Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Q1 2023 Earnings Presentation
31 slides from Enel Chile Sa's earnings presentation, Apr 28, 2023
Slide 1: First quarter Enel Chile - Consolidated results
First quarter Enel Chile - Consolidated results April 28, 2023
Slide 2: Key highlights of the period
Key highlights of the period Portfolio Market Business ESG management context Perfomance Best practices RES-growth First Decree on PEC EBITDA 1.5x contributing with 2.0 released: Gencos higher than Q1 20221 ~0.1TWh cash recovery 2022 Reporting and process started Gross debt its interactive version G
Slide 3: Portfolio management actions continue to offset system headwinds in the Q1 2023
Portfolio management actions continue to offset system headwinds in the Q1 2023 Better hydro and additional renewables’ Full availability of LNG and Argentinean contribution natural gas Enel Chile renewable Net installed capacity Enel Chile gas consumption (MMm3/d) production (TWh) Q1 2023 9 +17% 3.
Slide 4: Grid and Enel X initiatives as important catalysators to foster Decarbonization and Electrification
Grid and Enel X initiatives as important catalysators to foster Decarbonization and Electrification Grids main KPIs Main electrification updates Q1 2022 Q1 2023 Energy distributed +6% (TWh)1 3.4 3.6 SAIDI2 - Dx +4% B2C B2B B2G 134 139 (min.) Losses3 - Dx 0.2pp 5.14 5.36 Grids (%) Partnership with BC
Slide 5: Market context in evolution bringing several opportunities
Market context in evolution bringing several opportunities Consumer Protection Mechanism (PEC 2) VAD 2020-2024 | Distribution Tariff 6% Returns (real terms post tax) Receivables process Tariff review process (Estimated timeline) (Estimated timeline) Aug Apr May Q3 Q4 Dec Jan Apr Jun 2022 2023 2023 2
Slide 6: First Quarter in line with expected, following guidance and Business Plan for the year
First Quarter in line with expected, following guidance and Business Plan for the year Business Performance EBITDA1,2 Net Income1,3 FFO (USD mn) (USD mn) (USD mn) +53% +95% +166% 343 99 225 173 89 (151) Adj. Q1 2022 Q1 2023 Adj. Q1 2022 Q1 2023 Q1 2022 Q1 2023 1. Average exchange rate for the period
Slide 7: Sustainable capex to improve portfolio flexibility boosting energy transition
Sustainable capex to improve portfolio flexibility boosting energy transition Q1 2023 CAPEX by business and by nature1 Q1 2023 Renewable development CAPEX1 1% Capex allocation 13% by Quarter (2023) 21% 24% 127 127 65 Q1 12% 48% USD mn USD mn 54% USD mn 61% -24% yoy 18% 33% -24% yoy -44% yoy Q2E 33%
Slide 8: Q1 2023 EBITDA portfolio management actions supporting higher performance
Q1 2023 EBITDA portfolio management actions supporting higher performance Q1 2023 EBITDA evolution (USD mn)1 PPA sales growth mainly related to +53% indexation offsetting increase on variable costs +78% 147 2 343 (7) (16) Gas optimization mainly reflects sale 90 of gas to international markets 225 1
Slide 9: New renewable capacity and better hydrology improving our energy balance
New renewable capacity and better hydrology improving our energy balance Net production (TWh) Energy balance (TWh) -2% -3% 1.0 TWh Non solar +0.1 TWh hour new renewable capacity 8.1 8.1 7.8 7.8 5.2 5.1 1.0 2.2 2.3 1.3 0.5 66% Emission free 0.7 5.3 0.4 4.9 0.3 0.4 production 1.6 1.4 5.2 5.1 1.8 2.0 2
Slide 10: Q1 2023 Net Income boosted mainly by portfolio management actions improvements in EBITDA
Q1 2023 Net Income boosted mainly by portfolio management actions improvements in EBITDA Q1 2023 Net Income (USD mn)1 1.5x EBITDA due to a better hydrology and +95% portfolio optimization actions 18 118 (1) 173 (41) Financial results translate higher interests (9) on cash investments and lower finan
Slide 11: Cash management continue to play a role to partially offset the impact of the stabilization energy mechanism
Cash management continue to play a role to partially offset the impact of the stabilization energy mechanism Q1 2023 FFO (USD mn)1 EBITDA results driven by better hydrology, 343 renewables contribution and natural gas optimization (135) (54) 99 Stabilization mechanism continues to play (23) an impor
Slide 12: Cash-in from 2022 management actions continue to support the optimization of our leverage in the period
Cash-in from 2022 management actions continue to support the optimization of our leverage in the period Gross debt (USD mn)1 Liquidity position (USD mn) Debt maturities (USD bn)1 2.8 -5% Maturities/Gross Debt 6% 14% 6% 9% 4,660 4,404 1.4 2.2 1,023 47% USD 767 53% bn 0.6 3,637 3,638 0.4 0.3 0.6 0.3 0
Slide 13: 2022 Integrated report and its interactive version
2022 Integrated report and its interactive version Check out for more ESG Best Practices Direct link: 2022 Integrated Report 2022 Sustainability Report 2022 Interactive Report (English & Spanish) (Spanish) (English & Spanish) Our Integrated Report is aligned with the new Chilean regulation, which es
Slide 14: Closing remarks
Closing remarks Continue A strong start accelerating Integrated Improving the of the year the clean Business model financial supporting electrification shows resilience position ensuring a future strategic and the in a challenging sustainable opportunities decarbonization context growth process 14
Slide 15: First Quarter 2023 Annexes
First Quarter 2023 Annexes ene
Slide 16: First Quarter Profit & Loss (USD mn)
First Quarter Profit & Loss (USD mn)1 Q1 2023 Q1 2022 ∆ yoy Adjusted EBITDA2 343 225 +53% Reported EBITDA 343 204 +68% D&A (69) (70) -1% Bad Debt (8) (7) +20% Impairment 0 0 - Reported EBIT 266 128 +108% Financial expenses (21) (36) -43% Results from equity investments 3 1 +226% Reported EBT 248 92
Slide 17: Main business EBITDA breakdown
Main business EBITDA breakdown EBITDA Generation EBITDA Distribution business line (USD mn)1,2 business line (USD mn)1 +87% -7% 336 24 22 179 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Adjusted Adjusted 1. Comparisons between periods in the Financial Income Statements are made using the average exchange rate f
Slide 18: Sustained reinforcement of our renewable matrix throughout the country
Sustained reinforcement of our renewable matrix throughout the country Net installed capacity5 76% Central zone 7% Renewable 17% PMGD2 83 MW Southern zone 8.5 41% El Manzano 99 MW GW Renaico II4 144 MW Los Cóndores 150 MW 34% La Cabaña 106 MW +34 MW BESS 6 Hydro CCGT Rihue 120 MW Wind, Solar & Geoth
Slide 19: Commodities and Spot price outlook
Commodities and Spot price outlook Henry Hub (USD/mmbtu) Brent (USD/bbl) API 2 (USD/Ton) 9.4 123.7 389.0 8.9 8.7 118.8 113.3 112.7 352.9 364.9 7.3 325.3 328.1 328.5 6.3 6.6 98.2 100.0 267.9 5.3 6.9 5.2 104.4 89.9 93.3 91.7 319.3 213.6 227.9 4.7 4.6 6.7 87.2 194.5 82.5 81.1 167.2 3.1 4.0 2.5 82.8 167
Slide 20: Hydrology outlook
Hydrology outlook Historic Enel Chile hydro generation (TWh) Rainfall in our most relevant basins1 2007 13.2 600 Rapel 2,200 Maule (9% of consolidated Gx) (34% of consolidated Gx) 2008 13.8 550 2,000 500 1,800 Cumulated rainfall (mm) Cumulated rainfall (mm) 2009 14.9 450 1,600 400 1,400 2010 12.6 35
Slide 21: Enel Chile is the largest Utility player in Chile in installed capacity and number of clients
Enel Chile is the largest Utility player in Chile in installed capacity and number of clients Integrated commercial strategy supported by Leading the renewable sector in Chile Grid infrastructure to solid and diversified enable electrification assets 6.4 GW Renewable capacity net installed Enablers
Slide 22: Credit Rating - Enel Chile and Enel Generación Chile
Credit Rating - Enel Chile and Enel Generación Chile International market Chilean market Enel Chile Enel Chile Standard & Poor’s Fitch Ratings Fitch Ratings Feller Rate Ref. January/2022 Ref. January/2023 Ref. January/2023 Ref. June/2022 Enel Generación Enel Generación Standard & Poor’s Fitch Rating
Slide 23: Organization structure
Organization structure Enel Chile shareholders1 64.9% 2.4% 6.2% Chile 22.5% Pension Funds Market Cap2 Institutional Investors USD 4.0 bn ADR’s 4.0% Enel SpA 64.9% Others 100.0% 93.5% 99.1% 100.0% 49.0% Green Power Chile Generación Chile Distribución Chile Enel X Chile Non-consolidated assets 1. As o
Slide 24: Management of the company
Management of the company Management Team F. Barderi Sustainability & Community Chief Executive Officer M. Palomar (CEO) Relations G. Turchiarelli Chief Financial Officer R. Puentes Procurement (CFO) L. Schnaidt People and Organization A. Barrios Digital Solutions D. Gomez Regulation M. Rinchi Servi
Slide 25: Corporate governance structure
Corporate governance structure Shareholders’ meeting Audit firm 14% 43% BoD’s composition Board of Directors (7 members) 43% Non executive Executive Independent Functions: Directors Committee Audit committe Sustainability committe Related parties transactions 25
Slide 26: Board composition
Board composition Board of Directors Board of Directors’ diversity Herman Chadwick Chair Monica Girardi Director 57% Age Gender 71% 29% diversity diversity Isabella Alessio Director 43% 41-50 Over 50 Male Female Salvatore Bernabei Director Directors’ Committee (C) Fernán Gazmuri 43% Director. Tenure
Slide 27: 2022 CEO's short-term variable remuneration
2022 CEO’s short-term variable remuneration Macro objective Objective Type of target Weight Range Maximum Profitability Net Income Chile 15% Economic 120% Integrated gross Maximum Profitability 15% Economic margin Chile 120% Maximum Financial FFO Chile 20% Financial 120% Maximum Business Strategy Ch
Slide 28: ESG raters and rankings
ESG raters and rankings1 88 88 88 4.6 4.4 84 A- AA AA AA A B 3.2 3.4 2019 2020 2021 2022 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 Scale from D- to A Scale from 0 to 5 Scale from 0 to 100 Scale from CCC to AAA B 89 68 57 B- -B 83 54 49 C 77 72 2019 2020 2021 2022 2019 2020 2021 2022 2019 202
Slide 29: Policies, principles and codes
Policies, principles and codes Ethics, Integrity, Human Rights, and Diversity • Ethical code • Zero Tolerance Plan for Corruption • Global Compliance Program on Corporate Criminal Liability • Criminal Risk Prevention Model • Compliance Program for Free Competition Regulations • Human Rights Policy •
Slide 30: Contact us
First Quarter 2023 consolidated results Contact us Contacts Email ir.enelchile@enel.com Channels – Follow us Isabela Klemes Head of Investor Relations Enel Chile Website Enel.cl Investor Relations team Catalina González Claudio Ortiz Download the investor relations app Francisco Basauri iOS Android
Slide 31: Disclaimer
First Quarter 2023 Results Disclaimer 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