Enel Américas Financial Statements Analysis September 2021.pdf

PRESS RELEASE

ENEL AMÉRICAS GROUP'S CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30 2021

PRESS RELEASE

CONSOLIDATED FINANCIAL STATEMENTS OF ENEL AMÉRICAS GROUP

AS OF SEPTEMBER 30, 2021

(Numbers expressed in millions of US dollars)

• Accumulated operating revenues as of September 2021 showed a 35.1% increase compared to the same period of 2020, reaching US$ 11,513 million, explained by a higher operating revenues in Brazil and the consolidation as of April 1, 20221 of EGP Américas (EGPA) that represented an additional US$ 584 million income. This was partially offset by lower operating revenues in Argentina.
  In quarterly terms, operating revenues in the 3rd quarter increased by 72.2% mainly due to the contribution of EGPA. Without this, operating revenues would have increased by 28.3% mainly due to higher operating revenues in Brazil.
• • EBITDA as of September 30, 2021, increased by 25.6% compared to the same period of 2020, reaching US$ 2,759 million. This is explained by EGPA's contribution of US$ 261 million and better results in Brazil, Colombia, and Peru, partially offset by lower EBITDA in Argentina and a US$ 126 million negative impact from the exchange rate.
    In quarterly terms, EBITDA for the 3rd quarter of 2021 increased by 47.1% compared to the same period of the previous year, explained by the aforementioned contribution of EGPA and, also, a higher EBITDA in the four countries, partially offset by a negative US$ 29 million impact of the exchange rate.
    Without EGPA's contribution, EBITDA would have increased by 13.7% in cumulative terms and by 28.5% in quarterly terms.

			EBITDA (million US$)
Country	Accumulated figures	Quarterly figures
	9M 2021	9M 2020	%	Q3 2021	Q3 2020	%
Argentina	114	138	(17.9%)	49	40	24.0%
Brazil	1,176	829	41.8%	505	291	73.6%
Colombia	1,000	892	12.2%	346	290	19.4%
Peru	390	357	9.2%	120	112	7.2%
EGP Central America	104	-	100.0%	54	-	100.0%
Enel Américas (*)	2,759	2,196	25.6%	1,066	725	47.1%
(*) Includes Holding and Adjustments

• Operating income (EBIT) increased by 30.0% in cumulative terms as of September reaching US$ 1,798 million, while in the 3rd quarter it increased by 40.9% reaching US$ 678 million. In both cases it can be explained by a higher EBITDA partially offset by a higher depreciation and amortization.
• Net Income attributable to the parent company reached US$ 622 million accumulated as of September, 27.8% more than in the same period of 2020. On a quarterly basis, net income reached US$ 264 million, a 39.2% increase as compared to the 3rd quarter of 2020. This is explained by better results at EBITDA level together with improved net financial results.

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PRESS RELEASE

ENEL AMÉRICAS GROUP'S CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30 2021

• Net financial debt reached US$ 5,834 million, which represents 31.8% more than at the end of 2020, mainly explained by higher net debt in subsidiaries in Brazil, in Enel Generación Perú and in Codensa which was partially offset mainly by a decrease in net debt in Enel Américas Holding.
• CAPEX in the first 9 months of the year reached US$ 1,808 million, which includes US$ 509 million from EGPA. Without considering the latter, CAPEX increased by 32.4% compared to the same period of the previous year, mainly explained by increases in Enel Goiás and Enel Sao Paulo.
  In quarterly terms, CAPEX reached US$ 815 million including EGPA and US$ 499 million excluding it.

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PRESS RELEASE

ENEL AMÉRICAS GROUP'S CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30 2021

INFORMATION RELEVANT TO THE ANALYSIS OF THESE FINANCIAL

STATEMENTS

Perimeter Change, incorporation of EGP Américas

On September 21, 2020, the Board of Directors of Enel Américas unanimously resolved to initiate a merger process aimed at the acquisition by Enel Américas of EGP Américas SpA ("EGP Américas") through a merger with and into Enel Américas (hereinafter the "Merger"). Immediately prior to the Merger, EGP Américas, a newly formed company, would keep Enel Green Power S.p.A.'s renewable energy generation business in Central and South America, excluding Chile.

The Merger, which entered into force on April 1, 2021, is in line with the Group's strategy and development plans, considering the high priority in the promotion of renewable energies carried out in the region, which makes it possible to accelerate the positioning of Enel Américas within the energy transition scenario and turn it into the leading company in Central and South America in energy generation and distribution. As a result of the Merger, Enel Américas has strengthened its renewable energy generation business, as well as diversified geographically, through the incorporation of assets in Costa Rica, Guatemala, and Panama, in addition to acquiring new assets in South American countries where it was already present, increasing its installed capacity in the region by 5 GW of operating and construction capacity, in addition to a pipeline that will be evaluated during the operation.

In an extraordinary meeting of shareholders held on December 18, 2020, the shareholders of Enel Américas approved the Merger, subject to the compliance with certain conditions precedent.

Finally, the Merger was finalized on April 1, 2021, incorporating the following main companies from that date on:

• Enel Green Power Brasil Participacoes Ltda.
• Enel Green Power Costa Rica S.A.
• Enel Green Power Colombia S.A.S ESP
• Enel Green Power Guatemala S.A.
• Enel Green Power Panamá S.R.L.
• Enel Green Power Perú S.A.C.
• Enel Green Power Argentina S.A.
• Energía y Servicios South América SpA
• ESSA2 SpA.

On the same date, April 1, 2021, all the amendments to the articles of association of Enel Américas approved by the Board, consisting of the respective capital increase and the elimination of the limitations and restrictions established in the statutes by application of Title XII of Decree Law No. 3,500 of 1980 - with the sole exception of the Investment and Financing Policy that remains - become effective, in particular, in the case of a shareholder and his related persons not being able to concentrate more than 65% of the voting capital in Enel Américas.

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PRESS RELEASE

ENEL AMÉRICAS GROUP'S CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30 2021

SUMMARY BY BUSINESS SEGMENT

Generation and transmission

As of September 30, 2021, the generation and transmission business showed a 42.0% EBITDA increase as compared to the same period of the previous year, reaching US$ 1,412 million. This is explained by the incorporation of EGPA into the consolidation perimeter whose contribution at EBITDA level was US$ 261 million. Without this effect, EBITDA would have increased by 15.7%.

On a quarterly basis, EBITDA increased by 68.0% also Without this, EBITDA would have increased by 27.5% Brazil, and Peru.

mainly due to the contribution of EGPA. explained by better results in Colombia,

	9M 2021	9M 2020	Var %	Q3 2021	Q3 2020	Var %
Total Sales (GWh)	52,706	43,477	21.2%	19,370	15,519	24.8%
Total Generation (GWh)	36,686	30,219	21.4%	13,782	11,050	24.7%

Distribution

In distribution, as of September, accumulated EBITDA was 12.2% higher than in the same period of the year before, reaching US$ 1,422 million. This is mainly explained by improved results in Brazil, Colombia and Peru partially offset by worse results in Argentina and a US$ 87 million negative impact of currency exchange rate.

On a quarterly basis, EBITDA in distribution increased to US$ 535 million by 29.0%. This is mainly explained by a higher demand in the four countries.

As of September 30, 2021, the number of consolidated customers showed an increase of 448 thousand customers or 1.8% as compared to September of the previous year, while accumulated physical sales increased 5.3% and 4.4% in the quarter.

	9M 2021	9M 2020	Var %	Q3 2021	Q3 2020	Var %
Total Sales (GWh)	89,473	84,959	5.3%	30,174	28,910	4.4%
Number of Clients	26,042,989	25,594,703	1.8%	26,042,989	25,594,703	1.8%

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PRESS RELEASE

ENEL AMÉRICAS GROUP'S CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30 2021

FINANCIAL SUMMARY

The Company's available liquidity has remained strong, as shown below:

• Cash and cash equivalents	US$ 1,462 million
• Cash and cash equiv. + cash investments over 90 days	US$ 1,482 million
• Available committed lines of credit (*)	US$ 1,444 million

1. It includes five credit lines committed between parties related to Enel Finance International (EFI). One of them from Enel Americas for an available amount of US$ 420 million, another from Enel Brasil for an available balance of US$ 147 million, another from EGP Peru for an available balance of US$ 20 million, another from EGP Panama for an available amount of US$ 13 million and another from EGP Costa Rica for an available balance of US$ 3 million.

The average nominal interest rate in September 2021 increased to 5.6% from 4.9% in December 2020, mainly influenced by an upward trend in the indices associated with variable rates of debtsin Brazil. This was partially offset by better rate conditions in the refinancing of debts in Colombia and Peru.

Hedging and protection:

To mitigate the financial risks associated with foreign exchange rate and interest rate fluctuations, Enel Américas S.A. has established policies and procedures aimed at protecting its financial statements against the volatility of these variables.

• Enel Américas Group´s foreign exchange rate risk hedging policy establishes that there must be a balance between the index currency of the flows generated by each company and the currency in which they assume any type of debt. Therefore, the Enel Américas Group has entered into cross currency swaps of US$ 1,482 million and forwards of US$ 1,481 million.
• To reduce the volatility of the financial statements stemming from interest rate changes, Enel Américas Group keeps an adequate debt structure balance. To achieve the above, we have entered into interest rate swaps totaling US$ 529 million.

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