Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Q4 2023 Earnings Presentation
36 slides from Enel Chile Sa's earnings presentation, Feb 29, 2024
Slide 1: Q4 & FY 2023 Enel Chile - Consolidated results
Q4 & FY Enel Chile - Consolidated results February 29, 2024
Slide 2: Strategy - Fabrizio Barderi, CEO
Q4 & FY 2023 Strategy Fabrizio Barderi CEO
Slide 3: Key highlights of the period
Key highlights of the period Portfolio Regulatory Business & management context financial perfomance ~ 0.6 GW of REN added 2023 EBITDA and net income in FY 2023 PEC 03’ draft bill beat the year guidance under discussion in the Congress ~ 1.4 GW of new capacity with PEC 2.0 factoring process during C
Slide 4: Optimization of our portfolio and energy-sourcing during 2023
Optimization of our portfolio and energy-sourcing, successfully conducted during 2023 2023 Portfolio optimization actions Growth contribution Disposals Net installed capacity FY 2023 FY 2023 FY 2023 Oil-Gas 6% 77% ~0.6 GW CCGT 17% ~ 0.5 GW 6.0% REN + BESS Additional net capacity NetHydro 41% capacit
Slide 5: El Niño and commodities management contributed positively to results
El Niño phenomenon and effective commodities management actions contributed positively to our results Remarkable hydro generation Gas availability and trading activities Historic Enel Chile hydro generation Enel Chile gas consumption and Mejillones LNG (TWh) traded (MMm3/d) Terminal 2007 13.2 15 200
Slide 6: Important stages in the energy regulatory framework
Important stages in the energy regulatory framework, supporting a more constructive view PDL Draft bill Dx regulatory cycle Gx companies' VAD 2020 - 2024 PEC 01 PEC 02 PEC 03 receivables recovery Dec Regulatory technical report 2022 Total amount: 1,350 USD mn 1,800 USD mn 3,700 USD mn Jan - Apr Expe
Slide 7: Outperforming most of our 2023 operating guidance
Outperforming most of our 2023 operating guidance 2023 Main KPIs Guidance Guidance Investor Day Investor Day 2023 2022 2023 REN + BESS capacity 6.7 GW 6.5 GW 6.5 GW REN + BESS capacity over total 77% 76% 77% CO2 GHG free production over total 76% 74% 74% Energy sold in Gx1 8,5 30.9 TWh 30.7 TWh 30.9
Slide 8: FY 2023 Main financial targets reached
FY 2023 Main financial targets reached …. EBITDA (USD bn) Net Income (USD bn) 1.2-1.3 1.24 1.0-1.2 0.75 0.6-0.8 0.2 0.2 0.3-0.5 8,5 8,5 0.5 0.6 Guidance Guidance FY 2023 Guidance Guidance FY 2023 Investor Day Investor Day Investor Day Investor Day 2022 2023 2022 2023 Capital gains Arcadia Net debt /
Slide 9: Business economic and financial performance - Giuseppe Turchiarelli, CFO
Q4 & FY 2023 Business economic and financial performance Giuseppe Turchiarelli CFO
Slide 10: Execution of action plan drives stronger business performance
Execution of action plan drives stronger business performance Economic & financial performance EBITDA1,2 Net income1,3 FFO4 (USD mn) (USD mn) (USD mn) 1,237 754 986 879 +41% 183 +51% 652 343 8,5 +66% 571 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 proforma proforma proforma proforma Capital gain
Slide 11: Sustainable capex to continue improving portfolio flexibility
Sustainable capex to continue improving portfolio flexibility boosting the energy transition CAPEX by business and by nature1 REN and BESS development CAPEX1 FY 2023 FY 2023 Capex allocation by 15% 10% quarter (2023) 22% 5% 16% Q1 12% 804 2% 804 571 47% USD mn USD mn USD mn -32% yoy 16% Q2 29% -31%
Slide 12: Q4 2023 EBITDA reflects strong hydrology and gas trading
Q4 2023 EBITDA reflects strong hydrology, better energy sourcing cost and gas trading activities EBITDA evolution (USD mn) Lower PPA sales mainly related to lower commodities indexation impact in the +18% regulated market 967 (19) Strong hydro and renewable contribution in the Q4 2023 80 471 399 83
Slide 13: Higher FY 2023 EBITDA from renewables, sourcing costs and gas trading
Higher FY 2023 EBITDA as a result of better renewable contribution, sourcing costs and gas trading activities EBITDA evolution (USD mn) Lower PPA sales mainly related to lower indexation impact in the regulated market +41% 1,522 Strong hydro and renewable (94) 81 27 1,237 94 performance, and higher
Slide 14: New renewable capacity and better hydrology improved energy balance
New renewable capacity and better hydrology improved our energy balance Net production (TWh) Energy balance (TWh) +9% + 1.2 TWh from new Portfolio mix evolution1 Spot performance renewable 7.6 7.6 24.1 capacity 7.5 7.5 1.1 22.2 1.1 1.1 0.3 0.7 5.7 4.6 4.8 0.8 4.2 0.4 +15% 74% 5.7 6.6 (0.4) 1.3 1.1 2
Slide 15: 2023 Net income reflecting operational improvement
2023 Net income reflecting operational improvement in the period Net income evolution (USD mn)1 Strong performance in all the businesses drives proforma EBITDA growth 1,573 +120% Positive financial results mainly related to PEC 2.0 interest recognition 358 35 754 183 +66% (855) (22) 343 (138) (5) 57
Slide 16: 2023 FFO higher due to cash management and PEC 2.0 factoring
2023 FFO higher than 2022 figures due to cash management actions and PEC 2.0 factoring FFO evolution (USD mn)1 PEC 2.0 factoring execution partially offsetting the stabilization mechanism accounts 88 1,237 400 accumulated during 2023 55 (34) 986 345 (299) (406) Working capital reflecting cash manage
Slide 17: Debt reduction and sound liquidity to support 2024 capital needs
2023 Actions resulted in debt reduction and sound liquidity to support 2024 capital needs Debt and liquidity Gross debt (USD mn)1 Liquidity position (USD bn) Debt maturities (USD bn)1 3.0 Maturities/Gross Debt -5% 4,660 4,408 17% 5% 9% 2.2 1,023 642 1.4 47% 53% USD bn 0.8 3,637 3,765 8,5 0.4 0.7 0.2
Slide 18: Closing remarks
Closing remarks Operating and financial evolution fully in line with our strategic guidelines AGM to be held on April 29th, 2024 Asset rotation plan successfully concluded Proposed DPS of 4.58 CLP/share1 to be approved by Hydro generation and gas trading our shareholders activities boosted our resul
Slide 19: Annexes
Ss Q4 & FY 2023 Annexes enel
Slide 20: Q4 Profit & Loss (USD mn)
Q4 Profit & Loss (USD mn)1 Q4 2023 Q4 2022 ∆ yoy Proforma EBITDA2 471 399 +18% Reported EBITDA 471 904 -48% D&A (84) (75) +11% Bad Debt 0 (6) -93% Impairment (8) (2) 4.5x Reported EBIT 379 821 -54% Financial expenses (47) (58) -19% Results from equity investments 261 1,168 -78% Reported EBT 592 1,93
Slide 21: FY Profit & Loss (USD mn)
FY Profit & Loss (USD mn)1 FY 2023 FY 2022 ∆ yoy Proforma EBITDA2 1,237 879 +41% Reported EBITDA 1,237 1,398 -12% D&A (302) (284) +6% Bad Debt (13) (26) -51% Impairment (8) (2) 4.5x Reported EBIT 914 1,086 -16% Financial expenses (105) (142) -26% Results from equity investments 271 1,173 -77% Report
Slide 22: Main business EBITDA breakdown
Main business EBITDA breakdown EBITDA Generation EBITDA Grids business line (USD mn)1,2 business line (USD mn)1,3 1,181 +22% +41% +3% +20% 838 103 86 455 373 27 27 Q4 2022 Q4 2023 FY 2022 FY 2023 Q4 2022 Q4 2023 FY 2022 FY 2023 Proforma Proforma Proforma Proforma 1. Comparisons between periods in th
Slide 23: Consolidation of our renewable matrix throughout the country
Consolidation of our renewable matrix throughout the country Net installed capacity 5 Central zone 6.0% 77% PMGD 83 MW REN + BESS El Manzano3 99 MW 17.3% +67 MW BESS 0.4% 8.5 41.4% Los Cóndores 150 MW Southern zone GW Don Humberto 80 MW Renaico II 144 MW +67 MW BESS 34.9% La Cabaña4 106 MW Hydro CCG
Slide 24: Commodities and Spot price outlook
Commodities and Spot price outlook Henry Hub (USD/mmbtu) Brent (USD/bbl) API 2 (USD/Ton) FY 2023: 2.7 FY 2023: 83 FY 2023: 129 FY 2022: 6.6 124 FY 2022: 101 FY 2022: 290 119 389 113 113 8.9 9.4 365 8.7 104 328 353 319 328 7.3 98 100 6.6 6.9 6.7 91 325 268 6.3 94 5.3 87 85 195 228 4.7 4.6 5.2 82 79 8
Slide 25: Hydrology outlook
Hydrology outlook Historic Enel Chile hydro generation (TWh) Rainfall in our most relevant basins1 Rapel Maule 700 2,200 (9% of consolidated Gx) (34% of consolidated Gx) 2007 13.2 650 2,000 600 1,800 2008 13.8 Cumulated rainfall (mm) 550 Cumulated rainfall (mm) 500 1,600 2009 14.9 450 1,400 400 1,20
Slide 26: Enel Chile is the largest utility player in Chile
Enel Chile is the largest Utility player in Chile in installed capacity and number of clients Integrated commercial Leading the renewable sector in Chile Grid infrastructure to strategy supported by enable electrification solid and diversified assets REN+BESS 6.5 GW Net installed capacity Enablers o
Slide 27: Glossary
Glossary Term Definition Term Definition AGM Annual general meeting KPI Key performance indicator API2 Coal price reference indicator LNG Liquefied natural gas BESS Battery energy storage system LTM Last twelve months CCGT Combined cycle gas turbine MPC Spanish acronym for client protection mechanis
Slide 28: 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 Enel Generación Enel Generación Standard & Poor’s Fitch Ratings Fitch Ratings Feller Rate 28
Slide 29: Organization structure
Organization structure Enel Chile shareholders1 64.9% 1.1% 6.3% Chile 23.3% Pension Funds Market Cap2 Institutional Investors USD 4.5 bn ADR’s 4.4% Enel SpA 64.9% Others 100.0% 93.5% 99.1% 100.0% Green Power Chile Generación Chile Distribución Chile Enel X Chile 1. As of December 31, 2023 2. Market
Slide 30: Management of the Company
Management of the Company F. Barderi Chief Executive Officer M. Palomar Sustainability & Community Relations (CEO) G. Turchiarelli Chief Financial Officer R. Puentes Procurement (CFO) L. Schnaidt People and Organization A. Barrios Digital Solutions D. Gomez Regulation M. Rinchi Services & Security J
Slide 31: 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 31
Slide 32: 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 33: Sustainability raters and rankings
Sustainabilty raters and rankings1 88 88 88 86 4.6 4.4 4.5 84 A- AA AA AA AA A- A 3.2 3.4 B 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2021 2022 2023 2019 2020 2021 2022 2023 Scale from 0 to 100 Scale from D- to A Scale from CCC to AAA Scale from 0 to 5 89 88 B 68 68 -B 83 54 57 B- -B 49 77 C
Slide 34: 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 35: Contact us
Q4 & FY 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 Carla Rojas Download the investor relations app Francisco Basauri - ESG iOS Android Mo
Slide 36: Disclaimer
Q4 & FY 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 the i