Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Q2 2023 Earnings Presentation
34 slides from Enel Chile Sa's earnings presentation, Jul 26, 2023
Slide 1: Q2 & H1 Enel Chile - Consolidated results
Q2 & H1 Enel Chile - Consolidated results July 26, 2023
Slide 2: Key highlights of the period
Key highlights of the period Portfolio Market Business Value management context Perfomance Creation Contribution of Renewable growth Energy Transition Signing of +1.1 GW COD in H1 23 Draft Bill issued EBITDA +50% 550 MUSD +0.8 TWh additional higher than H1 20221 Asset Rotation generation vs. H1 22 P
Slide 3: Portfolio management actions and projects in execution on track
Continue to execute several portfolio management actions… projects in execution well on track Additional renewables’ … to be complemented by other … to continue optimizing contribution up to H1 2023… technologies, in different locations… our generation mix Growth Contribution H1 2023 COD granted H1
Slide 4: Operational resilience and timely management to take advantage of hydrology recovery
Operational resilience and timely management will allow us to take advantage of full hydrology recovery Recent rainfall well above estimates Enel Chile hydro production Bío-Bío (TWh) +8% 3.7 +8% 3.4 Cumulated rainfall (mm) (25% of consolidated Gx) 3,000 1.6 1.7 2,500 2,000 1,500 1,000 Q2 2022 Q2 202
Slide 5: Commodities management contributing to our diversification strategy
Commodities management is effectively contributing to our diversification strategy Gas portfolio optimization and trading actions Enel Chile gas consumption and traded Natural gas plenty availability enabled us (MMm3/d) to better optimize our thermal fleet in the H1 2023 15 North (~12TBtu diverted t
Slide 6: Grids focused on quality and Enel X to boost integrated offering
Grids focused on quality and Enel X to boost integrated margin offering in line with Electrification ambitions Grids main KPIs Main electrification updates H1 2022 H1 2023 Energy distributed +3% B2C B2G B2G B2G (TWh)1 6.9 7.1 SAIDI2 -3% 140 136 Dx (min.) Replacement of the National Integrated offer
Slide 7: Market context evolving with announcements toward decarbonization
The Market context is in continuous evolution, with several announcements toward Decarbonization New Regulatory Updates Regulatory topics close to a conclusion Factoring Ago Focus on Generation & Transmission side: PEC 2.0 process 2023 Aug Apr Jul Q3 Q4 2024 Storage Auction 2022 2023 2023 2023 2023
Slide 8: Business performance as expected
Business performance as expected Business Performance EBITDA1,2 Net Income1,3 FFO4 (USD mn) (USD mn) (USD mn) +50% 1.9x 400 267 141 (5) 74 (222) +98% H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 proforma proforma proforma proforma -25% -7.1x -2.1x Q2 73 55 5 -33 (50) (105) 1. Comparisons between
Slide 9: Sustainable capex to continue improving portfolio flexibility
Sustainable capex to continue improving portfolio flexibility boosting the energy transition H1 2023 CAPEX by business and by nature1 H1 2023 Renewable development CAPEX1 Capex allocation 17% 11% by Quarter (2023) 36% Q1 12% 372 9% 22% 372 236 46% USD mn USD mn USD mn -27% yoy -27% yoy -40% yoy Q2 3
Slide 10: Q2 2023 EBITDA impacted by higher production costs and spot purchases
Q2 2023 EBITDA highly impacted by temporary higher production costs and spot purchases EBITDA evolution (USD mn)1 PPA sales growth mainly related to -42% indexation and higher capacity payments -25% 34 95 Variable costs mainly associated with higher commodities prices 73 (22) 24 6 55 (55) (7) (4) Gr
Slide 11: H1 2023 EBITDA portfolio management resulted in higher performance
H1 2023 EBITDA portfolio management resulted in higher performance EBITDA evolution (USD mn)1 PPA sales growth mainly related to +25% indexation and higher capacity payments +50% 110 7 124 400 (7) Variable costs mainly associated (19) with higher commodities prices 321 35 267 33 (54) (152) Gas optim
Slide 12: New renewable capacity and better hydrology improved energy balance
New renewable capacity and slightly better hydrology improved our energy balance Net production (TWh) Energy balance (TWh) +8% +3% Portfolio Mix evolution (TWh)2 Spot exposure (TWh) +0.8 TWh new renewable +3% +1% capacity 10.2 10.6 7.4 7.4 7.6 7.6 1.7 1.7 1.7 1.7 0.6 4.5 0.4 4.7 0.9 0.9 2.0 2.7 5.5
Slide 13: 2023 Net Income reflecting portfolio management actions
2023 Net Income reflecting the portfolio management actions executed in the period Net Income evolution (USD mn)1 Strong operating delivery drives +90% EBITDA up by 50% 133 (1) (1) Financial results reflect higher interests on 141 cash investments and lower financial costs (61) (4) on factoring exec
Slide 14: Cash management actions to offset stabilization mechanism impact
Cash management actions to offset the impact of the stabilization energy mechanism partially FFO proforma evolution (USD mn)1 400 Solid EBITDA contribution mainly due to hydrology and gas optimization initiatives (189) Stabilization mechanism continues to drive (111) (2) the business performance (10
Slide 15: Sound liquidity position to support debt maturity
Sound liquidity position to support debt maturity Gross debt (USD mn)1 Liquidity position (USD mn) Debt maturities (USD bn)1 2.9 +8% Maturities/Gross Debt 5% 16% 9% 14% 5,046 4,660 2.3 533 46% 1.0 1,023 USD bn 54% 0.8 0.7 4,513 3,637 0.5 0.3 0.2 0.7 0.2 0.6 0.4 0.1 0.3 Dec 31, 2022 Jun 30, 2023 2023
Slide 16: Asset rotation providing portfolio mix optimization
Asset rotation providing portfolio mix optimization and financial sustainability to continue executing our goals Asset description Transaction rationale Value creation and timeline 4 Solar plants Equity value (99.99%)1 Antofagasta and Atacama Value creation (deal at attractive regions multiples) USD
Slide 17: Closing remarks
Closing remarks Solid financial Our sustainable FY 2023 and integrated Renewables capex balance sheet to earnings business model deployment is well continue targeting guidance will continue to on track accretive confirmed deliver robust opportunities results 17
Slide 18: Q2 & H1 2023 Annexes
Q2 & H1 2023 Annexes ene
Slide 19: Q2 Profit & Loss (USD mn)
Q2 Profit & Loss (USD mn)1 Q2 2023 Q2 2022 ∆ yoy Proforma EBITDA2 55 73 -25% Reported EBITDA 55 52 +5% D&A (74) (74) 0% Bad Debt (1) (12) -88% Impairment 0 0 - Reported EBIT (21) (34) -38% Financial expenses (38) (21) +83% Results from equity investments 6 2 3.0x Reported EBT (53) (53) +1% Income ta
Slide 20: H1 Profit & Loss (USD mn)
H1 Profit & Loss (USD mn)1 H1 2023 H1 2022 ∆ yoy Proforma EBITDA2 400 267 +50% Reported EBITDA 400 258 +55% D&A (144) (144) 0% Bad Debt (10) (19) -48% Impairment 0 0 - Reported EBIT 247 95 2.6x Financial expenses (59) (58) +3% Results from equity investments 9 3 3.1x Reported EBT 196 40 4.9x Income
Slide 21: Main business EBITDA breakdown
Main business EBITDA breakdown EBITDA Generation EBITDA Grids business line (USD mn)1,2 business line (USD mn)1,3 -40% +56% +10% +2% 373 239 58 52 53 35 31 28 Q2 2022 Q2 2023 H1 2022 H1 2023 Q2 2022 Q2 2023 H1 2022 H1 2023 Adjusted Adjusted Proforma Proforma 1. Comparisons between periods in the Fin
Slide 22: Sustained reinforcement of our renewable matrix throughout the country
Sustained reinforcement of our renewable matrix throughout the country Net installed capacity6 76% Central zone 7% Renewable 17% PMGD2 83 MW Southern zone 8.5 41% El Manzano 99 MW GW Renaico II5 144 MW Los Cóndores 150 MW 35% La Cabaña 106 MW +34 MW BESS Hydro CCGT7 Rihue 120 MW Wind, Solar & Geothe
Slide 23: 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 8.7 118.8 113.3 364.9 112.7 319.3 352.9 7.3 6.6 104.4 325.3 328.1 328.5 6.9 6.7 6.3 98.2 100.0 267.9 5.3 5.2 89.9 93.3 91.7 194.5 213.6 227.9 4.7 4.6 87.2 84.9 82.5 81.1 167.2 78.6 75.6 74.7
Slide 24: Hydrology outlook
Hydrology outlook Historic Enel Chile hydro generation (TWh) Rainfall in our most relevant basins1 2007 13.2 Rapel Maule 700 2,200 (9% of consolidated Gx) (34% of consolidated Gx) 2008 13.8 650 2,000 600 1,800 Cumulated rainfall (mm) 550 Cumulated rainfall (mm) 2009 14.9 500 1,600 450 1,400 2010 12.
Slide 25: 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 strategy supported by Leading the renewable sector in Chile Grid infrastructure to solid and diversified enable electrification assets 6.5 GW Renewable capacity net installed Enablers
Slide 26: 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 26
Slide 27: Organization structure
Organization structure Enel Chile shareholders1 64.9% 1.2% 6.0% Chile 23.6% Pension Funds Market Cap2 Institutional Investors USD 5.2 bn ADR’s 4.3% 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 28: Management of the Company
Management of the Company Sustainability & Community F. Barderi 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 Services & Security J
Slide 29: 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 29
Slide 30: 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 31: 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 32: 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 33: Contact us
Q2 & H1 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 Carla Rojas iOS Android Francisco Ba
Slide 34: Disclaimer
Q2 & H1 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