Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Investor Presentation (March 2023)
97 slides from Enel Chile Sa's investor presentation, March 2023
Slide 1: Enel Chile Corporate presentation March 2023
Enel Chile Corporate presentation March 2023
Slide 2: Country overview & market context
Country overview & market context
Slide 3: Chile today and country's potential
Chile today and country’s potential Net ZERO: the unavoidable journey for Chile ~2 TW of renewable energy potential in Chile1 80% Renewable generation by 2030 +28% expected increase of energy New vehicle sales to be A champion demand by 20302 only electric cars by in the 2035 transition to Total pop
Slide 4: The new scenario brings challenges and opportunities
The new scenario brings some challenges and several opportunities for the following years Even though the energy market is experiencing challenges… ….there are opportunities arising from the current context An increasingly Energy back up to cope with Transmission’s New regulation complex expansions
Slide 5: Adverse market context maintaining pressure in main indicators
Adverse market context maintaining pressure in main indicators Macro and commodities scenario remains challenging A compound set of factors impacted spot prices Henry Hub Avg. Spot Quillota 220kV Avg. Spot Alto Jahuel 220kV API 2 Brent USD/CLP1 Chilean CPI2 (USD/MWh) (USD/MWh) FY 2022 FY 2022 FY 202
Slide 6: A regulatory framework in evolution
A regulatory framework in evolution Proposal on capacity payments regulation VAD 2020-24 regulatory period 6% Returns (real terms post tax) Recognition of BESS capacity payment and Tariff review process better attribution for reservoirs HPP Dec 2022 Jan 2023 Mar 2023 May 2023 Expert Final Regulator
Slide 7: Enel Chile at a glance
Enel Chile at a glance
Slide 8: Our consistent journey paving the way for a sustainable future
Our consistent journey paving the way for a sustainable and brighter future Sustainable growth > Consolidating growth in Renewables Speeding up decarbonization by a selective and flexible portfolio > Coal phase-out > Reducing risks and volatility of our > 1.7 GW of renewable capacity portfolio conne
Slide 9: Asset Rotation and Gas Valorization unlocked value in 2022
Well-target actions, as the Asset Rotation and Gas Valorization strategy, unlocked value in 2022 Sale of Transmission Assets Shell Agreement details Closing signed on December 9, 2022 USD 520 Mn received on Valorization of future surplus USD 1,399 mn December 29, 2022 on natural gas Received on Dece
Slide 10: Positioning Enel Chile as a unique, integrated and resilient utility
Positioning Enel Chile as a unique, integrated and resilient utility in Chile 2022 figures Integrated commercial strategy supported by solid and diversified assets 8.4 GW Net installed capacity 14.1 TWh Energy distributed1 Enablers of decarbonization and electrification in Chile 2.1 mn End users 30.
Slide 11: Strategic actions
Strategic actions
Slide 12: Our strategic managerial actions
Our strategic managerial actions 1 2 3 4 Foto clients Enhance the resiliency Maximize the value for Grids digitization to Sustainable growth, and flexibility of our our clients through continue enabling the portfolio mix supporting with stronger electrification energy transition balance sheet the de
Slide 13: Our strategic managerial actions
Our strategic managerial actions 1 2 3 4 Foto clients Enhance the resiliency Maximize the value for Grids digitization to Sustainable growth, and flexibility of our our clients through continue enabling the portfolio mix supporting with stronger electrification energy transition balance sheet the de
Slide 14: Building a robust, resilient and flexible portfolio
1 2 3 4 Rebalancing our portfolio to have a better risk-return and faster response in a new market context Coal phase-out, poor hydrology and transmission … therefore, we need to act quickly to shield our constraints brought high volatility to spot market… margins and profitability in a new market c
Slide 15: Portfolio management actions translated into a successful recovery plan
1 2 3 4 Portfolio management actions translated into a successful recovery plan, despite challenging context Better hydro conditions and … boosted by a robust gas policy … supporting our 2022 Earnings renewables’ contribution… to guarantee higher volumes…. results guidance achievement Enel Chile ren
Slide 16: Our performance boosted by renewables contribution
1 2 3 4 Our performance boosted by renewables contribution, reinforcing our portfolio Net installed capacity (as of Dec 2022) 7% 76% Renewable 17% 8.4 42% GW 34% Hydro CCGT2 Wind, Solar & Geothermal Oil-Gas 0.5 GW 0.8 GW 0.7 GW Operation of the 1st green hydrogen pilot COD approved Total connected p
Slide 17: Renewables development targeting a cleaner, flexible matrix
1 2 3 4 Renewables development to continue targeting a cleaner, flexible and balanced matrix Renewable net capacity Net capacity by technology Renewables pipeline by evolution (GW) by 2025 technology and maturity (GW)1 +1.9 GW 79% BESS 2025 vs. 2021 renewable ~4 21% 7.5 +0.4 ~11 6.4 39% 5.6 +1.2 2%
Slide 18: PPAs purchases to bring additional flexibility in sourcing
1 2 3 4 PPAs purchases to bring us additional flexibility in terms of sourcing New PPAs purchases to reduce the spot exposure Recent renewable PPAs purchases already signed Evolution of projected PPAs purchases (TWh) +2.0 TWh Solar PPA Wind PPA 4.7 2.6 1.1 TWh / year (COD Phase I: Abr-23; Phase II:
Slide 19: Rebalancing our portfolio for an optimized risk/return profile
1 2 3 4 Rebalancing our portfolio seeking for an optimized risk/return profile Additional flexibility Continue reducing Spot exposure to be concentrated initiatives spot exposure in solar hours (TWh) Enhance modulation -10 pp -26% capabilities to better allocate 5.9 hydro production 12% 19% 2.6 3.9
Slide 20: A fresh green start with -0.6 GW of coal capacity
1 2 3 4 All in all, as a fresh-new green start, with -0.6 GW of coal capacity CO2 emissions Scope 1 Generation (gCO2eq/kWh) 2021 20221 2025 2040 < 273 218 <105 0 Tarapacá Bocamina I Bocamina II December 2019 December 2020 September 2022 The road towards The first Chilean generator to complete the ZE
Slide 21: Our strategic managerial actions
Our strategic managerial actions 1 2 3 4 Foto clients Enhance the resiliency Maximize the value for Grids digitization to Sustainable growth, and flexibility of our our clients through continue enabling the portfolio mix supporting with stronger electrification energy transition balance sheet the de
Slide 22: Commercial strategy supported by long-term visibility and diversification
1 2 3 4 Commercial strategy supported by long-term visibility, geographic diversification and solid client portfolio Portfolio by off-taker PPAs geographic location PPAs by residual duration 2022 2022 2025 +4% 22% 23% 24% 27% 34% 30.7 TWh 25% 47% 39% 32.0 44% 60% 67% TWh 31% 29% 18% 10% Free market
Slide 23: Innovative technologies to bring value added services to all clients
1 2 3 4 Innovative technologies to bring value added services to all clients B2B We are boosting B2G B2C electrification for smarter, more efficient and Enabling cities to become Helping our clients to give the We are energy partners in the greener energy use more circular, supporting step forward o
Slide 24: Creating value in an integrated strategy
1 2 3 4 Creating value in an integrated strategy Beyond Commodity strategy Commercial Strategy enhances our offer of Total Generation sales (TWh)1 products and services 33.1 32.0 Our integrated Approach 30.7 30.9 63% 61% 69% PPA + Product & Services 65% 39% 35% 37% 31% +35 other companies 2022 2023
Slide 25: Our strategic managerial actions
Our strategic managerial actions 1 2 3 4 Foto clients Enhance the resiliency Maximize the value for Grids digitization to Sustainable growth, and flexibility of our our clients through continue enabling the portfolio mix supporting with stronger electrification energy transition balance sheet the de
Slide 26: Grid infrastructure evolution as a pillar for energy transition
1 2 3 4 Grid infrastructure evolution as a pillar for energy transition, focused on efficiency and quality Main KPIs1 2022 2025 Grid Blue Sky End users A new operating model (mn) 2.1 2.2 We are implementing technology Energy developments to boost our service distributed1 14.1 14.1 quality, continuit
Slide 27: Improving our client's journey through new digitalized channels
1 2 3 4 Improving our client's journey through new digitalized channels Main KPIs Commercial service at a glance 2022 2025 Customer centricity Clients App as a core strategic pillar 656 1,085 Our journey in numbers2 users1 (´000#) Platformization and We are enhancing our grids and digitization Clien
Slide 28: Our strategic managerial actions
Our strategic managerial actions 1 2 3 4 Foto clients Enhance the resiliency Maximize the value for Grids digitization to Sustainable growth, and flexibility of our our clients through continue enabling the portfolio mix supporting with stronger electrification energy transition balance sheet the de
Slide 29: Leading the decarbonization and the electrification
1 2 3 4 All these trends to take advantage of potential new opportunities by 2025 2022 2025 RES Capacity 6.4 7.5 (GW) RES Capacity 76% 79% % on total Leading the GHG free 63% 79% % production on total decarbonization and Grids end users 2.1 mn 2.2 mn the electrification Energy losses 5.1% 5.1% Telec
Slide 30: Creating Value for ALL our stakeholders
1 2 3 4 Creating Value for ALL our stakeholders 2025 Financial community Dividend payout ratio1 Min 50% New connections on grids Clients (‘000) +101 Planet Scope 1 - CO2 Reduction vs 2021 -62% Beneficiaries from projects with communities2 Communities (SDGs 4,7 & 8) 5.6 mn Employees Women in selectio
Slide 31: Plan in numbers 2023-2025
2023-2025 Plan in numbers enel
Slide 32: New plan investments to improve our portfolio resiliency
1 2 3 4 New plan investments to improve our portfolio resiliency Investments centered on clients’ needs… …focused on SDG goals CAPEX allocation (USD bn) SDG 0.8 1% 13% 0.7 1% 1% 8% 18% 16% 10% 2023-25 2023-25 10% 1.7 USD bn 1.7 USD bn 0.3 77% 3% 73% 34% 71% 13% 90% 50% 2023 2024 2025 Renewable Grids
Slide 33: Generation CAPEX driven by decarbonization strategy
1 2 3 4 Generation CAPEX driven by decarbonization strategy Generation CAPEX 2023-2025 (USD bn) Renewable’s development CAPEX (USD bn) Total CAPEX by type Total CAPEX by year 1% 0.7 14% 22% 0.1 0.5 0.1 14% 2023-2025 2023-2025 47% 1.4 USD bn 1.1 USD bn 0.5 0.2 0.4 78% 0.1 25% 0.1 2023 2024 2025 Devel
Slide 34: Our investments to bring additional flexibility to our portfolio
1 2 3 4 Our investments to bring additional flexibility to our portfolio Production evolution (TWh) Energy balance (TWh) Portfolio Mix evolution (TWh) Spot exposure reduction (TWh) +5% +4% -33% 23.4 32.0 32.0 22.2 30.7 30.7 -51% 3.9 4.2 8.8 5.9 5.9 Non-solar 4.7 2.6 18.9 22.2 2.6 3.9 9.8 9.7 1.3 1.2
Slide 35: EBITDA improvement thanks to our integrated margin strategy
1 2 3 4 EBITDA improvement thanks to our integrated margin strategy FY 20221 Integrated EBITDA evolution (USD bn) Main performance indicators 1.3 2022 2025 CAGR +41% Avg. PPA price 74 64 -5% 1.4 (USD/MWh)3 0.2 (0.2) 1.3 EBITDA (0.5) (0.04) adjusted1 44 -3% 0.9 0.6 (USD/MWh) (0.2) EBITDA 39 proforma1
Slide 36: Grids investments to support electrification and performance
1 2 3 4 Grids investments to support electrification and performance CAPEX tailored to improve EBITDA evolution (USD bn) performance and electrification +17% FY 2022 31% 0.08 (0.01) 0.11 44% 2023-2025 0.09 0.02 0.3 USD bn 25% Quality & Resiliency 2022E Indexation Inflation 2025 Digitization & Volume
Slide 37: Consolidated EBITDA increase in a more conservative scenario
1 2 3 4 Consolidated EBITDA increase in a more conservative scenario EBITDA evolution (USD bn) EBITDA Old vs. New Plan (USD bn) FY 20221 1.5 +30% +3% 1.5 0.2 (0.2) 1.3 4.0 4.1 0.5 (0.2) (0.5) 0.0 1.0 0.5 (0.1) 0.6 (1.6) 0.9 (0.2) 0.4 USD bn (+42% yoy) Adj. Gas 2022E EBITDA Energy Sourcing Growth Gas
Slide 38: Financial management 2023-2025
2023-2025 Financial management
Slide 39: Strong cash generation financing our diversification strategy
1 2 3 4 Strong cash generation financing our diversification strategy, with available optionality Source of funds allocation 2023-2025 Net debt/EBITDA evolution Strategic plan scenario (USD bn) (Times) Net Debt/EBITDA 2022 Old Plan 4.8x FY 2022 3.0-3.2 2.7x ~3.4x ~1.1x 2.8x-3.0x (1.7) ~2.4x 2.3x-2.5
Slide 40: Sustainable instruments to fund our growth
1 2 3 4 Sustainable instruments to fund our growth Financial flexibility & main ratios Debt maturity evolution by year with managerial actions (USD bn) YE 2022 YE 2025 SDG-linked gross 1.1 0.9 debt USD bn 3.5 3.3 Share of sustainable 24% 27% finance Avg. term of debt (years) 6 6 USD denominated 0.7
Slide 41: Earnings evolution 2023-2025
2023-2025 Earnings evolution
Slide 42: Earnings recovery supported by growth initiatives
1 2 3 4 Earnings recovery supported by growth initiatives and managerial action Net Income evolution 2022E Net Income evolution 2022E-2025 FY 20221 (USD bn) (USD bn) 1.5 2022 Adj. Net Income 2 1.4 1.5 +38% 0 Gas valorization 0.4 one-off3 Net Tx 0.7 (0.5) sale3 1.0 2022 Adj. Net 0.3 FY 2022 Income Pr
Slide 43: Financial targets 2023-2025
2023-2025 Financial targets
Slide 44: Strategic plan targets
Strategic plan targets 2022 20221 proforma1,2 2023 2024 2025 Adj. EBITDA 1.5 0.9 1.0-1.2 1.3-1.5 1.2-1.4 (USD bn) Adj. Net income 1.5 0.4 0.3-0.5 0.5-0.7 0.3-0.5 (USD bn) Dividend payout 30% Min 50% Min 50% Min 50% (%) 1. FY 2022 adjusted by the Coal Stock Impairment (CSI) and projects write-off: EB
Slide 45: Closing remarks
Closing remarks Decarbonization Integrated and electrification commercial Strong financial Creating value for remain as strategy boosted position and ALL our priorities to our by several optionality for stakeholders sustainable diversification future growth strategy actions 44
Slide 46: Q4 & FY 2022 Financial results
Q4 & FY 2022 Financial results
Slide 47: Track record confirmed despite challenging scenario
Track record confirmed despite challenging scenario Net Additional Capacity EBITDA Net Income We continue boosting the Earnings exceeded the upper range of our Guidance. Net Income energy transition greater than figures presented in our 2022 Investor Day RES Growth (GW) (USD bn) (USD bn) +14% +40% 6
Slide 48: Well-target actions translated into excellent results
Well-target actions followed by gas optimization strategy have translated into excellent results Adj. EBITDA1,2 Adj. Net Income1,3 Leverage Better performance mainly due to Improvements on adj Net Income due to Liability management after hydrology and gas agreement greater EBITDA and Asset Rotation
Slide 49: Sustainable capex plan pursuing climate goals
Sustainable capex plan pursuing climate goals, boosting energy transition and portfolio flexibility FY 2022 Capex by business and by nature1 FY 2022 Development CAPEX1 6% 5% 15% 17% 1,120 8% 1,120 856 USD mn USD mn USD mn +13% yoy +13% yoy +9% yoy 77% 76% 95% Grids & Enel X Asset development Grids &
Slide 50: Q4 2022 EBITDA explained by better hydrology and portfolio actions
Q4 2022 EBITDA explained by better hydrology and portfolio actions, despite high spot prices Q4 2022 adj. EBITDA evolution (USD mn)1 Main KPIs Q4 2021 Q4 2022 yoy 4.2x Hydrology 2.3 3.4 +48% (TWh) 40 11 932 169 81 4 (9) (15) Gx sales3 7.3 7.5 +3% (TWh) 520 (64) (25) Energy 3.4 3.5 +3% distributed (T
Slide 51: 2022 EBITDA explained by well-target actions
2022 EBITDA mainly explained by well-target actions executed during the year FY 2022 adj. EBITDA evolution (USD mn)1 Main KPIs FY 2021 FY 2022 yoy 2.2x Hydrology 7.7 9.8 +26% (TWh) 469 169 43 1,468 Gx sales3 27.6 30.7 +11% 148 37 (39) (TWh) (240) (35) 520 (280) Energy 13.3 14.1 +6% distributed (TWh)
Slide 52: New renewable capacity and better hydrology improving energy balance
New renewable capacity and better hydrology improving our energy balance Net production (TWh) Energy balance (TWh) Portfolio Mix evolution (TWh) Spot exposure reduction (TWh) +9% +17% 22.2 +1.2 TWh new renewable +3% -23% capacity 7.3 7.3 7.5 7.5 1.4 19.0 4.2 1.4 0.7 1.1 1.1 0.7 0.5 4.9 4.6 0.3 5.7 3
Slide 53: Net Income boosted by management initiatives
Net Income boosted by management initiatives to unlock value in our portfolio FY 2022 adj. Net Income (USD mn)1 Higher EBITDA due to a better hydrology, portfolio 8.8x optimization and gas valorization agreement 769 1,517 D&A mainly reflects new renewables’ 793 32 operation and CLP devaluation (32)
Slide 54: Cash management actions to offset stabilization mechanism
Cash management actions to offset the impact of the stabilization energy mechanism FY 2022 FFO (USD mn)1 EBITDA results driven by better hydrology and 1,468 several actions executed in 2022 (90) (444) 68 Stabilization mechanism playing an import role in (534) (74) 672 2022; new law approved to addre
Slide 55: Liability management focused on financial efficiency
Liability management focused on financial efficiency supporting energy transition Gross debt (USD mn)1 Liquidity position (USD mn) Debt maturities (USD bn)1 -7% Maturities/Gross Debt 2.8 5,669 28% 5,004 5% 12% 5% 12% 304 4,660 367 1.4 1.8 1,023 USD bn 5,365 4,637 0.7 0.7 3,637 72% 0.3 0.3 0.6 1.0 0.
Slide 56: Q4 & FY 2022 Financial results Annexes
Q4 & FY 2022 Financial results Annexes
Slide 57: Q4 Profit & Loss (USD mn)
Q4 Profit & Loss (USD mn)1 Q4 2022 Q4 2021 ∆ yoy Adjusted EBITDA2 932 221 4.2x Reported EBITDA 872 193 4.5x D&A (73) (65) 1.1x Bad Debt (5) (10) 0.5x Impairment (2) (38) 0.05x Reported EBIT 792 80 9.9x Financial expenses (56) (40) 1.4x Results from equity 1,126 15 76.7x investments Reported EBT 1,86
Slide 58: FY Profit & Loss (USD mn)
FY Profit & Loss (USD mn)1 FY 2022 FY 2021 ∆ yoy Adjusted EBITDA2 1,468 675 2.2x Reported EBITDA 1,348 599 2.2x D&A (274) (242) 1.1x Bad Debt (25) (22) 1.2x Impairment (2) (38) 0.05x Reported EBIT 1,047 298 3.5x Financial expenses (137) (180) 0.8x Results from equity 1,131 15 74.0x investments Repor
Slide 59: Main business EBITDA breakdown
Main business EBITDA breakdown Adjusted EBITDA Adjusted EBITDA Generation business line (USD mn)1,2 Networks business line (USD mn)1 5.1x 2.4x +6% +23% 1,336 889 176 520 42 45 142 520 91 11 19 61 546 816 173 31 26 85 369 81 Q4 2021 Q4 2022 FY 2021 FY 2022 Q4 2021 Q4 2022 FY 2021 FY 2022 Gas valoriza
Slide 60: Commodities and Spot price outlook
Commodities and Spot price outlook Henry Hub (USD/mmbtu) Brent (USD/bbl) API 2 (USD/Ton) 9.4 8.9 8.7 118.8 123.7 389.0 113.3 112.7 352.9 364.9 7.3 98.2 104.4 100.0 319.3 328.5 6.9 6.7 325.3 6.3 6.6 6.2 89.9 93.3 91.7 87.2 81.1 267.9 5.3 173.0 4.7 4.6 328.1 213.6 4.4 194.5 3.6 4.0 5.8 82.8 83.7 81.4
Slide 61: Hydrology outlook
Hydrology outlook Historic Enel Chile hydro generation (TWh) Rainfall in our most relevant basins1 2006 17.1 600 Rapel 2500 Maule (34% of consolidated Gx) (9% of consolidated Gx) 500 2007 13.2 2000 Cumulated rainfall (mm) Cumulated rainfall (mm) 400 2008 13.8 1500 2009 14.9 300 1000 2010 12.6 200 20
Slide 62: 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 6.4 GW Renewable capacity net installed Enablers
Slide 63: Sustained reinforcement of our renewable matrix throughout the country
Sustained reinforcement of our renewable matrix throughout the country Net installed capacity (as of Dec 2022) Central zone 7% 76% Renewable PMGD2 83 MW 17% El Manzano 99 MW Southern zone 8.4 42% Renaico II4 144 MW GW Los Cóndores 150 MW La Cabaña 106 MW 34% +34 MW BESS Rihue 120 MW Hydro CCGT2 Nort
Slide 64: 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 65: Organization structure
Organization structure Enel Chile shareholders1 64.9% 2.4% 6.2% Chile 22.4% Pension Funds Market Cap2 Institutional Investors USD 3.3 bn ADR’s 4.1% 64.9% Enel SpA Others 100.0% 93.5% 99.1% 100.0% 49.0% Green Power Generación Chile Distribución Chile Enel X Chile Non-consolidated assets Chile 1. As o
Slide 66: Strategic Plan 2023-2025 Annexes
Strategic Plan 2023-2025 Annexes
Slide 67: Main assumptions
Main assumptions GDP Demand Growth CPI Macroeconomics (%) (%) (%) 2023 2024 2025 2023 2024 2025 2023 2024 2025 -1.1% 2.4% 2.6% -0.5% 2.9% 3.9% 5.3% 3.2% 3.1% Commodities Henry Hub Brent (USD/MMbtu) (USD/bbl) 2023 2024 2025 2023 2024 2025 5.7 5.0 4.3 93.0 80.0 70.0 Quillota marginal cost Crucero marg
Slide 68: Main sensitivities for 2023-2025 figures
Main sensitivities for 2023-2025 figures Annual Impact on 2023-2025 EBITDA (USD mn) System demand +10% +1% Hydrology ~53 ~32 -10% ~(45) ~(22) -1% GAS +60% -38% Commodities (Henry Hub) ~156 OIL (Brent) +62% -40% ~(162) COAL (API2) +33% -30% 67
Slide 69: Capex by Business line
Capex by Business line Gross CAPEX (USD bn) CAPEX 2023-2025 allocation (USD bn) 0.8 0.0 0.1 0.7 0.0 Business line 2022 2023 2024 2025 0.1 0.1 Renewable 0.9 0.6 0.5 0.2 0.1 Thermal 0.1 0.1 0.1 0.0 0.3 Grids 0.2 0.1 0.1 0.1 0.6 0.0 0.5 0.1 Enel X 0.0 0.0 0.0 0.0 0.0 Others 0.0 0.0 0.0 0.0 0.2 2023 202
Slide 70: Installed capacity and Production by Technology
Installed capacity and Production by Technology Net installed capacity (GW) Net production (TWh) 2022 2025 2022 2025 +12% +5% 1% 7% 5% 6% 20% 16% 17% 39% 26% 8.4 42% 9.5 22.2 44% 23.4 41% GW GW TWh TWh 6% 34% 40% 37% 19% Coal1 CCGT2 Oil&Gas Hydro Renewable (ex - Hydro + BESS) 1. Includes Bocamina II
Slide 71: Generation PPAs portfolio
Generation PPAs portfolio PPAs profile (TWh) 33.1 32.0 30.7 30.9 63% 61% 65% 69% 39% 35% 37% 31% 2022 2023 2024 2025 Regulated Customers Free Market 70
Slide 72: ESG Annexes
= 7, , ESG Annexes
Slide 73: 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 72
Slide 74: 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 75: 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 76: 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 77: Our strategy for sustainable progress
Our strategy for sustainable progress We create long-term value with and …promoting the protection of 1 for all our stakeholders, helping them natural capital and biodiversity… 2 to grow and meet challenges… Just Transition Biodiversity Inclusion & Uniqueness Sustainable Supply Chain Sustainability
Slide 78: Just Transition for Enel Chile's People, Communities and suppliers
Just Transition for Enel Chile’s People, Communities and suppliers Strategy for a Just Transition promotes sustainable and human rights approach for all stakeholders Enel Chile People Communities Suppliers & Contractors Internal redeployment and upskilling/reskilling Fostering Green Jobs through ded
Slide 79: Inclusion & uniqueness
Inclusion & uniqueness Inclusion of people’s multiple and unique talents is an essential factor in Enel Chile’s approach to create long term value for all stakeholders Purpose Enel Chile puts in place an organic set of actions aimed at: allowing expression of people uniqueness ensuring nondiscrimina
Slide 80: Sustainability and Innovation in the Procurement Process
Sustainability and Innovation in the Procurement Process - Suppliers and Contractors + Innovation by vendors Health & Safety Partnerships Procurement involves Environment Circular Economy Human Rights & Social with suppliers suppliers in some innovation challenges Performance Scouting Qualification
Slide 81: Sustainability initiatives with local communities
Sustainability initiatives with local communities An approach along the entire value chain: business Key pillar of our strategy is to establish development, supply chain & design, engineering and solid, long-lasting relationships with local construction, operation and maintenance up to the end of li
Slide 82: Valuation of Ecosystem Services - Natural Heritage of Enel Chile
Environmental Sustainability Biodiversity Valuation of Ecosystem Services - Natural Heritage of Enel Chile IDENTIFICATION PHASE I PHASE II PHASE III PHASE IV Definition of the logistics Identification of relevant Hierarchy, Materiality, and Management Plan based strategy properties' group environmen
Slide 83: Health & Safety
Health & Safety Health & Safety Management system is based on hazard identification, on qualitative and quantitative risk analysis. Certification of the whole Group according to ISO 45001 and relative implementation Data driven Data-driven approach based on digital tools, dashboard and analytics, us
Slide 84: Circular economy: some examples
Circular economy : some examples 2022 Circular economy main project streams: Decommissioning Sale and Internal reuse of materials, spare and grid mining parts and equipment Sale of waste water enables efficiency Industrial improvement at San Isidro power plant, symbiosis resulting in savings of fres
Slide 85: Innovation: Haru Oni H2 plant – First of its kind
Innovation : Haru Oni H2 plant – First of its kind 3.2 MW 5,000 EOH 1.2 MW The project Integration of variable renewable energy generation for hydrogen production using PEM technology Green hydrogen delivered to our partner for e-Methanol and e-Fuels production Under construction with expected COD b
Slide 86: Environmental Sustainability
Environmental Sustainability CO2 emissions targets 2021 2022 2023 2024 2025 2040 SCOPE 1 GENERATION (gCO2e/kWh) 273 218 <100 <90 <105 0 Zero Emissions Main actions Accelerate renewables deployment Exit from Gas by 2040 Pushing electrification of our clients 85 No use of carbon removal
Slide 87: Our long-term strategy is recognized by leading ESG raters
Our long-term strategy is recognized by the leading ESG raters1 88 88 88 4.6 4.4 84 A- AA AA AA A B 3.2 3.4 2019 2020 2021 2022 2021 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- 83 49 54 -B C 77 72 2019 2020 2021
Slide 88: 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 89: Regulatory framework Annexes
Regulatory framework Annexes
Slide 90: Electricity sector - Main regulatory entities
Electricity sector - Main regulatory entities Autonomous organizations PRESIDENCIA Panel de Expertos MINISTERIO DE ENERGÍA Coordinador Eléctrico MINISTERIO DE ENERGÍA (Subsecretario) Empresas Eléctricas (AG) SUPERINTENDENCIA COMISION COMISIÓN CHILENA AGENCIA CHILENA ELECTRICIDAD Y NACIONAL DE DE ENE
Slide 91: Electricity sector - Business segments
Electricity sector - Business segments Generation Transmission Distribution (Natural Monopoly) (Natural Monopoly) Generation companies Unegulated customers Transmission Subtransmission Spot market Distribution Contracts grids Regulated customers Generation companies Free clients VNR1: USD 1,537 mill
Slide 92: Generation business - Revenue sources
Generation business - Revenue sources Capacity payment Energy sales Ancillary services Spot market Intended to provide a Defined by the Supply and demand determine the hourly reliable, safe and quality regulator marginal price operation of electricity Regulated Prices system through the Fixed paymen
Slide 93: Regulated Tariff - Generation segment
Regulated Tariff - Generation segment The CNE organizes public biddings for long-term energy supply for regulated clients. Awarding of the electricity tender seeks the most efficient mix for customers. The resulting lower price is passed through to customers. Short-term average price: Fare adjustmen
Slide 94: Regulated Tariff - Bill components breakdown
Regulated Tariff - Bill components breakdown1 Bill of final client (Average) Energy Transmission Distribution cost cost cost (VAD) 74% 10% 16 % 1. Source: Enel Chile 2021 Sustainability report. 93
Slide 95: Regulated Tariff - Distribution segment
Regulated Tariff - Distribution segment Indefinite administrative concessions (DFL1 - 1982) Tariff cycle: 4 years – Tariff process for 2020-2024 period in progress Return on investment according to the value of assets: • Recognition of asset value according to optimized network (New Replacement Valu
Slide 96: Disclaimer
Corporate presentation 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
Slide 97: Contact us
Corporate presentation Contact us Contacts Email ir.enelchile@enel.com Channels – Follow us Isabela Klemes Head of Investor Relations Enel Chile Investor Relations team Website Catalina González Enel.cl Claudio Ortiz Pablo Contreras Download the investor relations app Francisco Basauri iOS Android M