Enel Distribución Perú, results up in FY 2018

Lima, February 27^th, 2019 – Today, Enel Distribución Perú S.A.A. published its financial and operating results for 2018.

“We posted a strong performance in 2018, with all main financial indicators growing over those registered in 2017. Enel Distribución Perú’s solid full year results are the outcome of the major investment programme we carried out over the last years, aimed at boosting innovation and operating standard excellence as well as embedding a keen focus on customers. Looking ahead, in 2019, we are committed to maintaining our renowned service quality standards for our growing customer base,” said José Manuel Revuelta, Enel’s Country Manager in Peru.

MAIN FINANCIAL RESULTS

(Millions of Soles)

REVENUES: increased on the back of higher energy volumes sold (+1.1%) as a result of the greater dynamism of the Peruvian economy, posting a 3.99% GDP growth[1], coupled with an increase in the number of customers (+1.8%) resulting from new residential connections. Likewise, revenues increased as a consequence of higher average sale prices (+4.9%), which are indexed to inflation on the wholesale market (IPM, from the Spanish acronym), in line with the country’s regulatory framework on the matter.

EBITDA: increased slightly vis-à-vis the previous year. The growth in revenues more than offset the higher expenses for low-voltage network maintenance aimed at ensuring the company’s service quality, which boasts the best operating standards in the country in terms of duration and frequency of service interruptions, as measured by Peru’s energy regulator.

NET INCOME: was roughly in line with the previous year, on the back of better EBITDA and a 9.8% increase in the financial result[2]. The latter includes the reversal of a legal contingency for 10 million PEN. These factors offset the higher amortisations (+4.1%), driven by investments carried out in the period, and a 7% increase of the income tax resulting from the company’s higher taxable income, in line with the growth in revenues registered in FY 2018.

NET DEBT: increased by 9.6% following the implementation of the company’s investment plan.

CAPEX: increased by 64 million PEN and was mainly aimed at meeting customer demand by expanding and reinforcing electricity distribution networks, substations and transmission lines, with a view to ensure service quality and safety. The company also invested 27 million PEN in the Evolution for Energy - E4E digital project, a new business system (Enterprise Resource Planning, ERP) that will manage business operations, simplifying the company's processes with the aim to improve efficiency and information security.

MAIN OPERATING RESULTS

ENERGY DISTRIBUTION: increased in line with higher consumption from low-voltage regulated customers, on the back of new residential connections.

CUSTOMERS: increased mainly due to new residential connections (low voltage).