Enel Generación Chile Investor Relations Presentation as of March 31, 2017
Organization structure Enel Generación Chile 61% ENEL SpA ITALY Committed Shareholders 2 60% ENEL CHILE CHILE 2.7% 3.3% 18.0% Enel Chile S.A. Chilean Pension Funds ADRs (Citibank N.A.) ENEL GENERACIÓN CHILE 16.0% 60.0% Retail PEHUENCHE, 93% GASATACAMA, 97% Institutional Investors CHILE 1 Average daily volume traded (MMUS$) 2015 2016 Chilean Stock Exchanges 6.0 3.9 Transquillota,48% GNL Chile, 33% NYSE 4.4 3.9 Total 10.4 7.8 1 Recognized as equity method investments. 2 As of March 31 st, 2017. 2
Key investment considerations Attractive business in Chile One of the largest electricity generation companies in Chile Proven track record with more than 70 years of experience Well diversified portfolio of generation assets, including all types of technologies Hydroelectric assets prevailing in the Chilean Central Interconnected System SIC Competitive thermal assets to reduce hydrological risks Strong portfolio of contracts leading to margin stability Best investment grade in the region. Stable ratings by Credit Rating Agencies (BBB+) Stable regulatory framework to develop reliable long term business 3
Competitive generation mix in the electricity market Most relevant player in hydro generation Los Molles: 18 MW Rapel-Sauzal: 466 MW Maule: 875 MW Laja: 940 MW Ralco-Pangue: 1,157 MW GasAtacama: 780 MW Tarapaca: 182 MW D. Almagro Taltal: 268 MW Huasco: 64 MW San Isidro 1 and 2: 778 MW Bocamina 1 and 2: 478 MW TG Quintero: 257 MW 55% Hydro 3.456 MW 44% Thermal 2.808 MW Installed Capacity 6,351 MW 1% 34% 55% 10% HYDRO COAL OIL-GAS NCRE Canela: Canela II: Ojos de Agua: 18 MW 60 MW 9 MW 1% ERNC 2 87 MW 55% of Enel Generación Chile s installed capacity corresponds to hydro resources Hydro : 3,456 MW Oil-gas : 2,173 MW Coal : 636 MW NCRE 2 : 87 MW 1:Calculated based on total sales of the country. 2: Non Conventional Renewable Energy. Energy sales 1Q17 : 5,794 GWh Energy sales 1Q16 : 6,025 GWh Market Share 1 : 34% 4
TWh 22 20 18 16 14 12 10 8 6 4 2 0 Capacidad Innovadora Portafolio Commercial Leadership Comercial++++++++++++++++++++++++++++++++ Strong portfolio of contracts favors margin stability Negocio de Generación 4.3 4.3 4.2 3.4 17.6 18.5 17.9 17.5 3.0 15.9 2.0 14.6 2.0 1.6 13.1 2.0 1.6 2.0 2.0 0.5 0.4 5.3 5.8 5.8 10.8 10.2 10.0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2.0 0.2 5.8 4.1 Regulated Customers Auction August 2016 Free Customers New Free Customers 2016 Enel Generación Chile was awarded 50% approximately of the energy tendered by the Authority in 2016. The amount awarded is 5.9 TWh/year starting in 2022. The Company made a competitive offer based on its own generation mix with its existing plants and the contribution of Posición activa en clientes libres nos permite capturar todas las oportunidades de mercado dada la flexibilidad del portafolio non-conventional renewable energy from EGP. Our strategic vision enables us to remain leaders in the energy commercialization in Chile, anticipating changes and new market conditions. 10
Balanced commercial policy Leading to revenue stability Physical sales: 5,794 GWh Energy sales by type of customer (Million Ch$) 21% 2% 25,340 350,010 390,361 58,541 54,235 13,693 277,776 310,786 77% Regulated Customers Unregulated Customers Spot 1Q17 Regulated Customers Free Customers 1Q16 Spot Physical Sales 1Q17 GWh Change 1 REGULATED 4,42-8% UNREGULATED 1,221 38% SPOT 130-55% 1 Compared with 1Q16 TOTAL 5,794-4% 6
Financial Highlights 1Q 2017 results Consolidated Income Statement (Ch$ MM) 1 1Q17 1Q16 Change % 2 MM US$ 3 1Q17 Revenues 383,413 415,283 (7.7%) 584.9 Costs (225,449) (230,478) (2.2%) (343.9) Contribution Margin 157,965 184,805 (14.5%) 240.9 EBITDA 129,017 157,461 (18.1%) 196.8 EBITDA Margin 33.6% 37.9% 4.3% - EBIT 98,880 125,041 (20.9%) 150.9 Net Financial Expenses (7,385) 934 (890.6%) (11.3) Related Company Results (695) 2,452 (128.3%) (1.0) Net Income from other Investments 104,902 34-160.0 Taxes (42,066) (13,436) 213.1% (64.2) Net Income 153,636 194,646 (21.1%) 234.4 Attributable to shareholders of Enel Generación Chile 152,157 152,568 (0.3%) 232.1 1 Under IFRS, Enel Generación Chile has adopted the Chilean Peso as functional currency, comparisons between periods have been only made using Ch$. 2 When comparing 1Q17 with 1Q16 3 Referential average exchange rate was 644,49 Ch$/US$ as of March 31, 2017. 7
Healthy debt maturity profile Solid financial ratios and Investment grade rating (BBB+) Financial Debt Maturity 1 as of March 2017 1,200 1,000 800 600 400 200 0 Total Debt: US$ 1,274 MM 75 8 3 8 3 3 45 3 45 4 10 < 1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years and beyond 1,067 Bonds Banks and Other Debt by Currency 1 Debt by Type 1 8% 92% US$ UF + CLP 2% 98% Others Bonds Cash: Committed Credit Lines: Average life of debt: International Credit Rating: US$ 336 MM US$ 314 MM 10 years BBB+ 1 Includes arrangements and other consolidation adjustments. 8
Credit Rating Agencies Recognition Attractive ratings since 2010 Since: Jan. 2010 Apr. 2011 Feb. 2010 Jan. 2010 Apr. 2010 BBB+ Baa2 BBB+ AA AA Affirmed: Feb. 2017 Dec. 2016 Feb. 2016 Feb. 2017 Jul. 2016 International market Chilean market RATINGS BASED ON: Well diversified and efficient assets Leading market position in Chile Transparent and stable regulatory framework in Chile Solid financials, good cash flow generation and prudent financial management Balanced commercial policy 9
500 450 Consolidated Cash Flow (US$ million) 1 Improved cash flow generation 400 (92) 350 300 250 191 (101) (7) 174 200 150 340 100 175 50 0 Cash and equivalents March 16 Funds from operations Capex Financing activities & Exchange rate effects Funds from assets disposal Dividend payment ² Cash and equivalents March 17 1. Referential average exchange rate was 655.49 Ch$/US$ as of March, 2017. 2. Dividend payment considers cash outflows to Enel Chile and all minorities shareholders. 10
Dividend policy Pay-out ratio increasing to 70% in 2020 50% 55% 60% 65% 70% 2016 2017 2018 2019 2020 Enel Generación Chile paid on Jan 27 th an interim dividend of Ch$ 7.25 per share. On May 26 th, the Company paid a definitive dividend of Ch$ 21.56 per share also charged to 2016 results. Dividend Yield 1 increased from 2.7% in 2015 to 6.5% in 2016. Note: As of March 1 st, 2016, Enel Generación Chile Spin-Off became effective. 1. Considering Dividend Payments N 61 and 62 for 2016 and N 59 and 60 for year 2015 using the closing share price for each year. 11
Strategic Plan 2017-2019 EBITDA evolution and drivers +26% Drivers Hydrology Normalization of hydrology since 2018, favors an increase in hydro production, improving margin 879 1,108 Additional capacity Commercial operations of Los Cóndores, increasing our production in 600 GWh/year approx. 2016 2019 Accumulated EBITDA 2017-2019: MM US$ 3,095 Sale price Assets Mix Contractual position allows to defend margins when spot prices fall down Diversified generation mix mitigates hydrology risk Increasing EBITDA due to commercial portfolio and efficient generation assets 12
Strategic Plan 2017-2019 Capex Maintenance and Business Development Total 2017-2019 349 439 248 Mantenimiento Maintenance BD 264 219 158 119 18 85 61 101 Total investment for the period 2017 2019: MM US$ 687: 2017 2018 2019 Mantenimiento Maintenance BD New Capacity: Los Cóndores. High environmental standards. Maintaining high standard of operational efficiency. Operational excellence in the generation fleet 13
Optimization of Bocamina Environmental improvement Thermal Complex with two Coal Units: 128 MW (U1) 350 MW (U2). The following improvements were made: Advanced technology filters for the water cooling suction system. Inline air quality monitoring system. Coverage of coal collection fields, North dome completed. Construction of South dome started in 2017. 14
Project under construction To support growth of the country Los Cóndores Run-of-the-river, hydroelectric power plant. Located in San Clemente, in Maule region, Chile. 150 MW of installed capacity. Estimated generation of 600 GWh/year. 50% progress as of April 2017. 15
Safety, Environment and Sustainability Activities involved in our day-to-day operations Safety Indicators Environment Sustainability 0.12 0.10 0.08 1.25-23% 0.96 1.60 1.40 1.20 1.00 BOCAMINA OPTIMIZATION NATIVE SPECIES REFORESTATION AGREEMENT - RALCO 0.06 0.80 0.04 0.02 0.03 0.03 0.60 0.40 0.20 ENVIRONMENTAL IMPROVEMENT - SAN ISIDRO MEMORANDUM OF UNDERSTANDING - PAPOSO & TAL-TAL COMMUNITIES 0.00 2016 YTD 2017 0.00 Frequency Index Severity Index Frequency Index: N Accidents (Enel Generación + Contractors) per million hours worked (Enel Generación + Contractors) Occupational health and safety as our priority Ongoing work to strengthen relationships with communities Continuous environmental improvements in our power plants 16
Closing Remarks Attractive business in Chile Safety as our priority Flexible and competitive generation fleet Environmental improvements and relationships with communities Operational efficiency Strong portfolio of contracts 17
Enel Generación Chile Contact us Susana Rey Head of IR Enel Chile +56 2 2630 9606 susana.rey@enel.com Catalina González Head of IR Enel Generación Chile +56 2 2630 9603 catalina.gonzalez@enel.com ir.enelgeneracionchile@enel.com For further information, visit our IR site at: www.enelgeneracion.cl Guillermo Berguecio Analyst of IR Enel Generación Chile +56 2 2630 9506 guillermo.berguecio@enel.com Francisco Basauri Analyst of IR Enel Generación Chile +56 2 2630 9585 francisco.basauri@enel.com 18
Exhibits 19
Highlights 1Q 2017 Enel Generación Chile results Net income attributable to shareholders reached US$ 232 million, similar to the figure for the same period of the previous year. Energy generation decreased 4%, as a consequence of the poor hydrology. Higher thermal generation (+ 173 GWh) due to greater availability of Bocamina and San Isidro power plants to cope with dry conditions. Enel Generación Chile materialized the sale for its shareholding in Electrogas S.A. for US$ 118 million, accounted in 1Q17 results. 20
Evolution of Enel Generación Chile s installed capacity More than doubled its capacity in the last 20 years 2,513 13% 87% 4,035 28% 72% 4,477 24% 5,611 1% 6,351 37% 44% 6,501 1% 1% GasAtacama 781 MW* 44% 76% 62% 55% 55% Los Cóndores 150 MW 1995 2000 2005 2010 2016 Under construction A well diversified generation matrix incorporating different types of generation technologies (Coal, LNG and NCRE), providing a better position to cope with hydrological risks. * Capacity added in 2014. 21
Operational Efficiency Availability of our power plants Hydro CCGT 96.9% 96.2% 95.9% 93.5% 95.5% 95.7% Total Generation Fleet 92.1% 84.7% 92.3% 91.9% 94.2% 94.4% 2014 2015 2016 2017 2018 2019 89.2% 89.4% 92.3% 91.6% 94.8% 94.3% 2014 2015 2016 2017 2018 2019 Coal 2014 2015 2016 2017 2018 2019 Oil & Gas 28.7% 53.5% 65.0% 79.6% 90.1% 86.1% 95.8% 95.9% 96.8% 90.9% 96.6% 92.7% 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 High efficiency standard in our generation assets 22
Installed capacity and energy generation Installed Capacity: 6,351 MW Market Share*: 28% Total Generation 1Q17: 4,387 GWh Net Generation 1Q17 GWh Change 1 HYDRO 2,113 (15%) COAL 3,061 13% OIL-GAS 5,318 6% NCRE 152 12% Total 4,387 (4%) Historical energy generation by type of technology 6,000 5,000 4,000 3,000 2,000 1,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2012 2013 2014 2015 2016 2017 Hydro Coal Oil-Gas CHP / Renewables 1 : Compared with 1Q17 2: Non Conventional Renewable Energy * Based on total installed capacity of the country. 23
Strong financial position (Million Ch$) Mar 17 Mar 16 Chg. Chg % MM US$ 1Q17 1 Gross Debt 877,049 879,713-2,664 0% 1,331 Cash 222,809 114,486 108,323 95% 338 Net Debt 654,239 765,226 (110,987) (15%) 993 Leverage 2 0.85 0.97 (0.12) (12%) - Financial Expenses Coverage 15.1 288.9 (273.82) (95%) - ROE (%)* 28.1 11.9 16.2 136% - ROA (%)* 13.9 7.6 6.3 83% - 1 Amounts translated into US$ using the exchange rate as of December (Ch$ 655.49 per US$). Includes arrangements and other consolidation adjustments. 2 Leverage as of March 2017 compared with December 16. *The annual indexes as of March 2016 include discontinued operations 24
DISCLAIMER This presentation does not constitute an offer to sell any securities and is not soliciting an offer to buy any securities in any jurisdiction. This presentation contains certain forward-looking statements regarding anticipated financial and operating results and statistics and other future events relating to Enel Generación Chile S.A. (Enel Generación) These statements are not guarantees of future performance and are subject to material risks, uncertainties, changes and other factors which may be beyond Enel Generación control or may be difficult to predict. These statements may constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. The inclusion of these forward-looking statements should not be regarded as an indication that Enel Generación or any other person considers such projections to be material or to be a reliable prediction of actual future results. These forward-looking statements are subjective in many respects and there can be no assurance that they will be realized or that actual results will not be significantly higher or lower than described. As a result, the inclusion of any forward-looking statements in this presentation should not be relied on as necessarily predictive of actual future events. The projections and other forward-looking statements were based on numerous variables and assumptions that are inherently uncertain. Actual results may differ materially from those projected as a result of such risks and uncertainties. In addition, the financial projections do not necessarily reflect revised prospects, changes in general business or economic conditions, or any other transaction or event that has occurred or that may occur and that was not anticipated at the time the projections were prepared. Forward looking statements include, but are not limited to, information regarding: Enel Generación' business plans, Enel Generación' cost reduction plans, trends affecting Enel Generación ' financial condition or results of operations including market trends in the electricity sector in Chile or elsewhere, supervision and regulation of the electricity sector in Chile or elsewhere, and the future effect of any changes in the laws and regulations applicable to Enel Generación' or its affiliates. The principal assumptions underlying these forecasts and targets relate to: Economic and Industry Conditions, Commercial Factors, Political/Governmental Factors, Operating Factors, and Competitive Factors. The following important factors, in addition to those discussed elsewhere in this presentation, could cause actual financial and operating results and statistics to differ materially from those expressed in our forward-looking statements, including but not limited to: changes or developments regarding the applicable regulations (which may affect the investment plan of Enel Generación regarding the regulated activities), legal restrictions applicable to the implementation of the dividends policy, environmental regulations and other legal issues; price of electricity; price and supply of raw materials; interest rates or exchange rates; availability of fuel; ability to maintain relationship with suppliers, customers and consumer and user protection groups; changes in climate conditions; widespread adoption energy efficiency measures; inherent risks in the construction of new power generation and distribution facilities; changes in general economic, political, administrative and business conditions; operating hazards and risks; tax risks; loss of senior management and key personnel; insufficiency of insurance coverage or increase of insurance costs; failure of systems and information technology and processing; inability to access the capital markets to refinance its debt and finance its capital expenditures; and other factors that could adversely affect the business and financial results of the Company. No assurance can be given that the forward-looking statements in this document will be realized. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date of this presentation. Our independent registered public accounting firm has not audited, examined or compiled the forward-looking statements and, accordingly, does not provide any assurance with respect to such statements. Neither Enel Generación nor any of its affiliates intends, nor undertakes any obligation, to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.