q 2019 results Gross debt breakdown1 (US$ m) Gross and Net Debt Gross debt breakdown by currency Gross debt breakdown by country 7.6% + 5.1% 7.1% + 5.1% 9,166 8,718 9,166 9,166 8,718 1% 8,718 5% 1% 6% 6% 7% 11% 12% 11% 2.069 2.108 13% 20% 20% 20% 20% 6.649 7.058 63% 61% 63% 47% 61% Dec. 18 Mar. 19
Slide 16: Focus Enel Dx São Paulo
1Q 2019 results Focus Enel Dx São Paulo Financial highlights1 Gross Debt profile Local GAAP (mBRL) 1Q 18 1Q 19 ∆ YoY 1Q 18 1Q 19 ∆ YoY 1Q 19 mUSD Net debt 4,504 4,179 -7.2% (BRL m) Revenues 5,205 5,822 11.9% 915 Av. Maturity +0.7 y 2.7 3.4 (years) EBITDA 337 399 18.4% 112 Effective rate2 9.3 8.4 -0.
Slide 17: Focus Enel Dx Goiás
1Q 2019 results Focus Enel Dx Goiás Financial highlights1 (US$ m) Gross Debt profile ∆ YoY 1Q 18 1Q 19 ∆ YoY 1Q 18 1Q 19 Gross debt +29.6% 427 553 Revenues 378 400 +5.8% (US$ m) Av. Maturity -0.7 y EBITDA 40 76 +93.3% 2.4 1.7 (years) Total Net Income 14 21 +53.9% Effective rate2 8.7 8.2 -0.5 p.p. (%
Slide 18: Update on Capital Increase
Update on Capital Increase 18
Slide 19: Key Events since Capital Increase Announcement
Update on Capital Increase Key Events since Capital Increase Announcement Enel Américas proposes Enel Américas discloses The CMF1 resolves that the debt Capital Increase and complementary repayment of inter-company loan summons Extraordinary information on the Capital between Enel Brazil and EFI is
Slide 20: Enel Américas Proposed Capital Increase
Enel Américas Proposed Capital Increase Transaction Final Terms and Conditions Registration of common shares in the Santiago Stock Exchange, Electronic Stock Exchange and CMF1 Offering Structure Concurrent SEC2 registration of ADSs for trading in NYSE Pricing Price setting mechanism: Rights Of
Slide 21: Impacts for Enel Américas (1/2)
Impacts for Enel Américas (1/2) Credit Profile, Balance Sheet and Capital Structure(1) 2018 Net Debt (US$ m) Net Debt / EBITDA (x) 2,0x 1,7x 2.0x 1.2x 1,4x 1,1x 1,1x 6.649 2.650 0,8x 0,6x n.a. 2018 2019E 2020E 2021E 3.999 FFO(2) / Net Debt (%) 119,9% 85,3% 45,0% 44,3% 54,2% 27,8% 30,6% n.a. Enel Amé
Slide 22: Impacts for Enel Américas (2/2)
Impacts for Enel Américas (2/2) Net Income and Dividends Paid Pre and Post-Transaction1 Total Net Income (US$ m) Total Dividends Paid (US$ m) 2019E-2021E Cumulative 2019E-2021E Cumulative +41% +190% Enel Brasil Consolidated 770 2.636 1.866 610 931 321 Pre-Transaction Increase Post-Transaction Pre-Tr
Slide 23: Timing Considerations
Timing Considerations Two Pre-emptive Offers Periods for Existing Shareholders February March April May June July August September Key Process Milestones Board of Directors Meeting 27-Feb Board Call for Extraordinary Shareholder's Meeting ("ESM") 27-Feb Record Dates to Vote at ESM 11-Mar (ADR holder
Slide 24: Transaction Rationale
Transaction Rationale The Transaction Paves the Way for a New Phase of Growth 2 Enel Dx Goiás (Ex Celg) 4 Purchase of consolidation 7.5% stake in +6.0x 1. Paid price: US$ 720 million Enel Dx Perú 2. Clients: 2.9 million from minorities 12,0 6 Capital 3. Location: State of Goiás 3 Volta Grande consol
Slide 25: Closing remarks: highlights
1Q 2019 results Closing remarks: highlights At EBITDA level, better results in generation and networks businesses than the same period previous year thanks to an increase on energy sales and Enel Dx São Paulo’s consolidation and Enel Goiás performance, offset by Fx effect Group net income affected b
Slide 26: Exhibits
Exhibits 26
Slide 27: Market context evolution
1Q 2019 results Market context evolution Enel Américas Energy Local Currencies vs USD Annual GDP growth1 (%) demand2 (%) (YoY%)3 -2,5% -25,5% Argentina -0,2% Argentina -1,2% Argentina -121,7% -8,9% 1,1% -3,2% Brazil 1,7% Brazil 1,9% Brazil -16,1% 3,8% 2,7% 1,1% 2,2% Colombia Colombia Colombia 3,0% 2
Slide 28: Regulation update
1Q 2019 results Regulation update Argentina • The 50% of inflation adjustment of the Dx tariff corresponding to February 2019 began to be applied on March 1st. • The Argentina Energy Secretariat issued Resolution Nº 1/2019 in march, which establishes a new remuneration system in the whole sales mark
Slide 29: Operating Exhibits 1Q 2019: Business context
Operating Exhibits 1Q 2019 Business context in 1Q 2019 v/s 1Q 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 30: Net installed capacity and total net production
Operating Exhibits 1Q 2019 Net installed capacity and Total net production: Breakdown by source and geography Net installed capacity (MW) MW Hydro Oil-Gas Coal Total Argentina 1,328 3,091 0 4,419 Brazil 1,035 319 0 1,354 Colombia 3,093 184 224 3,501 Peru 792 1,186 0 1,979 Total 6,249 4,780 224 11,25
Slide 31: Production mix (TWh)
Operating Exhibits 1Q 2019 Production mix (TWh) LatAm Argentina + 1.4% - 1.9 % Hydro 0.7% 10.2 10.4 3.0% 3.8 3.7 4.0% CCGTs 8.0% 4.1% 13.1% 36.9% 35.4% Oil-gas 71.1% 79.3% Coal 54.5% 57.5% 15.8% 16.7% 1Q 18 1Q 19 1Q 18 1Q 19 Brazil Colombia Peru + 14.6% + 5.1% - 5.4 % 1.2 3.3 3.4 2.1 1.1 2.1% 2.0 13
Slide 32: Distribution companies
Operating Exhibits 1Q 2019 Distribution companies Energy sold Energy losses Concession Next tariff Distributor Clients City, Country (GWh) (%) area (km2) revision Edesur 2,473,811 4,214 15.4% Buenos Aires, Argentina 3,309 2022 Enel Dx Rio 2,952,522 3,060 21.5% Niteroi, Brazil 32,615 2023 Enel Dx Cea
Slide 33: Liquidity and credit profile
Financial Exhibits 1Q 2019 Liquidity and credit profile Liquidity (US$ m) Total Used Available Committed credit lines 1,455 350 1,105 Cash and cash equivalents 1 2,108 0 2,108 Total liquidity 3,563 350 3,213 Credit Profile as of Mar. 2019 S&P Fitch Moody's LT international debt BBB BBB+ Baa3 LT loca
Slide 34: Debt maturity
Financial Exhibits 1Q 2019 Debt maturity Average residual maturity (years) Debt profile (US$ m) 2,7 2,6 3.872 3.294 877 1.123 2019 2020 2021 Balance FY 18 1Q 19 34
Slide 35: Disclaimer
1Q 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 36: Thank you. Contact us
1Q 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 37: CNC
CNC