Américas
Enel Américas
Corporate Presentation
October 2020
Our company
Américas
Enel Américas overview
Corporate and ownership structure
Enel Américas as part of Enel Group
Attractive returns for our shareholders through continuous value creation
COVID-19 resilience: our response to the emergency
Latest financial results and updated 2020 guidance
1
Enel Américas overview
Américas
Latin America's largest private power company
Presence in | Part of Enel Group(1) | ||||
Operationaldata | |||||
Companydata | key countries | ||||
in the region | |||||
Largest market cap in | Commitment with ESG | ||||
Chile, publicly traded on: | goals and sustainability | ||||
ratings&Liquidity | |||||
financialsKey(2) | Revenue | EBITDA | |||
US$ 14,314 mn | US$ 3,994 mn | ||||
(+10.2%) | (+19.0%) | ||||
Net Income | Total Assets | ||||
US$ 1,614 mn | US$ 29,776 mn | ||||
(+34.4%) | (+8.7%) | ||||
Staff
17,279 people
Installed Capacity
11,267 MW
Total Clients
24.7 mn
Charging stations
448
Net Debt(3) US$ 4,686 mn
Net Debt/EBITDA(3) | 1.4x |
Baa3 / Positive
BBB / Negative
A- / Stable
(1) As of August 18, 2020, Enel SpA has a 65.0% stake in Enel Américas, (2) Key financial figures as of December 31, 2019, (3) Figures as of June 30, 2020 | 2 |
Corporate and ownership structure
Business structure1
Américas
Américas
Ownership structure2
Retail
Institutional 1.8%
investors
17.3%
Argentina | Brazil | ||
Enel Gx Costanera | Cachoeira Dourada | ||
(99.75%) | |||
(75.62%) | |||
Enel Gx El Chocon | Enel Gx Fortaleza | ||
(100%) | |||
(65.69%) | |||
Central Dock Sud | Volta Grande | ||
(100%) | |||
(40.25%) | |||
Edesur | Enel Dx Goiás | ||
(99.93%) | |||
(72.09%) | |||
Enel Dx Rio | |||
(99.73%) | |||
Enel Dx Ceará | |||
(74.05%) | |||
Enel Dx Sao Paulo | |||
(100%) |
(1) Simplified company structure; (2) As of August 18, 2020
Colombia | Peru | |||
Enel Emgesa | Enel Gx Peru | |||
(48.48%) | (83.60%) | |||
Enel Codensa | Enel Gx Piura | |||
(48.30%) | (96.50%) |
Enel Dx Peru
(83.15%)
Pension | # shares | |
funds | 76,086,311,036 | Enel S.p.A |
11.2% | ||
65.0% | ||
ADRs | ||
5.0% |
3
Enel Américas as part of Enel Group
Américas
Enel Group is leading the new energy world…
1st network | 46 GW |
operator1 | Renewable capacity2 |
73 mn end users | World's largest private |
player in renewables | |
- By number of customers. Publicly owned operators not included
- By installed capacity. Includes managed capacity for 4.2 GW
3. It includes nuclear
4. Includes customers of free and regulated power and gas markets
39 GW | 6.3 GW | 74 mn |
Thermal capacity3 | demand response | customers4 |
Leading decarbonization | New services enable | |
decarbonization and | Largest retail customer | |
process, phasing out of | ||
electrification of | ||
base in Europe | ||
coal production | ||
consumption | ||
4
Enel Américas as part of Enel Group
EnelAméricasis a key player in Latin America…
US$ 5.3 bn | |||
2020-2022 CAPEX plan | |||
25.4 mn | 6.2 GW | 5.0 GW | Focus onInfrastructure and |
clients | Renewable capacity | Thermal capacity | |
Networks with stable | |||
Phasing outcoal formore | investments ongeneration | ||
Presence in key cities in | Significant installed capacity | ||
efficient and clean | |||
Latin America, in 4 countries | in large hydro | ||
technologies | |||
Américas
US$ 4.0 bn
EBITDA
Contributes ~20% of Enel
Group's EBITDA
5
Attractive returns for our shareholders through | ||||||||||||||||||||||
continuous value creation | Américas | |||||||||||||||||||||
EPS1 (US$/ADR) | DPS2 (US$/ADR) | |||||||||||||||||||||
+115% | +115% | |||||||||||||||||||||
1.05 | 1.06 | 0.53 | ||||||||||||||||||||
0.42 | ||||||||||||||||||||||
0.62 | 0.31 | |||||||||||||||||||||
0.49 | 0.25 | |||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2016 | 2017 | 2018 | 2019 |
Dividend yield3
Dividends4 (US$ bn)
3.2%
+3.6 p.p.
6.8%
5.4%
4.0%
+185%
0.81
0.48
0.280.35
2016 | 2017 | 2018 | 2019 |
2016 | 2017 | 2018 | 2019 |
(1) Earning per ADR. Calculated as Group Net Income / Total ADRs (1 ADR = 50 common shares); (2) Dividend per ADR; (3) ADR as of June 17, 2020: US$ 7.76. Dividend yield = DPS/ Share price; (4) | 6 |
Accrued dividends. Dividend policy: 50% (except 2018, which was 40%) | |
H1 2020 - Financial highlights (US$ mn)
Reported | Adjusted |
Américas
EBITDA1 | Net Income1 | ||
Q2 2020 | 623 | 166 | |
-46% | -42% | ||
Q2 2019 | 1,161 | 511 | |
EBITDA2
1,002
+14%
882
Net Income2
379
+23%
308
EBITDA for Q2 and H1 are explained by currency devaluation vs USD in all countries, COVID-19effects and a high comparison base2.
H1 2020 | 1,471 | 476 | |
-29% | -67% | ||
1,997 711
+11%+14%
Net Income for Q2 and H1 were
also affected by Fx devaluation, COVID-19 and one-off,partially offset by a better financial result and lower taxes.
H1 2019 | 2,070 | 827 | 1,791 | 624 |
7
(1) Ordinary figures; (2) Excludes FX effect, COVID-19 effect and Edesur's past liabilities resolution in 2019
FX and COVID-19 impact on demand and bad debt (US$ mn)
Net of | |||||||||||
Q2 2020 | Ordinary | FX | Demand | Bad Debt | COVID-19 | ||||||
& FX | |||||||||||
EBITDA | 623 | 192 | 187 | 1,002 | |||||||
D&A | (265) | 52 | |||||||||
Net Income | 166 | 143 | 55 | 14 | 379 | ||||||
Net of | |||||||||||
H1 2020 | Ordinary | Fx impact | Demand | Bad Debt | COVID-19 | ||||||
& FX | |||||||||||
EBITDA | 1,471 | 339 | 187 | 1,997 | |||||||
D&A | (568) | 52 | |||||||||
Net Income | 476 | 166 | 55 | 14 | 711 | ||||||
COVID-19
impact
Américas
8
2020 for figures Expected (2) Plan; Strategic 22-2020 on presented Figures (1)
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3,272 | 1.Jan | 26- 01 | |||||
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EBITDA Ordinary bn) (US$
7.4
9.3 - 7.3
1 .Jan 8.59
1 .Jan 0.4 | 30.Jun 4.5 | BrazilArgentina 35%17% | USD)(vs devaluation Currency | 22-2020PlanStrategicour on impact main the is Fx | changeGuidanceFinancial 2020 |
Jun30. 702. | |||||
figures |
bn) (US$ EBITDA | |||
2020 1target | |||
Américas | |||
22020E | |||
9
Américas
COVID-19 resilience
COVID Operational Initiatives
Our determined commitment to face the pandemic
Our people | Our clients | |
Américas
Our operations
- Around 50% of our total workforce is working remotely
- Security measures to ensure the safety of workforce on the field, along with specialized training during COVID-19
- Insurance policy for all Enel Américas' employees. First ever of its kind in the world. Cash allowance for hospitalized employees
- Digitalization to mitigate impacts in collection
- Website revamp to ease the client experience
- Increased focus on apps as payment channels and communication tools
- Restart in some cases manual billings and billing distribution with all the preventative health measures
- Infrastructure is fully operational on all geographies
- Reinforcement of critical infrastructure as a key concern for the Company
- Faster emergency response to ensure the continuity of service
- Reinforcement of security protocols and COVID-19 measures
11
Brazil: Conta COVID (Decree nº 10.350/20)
Executive summary | Américas |
1
2
3
4
The decree provided guidelines on the financing package to mitigate Covid-19 impacts to discos (Provisional Measure
950/20) and final structure was defined by ANEEL under Normative Resolution 885/20.
Total amount available for the sector was R$ 16.1 bn, with R$ 3.2 bn formalized with Enel Américas Dx Companies. Amounts related to (i) overcontracting; (ii) sector charges neutrality; (iii) CVA balance from Apr/20 to Dec/20, and (iv) Parcel B anticipation, if company chooses to disburse, will be transferred monthly.
Financial aid is positive: preserve the sector's chain of payments providing liquidity to discos and protecting gencos and transcos and reduce the impact on tariffs for consumers in 2020. Resources shall be paid back in 54 months, starting 2021 after an 11-month grace period. The repayment of the financial aid (and its financial costs) will be passed through to consumers.
Costs related to discos´ over-contractedexposure caused by reduction in volumes due to Covid-19 will be treated as involuntary and recognize distribution companies' right to request an extraordinary tariff review ('RTE").
Amount collected | Enel Dx Río | Enel Dx Ceará | Enel Dx Goiás | Enel Dx Sao Paulo |
by Company: | R$ 0.8 bn | R$ 0.5 bn | R$ 0.5 bn | R$ 1.4 bn |
12
Reinforcing our commitment to ESG and SDGs
Projects in Support of Local Communties | Américas |
ENEL AMERICAS OVERALL H1 2020
SDG Contribution
Charitable activities in response to the Covid-19 crisis
TOTAL INITIATIVES | 76 | |
PROJECTS 355
BENEFICIARIES | 942 K | |
7 projects
104,9K beneficiaries
57 projects
240,7K beneficiaries
32 projects
29,7K beneficiaries
130 projects 342,6K beneficiaries
73 projects
93K beneficiaries
8 projects
32K beneficiaries
HEALTH (57)
- Monetary contributions to hospitals or civil protection bodies.
- Enel spaces made available for medical needs (field hospitals, spaces for quarantine, etc..)
- Deliver DPIs to people, doctors and nurses around our assets
- Supply of basic materials as personal protection elements and support for patients
- Donate Enel's own resources and monetary contribution to produce fast tests to detect Coronavirus
- Donation of intensive care machinery
- Free supply of all the necessary energy and building for "field hospital".
SOCIO ECONOMIC (19)
- Donation of basic food baskets to families in situation of social vulnerability
- Family kit (house & personal preventive cleaning)
- Use of the daycare centers maintained by Enel to receive children from electricians and health professionals of public hospitals who are working in quarantine
- Campaign to disseminate behaviors to face the crisis and to "stay at home"
- Manufacturing of handmade masks for people in risk group in communities.
- Support of vulnerable clients such as
"electrodependientes" and people with disability
Main impacts
Further deterioration of market context and key KPIs
Américas
Currencies vs USD1 (YTD)
USD/ARS | -17% |
USD/BRL -35%
USD/COP | -15% |
USD/PEN | -7% |
Electricity distributed (TWh)
∆ yoy
8.1
ARGENTINA- 2%
8.3
BRAZIL | 37.5 | -7% |
40.4 | ||
6.7
COLOMBIA-5% 7.0
PERU | 3.7 | -12% |
4.2 | ||
H1 2019
H1 2020
Collection (%)
∆ yoy
ARGENTINA | 95.1 | -9.2 pp |
104.4 | ||
94.4 | ||
BRAZIL | -3.7 pp | |
98.1 | ||
92.6 | ||
COLOMBIA | -3.8 pp | |
96.4 | ||
81.2 | ||
PERU | -17.0 pp | |
98.2
H1 2019
H1 2020
14
(1) Fx devaluation from January 1, 2020 to June 30, 2020.
Main impacts
Recovery signs in June on electricity distributed and collection | Américas | |||||||||||||||||||||||||
Electricity distributed (TWh) | ||||||||||||||||||||||||||
Argentina | Brazil | Colombia | Peru | |||||||||||||||||||||||
1.44 | 1.44 | 1.53 | ||||||||||||||||||||||||
1.40 | 1.36 | 6.85 | 6.85 | 6.91 | ||||||||||||||||||||||
6.68 | 6.75 | |||||||||||||||||||||||||
1.30 | ||||||||||||||||||||||||||
0.74 | ||||||||||||||||||||||||||
1.42 | 1.42 | 1.41 | 6.34 | 1.22 | 1.22 | 0.71 | 0.71 | 0.70 | ||||||||||||||||||
1.38 | 1.34 | 6.76 | 1.19 | 1.19 | 1.16 | 0.67 | ||||||||||||||||||||
6.76 | 6.74 | 1.15 | 0.66 | |||||||||||||||||||||||
6.08 | 1.14 | 1.14 | 1.20 | 0.70 | 0.70 | 0.64 | 0.50 | 0.54 | 0.60 | |||||||||||||||||
1.06 | 1.08 | |||||||||||||||||||||||||
5.70 | ||||||||||||||||||||||||||
0.98 | ||||||||||||||||||||||||||
0.96 | ||||||||||||||||||||||||||
5.49 | ||||||||||||||||||||||||||
Jan | Feb | Mar | Apr | May | June | Jan | Feb | Mar | Apr | May | June | Jan | Feb | Mar | Apr | May | June | Jan | Feb | Mar | Apr | May | June | |||
Collection (%) | ||||||||||||||||||||||||||
Argentina | Brazil | Colombia | Peru | |||||||||||||||||||||||
111% | 112% | 112% | 101% | 98% | 100% | 103% | 98% | 99% | 105% | 100% | 101% | 100% | 101% | |||||||||||||
98% | 95% | 100% | ||||||||||||||||||||||||
104% 99% | 98% | 104% | 94% | 93% | ||||||||||||||||||||||
90% | ||||||||||||||||||||||||||
96% | 105% | |||||||||||||||||||||||||
105% | 93% | 96% | 95% | |||||||||||||||||||||||
103% | 98% | 91% | 82% | 93% | 78% | |||||||||||||||||||||
95% | 98% | 91% | ||||||||||||||||||||||||
85% | 85% | 89% | 92% | 86% | 92% | 80% | 74% | 59% | ||||||||||||||||||
Jan | Feb | Mar | Apr | May | June | Jan | Feb | Mar | Apr | May | June | Jan | Feb | Mar | Apr | May | June | Jan | Feb | Mar | Apr | May | June | |||
2019 | 2020 | 15 | ||||||||||||||||||||||||
Américas
Key investment considerations
Key investment considerations
Diversified investment vehicle in the region
Proven M&A track record
Distribution: Regulated business with attractive returns
Generation: Renewable portfolio with focus on large hydro
Enel X at the forefront of the energy transition
ESG as a key ingredient of our strategy
Solid financial growth, strong liquidity and sound financial policies
Diversified investment vehicle in the region
Enel Américas is Latin America's largest private power companyAméricas
Argentina | Brazil | Colombia | Peru | |||||||||
Generation | Generation | Generation | Generation | |||||||||
Installed Capacity | 4,419 MW | Installed Capacity | 1,354 MW | Installed Capacity | 3,506 MW | Installed Capacity | 1,987 MW | |||||
Market share Gx (sales) | 10% | Market share Gx (sales) | 6% | Market share Gx (sales) | 26% | Market share Gx (sales) | 21% | |||||
Distribution | Distribution | Distribution | Distribution | |||||||||
Clients | 2.5 mn | Clients | 17.2 mn | Clients | 3.5 mn | Clients | 1.4 mn | |||||
Sales | 16,798 GWh | Sales | 80,682 GWh | Sales | 14,307 GWh | Sales | 8,211 GWh | |||||
Market share Dx (sales) | 16% | Market share Dx (sales) | 17% | Market share Dx (sales) | 18% | Market share Dx (sales) | 30% | |||||
Operations | Transmission | Operations | Operations | |||||||||
Enel Gx Costanera | Edesur | Transmission lines | 2,100 MW | Emgesa | Codensa | Enel Gx Perú | Enel Dx Perú | |||||
Enel Gx El Chocon | Operations | Enel Gx Piura | ||||||||||
Central Doc Sud | ||||||||||||
Enel Gx Fortaleza | Enel Dx Rio | |||||||||||
Cachoeira Dourada | Enel Dx Ceará | |||||||||||
Volta Grande | Enel Dx Goiás | |||||||||||
Enel Cien | Enel Dx Sao Paulo | |||||||||||
14% | 41% | 32% | 14% | |||||||||
EBITDA contribution | EBITDA contribution | EBITDA contribution | EBITDA contribution | |||||||||
Figures as of December 31, 2019. EBITDA contribution may not add up to 100% due to rounding
18
Proven M&A track record
Expansion of operations in Brazil through inorganic growth
Enel Dx Goiás (Celg)
Paid Price: US$ 720 mn
Clients: 3.1 mn
Location: State of Goiás
Consolidating since: February 2017
Volta Grande
Paid Price: US$ 436 mn
Installed Capacity: 380 MW
Location: State of Minas Gerais
Consolidating since: November 2017
Enel Dx Sao Paulo (Eletropaulo)
Paid Price: US$ 2,235 mn
Clients: 7.3 mn
Location: Sao Paulo
Consolidating since: June 2018
Américas
19
Distribution
Regulated business with | ||||||
attractive returns | Américas | |||||
Clients evolution (mn) | Energy sales | |||||
Enel Dx Sao | 120.0 TWh | |||||
Paulo | ||||||
Enel Dx | 24.5 | 24.7 | 26.0 | 7% | 14% | |
Goiás | ||||||
12% | ||||||
14.1 | 17.2 | |||||
67% | ||||||
2016 | 2017 | 2018 | 2019 | 2022 |
RAB (US$ bn)(1) | EBITDA (Dx business) |
12.2 | 14.3 | US$ 2,504 | ||||
11.8 | ||||||
7.1 | 9.3 | 10% | 12% | |||
22% | ||||||
2016 | 2017 | 2018 | 2019 | 2022 | 55% | |
No pending tariffs reviews(2) for our Dx companies
till 2022 | Argentina Brazil Colombia Peru |
2019 figures. | 20 |
(1) Regulatory asset base; (2) Colombia's tariff review was completed but it is expected to take in place on 2020; |
Generation
Portfolio mainly represented by | |
renewable technologies | Américas |
Installed Capacity
11,267 MW
2%
24%
55%
19%
Hydro | Oil-Gas | |
CCGT | Coal |
Net Production | EBITDA (Gx business) | |
41,760 GWh | US$ 1,598 |
20% | 20% | 15% |
31% |
20%
37% | 13% | 44% | |
Argentina | Brazil | Argentina | Brazil |
Colombia | Peru | Colombia | Peru |
Stable business with limited growth potential
Securing revenues and profitability through long-termPPAs
2019 figures | 21 |
Generation
Stable EBITDA, but volatile spot | ||
prices could hurt profitability | Américas | |
EBITDA (US$ bn) | Contracted energy (TWh) |
1.6 | 1.5 | 1.7 | 1.6 |
2019 | 2020E | 2021E | 2022E |
Spot Price (US$/MWh)
2016 2017 2018 2019
28 101 77 58
101 36 39 69
22 10 11 9
15.6 | Brazil | ||||||
> | 10.4 | 12.1 | 11.2 | PPA1 | |||
100% | average | ||||||
93% | 94% | 67% | |||||
duration: | |||||||
15-30 years2 | |||||||
2019 | 2020 | 2021 | 2022 | ||||
15.2 | Colombia | ||||||
13.7 | |||||||
97% | 11.9 | 10.8 | PPA1 | ||||
88% | |||||||
average | |||||||
76% | |||||||
71% | |||||||
duration: | |||||||
1-3 years | |||||||
2019 | 2020 | 2021 | 2022 | ||||
Peru | |||||||
10.4 | 10.0 | ||||||
9.3 | 8.4 | PPA1 | |||||
86% | |||||||
84% | average | ||||||
76% | |||||||
69% | |||||||
duration: | |||||||
5-7 years | |||||||
2019 | 2020 | 2021 | 2022 |
(1) Power Purchase Agreement; (2) Volta Grande's PPA duration: 30 years | 22 |
CAPEX allocation
Focus on I&N with stable investments in the generation business | Américas |
2020-2022 CAPEX plan of US$ 5.3 bn
8% 11%
18%
US$ 5.3 bn
62%
Argentina | Brazil |
Colombia | Peru |
3%4% 4%
8%
US$ 5.3 bn
82%
Large hydro gen. Thermal gen.
Networks Retail Enel X
30%
43%
US$ 5.3 bn
27%
Asset Management | Asset Development |
Customers |
>90% of total CAPEX SDGs related
23
Enel X at the forefront of the energy transition
Américas
Enel X will play a key role by accelerating the transition through ecosystems creation
2019
2022
e-City | e-Industries | Financial | e-Home | e-Mobility |
Services | ||||
417 | 12 | 876 | 1,307 | 448 |
Smart lighting (final | PV (MWρ installed in | Credit cards | Microinsurance | Charging stations (#) |
light points, mn#) | the year) | (Active credit cards k#) | (active contracts,k#) |
736 | 51 | 1,325 | 1,732 | 2,502 |
New growth and business opportunities through new services, products and solutions.
24
ESG Indexes and Recognitions
Our achievements reflect our focus on ESG matters | Américas |
Indexes | Recognitions |
Chile Index | Emerging markets Index | Industry Mover 2019 | Best company in Chile |
MILA Index | Leader in Sustainability | ||
Latin America Index | Bronze Class 2020 | ||
Emerging markets Index | Leader in Corporate Governance | ||
MSCI EM SRI Index | Best Emerging Markets performers |
ranking (top 100) |
25
ESG focus on our practices
Policies formally approved by the Board of Directors
| Biodiversity | | Non discrimination & |
| Environmental | diversity | |
| Human Rights | | Community |
Involvement | |||
SRI investors in Enel Américas (# & ownership %)
Feb-2020116
27.4%
Américas
Governance and Board of Directors
| Independent Board | 29% | 29% | Chilean | |
Members: 43% (3 of 7) | Spanish | ||||
Argentine | |||||
| Non executive Board | 14% | 14% | Colombian | |
Members: 100% | |||||
14% | Italian | ||||
2020-2022 CAPEX plan | |||||
>90% of total CAPEX | 3%4% 4% | ||||
8% | |||||
SDGs related | |||||
US$ 5.3 bn | |||||
82% | |||||
Large hydro gen. | Thermal gen. | Networks | |||
Retail | Enel X |
26
Strong financial performance
Américas
EBITDA (US$ bn)
+36%
Net Income (US$ bn)
+128%
Net Debt (US$ bn)
+28%
2.9
4.0
3.4
1.6
1.2
0.7
6.6
4.3
3.4
2017 | 2018 | 2019 | ||||||
+37% | ||||||||
5.0 | 5.5 | |||||||
4.7 | ||||||||
4.0 | ||||||||
2017 | 2018 | 2019 |
+29%
2.1
1.6 1.6 1.8
2017 | 2018 | 2019 | ||||
-7% | ||||||
5.2 | 4.6 | |||||
4.3 | ||||||
4.0 | ||||||
2019 | 2020 | 2021 | 2022 | 2019 | 2020 | 2021 | 2022 |
2019 | 2020 | 2021 | 2022 |
The FX devaluation experimented during 2020 is the most significant impact vs Strategic Plan
27
Financial position
Solid liquidity and debt metrics | Américas |
Current liquidity | Debt amortization (US$ mn) | Net debt/EBITDA | ||
36% | |||||||
Total liquidity | |||||||
US$ 2,258 mn | 2,684 | ||||||
64% | |||||||
1,243 | 1,504 | ||||||
767 | |||||||
476 | 709 | ||||||
Committed credit lines | Cash and cash equivalents | Q3 2020 Q4 2020 | 2020 | 2021 | 2022 | > 2022 | |
Net debt/EBITDA: 1.4x
3.8
3.4 | 4.7 |
EBITDA 12M | Net debt |
EBITDA (Last 12 months) | Net debt as of June 30, 2020 | |
Leverage capacity1 |
28
(1) Assumes Net debt/EBITDA = 2.5x
Merger of EGP Américas' Assets
Transaction description
Américas
Enel Américas Investor Relations
Enel Américas recent history
The Proposed Transaction paves the way for a new growth phase | Américas |
Merger becomes | ||||||||||
Enel Dx Goiás | Volta Grande acquisition | |||||||||
effective | ||||||||||
1. | Price: US$ 720 mn | 1. | Price: US$ 445 mn | |||||||
2. | Clients: 2.9 mn | 2. | Installed capacity: 380 MW | Accelerating the energy | ||||||
3. | Location: State of Goiás | 3. | Location: State of Minas Gerais | transition | ||||||
2016 | 2017 | 2018 | 2019 | Q4 | Q2 | ||||||||||
2020 | 2021 | ||||||||||||||
Business | Enel Dx Sao Paulo | US$ 3bn Capital | |||||||||||||
Purchase of 7.5% | Shareholders' Meeting | ||||||||||||||
reorganization in | Increase: Financial | ||||||||||||||
1. Price: US$ 2.4 bn | |||||||||||||||
Latam | stake in Enel Dx | flexibility | of Enel Américas to | ||||||||||||
2. | Clients: 7.2 mn | ||||||||||||||
Perú from minorities | improvement | vote on the merger of | |||||||||||||
3. | Location: Sao Paulo | ||||||||||||||
Price: US$ 80 mn | EGP Américas into | ||||||||||||||
Américas | Enel Américas | ||||||||||||||
Consolidation of distribution business | New Growth phase |
30
Proposed Transaction
Merger of EGP assets in Central and South America ex Chile in Enel Américas | Américas | ||
Current situation | Post transaction |
100%
100%
ARGENTINA
100%
BRAZIL
100%
COLOMBIA
100%
PERU
100%
COSTA RICA
51%
PANAMA
100%
GUATEMALA
Other
shareholders
65%35%
Américas
100%(1) | 100% | 49%(2) | 100% |
ARGENTINA | BRAZIL | COLOMBIA | PERU | |||
Distribution | Generation | Hydro | Renewables |
100%
ARGENTINA
100%
BRAZIL
100%
COLOMBIA
100%
PERU
100%
COSTA RICA
51%
PANAMA
100%
GUATEMALA
Other
shareholders
>65%<35%
Américas
100%(1) | 100% | 49%(2) | 100% |
ARGENTINA | BRAZIL | COLOMBIA | PERU |
31
- 0,08% is owned by Enel Gx Chile
- 100% Consolidated. No existing subholding
Transaction rationale
Enel Américas would be fully integrated along the power value chain | Américas |
Accelerate Enel Américas' positioning within energy transition
Consolidate Enel Américas as a leading power utility in Central and South America
Diversify the asset portfolio of Enel Américas both by geography and generation technology
Américas
Access to the know-how and track record of EGP, global leader in renewable development
Provide a clear path to organic growth in renewable power generation
Preserve the financial flexibility and discipline of the Enel Américas' Group to further acquisitions
32
Transaction perimeter
EGP Américas manages a portfolio of c. 5.1 GW assets, in operation or in execution… | Américas |
MW in operation
Guatemala
Installed capacity | 164MW |
Colombia
Installed capacity | 86MW |
Peru
Installed capacity | 312MW |
PV Solar | Wind | Hydro |
Source: ENEL 1H 2020 results
- Does not include Argentina as the Pampa project (100 MW wind power) has been postponed
- Includes Fortuna, Hydro plant (300 MW)
Costa Rica
Installed capacity | 81MW |
Panama
Installed capacity(2) | 362MW |
Brazil
Installed capacity | 1,872MW |
Total Estimated Capacity: 5.1 GW
In Operation: 2.9 GW
33
Projects in Execution(1): 2.2 GW
Generation mix post-Transaction
…which will reposition Enel Américas within the energy transition
MW in operation post -Transaction | Central America(1) |
10% |
Pre | Post(3) |
Peru | 0.6 | |
GW | ||
8% | 90% | |
6% | Colombia | |
2.3 | 2% | 11% |
GW | ||
52% | ||
34% | ||
3.6 | ||
GW | ||
86% |
45% | 11.3 |
GW |
55%
55% emission free
31% | 16.4 |
GW |
69%
c. 70% emission free
Argentina | |||
Brazil | |||
30% | 10% | ||
27% | |||
4.4 | 3.2 | ||
GW | |||
GW | |||
70% | 39% | ||
24% | |||
Conventional Gx(2) | Hydro | Wind | PV Solar |
- Includes Panamá, Costa Rica and Guatemala
- Includes oil & gas, CCGT and coal
- Includes MW in operation (2.9 GW) and projects in execution (2.2 GW)
Accelerate and facilitate the
decarbonization path
Extract synergies and minimize operational and financial risk
More sustainable generation mix and
business model going forward
34
Growth profile going forward
Future growth strongly supported by EGP Américas' asset base and capabilities to build a large pipeline | Américas |
GW of Installed Capacity
Enel Américas' | c.12-13 | ||||||||||||||||||
+45% | |||||||||||||||||||
Strategic Plan 2020-22 | |||||||||||||||||||
+0% | 2.2 | ||||||||||||||||||
2.9 | 16.4 | ||||||||||||||||||
11.3 | 11.3 | ||||||||||||||||||
EAM 2019 | EAM 2022 | EGP | EGP | EAM Post | EGP Pipeline(1) | ||||||||||||||
In Operation | In Execution | Transaction A large Pipeline will | |||||||||||||||||
fuel future installed | |||||||||||||||||||
capacity growth |
1. As per Enel 1H 2020 results presentation. It includes pipeline in Brazil, Colombia, Peru and Panama
35
Transaction indicative milestones
The Transaction will be treated as a Related Party Transaction under Chilean Law | Américas |
2
Independent evaluators and appraisers present their reports:
Corporate interest
Market terms and conditions
Related Party Transaction Process
4
EGM votes on the merger
- Related Party Transaction: 2/3 of the share capital
- Bylaws amendment: 75% of the share capital
∼45 days
21 Sep
1 Board of Directors of Enel Américas launches the Related Party Transaction and appoints:
- Independent evaluators
- Appraiser for the Merger
Mid Nov
3 Board of Directors of Enel Américas summons EGM to approve the merger:
- Takes note of the reports from evaluators, Committee of independent directors and appraiser and individual directors opinions
- Pro-formafinancial statements as of September 30, 2020 for merger
- Proposal of final terms and conditions for the Merger is defined
End Dec
30 days withdrawal right period
Shareholders who voted against or did not vote could exercise a withdrawal right at a price calculated as the weighted- average price of the shares of Enel Americas in the 60 trading days preceding the 30 trading days prior to the date of the EGM that voted on the merger
The Transaction is targeted for completion in Q2 2021 | 36 |
Investor Relations - Corporate Presentation
Contact us
Rafael de la Haza
Head of Investor Relations
Investor Relations team Jorge Velis
Javiera Rubio
Nicolás Gracia
Gonzalo Juárez
María Luz Muñoz
Américas
Contacts
Email ir.enelamericas@enel.com
Channels
Website | Mobile App | |
www.enelamericas.com | Enel Américas Investors | |
Download App | ||
iOS | Android |
Thank you.
47
37
Américas
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Disclaimer
Enel Americas SA published this content on 13 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 October 2020 22:14:04 UTC