Enel Americas S.a. · BCS:ENELAM
Enel Americas — Q4 2022 Earnings Presentation
44 slides from Enel Americas's earnings presentation, Feb 28, 2023
Slide 1: Fourth Quarter & Full Year Enel Américas Consolidated results
Fourth Quarter & Full Year Enel Américas Consolidated results February 28th, 2023
Slide 2: Fourth Quarter & Full Year 2022 - CEO
Fourth Quarter & Full Year 2022 Consolidated results Maurizio Bezzeccheri CEO
Slide 3: Q4 & FY 2022 key highlights
Q4 & FY 2022 key highlights Operational performance Financial results Sustainability progress Corporate simplification Sale of thermal Gx assets Net production and energy 2022 EBITDA target 71% RES capacity; 73% of in Argentina announced sales up mainly due to achieved RES net production Brazil CGTF
Slide 4: Current scenario
Current scenario Mixed inflation trends in the region, significant Colombian peso depreciation affects results Macroeconomic variables1 Electricity distributed5 Collection rate6 Local currencies Inflation4 vs USD ∆% Q43 ∆% FY3 December December ∆% December ‘22 vs ‘21 ‘22 vs ‘21 2021 2022 ‘22 vs ‘21
Slide 5: Full year results aligned to our strategic actions
Full year results aligned to our strategic actions 1 Continue deployment of RES capacity, supported by a robust pipeline, along with the analysis of a stewardship model 2 Reinforce growth of grids to enable the energy transition, investing in modernization and digitalization 3 Boost customer centric
Slide 6: Industrial Growth: Gross CAPEX
Industrial Growth: Gross CAPEX Investments in Renewables and Grids aligned with our Strategic Plan targets CAPEX by country CAPEX by business2 Asset development3 CAPEX by business 2% 4% 2% 3% 8% 6% 11% 21% Q4 2022 37% US$ 1,401 mn US$ 1,401 mn Grids US$ 926 mn (+20% YoY) (+20% YoY) (+52% YoY) 19% Re
Slide 7: Generation operational highlights
Generation operational highlights Solid growth in net production driven by execution in renewables Installed capacity (GW) Net production & energy sales (TWh) 1% 149 1173 Scope 1 emissions (gCO2eq/kWh) +545 MW added in 2022 13% 71% renewables +7% +10% 53.4 Net production 0.2 48.7 0.2 12.9 1.5 1.6 12
Slide 8: Projects in execution
Follow up after EGP Américas integration 545 MW of add. capacity in 2022 mainly in Brazil and Colombia Main operational KPIs CAPEX breakdown Projects in execution & Gross pipeline1 (GW) 1% 2% Projects in execution 13% 13% 1.3 GW Installed capacity 1.7 GW 6% Q4 2022 1.2 GW 4% 36% 2.7 GW 5.2 GW US$ 0.
Slide 9: Grids operational highlights
Grids operational highlights Steady volume growth and relevant organic increase of end users towards electrification Electricity distributed1 (TWh) Grid customers (mn) Quality indicators2-3 SAIDI (hours) SAIFI (times) FY 2021 FY 2022 FY 2021 FY 2022 +1% +420k Argentina 13.3 14.9 4.9 5.3 122.6 Brazil
Slide 10: Enel X and Retail operating highlights
Enel X and Retail operating highlights Strong growth in charging points and energy sold contributing to energy transition Enel X Retail4 Dec. 2021 Dec. 2022 Δ% Customers (#) Energy sold (TWh) Charging points1 (#) 3,319 7,291 >100% +11% +20% Street lighting (final light points, th#) 849 924 +9% 5,089
Slide 11: Corporate simplification
Corporate simplification Moving forward with our goal announced in our Strategic Plan 2023-25 Completed processes Ongoing processes ▪ Complete exit from Argentina Disposal of thermal generation assets ▪ Exit Peru in Argentina in Q1 231 Focus on countries more advanced in energy transition and electr
Slide 12: Yearly improvements in our scores ESG positioning
Yearly improvements in our scores ESG positioning Among the Top 10 in ESG performance at global scale 4.2 4.4 AA AA AA AA 3.5 3.8 90 81 83 84 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 Scale from CCC to AAA Scale from 0 to 5 Scale from 0 to 100 Top 5% S&P Yearbook 67 A- 85 87 53 56
Slide 13: Fourth Quarter & Full Year 2022 - CFO
Fourth Quarter & Full Year 2022 Consolidated results Aurelio Bustilho CFO
Slide 14: Financial highlights (US$ mn)
Financial highlights (US$ mn) 2022 EBITDA target achieved, Group Net income impacted by asset disposals and impairments Q4 2021 Q4 2022 Δ% YoY FY 2021 FY 2022 Δ% YoY Quarter highlights Reported EBITDA 1,177 1,400 19.0% 4,102 4,825 17.6% EBITDA increase mainly due to better Dx results in Brazil and A
Slide 15: EBITDA breakdown: Q4 2022 results
EBITDA breakdown: Q4 2022 results Growth in Renewables and Grids more than offset Fx headwinds EBITDA evolution by business line (US$ mn) EBITDA by country (US$ mn) 4% +19% 11% 14% Argentina +37% Brazil US$ 1,400 mn Colombia 20% (+19% YoY) Peru 453 47 4 1.608 C. America 1.400 (42) 51% 1.177 49 (208)
Slide 16: EBITDA breakdown: FY 2022 results
EBITDA breakdown: FY 2022 results Growth across our core business lines EBITDA evolution by business line (US$ mn) EBITDA by country (US$ mn) 4% 5% +18% 13% Argentina +25% Brazil US$ 4,825 mn Colombia (+18% YoY) Peru 49% 647 157 44 5,114 29% C. America 4,825 330 (90) (290) 4,102 (77) 2% 8% 7% Grids
Slide 17: Generation business results
Generation business results EBITDA drop in Colombia partially offset by renewables in Brazil and Central America Q4 EBITDA evolution (US$ mn) FY EBITDA by country (US$ mn) -14% -31% EBITDA in Colombia mainly 553 due to Fx devaluation 8% 5% 475 19% -4% EBITDA in Brazil due to 33% 2,115 Fortaleza sale
Slide 18: Grids business results
Grids business results EBITDA expansion in Argentina, Brazil and Peru Q4 EBITDA evolution (US$ mn) FY EBITDA by country (US$ mn) +50% Steady electricity distributed growth across all countries 9% 5% 956 220 +28% EBITDA in Brazil due to 23% 639 tariff indexation and lower 2,801 energy purchases costs
Slide 19: Cash flow (US$ mn)
Cash flow (US$ mn) FFO improvement due to better EBITDA and lower NWC 4,825 (425) (583) US$ 1,861 mn (622) 3,196 growth CAPEX (3,569) (373) 1 2 3 4 EBITDA NWC Taxes paid Net financial FFO CAPEX FCF expenses FY 2021 4,102 (708) (735) (284) 2,374 (2,971) (596) Delta YoY +17.6% -40.0% -20.8% >100% +34.
Slide 20: Debt (US$ mn)
Debt (US$ mn) Net debt/EBITDA ratio remains stable Gross and net debt1 Net debt evolution Gross debt breakdown Dec. 22 6% +9% BRL Currency 20% 693 68 6,868 COP 8,046 373 US$ 8,046 mn 7,401 5,870 (136) USD 1.178 57% 1.531 PEN 17% 5.870 6.868 1% Dec. 21 Dec. 22 Dec. 21 FCF Net dividend Extr. Op. 4 FX
Slide 21: Financial position
Financial position Solid liquidity to support our Strategic Plan goals Liquidity position Debt maturities (US$ bn) 3.4 1.8 1.8 49% US$ 2.4 bn 51% Average maturity of 3.5 years 1.0 2023 2024 2025 After 2025 Available committed credit lines Maturities / Gross debt 23% 22% 12% Cash and cash equivalents
Slide 22: Closing remarks
Closing remarks Solid operational results across all businesses Strong financial position to execute our CAPEX plan Continued development and delivery of new renewable capacity Advancing on corporate simplification to focus on strategic countries and assets 22
Slide 23: Annexes
Fourth Quarter & Full Year Annexes
Slide 24: Regulation Update Q4 2022
Regulation Update Q4 2022 • Article 87° Law 27,591, DNU 88/22 and Res. SE 642/22 - Signing of Agreement for Debts with CAMMESA: Agreement signed between the Energy Secretariat, the ENRE and Edesur, which establishes that credits are acknowledged to Edesur for up to 5 average invoices for the year 20
Slide 25: Operating exhibits
Operating exhibits Net installed capacity & Total net production: Breakdown by source and geography Net installed capacity (MW) Large Hydro MW Wind Solar Oil-Gas CCGT Coal Total Hydro EGPA Argentina 1,328 0 0 0 1,169 1,922 0 4,419 Brazil 1,038 234 2,565 1,234 0 0 0 5,071 Colombia 3,097 0 0 208 180 0
Slide 26: Operating exhibits: Distribution companies
Operating exhibits1 Distribution companies Energy sold SAIDI SAIFI Energy Concession Next tariff Distributor Clients City, Country LTM (GWh) (hours) (times) losses (%) area (km2) review Edesur 2,600,926 17,495 14.9 5.3 17.1% Buenos Aires, Argentina 3,309 2023 Enel Dx Rio2 3,063,881 12,738 9.3 4.5 19
Slide 27: Financial exhibits
Financial exhibits Q4 2022 Q4 2021 D YoY FY 2022 FY 2021 D YoY Revenues 4,110 4,512 -9% 15,729 16,192 -3% Gross Margin 1,842 1,572 +17% 6,625 5,741 +15% OPEX -441 -395 +12% -1,801 -1,639 +10% Reported EBITDA 1,400 1,177 +19% 4,825 4,102 +18% D&A1 -697 -478 +46% -2,664 -1,438 +85% EBIT 703 699 +1% 2,
Slide 28: Argentina (US$ mn) Quarter results
Argentina (US$ mn) Quarter results Generation 1 Grids 1 Total 2 Q4 2021 Q4 2022 % Q4 2021 Q4 2022 % Q4 2021 Q4 2022 % Revenues 60 32 -47% 225 410 82% 285 441 55% Procurements -4 -2 -52% -142 -155 9% -147 -157 7% and Services OPEX -23 -18 -23% -75 -71 -6% -98 -89 -10% EBITDA 33 12 -63% 8 184 >100% 40
Slide 29: Argentina (US$ mn) YTD results
Argentina (US$ mn) YTD results Generation 1 Grids 1 Total 2 FY 2021 FY 2022 % FY 2021 FY 2022 % FY 2021 FY 2022 % Revenues 228 191 -16% 794 1,079 36% 1,021 1,270 24% Procurements -17 -10 -43% -528 -663 26% -548 -675 23% and Services OPEX -76 -78 2% -243 -285 17% -320 -364 14% EBITDA 135 104 -23% 23
Slide 30: Brazil (US$ mn) Quarter results
Brazil (US$ mn) Quarter results Generation 1 Grids 1 Total 2 Q4 2021 Q4 2022 % Q4 2021 Q4 2022 % Q4 2021 Q4 2022 % Revenues 811 284 -65% 2,343 2,244 -4% 3,077 2,535 -18% Procurements -618 -96 -84% -1,748 -1,500 -14% -2,282 -1,597 -30% and Services OPEX -22 -24 12% -154 -177 15% -189 -223 18% EBITDA
Slide 31: Brazil (US$ mn) YTD results
Brazil (US$ mn) YTD results Generation 1 Grids 1 Total 2 FY 2021 FY 2022 % FY 2021 FY 2022 % FY 2021 FY 2022 % Revenues 2,551 1,289 -49% 8,762 8,631 -1% 11,011 9,716 -12% Procurements -1,907 -474 -75% -6,573 -6,079 -8% -8,161 -6,325 -22% and Services OPEX -83 -118 41% -756 -791 5% -902 -998 11% EBIT
Slide 32: Colombia (US$ mn) Quarter results
Colombia (US$ mn) Quarter results Generation 1 Grids 1 Total 2 Q4 2021 Q4 2022 % Q4 2021 Q4 2022 % Q4 2021 Q4 2022 % Revenues 335 297 -11% 448 404 -10% 724 629 -13% Procurements -112 -129 15% -270 -236 -13% -315 -290 -8% and Services OPEX -20 -28 39% -36 -31 -15% -57 -62 9% EBITDA 203 140 -31% 142 1
Slide 33: Colombia (US$ mn) YTD results
Colombia (US$ mn) YTD results Generation 1 Grids 1 Total 2 FY 2021 FY 2022 % FY 2021 FY 2022 % FY 2021 FY 2022 % Revenues 1,266 1,345 6% 1,707 1,770 4% 2,611 2,894 11% Procurements -408 -510 25% -1,012 -1,010 0% -1,047 -1,278 22% and Services OPEX -70 -89 27% -140 -119 -15% -212 -212 0% EBITDA 787 7
Slide 34: Peru (US$ mn) Quarter results
Peru (US$ mn) Quarter results Generation 1 Grids 1 Total 2 Q4 2021 Q4 2022 % Q4 2021 Q4 2022 % Q4 2021 Q4 2022 % Revenues 156 193 24% 226 274 21% 339 412 22% Procurements -48 -74 55% -161 -186 15% -176 -208 18% and Services OPEX -16 -24 52% -16 -19 17% -32 -42 35% EBITDA 92 96 4% 48 69 43% 131 161 2
Slide 35: Peru (US$ mn) YTD results
Peru (US$ mn) YTD results Generation 1 Grids 1 Total 2 FY 2021 FY 2022 % FY 2021 FY 2022 % FY 2021 FY 2022 % Revenues 573 717 25% 895 1,033 15% 1,317 1,542 17% Procurements -175 -239 36% -605 -692 14% -652 -734 13% and Services OPEX -75 -85 14% -71 -72 0% -143 -152 7% EBITDA 323 393 21% 219 269 23%
Slide 36: Central America (US$ mn)
Central America (US$ mn) Quarter & YTD results Central America Q4 2021 Q4 2022 % FY 2021 FY 2022 % Revenues 88 92 6% 233 306 32% Procurements -20 -17 -17% -43 -93 >100% and Services OPEX -13 -12 -5% -31 -38 22% EBITDA 54 63 17% 158 176 11% Net Income 34 39 14% 95 101 6% Gross Capex 18 108 >100% 40 1
Slide 37: Financial exhibits: Liquidity and credit profile
Financial exhibits Liquidity and credit profile Liquidity (US$ m) Total Used Available Committed credit lines 1,524 288 1,237 Cash and cash equivalents 1 1,178 0 1,178 Total liquidity 2,702 288 2,414 Credit Profile S&P Fitch Moody's as of December 2022 LT international debt BBB- BBB+ Baa2 LT local d
Slide 38: Corporate governance structure
Corporate governance structure Shareholders’ meeting Audit firm 43% BoD’s composition Board of Directors (7 members) 57% Executive Independent Functions: Directors Committee Audit committee Sustainability committe Related parties transactions 38
Slide 39: Board composition
Board composition Board of Directors Board of Directors’ diversity Borja Acha Besga Chair 43% 29% Francesca Gostinelli Director 14% Age Gender diversity 14% diversity Giulia Genuardi Director 29% 71% 41-50 51-60 Male Female José Antonio Vargas Director 61-70 over 70 14% 14% Directors’ Committee (C)
Slide 40: 2022 CEO's short-term variable remuneration
2022 CEO’s short-term variable remuneration Macro objective Objective Type of target Weight Range Net Income Maximum Profitability 15% Economic Latin America 120% Integrated gross Maximum Profitability 15% Economic margin Latin America 120% Maximum Financial FFO Latin America 20% Financial 120% Stra
Slide 41: Enel Américas - Policies, principles and codes
Enel Américas - 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
Slide 42: Disclaimer
Q4 & FY 2022 Consolidated results Disclaimer This presentation contains statements that could constitute forward-looking statements. These statements appear in a number of places in this presentation and include statements regarding the intent, belief or current expectations of Enel Américas and its
Slide 43: Thank you. Contact us
Q4 & FY 2022 Consolidated results Contact us Contacts Email - ir.enelamericas@enel.com Channels Website Mobile App www.enelamericas.com Enel Américas Investors Rafael de la Haza Head of Investor Relations Download App iOS Android Investor Relations team Jorge Velis Javiera Rubio Nicolás Gracia Franc
Slide 44: CNC
CNC