Enel Americas S.a. · BCS:ENELAM
Enel Americas — Enersis — Merger or Acquisition (November 2015)
25 slides from Enel Americas's merger presentation, Nov 9, 2015
Slide 1: Cover letter to regulators on presentation
A copy of this presentation is also available on the Company website (www.enersis.cl) and the indicated preventions included in it must be taken into consideration. Sincerely yours, Luca D’Agnese Chief Executive Officer c.c. National Economic Affairs Investigation Bureau ( Fiscalía Nacional Económic
Slide 2: Latam Reorganization
Latam Reorganization November 6, 2015 enersis
Slide 3: Important Legal Information
Important Legal Information enersis “This presentation does not constitute an offer to sell any secures ands not solcting an offer to buy any secures in any jurisdiction, “This presentation contains certain “forward-looking statements” regarding anticipated financial and operating resus and statisti
Slide 4: Agenda
Agenda enersis Reorganization highlights and rationale Process overview Closing remarks
Slide 5: Enersis is the leading power company in Latam
Reorganization highlights and rationale urs Enersis is the leading power company in Latam Colombia #2 Br 3.059 ——_ 19% market share Gx 987 MW 2% market share Gx 2.8mm cients; sales 13.7 TWh Gas meaetahers Da 6.6mm clients; sales 22.9 TWh ¥% market share Dx Peru #1 2,100 MW transmission lines 4.970 M
Slide 6: Enersis complex corporate structure needs to be improved
Reorganization highlights and rationale ee Enersis complex corporate structure needs to be improved More efficient decision making process and leaner cost structure Key actions @ ‘Simplify corporate structure @ Align strategic interests Set a new industrial strategy and management focus Acchange in
Slide 7: Complex corporate structure results in undervaluation
Reorganization highlights and rationale ous Complex corporate structure results in undervaluation Net assets value vs. current market cap (US$ bn)! Enersis? Endesa al Endesa Chiesa Oersed Nonsted Netoash NAV Discount Enersis Pehuenche Edegel Otteristed Nonssted Neteash NAV Discount Endesa Chie ‘Milt
Slide 8: The proposed reorganization will generate value for all shareholders
Reorganization highlights and rationale — The proposed reorganization will generate value for all shareholders Country-based model Pure Chilean group | | Latam investment vehicle | ~ Chile: stable cash flow, selective investments and structure cost- Tailored base control approaches v Americas: growt
Slide 9: Tailored approaches: distinctive industrial opportunities
Generation % a Reorganization highlights and rationale @ Tailored approaches: distinctive industrial opportunities enersis Enersis Chile 4 + Market approaching maturity ‘Steady growth in energy demand + Long term energy contracts indexed to USS + Difficulties in developing sizeable projects (environ
Slide 10: Tailored approaches: pure Chilean integrated player
Reorganization highlights and rationale @ Tailored approaches: pure Chilean integrated player enersis 60.0% EBITDA: USS0.6 bn EBITDA: US$0.9 bn 99.1% EBITDA: USSO.3 bn Generation business #1. Installed capacity of 6,351 MI warket share 41,512 GWh of hydroelectric generation — 17% market ny we oF #1
Slide 11: Tailored approaches: Latam growth platform
Reorganization highlights and rationale @ Tailored approaches: Latam growth platform EBITDA: USS3.1 bn enersis = EBITDA: USS1.5 bn ‘—= = ‘= EBITDA: USO. bn EBITDA: USS0.04 bn EBITDA: USS1.0 bn 42) 19% market share Gx BA) 27% market share Gx G2) 19% market share Gx G4) 2% market share Gx 42) 24% mark
Slide 12: Structure simplification: consolidation of Americas holdings
Reorganization highlights and rationale @ Structure simplification: consolidation of Americas holdings Current economic interest Subsidiaries Enersis Endesa Chilectra "Ampia Dx 62.0% 74% Costce Dx 64.9% 219% Cachosira & 84.2% 37.0% Cien ™ 244% 37.1% Fortaleza ox 84.4% 37.1% Emgesa x 317% 26.9% Coden
Slide 13: Structure simplification: interest alignment
Reorganization highlights and rationale — @ Structure simplification: interest alignment Emgesa and Edegel example Post reorganization + Investment in generation in Peru and Colombia through 2 = Ownerships stakes combined under one single controlling vehicles (e.g. recent acquisition of the 21% stak
Slide 14: Structure simplification: more effective decision making process
Reorganization highlights and rationale — @ Structure simplification: more effective decision making process Ampla example Post reorganization + Multiple decision layers resulting in inefficient organization + Streamlined decision process concentrated in one vehicle of enersis enersis ]@ - i America
Slide 15: Key strategy pillars: operational efficiencies
Reorganization highlights and rationale _— © Key strategy pillars: operational efficiencies Actions (2016-2019) Target savings 2019 — enesis=—=—=—=<“‘;*sSSSC* chile Americas Us$ MM Us$ MM Gx: reduce US$/MW by ~15%? in Chile and Americas Dx: reduce USSiclient by ~36%? in Chile and Americas 90 220 Ove
Slide 16: Key strategy pillars: industrial growth — new capex
approach Reorganization highlights and rationale a" © Key strategy pillars: industrial growth — new capex Investments 2016 — 2019 (US$ bn) Highlights hans Optimization of maintenance capex (yearly average -21% vs 2015) Los Condores hydro project (US$ 500 mm) Investment optionality linked to biddings
Slide 17: Key strategy pillars: financial targets
Reorganization highlights and rationale _— © Key strategy pillars: financial targets Enersis Chile (US$ Bn) Enersis Americas (US$ Bn) — post merger 2016 = 2017-2019 EBITDA 1.2 14 1.6 EBITDA ° 5 “me ue “me 0.5 0.6 07 CAGR CAGR 2017 2019 16-19 28 3.3 1% “s o ” 1% 0.6 0.9 44 22% New business plan guide
Slide 18: Key strategy pillars: improving shareholders returns
Reorganization highlights and rationale a" © Key strategy pillars: improving shareholders returns Earnings growth Capital efficiencies Dividend policy v Revenue growth Chile Base case payout increase gradually from 50% to 70% in 2020 ¥ Maintenance capex reductions ¥ Opex efficiencies + v SG8A effici
Slide 19: Agenda
Agenda Reorganization highlights and rationale Process overview Closing remarks
Slide 20: Process overview: reorganization key steps
Process overview a" Overview of reorganization key steps fered ehtepinare are GMs of EM, EOC and crite Mia December tect approve merger sazots ee ee ——— | GMS fo vote spin-offs and 102016 202016 ee ee : iene Resin cites sey pangs0s0% Winamp ep ciatrading OC portothe BoMs" 10 90days afer he ECM ‘ " .
Slide 21: Process overview: transparent process at arm's length
Process overview Transparent process set on arm’s length steps enersis Transaction analysis + valuation reference) | Valuation reference Ds’ advisors Independent advisors Financial appraisers Independent Directors Support Commitees Support BoDs on the [iM in the assessment of analysis of the the cor
Slide 22: Enersis Americas' merger reference exchange ratios
enersis Mist fact Malia Process overview enieisis Enersis Americas’ merger reference exchange ratios Ownership structure post transaction of the combined entity" 149% 14.8% 85.0% 85.1% 59% 13.2% BA0% endesa ag Tyndall Group Colin Becker Mario Torres bg
Slide 23: Main conditions for the reorganization set by the BoDs
Process overview enersis enersis Main conditions for the reorganization set by the BoDs endesaciic ca Kev BoD Conditions + Resulting stake of Endesa Minorities in Enersis Americas: reference range 13.2% = 15.9% + Limit to withdrawal right: ENI 6.73% and EOC 7.72% + Cancellation of shares coming from
Slide 24: Agenda
Agenda Reorganization highlights and rationale Process overview Closing remarks 23
Slide 25: Signatures
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ENERSIS S.A. By: /s/ Luca D' Agnese -------------------------------------------------- Titl