#1VOLTA GRANDE - HYDRO CONCESSION BRAZIL INVESTORS PRESENTATION September, 29th 2017 enel#2Agenda Key Transaction Terms Volta Grande at a Glance Investment Rationale Revenues Financial Overview Closing Remarks enel 2#3Key Transaction Terms HPP Volta Grande enel ☐ On September 27th, the Brazilian power regulator auctioned 4 hydropower plants (Sao Simao; Jaguara, Miranda and Volta Grande) owned by CEMIG Enel Américas, through its subsidiary Enel Brasil, was awarded the concession to operate Volta Grande hydro-power plant (380 MW) for a 30-year period The tender amounted BRL 1,419 Mn (US$ -445) to be paid on November 30th The Company is expected to take over the facility in January 2018 ☐ Enel hydro capacity in the country will increase to 1,270 MW from the current 890 MW ☐ Enel Américas gets substantial opportunity of value. creation due to potential synergies with the Cachoeira Dourada operation ☐ Attractive implied return based on a more disciplined offer strategy with a limited premium in price. Potential upside connected to the economy recovery ☐ Accretive acquisition with strong cash flow that will deliver immediate value to the Company ☐ Opportunity to grow in the free market in line with the targets announced in the Company's Strategic Plan The Company increases by 42% its hydro capacity in the country 3#4Volta Grande at a glance HPP Volta Grande Starf of Construction and COD Start of Construction: 1970 • COD: 1974 Reservoir Area (km²): 222 Minimum Upstream Water Level: 493.87 • Maximum Upstream Water Level: 495.47 Municipalities: 8 Power House Installed Capacity (MW): 380 Number of units: 4 (Kaplan) x 95 MW Garantia Fisica (MWavg): 230.6 EOH: 5316 (Load Factor 60.7%) Flow per unit (m³/s): 216.5 Dam • Type: earth with rockfill Lenght: (m): 2,330 Maximum Height (m): 56 Crest level (m): 498 HPP VOLTA GRANDE enel Goiás CDSA Minas Gerais São Paulo Hydro plant in excellent state of conservation 4#5Investment Rationale HPP Volta Grande enel Strategic Plan fitting Sound and stable cash generation aligned with the Strategic Plan. Growth in the free market and costumer focus Energy balance Operational synergies Asset status Time to EBITDA Risks ■ V. Grande can mitigate the impact of own energy available as in 2027 expires the concession of C. Dourada) ■ Close to Cachoeira Dourada HPP: high operational & commercial synergies expected Assets are in excellent conditions. No additional CAPEX needed ■Immediate EBITDA: January 2018 ■ Low risk profile: ■ 70% of the revenues is almost zero risk ■ No risk of construction Transaction fits with the growth strategy carried out by the Company 5#6Regulated Revenues HPP Volta Grande RAG Length enel RBO + GAG Improvements + GAG O&M + Regulatory Fees + Ajl 30 years Tariff Indexation Counterparty Strategy Minimum Generation Penalties and bonus • • ☐ The auction provide signing a contract for SERVICE of Operation and Maintenance of the assets, with a fixed revenue (RAG): RBO Return for the Bonus Payment* = GAG Improvements = related to CAPEX for maintenance GAG O&M = related to OPEX for operating the asset Regulatory Fee = some duties due to regulation will be reimbursed ☐ Ajl = yearly adjustment based on performance * A parcel of RBO is not considered in the EBITDA as it is regarded as restitution of a loan given by the concessionaire to the Government IPCA Discos through CCEE (camara de liquidacion) 30% of the Firm Energy will be sold in the Free Market: competitiveness can be increased depend on the Trading Strategy. Performance is measured comparing PLANT AVAILABILITY during the year vs. Reference Values of: Planned stops for usual maintenance Forced stops due to unexpected events Penalties and bonus (Ajl) are applied only on the GAG parcel; ☐ The annual Equipment Availability will be compared to the Reference Values defined for a each asset and the penalties or bonus will be applied on the GAG revenues: advantage for competitor with High Performance Efficiency. Maximum penalty in 4 first years: 10% i.e. worst case will be 2.3% of revenues From the 5th year and on, no limits (bonus and onus) CO 6#7Financial overview HPP Volta Grande Financial assumptions @ 2018E (US$ Mn) Financing structure enel Concession bonus: Minimum: ~408 Bid: ~445 Premium (%): +9.8% Operating revenues(1): ~87 OPEX: ~23 EBITDA: ~60 (EV/EBITDA Ratio: 7.3x) EBITDA + Bond repayment (~15): ~75 (EV/EBITDA Ratio: 5.9x) CAPEX: ~1 Debt: No existing debt Risks: 70% of the revenues is almost zero risk IRR: ~18% Tender Schedule Cash needs: Investment of ~445 US$ mn to be disbursed on November, 30th 2017 Bridge financing to be substituted by long term debt at the operating Company level As of today, the remaining portion of the 2013 equity raise proceeds is ~150 US$ mn. This operation will entirely exhaust all the resources if there are not different and most optimal alternatives after November, 30th Data Room Publishement May 19th Internal due diligence Bid Bond Site Visits Enel Américas Board Auction Adjudication Bonus Payment August 22nd till 25th Sept 19th Sept 26th Sept Nov 7th 27th November 30th 2017 Attractive returns and low risks. Company will adopt the most optimal financing structure 7 1.- All revenues indexed by inflation#8Rating Considerations HPP Volta Grande Net debt (MUSD) Net Debt/ Ebitda Ratio 6,000 Impacts on Enel Américas 1.80x 5,000 1.47x 1.60x 1.24x 1.40x 3,877 4,000 3,152 445 1.20x 3,000 1.00x 0.80x 2,000 0.60x 0.40x 1,000 0.20x 0 0.00x giu-17 Net debt/ Ebitda (times) enel Rating considerations Volta Grande Net Debt Net debt / Ebitda Investment Grade rating for Enel Américas will not be jeopardized as a consequence of the transaction since the financial performance of the Company will continue to be in line with the Rating Agencies expectations Net debt to EBITDA ratio will continue to be below 2.0x and with an adequate liquidity • Current rating valuations already factor Brazil's significant contribution to Enel Americas Ratings on Enel Américas will remain unchanged Financial information as of June 2017: Gross Debt=4,424 MUSD; Cash= 1,272 MUSD. Net Debt= 3,152 MUSD; EBITDA Enel Américas (YoY)= 2,549 MUSD. Additional Ebitda (base case acquisition)=50-70 MUSD on annual basis per facility, considering 2018E, and USDBRL of 3.13. Net debt / Ebitda as of June corresponds to accounting data. Adjustments: lower cash by 280 MUSD of Easter project, already assigned to other purposes. 8#9Analyst first stake Market analysts / Credit Rating Agencies EBICE INVERSIONES Santander INVERSIONES Security Goldman Equity Sachs Research Bci CORREDOR DE BOLSA LarrainVial" citi J.P.Morgan Positive market reaction enel Scotiabank Fitch Ratings S&P Global Ratings 6#10Closing Remarks HPP Volta Grande Enel Americas increases by 380 MW or +42% its hydro capacity in Brazil enel Volta Grande operating assets in excellent conditions and potential synergies with Cachoeira Dourada Sizeable acquisition (US$ ~0.45 bn) and reasonable premium paid (+9.8%) Low risks; 70% of the guaranteed capacity being contracted 30 years at a pre-established specific price 2018E EBITDA at approximately US$ 60 mn Rating levels will remain unchanged after the transaction 10#11VOLTA GRANDE - HYDRO CONCESSION BRAZIL Disclaimer enel This presentation contains statements that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 and 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. 11#12VOLTA GRANDE - HYDRO CONCESSION BRAZIL enel Contact us enel Email [email protected] Phone +562 23534682 Web site www.enelamericas.com Rafael De La Haza Head of Investor Relations Enel Américas Jorge Velis Investor Relations Enel Américas Itziar Letzkus Investor Relations Enel Américas Gonzalo Juarez IR New York Office 10