Enel Americas S.a. · BCS:ENELAM
Enel Americas — Investor Day (November 2021)
67 slides from Enel Americas's investor day presentation, Nov 30, 2021
Slide 1: Enel Américas Investor Day – Strategic Plan 2022-24
Enel Américas Investor Day 30 de noviembre de 2021 Strategic Plan 2022-24 November 30th, 2021
Slide 2: Agenda
Agenda Maurizio Bezzeccheri, Chief Executive Officer Energy scenario in LatAm Enel Américas today Strategic Actions 2022-24 • Allocating capital to support decarbonization • Maximizing the value of customers through electrification • Creating value to ALL Aurelio Bustilho, Chief Financial Officer St
Slide 3: Energy scenario in LatAm
Energy scenario in LatAm Maurizio Bezzeccheri, CEO
Slide 4: Net zero: the unavoidable journey towards decarbonization
Net zero: the unavoidable journey towards decarbonization… 2010 2020 2030 2050 Global emissions1 32.3 34.2 21.1 GLOBAL (Gton CO2) NET ZERO Latin America context Countries REN targets 35% 45% 70% 15% 100% 80%3 30%4 @20302 Carbon Neutrality by 2050 NDC emissions 45% reduction 359.0 169.4 208.8 9.11 53
Slide 5: Electrification as the most important trigger
…will see electrification as the most important trigger At least a 50% 1.5C rate of 50 Red NZE electrification 45 Green is needed in 2050 Electrification rate (%) 40 Energreen in order to 35 SDS reach 1.5°c Enerblue 1.5° C 30 PES Temperature ≤2° C 25 Enerbase increase >2° C LatAm is expected 20 STEP
Slide 6: Clean electrification as main driver of Latin America's growth
Clean electrification as the main driver to support Latin America’s growth pathway over the long term Latin America’s overview All scenarios in line with Paris Agreement ambitions consider that electricity will establish Electricity Final consumption (TWh) itself as the most efficient energy vector
Slide 7: Enel Américas today
Enel Américas today CNC l
Slide 8: Diversified investment platform with presence in 7 countries
Diversified investment platform with presence in 7 countries and solid financial indicators Latin America’s largest private power company… 10.6 GW renewable 26.0 mn 2,320 Charging stations Argentina installed capacity total grid customers across 4 countries 15.1 TWh sold in free Brazil +4.4 GW vs PY
Slide 9: Accelerating transition to green technologies
Accelerating transition to green technologies in line with our strategy Installed Capacity Evolution (GW) New capacity in operation1 Pre-EGPA Post-EGPA Today incorporation incorporation Cumaru 206 MW Morro do Chapeu Ext. 155 MW Brazil Fonte dos Ventos II 39 MW 33% 32% 44% 45% Sao Goncalo III 217 MW
Slide 10: Sustainable business model improved visibility of targets and results
Choosing a sustainable business model improved visibility of targets and economic results EBITDA 2016 vs 2021E Group net income (US$ bn) +61% ~80% activities ~90% activities zero direct zero direct emissions emissions 82% 1.0 1% 7% 25% 33% 0.6 49% US$ 2.4 bn US$ 3.9 bn 11% 56% 18% 2016 2021E 2016 20
Slide 11: Yearly improvements in our ESG scores
With yearly improvements in our ESG scores MSCI S&P Dow Jones FTSE Russell Moody’s ESG Solutions AA AA AA 4.1 56 3.8 85 3.5 A 53 83 81 76 47 2018 2019 2020 2021 2018 2019 2020 2021 2019 2020 2021 2018 2020 2021 Scale from CCC to AAA Scale from 0 to 100 Scale from 0 to 5 Scale from 0 to 100 As of Nov
Slide 12: Our strategic actions
Our strategic actions CNC l
Slide 13: Our ambitions
Our ambitions 1 Significant deployment of new renewable capacity, supported by a robust pipeline and new technologies development to reach the decarbonization 2 Ensure a high-level quality and modernization of network with the grid customers in the core of our strategy 3 Creation of value across wit
Slide 14: CAPEX allocation focused on margins, renewables and network quality
CAPEX allocation focused on ensuring margins, developing renewables and improving networks quality Total CAPEX 2022-24 By business line1 By country 1% 2% 2% 3% 10% 7% 38% 21% US$ 8.9 bn US$ 8.9 bn 55% ~US$ 3.0 bn avg. 61% per year Thermal Renewables generation Argentina Brazil Colombia Networks Reta
Slide 15: Our strategic actions
Our strategic actions 1 Allocating capital to support decarbonization 2 Maximizing the value of customers through electrification 3 Creating value for ALL
Slide 16: Our strategic actions
Our strategic actions 1 Allocating capital to support decarbonization 2 Maximizing the value of customers through electrification 3 Creating value for ALL
Slide 17: Allocating capital to support decarbonization through renewable assets
Allocating capital to support decarbonization through renewable assets… DECARBONIZATION Strategic 1 Reaching Net Zero by 20401 guidelines Supported by Strategic renewable project portfolio 2 Renewable pipeline sustains the infrastructure activities to cover the additional energy demand 3 Exit from c
Slide 18: Adding 3.5 GW of new renewable capacity by 2024
…adding 3.5 GW of new renewable installed capacity by 2024 ensuring our leadership position… Generation CAPEX 2022-24 Installed capacity 2021E (GW) Net production (TWh) 1% +28% 65.9 51.4 2% 13% 24.7 10.7 8% 5% 44% 13.1 12.0 17% 1.3 1.2 16.0 GW 0.2 0.1 69% 26.1 27.9 23% renewables US$ 3.6 bn 25% 2021
Slide 19: Investments in capacity growth towards energy transition
…supported by investments in capacity growth towards energy transition in the region… Renewables CAPEX 2022-241 Renewables capacity growth (GW) 2022-24 Additional Capacity +1 GW since consolidation 2% 0.8 0.7 7% 14.5 38% 1.6 0.3 Solar 3.5 3.5 GW Wind 1.3 0.3 11.0 0.7 62% 24% 8.2 US$ 3.4 bn 4.7 3.7 6
Slide 20: 2.3 GW of capacity already in execution
64% …with 2.3 GW of capacity already in execution, representing 66% of our 2024 renewable target… Projects in execution By COD1 By technology 1% 12% 26% 2.3 GW 36% 2.3 GW 49% 2.3 GW 64% 38% 74% Brazil Colombia Peru C. America 2022 2023 Solar Wind New projects in execution Brazil Colombia Peru Panama
Slide 21: Flexible portfolio of projects representing ~56 GW
INTERNAL …along with a flexible portfolio of projects representing ~56 GW, enabling the path to decarbonization Gross Pipeline (GW)1 ~56 ~32 ~24 Gross Pipeline Early Stage Mature Stage Gross Pipeline by country Gross Pipeline by technology 1% 16% 28% 17% 56 GW 66% 56 GW 72% • Brazil Colombia Peru C.
Slide 22: Our strategic actions
Our strategic actions 1 Allocating capital to support decarbonization 2 Maximizing the value of customers through electrification 3 Creating value for ALL
Slide 23: Customers as enabler for our strategy
as enabler to for our customers… 1 Increase Leveraging digital technologies to improve the level of quality service services provided to the grid customers 2 1. New channels according to customers needs and new Improve digital facilities on traditional channels customers relationship 2. Transparency
Slide 24: Quality improvements for grid customer satisfaction
…with relevant quality improvements to reach high levels of grid customer satisfaction… Networks CAPEX 2022-24 Grid customers (mn) SAIDI (hours) 27.7 +6% 9.9 -13% 26.2 10% 9% 8.6 18% US$ 4.9 bn 2021E 2024 2021E 2024 Energy distributed (TWh) SAIFI (times) 63% +9% 130.1 5.0 -10% 4.5 119.7 Argentina Br
Slide 25: Digitalization to improve quality and returns
…along with digitalization efforts to improve quality for our grid customers and returns for our companies… RAB1 (US$ bn) Total energy losses OPEX/Grid customer2 US$/grid customer +26% -2 p.p. 13% 34 -19% 14.6 11% 27 11.6 2021E 2024 2021E 2024 2021E 2024 RAB/Grid customer Total Smart Meters3 (US$/gr
Slide 26: Smart meter deployment in Sao Paulo
…and a relevant deployment of smart meters in Sao Paulo, which are recognized in our tariff remuneration… Enel Sao Paulo 24 cities Figures 2021E Smart meters deployment (th) Sao Paulo State 8.0 mn grid customers >100% 1,385 Total 41.3 TWh investments 751 2022-24 SAIDI: 6.8 hours US$ ~0.3 bn SAIFI: 3
Slide 27: Customer service digitalization and transparency
…while boosting grid customer service digitalization through the development of communication channels and transparency % E-Billing % Digital Payments Automation +19 p.p. 33% +8 p.p. 53% Response 45% 14% Service Digital Interaction 2021E 2024 2021E 2024 % Digital Customers Main initiatives App +11 p
Slide 28: Integrated portfolio of services beyond commodity value
Offering an integrated portfolio of services, beyond commodity value… Enel X CAPEX 2022-24 Electrification trend Other relevant KPIs LatAm electrification transport rate1 2021E 2024 1% 21% Demand Response (MW) 22 309 18% Maintenance & Repair 444 2,120 services (th#) 44% US$ 0.23 bn 0% Credit Cards (
Slide 29: Opportunities in the free market with new services
…seizing opportunities in the free market with new services and energy solutions… Retail CAPEX 2022-24 Customers (th) +49% 16% 10% 5.8 3.9 21% US$ 0.15 bn 53% 2021E 2024 Argentina Brazil Colombia Peru Market Share (%)1 Energy sales (TWh) +32% +3 p.p. 26.7 11% 20.2 8% 2021E 2024 2021E 2024 Rounded fi
Slide 30: Our strategic actions
Our strategic actions 1 Allocating capital to support decarbonization 2 Maximizing the value of customers through electrification 3 Creating value for ALL
Slide 31: Delivering value for ALL
Delivering value for ALL… Shareholders CAPEX related to SDG 2022-24 DPS1 (US$/sh) 3% 0.003 - 0.004 0.003 US$ 8.9 bn 2021E 2024 Group 97% Net Income 1.0 1.2 - 1.6 (US$ bn) CAPEX aligned to SDGs Remaining CAPEX Dividends1 (US$ bn) 0.3 0.4 - 0.5 EPS 97% of total CAPEX aligned (US$/sh) 0.010 0.012 - 0.0
Slide 32: Strategy in numbers
Strategy in numbers Aurelio Bustilho, CFO
Slide 33: Solid track record despite challenging environment
Solid track record despite a recent challenging environment 2018 2021E % EBITDA (US$ bn) 3.4 3.9 +17% Group net income (US$ bn)1 0.9 1.0 +20%2 Net debt (US$ bn) 6.6 6.9 +4% CAPEX (US$ bn) 1.7 3.0 +73% Rounded figures (1) 2018 Group net income excludes a tax credit one-off from Enel Goiás; (2) Percen
Slide 34: Strategy in numbers
Strategy in numbers Financial figures 1 Financial management 2 Financial targets 3 34
Slide 35: Strategy in numbers
Strategy in numbers Financial figures 1 Financial management 2 Financial targets 3 35
Slide 36: EBITDA growth with significant CAPEX commitments
EBITDA growth with significant CAPEX commitments… 2021E 2024 % EBITDA (US$ bn) 3.9 4.9-5.4 +26%-37% Group net income (US$ bn) 1.0 1.2-1.6 +21%-51% Net debt (US$ bn) 6.9 9.1-10.4 Cumulative CAPEX 2022-24 (US$ bn) 8.9 Rounded figures. 36
Slide 37: Networks and Renewables leading investment plans
…with Networks and Renewables leading our investment plans for future growth CAPEX (US$ bn) EBITDA (US$ bn) By country +26% - 37% 4.9 - 5.4 2% 3% 12% 9% 7% 9% 8% 3.9 3% 27% 13% 19% Argentina Brazil Colombia 18% 2021E 2024 34% US$ 2.9 bn Peru C. America US$ 3.0 bn 51% 46% 64% 65% 3% 7% 2021 2024 +26%
Slide 38: Generation EBITDA up driven by renewables growth
Generation EBITDA up driven by renewables growth EBITDA evolution 2021E-24 (US$ bn) Contracted energy (TWh) Financial KPIs +13%-23% 2021 2024 TWh 17.2 19.0 2.0 - 2.2 Brazil 2021E 2024 % 83% 100% 1.8 EBITDA/MWh TWh 14.9 12.9 (US$/MWh)1 21.2 25.5-27.8 Colombia % 100% 90% OPEX/MW 91% 19 19 78% TWh 9.7
Slide 39: Networks EBITDA increase on higher asset base
Networks EBITDA increase on higher asset base, improved demand and lower OPEX EBITDA evolution 2021E-24 (US$ bn) RAB1 (US$ bn) Financial KPIs +26%-43% 14.6 +26% 2.3 – 2.7 11.6 2021E 2024 1.8 EBITDA/Grid customer 71 84 - 96 (US$/grid customer) OPEX/Grid customer 34 27 (US$/grid customer) RAB/Grid cus
Slide 40: Growth for Retail and Enel X mainly from Brazil
Significant growth for Retail and Enel X mainly coming from Brazil EBITDA evolution 2021-24 (US$ bn) EBITDA evolution 2021-24 (US$ bn) +39-59% +61-81% 5% 10% 4% 16% 0.39 - 0.45 26% 0.11 – 0.13 26% 2024 2024 0.39 – 0.45 0.11 – 0.13 US$ bn 0.28 US$ bn 0.07 69% 44% Argentina Brazil Argentina Brazil Col
Slide 41: OPEX savings by ~US$ 0.2 bn
OPEX savings by ~US$ 0.2 bn mainly coming from initiatives in Networks and Retail in Brazil OPEX evolution (US$ bn) +13% Efficiencies mostly related to network digitalization & 0.1 platformization 0.3 1.8 (0.2) 1.6 2021E Fx & CPI ∆ Perimeter Efficiencies 2024 41 Rounded figures.
Slide 42: Strategy in numbers
Strategy in numbers Financial figures 1 Financial management 2 Financial targets 3 42
Slide 43: Incremental debt expands at a lower pace than CAPEX
Incremental debt expands at a lower pace than our CAPEX commitments FFO / Net debt evolution Financial expenses on debt (US$ bn) 0.8 33% 27% 0.4 Net debt / EBITDA 1.8x 1.7x1 2021E 2024 2021E 2024 Net debt (US$ bn) 6.9 9.1 – 10.4 Gross debt (US$ bn) 8.8 11.2 – 12.7 43 Rounded figures. (1) Excludes En
Slide 44: Solid liquidity position and smooth maturities
Solid liquidity position and smooth maturities, with an average life of 3.5 years Liquidity and debt maturity by year (US$ bn) Credit profile Gross debt 2021E: US$ 8.8 bn Baa2 Stable Maturities/Gross debt 14% 15% 17% 3.4 BBB- Stable 1.6 4.8 4.0 A- 1.9 Stable 1.2 1.3 1.5 Available 2022 2023 2024 2022
Slide 45: Strategy in numbers
Strategy in numbers Financial figures 1 Financial management 2 Financial targets 3 45
Slide 46: 2022-2024 targets
2022-2024 targets 2021E 2022 2023 2024 EBITDA (US$ bn) 3.9 4.8 - 5.1 4.8 - 5.3 4.9 - 5.4 Group Net 1.0 1.5 - 1.7 1.4 -1.7 1.2 - 1.6 Income (US$ bn) CAPEX (US$ bn) 3.0 3.2 2.8 2.9 Pay-out ratio 30% 30% 30% 30% Dividends (US$ bn) 0.31 0.46 - 0.50 0.43 - 0.50 0.37 - 0.47 DPS (US$/sh) 0.003 0.004 - 0.00
Slide 47: Closing remarks
Closing remarks Maurizio Bezzeccheri, CEO
Slide 48: Closing remarks
Closing remarks Next tariff review processes are key Increasing clients Strong focus on Continued efforts on for Dx returns, to value through decarbonization sustainability for continue platforms and reaching long-term value electrification and services beyond Net Zero by 2040 creation improve netwo
Slide 49: Annexes
Annexes CNC l
Slide 50: Annexes
Annexes Topics Page GDP & CPI scenario 51 Generation 52 I&N 54 Retail 56 Enel X 57 CAPEX 58 ESG annexes 60 Contact us 66
Slide 51: Base macroeconomic assumptions 2021-2024
Base macroeconomic assumptions 2021-2024 CPI (%) GDP (%) 2021E 2022 2023 2024 2021E 2022 2023 2024 Argentina 46% 32% 25% 20% 7.4% 1.6% 1.8% 1.7% Brazil 7% 4% 3% 3% 4.2% 2.3% 2.2% 2.3% Colombia 3% 4% 3% 3% 6.3% 4.1% 3.8% 3.8% Peru 2% 2% 2% 3% 11.2% 4.6% 4.0% 3.6% Costa Rica 1% 2% 3% 3% 3.5% 3.0% 3.0%
Slide 52: Generation by technology and geography
Generation By technology By geography 4% 4% 17% 13% 25% 14% 14% 23% 28% Capacity Capacity 10% 39% 2021E 13% 2024 1% 2021E 2024 16 GW 19 GW 16 GW 19 GW 23% 24% 1% 44% 37% 35% 31% 4% 18% 5% 21% 25% 14% 19% Production 25% Production 2% 18% 38% 2021E 2024 2021E 2024 51 TWh 3% 66 TWh 51 TWh 66 TWh 25% 24
Slide 53: Additional installed capacity and projects in execution
Generation Additional Installed Capacity & projects in execution Additional Installed Capacity (MW) Solar Wind Total Total MW 2022 2023 2024 2022 2023 2024 2022 2023 2024 2022-2024 Argentina - - - - - - - - - - Brazil - 200 - 396 747 650 396 947 650 1,993 Colombia 187 491 281 - 205 - 187 696 281 1,1
Slide 54: Electricity distributed, grid customers, smart meters
Electricity distributed, Grid customers, Smart meters Electricity distributed (TWh) Grid customers (mn) Smart meters (th) 2021E 2024 2021E 2024 2021E 2024 Argentina 16.3 17.8 2.5 2.6 14.6 14.6 Brazil 80.8 88.2 18.4 19.4 35.4 1,384.9 Colombia 14.5 15.3 3.7 4.0 72.9 74.9 Peru 8.1 8.8 1.5 1.6 17.7 17.7
Slide 55: Current regulatory framework in Latin America
Current regulatory framework in Latin America1 Argentina Brazil Colombia Peru WACC real 12.5% 10.6% 11.5% 12.0%2 pre tax 2021 Next Regulatory 20233 2023 2024 Nov 2022 Period Regulatory Period 5 (Rio, Goias) 5 5 4 Length (years) 4 (Ceará, São Paulo) Metering Owned by Owned by Owned by Owned by Owners
Slide 56: Retail
Retail Customers (th) Volumes (TWh) GWh/Customer 2021E 2024 2021E 2024 2021E 2024 Argentina - 0.1 - 0.1 - 1.1 Brazil 2.0 3.4 9.6 16.5 4.9 4.8 Colombia 1.3 1.4 3.9 4.1 3.0 2.9 Peru 0.6 0.9 6.6 6.0 10.6 6.6 TOTAL 3.9 5.8 20.2 26.7 n/m n/m 56
Slide 57: Enel X
Enel X Charging points (th) Street lighting (mn) Electric buses (th) Demand response (MW) 2021E 2024 2021E 2024 2021E 2024 2021E 2024 Argentina - - - - - - - - Brazil 2.5 7.7 0.2 0.3 0.2 0.9 - 75 Colombia 0.4 2.5 0.4 0.5 0.9 2.2 22 201 Peru - - 0.4 0.4 0.0 0.1 - 33 TOTAL 2.8 10.3 1.0 1.2 1.1 3.2 22
Slide 58: Gross CAPEX
Gross CAPEX Thermal Generation & Renewables Networks Retail Enel X Total Trading (US$ bn) 2022 2023 2024 2022 2023 2024 2022 2023 2024 2022 2023 2024 2022 2023 2024 2022 2023 2024 Argentina 0.1 0.0 0.0 0.0 0.0 0.0 0.2 0.1 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.3 0.2 0.2 Brazil 0.0 0.0 0.0 0.6 0.9 0.8 1.1 0.9
Slide 59: Asset Development CAPEX
Asset Development CAPEX Thermal Generation & Renewables Networks Retail Enel X Total Trading (US$ bn) 2022 2023 2024 2022 2023 2024 2022 2023 2024 2022 2023 2024 2022 2023 2024 2022 2023 2024 Argentina 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 Brazil 0.0 0.0 0.0 0.6 0.8
Slide 60: ESG Annexes
ESG Annexes CNC l
Slide 61: 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 committe Sustainability committe Related parties transactions 61
Slide 62: Board composition
Board composition Board of Directors Board of Directors’ diversity1 Borja Acha Besga Chair 43% 29% Francesca Gostinelli Director 14% Age Gender diversity 14% diversity Giulia Genuardi Director 29% 71% 41-50 51-60 61-70 over 70 Male Female José Antonio Vargas Director 14% 14% Directors’ Committee (C)
Slide 63: CEO's short-term variable remuneration
CEO’s short-term variable remuneration Type of Target Objective Weight Range Profit Net Income 25% Maximum 120% Economic Latin America FFO Financial 15% Maximum 120% Latin America Business Customer's operations 20% Maximum 120% Claims Business 20% Maximum 120% (Commercial operations) Safety Safety i
Slide 64: Carbon Neutral certification
Carbon Neutral certification In partnership with GreenerRoadshowstm, we are pleased to announce that this Investor Day is certified as Carbon Neutral under PAS2060 Certification 64
Slide 65: Disclaimer
Strategic Plan 2022-24 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 presentation and include statements regarding the
Slide 66: Thank you. Contact us
Strategic Plan 2022-24 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 Francisco Basaur
Slide 67: CNC
CNC