Enel Américas. Corporate Presentation, March 2018

Transcription

1 Enel Américas Corporate Presentation, March 2018

2 Enel Américas Overview

3 Enel Américas overview 1 Enel Américas is Latin America s largest private power company Colombia Generation 3,467 MW 21% Market Share in Installed capacity Net Production 14,765 GWh Sales 18,156 GWh 27% Market Share in Sales Distribution 3.3 million clients Sales 13,790 GWh 22% Market Share Dx Peru Generation 1,979 MW 16% Market Share in Installed capacity Net Production 7,430 GWh Sales 10,457 GWh 15% Market Share in Sales Distribution 1.4 million clients Sales Dx 7,934 GWh 30% Market Share Dx Argentina Generation 4,419 MW Brazil Generation 1,354 MW 1% Market Share in Installed capacity Net Production 4,034 GWh Sales 8,553 GWh 3% Market Share in Sales Distribution 9.9 million clients Sales Dx 34,876 GWh 9% Market Share Dx Transmission 2,100 MW transmission lines 13% Market Share in Installed capacity Net Production 14,825 GWh Sales 14,825 GWh 11% Market Share in Sales Distribution 2.5 million clients Sales Dx 17,736 GWh 17% Market Share Dx Total Generation Installed capacity: 11,219 MW Energy sales: 56,051 GWh 1.- Source: Company filings and presentations, as of December 31, Total Distribution Clients: 17.2 million Energy sales: 74,337 GWh 3

4 Distribution Generation Enel Américas overview Operating highlights FY 2017 Net production (TWh) + 1.5% Energy sales (TWh) % ,763 4, , ,817 Hydro Oil-Gas Coal FY 16 FY Energy Distributed (TWh) % FY 16 FY 17 Number of customers (m) % Celg Celg FY 16 FY 17 Dec. 16 Dec. 17 4

5 Enel Américas overview Financial highlights (US$ mn) FY 2017 Revenues EBITDA % % 7,686 10,540 1,536 9,004 Celg % 2, , , , Celg 2,052 FY 16 FY 17 Net Income % 1,127 1, Attr. Net Income FY One-off 1 FY16 EBITDA FY17 EBITDA FX effects 2017 One-offs 2 FY17 ex. One-offs ex. One-offs and FX effects Net Debt 4 1, % 3,349 FY 163 FY Related to write-off of Curibamba and Marañón proyects, and clients-related provisions in Peru for USD 73 m. Dec. 16 Dec Related to voluntary retirement plan provisions in Celg-D for an amount of USD 51 m and update past fines in Argentina for an amount of USD 41 m. 3. Net income includes discontinued operations (170 MUSD). 4. Includes cash and cash equiv day cash investments. 5

6 Enel Américas overview Gross Capex (US$ m) 1 FY 2017 By activity By business By country Maintenance 15% Generation Argentina 17% 21% Colombia 58% 1, % yoy 42% 1, % yoy Peru 12% 1, % yoy Growth Distribution 85% 50% Brazil 1. Accrued capex during 2017, gross of contributions and connections fees, 6

7 Enel Américas overview Gross debt and cash allocation as of December 31, 2017 Gross Debt (MUSD) Cash allocation (MUSD) Others Banks 4,988 4,988 4,988 4,988 5% Argentina 1% Peru 12% UF 1% PEN 32% Holding 13% USD 16% Fixed 46% 9% Fixed Cost ~5.8% Holding; 11% Colombia; 23% Brazil 35% BRL 35% Average of ~7.9% Argentina; 17% 1,639 Bonds 63% Colombia 40% COP 40% Variable 54% Variable Cost ~9.7% Peru; 14% Brazil; 35% Type Country Currency Nature Operating companies fund project execution through their own cash-flow and debt capacity 7

8 Enel Américas overview Ownership profile % CHILEAN PENSION FUNDS 14.98% 21.74% OTHER INST. SHAREHOLDERS ADR HOLDERS 8.81% Américas 2.67% OTHER SHAREHOLDERS Market Cap 2 : USD Bn 1. As of December 31, As of February 28,

9 Strategic Plan

10 Macro and energy scenario South America Region (%) 1 Local currencies vs USD CPI 2 GDP Argentina ARS 17.5 ARS 18.0 ARS 18.4 Argentina Argentina BRL 3.4 Brazil BRL 3.5 BRL 3.6 Brazil Brazil Colombia COP 3,080 COP 3,134 COP 3,216 Colombia Colombia Peru PEN 3.4 PEN 3.3 PEN 3.3 Peru Peru Energy demand Argentina Brazil Colombia Enel Américas distributed energy Edesur Celg Enel Dx Ceará Enel Dx Rio Peru 1. Versus previous year. 2. Consumer Prices Index Codensa Enel Dx Perú

11 Strategic Plan Strategic Pillars Digitalization Customer focus Industrial growth: Organic growth Non organic growth Efficiencies for a data-driven Company for more shared value Sustainable long-term value creation 11

12 Strategic Pillars

13 Industrial growth: Organic growth Organic growth - Capex plan Total capex Growth capex by business Maintenance capex by business 5% 9% 60% 5.2 bnusd 40% Maintenance Growth 3.2 bnusd 85% 6% Generation Free m. + e-solutions I&N 2.1 bnusd 32% 65% 4% Generation Free m. + e-solutions I&N Total capex by country Growth capex by country Maintenance capex by country 12% 26% 24% 5.2 bnusd 38% 12% Argentina Peru Brazil Colombia 19% 27% 25% Argentina 38% 3.2 bnusd 9% Peru Brazil 2.1 bnusd Colombia 29% 16% 45% 30% Argentina Peru Brazil Colombia I&N business captures almost 80% of total capex plan 13

14 1. Not including Services & Holding. 2. WACC: real before tax Industrial growth: Organic growth Infrastructure & Networks evolution EBITDA (bnusd) WACC 2 Regulatory cycle Next regulatory cycle RAB (bnusd) +93% Argentina 12.5% 12.5% 5 years Brazil Colombia Rio Ceará Celg 11.4% 12.3% 11.4% 13.7% 12.3% 12.3% 12.3% 12.8% 5 years 4 years 4 years 5 years Peru 12.0% 12.0% 4 years E 1 Opex Tariff/RAB Demand Fx + CPI efficiencies Opex E Enel Dx Peru Codensa Celg Enel Dx Ceará Enel Dx Rio Edesur +93% of EBITDA growth and +42% of potential RAB increase 14

15 Industrial growth: Organic growth Generation evolution EBITDA (bnusd) Contracted Energy (TWh) +4% > 100% Brazil > 100% 94% Peru 85% 15.7 > 100% 14.6 > 100% Colombia > 100% 89% % % 95% 92% Average duration of PPA 2 (years) 7 Brazil Colombia 2-4 Peru E Volume & Capacity Fx + CPI Opex Not including Services & Holding 2. Power Purchase Agreement. Securing profitability through long-term PPAs 15

16 Industrial growth: Organic growth Free market + e-solutions evolution EBITDA (bnusd) Enel Américas Free energy sold (TWh) From 2017E Market share To 2020E Market share +164% Argentina Brazil % 3% % 7% Colombia % % Peru % % Customers (k) Key figures E Free Market e-solutions Fx 2020 ~1.9 k power customers ~ 0.1 gas customers EBITDA reaching 250 mnusd by 2020 due to the new Global Business Line contribution Not including Services & Holding.

17 Efficiencies vs 2015 Efficiencies Operational efficiency 1 Previous Plan Accomplished % accomplished as of 2017 New Plan OPEX % 90 S&S % 12 Cash Optimization % - Tax % - New Perimeter % 97 Total % 199 1,152 1, MUSD net of inflation and Fx changes. 2. Staff and Services. 3. Base year Base year 2017, Efficiencies plan completed. New Strategic Plan envisages additional efficiencies for ~ 200 mnusd 17

18 Sustainable long-term value creation A sustainable strategy Sustainability Indices Main projects in SDGs 1 framework Pachacutec Electrotechnical Institute Access to education for low-income students training in the industrial electrotechnical career. The project is implemented in the Pachacutec Institute in Ventanilla, Lima, and results in more than 90% of students inclusion in the labor market on a total of 200 students involved. Ecoenel Access to energy for low-income clients that may pay the bill by selling recycling wastes. Results 2017: 13,437 tons CO2 avoided, 72,724 clients involved, 5k tons wastes recycled, 300,000 USD total value for clients and consequently for the Company (avoided debt). Second opportunity Recycling of industrial wastes like pallets, cable reels, rafts are recycled for different furnitures fabrication like schools desks, resulting in a benefit for 1,400 people. FTSE4Good Index Innovative rural economic development in El Quimbo Foster local economic development in the communities by training enterpreneurs on fund raising, marketing, management and administration. Project already count about 150 people setting up their business of 16 already running. 1. Sustainable Development Goals. SDG initiatives execution in all the countries of presence 18

19 Financial Targets

20 Financial Targets Targets - EBITDA by country and by business EBITDA by Country EBITDA by Business 15% % 23% 25% 3% 5% 38% 32% 33% 3.7 bnusd 4.6 bnusd 3.7 bnusd 4.6 bnusd 30% 59% 29% 63% 32% +24% +24% Colombia Peru Brazil Argentina Generation Networks Free market + e-solutions +24% of EBITDA increase by 2018 vs

21 Financial targets EBITDA (bnusd): Guidance vs previous Strategic Plan +57% bnusd: Celg bnusd: Volta Grande bnusd In Argentina Dx: New regulatory framework bnusd: Celg bnusd: Volta Grande bnusd in Argentina Dx: New regulatory framework % % E Previous Plan New Plan Recent acquisitions in Brazil and new framework in Dx Argentina allow to improve our previous estimations 21

22 Financial targets Focus on Argentina: Edesur EBITDA 2017 (US$ m) EBITDA Deferred revenues November tariff increase delay Past fines update Recurrent EBITDA 22

23 Financial targets FFO 1, Capex and Cash flow FFO and CAPEX (bnusd) Cash flow generation (bnusd) 2 +64% FFO Capex 1 FFO Maintenance capex FFO after maint. capex Growth capex FCF Dividends paid Net FCF Solid cash flow generation Funds From Operations. 2. Opportunities in M&A and minorities buy-out not included. 3. Free Cash Flow.

24 Financial targets Guidance (bnusd) Previous Plan New Plan New Plan vs Previous Plan EBITDA % Capex % Net Income % Substantial Net Income growth ensures remuneration to our shareholders 1. Attributable Net Income to the controller shareholders. Improved vs previous Plan 24

25 Financial targets New Dividend Policy Attributable Net Income (US$ bn) and paid dividends +99% % Dividends paid E Dividend Payout 50% 50% 40% 25

26 Financial targets Net debt evolution (bnusd) 1.3x 1.0x 0.9x 0.8x E EBITDA Net Debt Net debt to EBITDA ratio Low ratio net debt to EBITDA leaves room to additional growth 26

27 Corporate Presentation Contact us Rafael De La Haza Head of Investor Relations Enel Américas Jorge Velis Investor Relations Manager Enel Américas Phone Web site Itziar Letzkus Investor Relations Enel Américas Javiera Rubio Investor Relations Enel Américas Gonzalo Juarez IR New York Office Thank you. 60

28 Disclaimer This presentation contains statements that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of These statements appear in a number of places in this announcement and include statements regarding the intent, belief or current expectations of Enel Américas and its management with respect to, among other things: (1) Enel Américas business plans; (2) Enel Américas cost-reduction plans; (3) trends affecting Enel Américas financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere; (4) supervision and regulation of the electricity sector in Chile or elsewhere; and (5) the future effect of any changes in the laws and regulations applicable to Enel or its subsidiaries. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of various factors. These factors include a decline in the equity capital markets of the United States or Chile, an increase in the market rates of interest in the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere and other factors described in Enel Américas Annual Report on Form 20-F. Readers are cautioned not to place undue reliance on those forward-looking statements, which state only as of their dates. Enel Américas undertakes no obligation to release publicly the result of any revisions to these forward-looking statements. 28