Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — FY2019 Earnings Presentation
27 slides from Enel Chile Sa's earnings presentation, Feb 28, 2020
Slide 1: Enel Chile FY 2019 consolidated results
Enel Chile FY 2019 consolidated results February, 28th 2020
Slide 2: Key highlights
Key highlights Decarbonization on track Closure of Tarapacá (158 MW) on Dec 31st 2019 as committed Leadership on electrification and quality of services Electrification Decarbonization Enel X will develop the first electro-route with the installation of 1,200 charging points & Renewables EBITDA Marg
Slide 3: Decarbonization on track
Decarbonization & Renewables Decarbonization on track Enel Chile is leading the decarbonization process in Chile Tarapacá successful closure Coal Power Plants closure timeline1 Bocamina 2 (350 MW) Tarapacá operations successfully terminated Bocamina 1 (128 MW) Decision to anticipate the final closur
Slide 4: Decarbonization and renewables framework
Decarbonization & Renewables Decarbonization and renewables framework Growth opportunities in Chile Chilean Carbon fleet closure timeline13 Commercial trend in 2019: 100% renewables contracts 1,3852 + 3TWh/ year renewable 15-year PPA (BHP as from Aug/21) Other 1214 generators Up to 3 TWh/ year renew
Slide 5: Ecosystem and platforms to foster Electrification
Electrification Ecosystems & Platforms Ecoystem and platforms to foster Electrification Enel Chile is leading the e-mobility in Chile First national electric route Enel X main KPIs1 2017 2018 2019 YoY Connect Chile from Arica to Punta +275% Arenas (cover 5,000 km) Electric buses4 2 76 285 +105% Inst
Slide 6: Distribution Business
Enabling Infrastructure Distribution Business business Focus on digitalization to continuously improve our services and efficiency Main KPIs Digitalization on quality service FY 2018 FY 2019 Telecontrol equipment installation3 2,148 +2% Energy distributed (TWh)1 16.8 17.1 1,733 1,481 1,161 -6% SAIDI
Slide 7: Progress on SDGs
Progress on SDGs Engaging local communities1 2018 2019 2022 High-quality, inclusive and fair education 39 80 139.0 Access to affordable and clean energy 170 199 200.0 Employment and sustainable and inclusive economic growth 362 371 447.0 I&N, sustainable cities and cyber securities2 2018 2019 2022 D
Slide 8: ESG Focus Indexes and Recognitions
ESG Focus Indexes and Recognitions Indexes, recognitions and certifications Enel Chile is part of Chile Index the Robecco SAM Enel Chile “A” rate in 2019 Emerging MILA Index Market and Sustainability ISO 37001 Emerging Markets Index Latin America Yearbook 2020 certification Emerging Market Index (Br
Slide 9: Macro and Regulatory updates
Macro and Regulatory updates
Slide 10: Main updates on the Chilean Market
Main updates on the Chilean Market Market and sector performances Demand performance (TWh) Clients Migration (TWh)2 Country Hydro performance (TWh) +6.6% -10.3% +4.3% +0.6% 7.6 21.8 23.2 71.2 71.6 20.8 68.3 6.2 2.1 17.3 17.9 17.9 1.8 12.1 11.8 10.2 3.7 1.5 5.5 51.0 53.3 53.7 4.4 11.4 9.7 10.6 2.2 20
Slide 11: Distribution framework and next steps
Main updates on the Chilean Market Distribution framework and next steps Ley Corta Ley Larga Approved First draft on March, 2020 Remuneration reduction from 10% before tax to a Ministry of Energy committed to dispatch a draft to variable value with a cap at 8% and a floor at 6% the Congress by M
Slide 12: New distribution regulatory tariff cycle
Main updates on the Chilean Market November 2020 – November 2024 new distribution regulatory tariff cycle New regulatory cycle based on new distribution tariffs defined by CNE (Energy Regulator) and officially published by the Ministry of Energy How do we get here 2019 Jan 1, 2020 Feb 18, 2020 Mar 1
Slide 13: Generation Business: Stabilization tariff mechanism
Main updates on the Chilean Market Generation Business: Stabilization tariff mechanism Main updates Expected mechanism evolution1 CNE released a second version of the document that details the mechanism. Up to Dec-20 Jan-21 to Jun-23 Jul-23 to Dec-25 Jan-26 to Dec-27 Fixed prices Fixed prices + IPC
Slide 14: Financial results
FY 2019 consolidated results Financial results
Slide 15: Capex allocation
Capex allocation Development capex focused on renewables FY 2019 Capex by business and by nature1 FY 2019 Development capex1 1% 29% 13% USD 32% USD USD 481mn 481mn 286mn (-4% YoY) 60% 56% 5% (-4% YoY) (-11% YoY) 82% 11% 11% Asset Management Asset Development Renewables Networks & Enel X Renewables N
Slide 16: Generation portfolio
Generation portfolio Continuous improvement on our generation mix Net Installed capacity (GW)1 Production (TWh) Energy balance (TWh) 65% +5% -4% 6% Renewable 9% (+1% YoY) 21.0 24.4 24.4 20.0 23.5 23.5 2.4 3.2 4.3 2.5 7.2 2.6 3.3 8.7 20% 49% 0.3 0.3 10.8 GW 3.4 3.7 20.0 21.0 11.4 15.6 16% 10.6 12.7 F
Slide 17: Financial highlights
Financial highlights (USD mn)¹ FY 2019 FY 2018 Var. Revenues 3,943 3,497 +13% EBITDA 1,499 1,269 +18% Group Net Income 421 515 -18% Adjusted Group Net Income2 694 515 +35% EBITDA Margin 38% 36% +2 p.p. CAPEX 481 501 -4% Net Debt 3,271 3,3313 -2% Net Debt/EBITDA 2.2x 296 2.4x -0.2x 1. Reported figure
Slide 18: EBITDA 4Q 2019 vs 4Q 2018
EBITDA 4Q 2019 vs 4Q 2018 (USD mn)¹ -25% Lower hydro generation (-1 TWh) 463 (15) (40) (25) (13) (7) (16) 347 Lower demand (-0.5 TWh) as a result of Chilean situation and clients migration Regulatory efficiencies captured by the model 4Q 2018 One - Off Hydrology Demand Regulatory Enel X Others 4Q 20
Slide 19: EBITDA FY 2019 vs FY 2018
EBITDA FY 2019 vs FY 2018 (USD mn)¹ +18% PPAs indexation, compensated the lower hydrology and volumes 85 10 9 1,499 146 (58) 82 (43) 1,269 Decarbonization strategy reflecting in better mix and reduction of variable generation cost New connections and lower energy losses, offset by non recurring impa
Slide 20: Generation Businesses
Generation Businesses Improving our operating margins EBITDA evolution (USD mn)¹ Ebitda Margin² 45% 47% +2 p.p EBITDA Margin improvement due to +22% optimized portfolio mix 1,244 1,016 172 Important contribution from the decarbonization strategy 1,016 1,071 PPA indexation, offset by lower FY 2018 FY
Slide 21: Networks & Enel X Businesses
Networks & Enel X Businesses Focus on efficiency, network resilience and final customer EBITDA evolution (USD mn)¹ Higher volumes and connections +3% 290 299 21 31 Higher networks maintenance 269 268 and non recurring effects Enel X additional EBITDA on e-city FY 2018 FY 2019 (e-buses, infrastructur
Slide 22: Profit & Loss
Profit & Loss (USD mn)¹ FY 2019 FY 2018 ∆ yoy EBITDA 1,499 1,269 +18% Higher D&A mainly due to impairment of coal-fired power plants D&A (337) (306) +10% Impairment2 (414) (8) 5,128% Higher Financial Expenses related to Elqui project EBIT 749 954 -22% and the consolidation of EGP Chile Financial exp
Slide 23: Debt and financial expenses
Debt and financial expenses (USD mn)¹ Gross and net debt Net debt evolution ND/EBITDA 2.4x 2.2x -2% -3% 3,331 (872) 337 (5) 3,271 IFRS 16 3,684 50 50 3,585 481 353 314 50 3,280 3,221 50 3,406 3,280 3,221 Jan 1st, 2019 FY 2019 Jan 1st, 2019 FFO Capex Dividends Fx FY 2019 paid Conversion Net debt IFRS
Slide 24: Debt maturity and credit ratings
Debt and financial expenses Debt maturity by year (USD mn) Long term credit rating International market 3.0 2.7 2.5 Standard & Poor’s Moody’s 2.0 1.5 1.0 Since April 2016 Since May 2018 0.5 Affirmed Oct/19 Affirmed Jun/19 0.5 0.2 0.2 0.1 Chilean market 0.0 2020 2021 2022 2023 After 2023 Fitch Rating
Slide 25: Closing remarks
Closing remarks Continue to seize opportunities in the Chilean market and to cope with the evolution on the Chilean regulatory framework Decarbonization Electrification & Renewables Client long-term partnership, sustainable portfolio mix and digitalization will continue to driver our growth Decarbon
Slide 26: Contact us
FY 2019 consolidated results Contact us Contacts Email ir.enelchile@enel.com Phone +56 2 2630 9606 Channels Follow us Website Isabela Klemes Enel.cl Head of Investor Relations Enel Chile Investor Relations team Mobile App Catalina González Enel Investors Claudio Ortiz Pablo Contreras Download app Go
Slide 27: Disclaimer
2019 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 intent, b