Enel Américas Enel Américas 2018 Analyst Update Meeting

Transcription

1 Enel Américas Enel Américas 2018 Analyst Update Meeting Paolo Pallotti CFO Enel Américas

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 Total Generation Installed capacity: 11,219 MW Energy sales: 56,051 GWh 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 Eletropaulo clients + 42,982 Eletropaulo distributed energy ~ 20% including Eletropaulo Total Distribution Clients: 17.2 million 24.3 million including Eletropaulo Energy sales: 74,337 GWh ~ 120 TWh including Eletropaulo 1.- Source: Company filings and presentations, as of December 31,

4 1Q 2018 results

5 1Q 2018 results Consolidated EBITDA (US$ m) (+ 26.0%) Q 2017 Fx impact Holding Argentina Brazil Colombia Peru 1Q 18 5

6 1Q 2018 results Group EBITDA evolution by business and country (US$ m) Generation Distribution + 60 (+ 17.0%) (+ 36.3%) Q 17 Fx impact Argentina Brazil Colombia Peru 1Q 18 1Q 17 Fx impact Argentina Brazil Colombia Peru 1Q Not including Services & Holding (USD -22 m). 6

7 7 1Q 2018 results From EBITDA to Net income (US$ m) EBITDA D&A EBIT Financial Result Non Operating Results Income tax Net Income Minorities Attr. Net Income 1Q

8 1Q 2018 results Gross debt breakdown 1 (US$ m) Gross and Net Debt Gross debt breakdown by currency Gross debt breakdown by country + 6.8% 7.9% 7.1% + 6.8% 4,988 1,639 5,327 1,388 4,988 9% 16% 5,327 9% 14% 4,988 12% 13% 5,327 11% 12% 35% 36% 35% 37% 3,349 3,939 40% 39% 47% 40% 39% Dec. 17 Mar. 18 Dec. 17 Mar. 18 Dec. 17 Mar. 18 Net Debt 1 Cash 2 COP BRL USD PEN Others 3 Colombia Brazil Holding Peru Argentina 1. Gross and net debt exclude accrued interests and adjustments. 2. Cash and cash equiv day cash investments. 3. Others: ARS and UF. Dec. 17: 0.64%; Mar. 18: 0.61%. Cost of gross debt 8

9 Share Performance Consensus

10 02/01/ /01/ /01/ /01/ /01/ /02/ /02/ /02/ /02/ /03/ /03/ /03/ /03/ /04/ /04/ /04/ /04/ /05/ /05/ /05/ /05/ /05/ /06/ /06/ /06/ % 5.0% Stock Performance Prices and volumes Share evolution 1 1) At the beginning of May, the devaluation of the Argentine peso against the dollar is aggravated 2) Rebalance of MSCI index. Incorporated new shares of Chinese companies, disvesting Latin American companies 4) Political uncertainty in Brazil and historical fall of the real peso versus US dollar (June 7 th, 2018) 0.0% -5.0% -2.3% -5.9% -10.0% -15.0% -20.0% -25.0% 3) On June 4 th began the subscription period of the tender offer, raising the share by 1.2% compared to the previous day -15.5% -19.3% 5) On June 14 th it was appointed a new President for the Central Bank of Argentina Enel Américas Enel Américas ADR IPSA DJI Index Since May 2018, macro context in Argentina and Brazil impacted in the stock performance 10 1: From January 2, 2018 to June 25, 2018

11 02/01/ /01/ /01/ /01/ /01/ /02/ /02/ /02/ /02/ /03/ /03/ /03/ /03/ /04/ /04/ /04/ /04/ /05/ /05/ /05/ /05/ /05/ /06/ /06/ /06/2018 Share performance Stock price evolution vs peers % 30.0% 20.0% 10.0% CPFL; 12.2% 0.0% -10.0% -20.0% Cemig; -1.4% Colbún; -4.4% Pampa Energía; -11.2% Engie Perú; -10.8% Enel Am; -15.5% AES Gener; -20.2% -30.0% 1. From January 2, 2018 to June 25,

12 15/May/17 07/Jun/17 30/Jun/17 23/Jul/17 15/Aug/17 07/Sep/17 30/Sep/17 23/Oct/17 15/Nov/17 08/Dec/17 31/Dec/17 23/Jan/18 15/Feb/18 10/Mar/18 02/Apr/18 25/Apr/18 18/May/18 10/Jun/18 Stock Performance CLP/Sh USD/ADR 160 Share price as of June 25, Average target price as of June 25, Current share price upside vs target price % Inversiones Security March Larraín Vial Feb Goldman Sachs Jun BICE Inversiones Jan BCI Oct JP Morgan March Santander Dec BTG Pactual Oct Citi March Morgan Stanley March Scotiabank March Credicorp Capital Sept Rating Neutral Negative 125 Target Price (CLP) Broker s average Enel Américas guidance 3,747 3,360 EBITDA (USD Mn) 3,632 4,223 4, Share price 4,645 Average Target Price Net Income (USD Mn) 1,624 1,412 1,359 1, , Enel Américas share: Top pick in the region and recommended in most of the portfolios 12

13 Acquisition of Eletropaulo

14 Acquisition of Eletropaulo Main Transaction Terms - Tender Offer for Eletropaulo Enel Américas has made the best offer to acquire Eletropaulo Final price: BRL per share Eletropaulo Enterprise Value Build-Up (US$ bn) Enterprise Value of US$ 4.6 bn 2.1 Tender offer successfully finalized (reached more than 50% of the shares of Eletropaulo) Shareholders have an additional period of 30 days to sell their shares EV/RAB Equity Pension Funds Net Debt Settlement Eletrobras Other contingencies EV On June 21, President Temer approved the sale of the government shareholding in Eletropaulo of 7.97%. BNDES will be the responsible for executing the sale Committed Capital increase in Eletropaulo of at least BRL 1.5 bn (~US$ 400 m). Eletropaulo Eletropaulo1 Equatorial 2 Energisa 2 Iberdrola/Elektro Iberdrola/Elektro Equatorial Follow On 3 Energisa Re-IPO 3 Multiple in line with comparable peers and historical M&A transactions 1. Normalized EV/RAB at Comparable peers. 3. Recent M&A transactions. Original values in BRL translated into USD using an Exchange rate of 3.60 BRL/USD. Source: Valuation from financial advisor. 14

15 Acquisition of Eletropaulo Acquisition Financing Cash Needs 1 (US$bn) Tender Offer: ~ 2.1 K Increase in Eletropaulo: ~ 0.4 Total: ~2.5 Instrument Bridge financing (Promissory notes) signed with 3 banks Borrowers Enel Brasil Enel Sudeste Bridge financing to be replaced by the most adequate financing structure Guarantors Enel Américas Enel Brasil Disbursement date June, 7 th 100% financing in local currency covering fx risks 1. in case of 100% of shares acquisition 15

16 Acquisition of Eletropaulo Leverage capacity Enel Américas (US$ bn) Net Debt to EBITDA (*) (x) EBITDA Net Debt Acquisition Eletropaulo (US$ bn) Brazil EBITDA contribution % 40% EBITDA Net Debt & Contingencies 16 (*) Enel Américas, 2018 and 2020 consolidated pro-forma

17 Acquisition of Eletropaulo Feedback from the market Sell Side reports All in all, we continue positive on Enel Americas, reaffirming our T.P.2018E and BUY recommendation We believe the company Eletropaulo has much room to grow in both the regulated and unregulated market. We will wait for management guidance on the expected improvements before adjusting our estimates. Adjust TP to US$12.5 and upgrade to Buy post ELPL tender offer; Among our Chilean utilities coverage, we have a relative preference of Enel Americas over Enel Chile given ENIA s higher growth profile TP: 12.8 USD/ADR 156 CLP/Sh R: Buy TP: 13.3 USD/ADR 160 CLP/Sh R: Buy TP: 11.8 USD/ADR 144 CLP/Sh R: Sector Outperform TP: 12.5 USD/ADR 159 CLP/Sh R: Buy Rating Agencies BBB/Stable Baa3/Negative BBB+/Stable AA(cl)/Stable AA-/Stable International International International Local Local Rating agencies kept outlook and rating for Enel Américas after the transaction 17

18 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.

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