Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — H1 2020 Earnings Presentation
40 slides from Enel Chile Sa's earnings presentation, Jul 28, 2020
Slide 1: Enel Chile H1 2020 Consolidated results
Enel Chile H1 2020 Consolidated results July, 28th 2020
Slide 2: H1 2020 Consolidated results
H1 2020 Consolidated results Paolo Pallotti CEO
Slide 3: Key highlights of the period
Key highlights of the period Responding to Speed up Renewables Digitalization Liquidity COVID-19 decarbonization expansion Early Steady liquidity Company fully Step ahead disconnection 1GW under to support operational and on clients of Bocamina I construction strategy going services stable centricit
Slide 4: Responding to COVID-19
Responding to COVID-19 Measures to ensure the safety of our people and business continuity Main measures already in place Preventive measures and actions in accordance with the WHO1 and the Chilean Ministry of Health recommendations Ensuring business continuity thanks to our digitalization investmen
Slide 5: Responding to COVID-19: voluntary measures to support communities
Responding to COVID-19 Voluntary measures to support communities E-bus as a mobile laboratory Two e-ambulances to the Diverse voluntary activities to to conduct tests on COVID-19 Chilean Red Cross support our community Enel Chile is committed with its communities needs 4
Slide 6: COVID-19 outlook: volatility on commodity prices and FX
COVID-19 outlook Volatility on commodity prices and FX depreciation Henry Hub (US$/mmbtu) Brent (US$/bbl) CLP/USD (Average) 78.9 81.2 76.9 74.3 817.1 804.5 3.6 69.2 65.2 65.9 74.3 64.7 775.1 816.3 813.4 71.8 72.6 785.2 3.0 63.5 55.4 2.9 2.7 702.6 57.4 681.7 689.5 2.6 2.6 2.4 2.6 2.5 666.5 667.0 675.
Slide 7: COVID-19 outlook: temporary demand decrease
COVID-19 outlook Temporary demand decrease Generation Business Demand1 (TWh) Energy distributed2 (TWh) Lock-down 1.6 Lock-down 2.5 10.0% 10.0% 2.1 1.4 1.4 1.4 1.4 1.4 1.5 1.3 1.4 2.0 2.0 2.0 2.0 2.0 1.3 1.3 1.3 2.0 1.9 1.8 1.8 1.8 1.9 5.0% 1.2 1.1 1.2 5.0% 1.7 1.0 1.0% 1.5 0.0% 0.0% -0.9% -2.2% -1.8
Slide 8: COVID-19 outlook: digitalization to mitigate collection impacts
COVID-19 outlook Digitalization to mitigate impacts in collection Collection (%)1 Evolution of digital payments (%) -2.2pp 99.6 97.4 20% 44% 39% 34% 51% In June 2020, 88% of payments were 80% made through digital channels 56% 61% 66% 49% New payments channels available H1 2019 H1 2020 2017 2018 2019
Slide 9: Hydrology outlook
Hydrology outlook Slightly recover of the hydrology National Hydro production Rainfall by dam Affluent Energy (GWh/day) 600 Rapel 2500 Maule Cumulated rainfall (mm) Cumulated rainfall (mm) 70 500 2000 60 400 1500 50 300 40 1000 200 30 500 100 20 0 0 Jul Oct Nov Dec Jan Jun Feb Mar May Apr Aug Sep Ju
Slide 10: Sector and Regulatory updates
Sector and Regulatory updates Energy sector framework and next steps Contingency measures Structural measures Temporary regulatory Clients portability and Quality changes and measures improvements as main next amid COVID-19 steps for Distribution Law Government stimulus A new roadmap to promote to e
Slide 11: H1 2020 Strategy updates
H1 2020 Strategy updates Paolo Pallotti CEO
Slide 12: Speeding up decarbonization process
Decarbonization & renewables Speeding up decarbonization process Early disconnection to promote decarbonization of our fleet Tarapacá Bocamina I Bocamina II 158 MW 128 MW 350 MW First Chilean electric company to phase out its coal fleet by 2022 Closed on Closure date Closure date Dec 31st 2019 Dec 3
Slide 13: Renewables expansion to enhance commercial strategy
Decarbonization & renewables Speeding up decarbonization process Renewables expansion to enhance commercial strategy Net installed capacity (GW) +1GW +1GW 8.7 7.2 (0.4) Coal phase out acceleration 6.6 4.7 +2GW (Bocamina I and II) Renewable expansion 2.5 Pipeline under development 2.1 jun-20 Under 1
Slide 14: Projects under construction (1/3)
Decarbonization & renewables Boosting renewables expansion Projects under construction (1/3) Antofagasta Region Renaico II Cerro Pabellón III 144 MW 2020/21 Net installed Capacity COD 28 MW Net installed Capacity 2021 COD Recent updates Recent updates • Environmental permit already issued • Environm
Slide 15: Projects under construction (2/3)
Decarbonization & renewables Boosting renewables expansion Projects under construction (2/3) Antofagasta Campos del Sol Azabache Finis Terrae Region 375 MW 2020/21 Net installed Capacity 61 MW Net installed Capacity 2020/21 126 MW COD Net installed Capacity 2021 COD COD Atacama Recent updates Recent
Slide 16: Projects under construction (3/3)
Decarbonization & renewables Boosting renewables expansion Projects under construction (3/3) Los Cóndores 150 MW Installed Capacity Maule Region 2023 End of construction Full assessment of project considering COVID-19, new geological conditions and the best environmental and safety standards 15
Slide 17: Generation Business portfolio: main KPIs performance
Decarbonization & renewables Generation Business portfolio Main KPIs performance Net Installed Capacity (GW) Production (TWh) Energy balance (TWh) -14% -6% 10.5 6% 65% 9.0 9% 1.5 11.9 11.9 Renewable 11.2 11.2 (+1% YoY) 1.9 1.5 1.4 0.2 1.0 2.2 7.2 0.4 5.4 20% 49% 2.3 5.9 GW 2.4 10.5 9.0 4.6 3.8 6.4 5
Slide 18: Infrastructure & Networks portfolio (1/2)
Enabling Infrastructure Infrastructure & Networks portfolio Resilient grids to anchor electrification (1/2) Energy distributed (TWh)1 Main KPIs H1 2019 H1 2020 -6% Clients (million) 1.9 2.0 8.2 7.7 Client App users (#´000) 208 360 H1 2019 H1 2020 Grid management effectiveness: failure due to 604 405
Slide 19: Infrastructure & Networks portfolio (2/2)
Enabling Infrastructure Infrastructure & Networks portfolio Resilient grids to anchor electrification (2/2) High & Medium Voltage Plan Large Clients Connections E-Mobility connection HV/MV1 16 Km network 52 169 Telecomanded 3 Large clients 22 3new electro Terminal 14 MVA MVA substations under conclu
Slide 20: Enel X business portfolio
Enabling Ecosystems Enel X business portfolio Scaling ecosystem by Enel X to drive new revenue streams opportunities Enel X main KPIs Customer engagement platform, H1 2019 H1 2020 boosting electrification Electric buses1 102 435 Growth opportunities through new Charging Points1-2 (public and private
Slide 21: H1 2020 Financial results
H1 2020 Financial results Giuseppe Turchiarelli CFO
Slide 22: H1 2020 Adjusted Financial highlights
H1 2020 Adjusted Financial highlights (USD mn)1 EBITDA Net Income Capex FFO Net Debt 5042 1922 322 166 3,719 (-2% yoy) (-0% yoy) (+109% yoy) (+32% yoy) (+14% yoy) H1 2019 5173 1923 154 1263 3,2714 1. Reported figures. Average exchange rate for the period of 813.37 CLP/USD. Spot exchange rate for the
Slide 23: Business continuity: sustainable capex plan
Sustainable capex plan Business continuity: sustainable capex plan Execution of our sustainable capex plan, 96% linked to SDGs H1 2020 Capex by business and by nature1 H1 2020 Capex asset development by business1 Capex allocation by Quarter (2020) 8% H1 2020 17% H1 2020 H1 2020 Q1 10% 322 USD mn 81%
Slide 24: Q2 2020 EBITDA evolution
Q2 2020 EBITDA evolution Results driven by FX, commodities and efficiencies, despite COVID-19 EBITDA evolution (USD mn)1 Main KPIs +10% Q2 2020 Q2 2019 yoy 20 (15) Hydrology (33) 20 1.4 2.0 -30% (TWh) 19 264 (33) 31 245 249 249 240 (23) Gx Sales 5.4 6.0 -10% (10) (TWh) Dx Sales 3.9 4.3 -10% (TWh) Sy
Slide 25: H1 2020 EBITDA evolution
H1 2020 EBITDA evolution Steady results, COVID-19 and hydrology offset by FX EBITDA evolution (USD mn)1 -2% (149) Hydrology impact offset 666 (42) by lower spot prices 20 8 15 (50) 54 19 517 (40) (22) (10) 475 495 504 488 489 Lower demand mainly result of COVID-19 Impact on PPA prices in H1 2019 PPA
Slide 26: Generation Business EBITDA performance
Generation Business Decarbonization & renewables EBITDA performance EBITDA Q2 2020 evolution (USD mn)1 EBITDA H1 2020 evolution (USD mn)1 28%2 5%2 559 Steady margins despite COVID-19 149 Lower hydrology generation (0.8TWh) 232 182 410 430 Reduction in spot prices resulting in lower energy purchase c
Slide 27: Networks and Enel X business EBITDA performance
& Ecosystems Enabling Infrastructure Networks and Enel X business EBITDA performance EBITDA Q2 2020 (USD mn)1 H1 2020 EBITDA (USD mn)1 Lower demand due to -29% -15% lockdown measures 64 Higher energy losses driven by 120 logistic/ safety restrictions 46 101 E-city new projects despite the lockdown Q
Slide 28: Profit & loss (USD mn)
Profit & loss (USD mn) H1 20201 H1 20191 ∆ yoy Adjusted EBITDA2 504 517 -2% Reported EBITDA 489 666 -27% PPA early termination agreement booked in Q1 2019 D&A and Bad Debt (166) (148) +12% Impairment (855) (343) +150% Reported EBIT (533) 176 -403% Lower EBIT due to Bocamina II impairment booked in J
Slide 29: Cash flow
Cash flow USD bn 600 .0 500 .0 504 400 .0 300 .0 29 (280) 200 .0 (87) 100 .0 166 - Adjusted ∆Working Income Financial FFO 1H201 EBITDA capital taxes expenses & other PY2 517 (188) (95) (108) 126 Delta YoY -2% 49% -130% -20% +32% 1. Adjusted figures by coal fuel impairment on Q2 2020. Average exchang
Slide 30: Debt (USD mn)
Debt (USD mn) Cost of debt declined by 60 bps Gross debt1 Net debt evolution1 +14% +16% 304 (12) 322 3,719 4,152 (166) 3,585 433 3,271 314 3,271 3,719 2 2 2 Dec 31, 2019 Jun 30, 2020 Dec 31, 2019 FFO Capex Dividends FX Jun 30, 2020 Paid Net debt Cash Cost of gross debt3: 4.6% (vs 5.2% Dec 2019) Aver
Slide 31: Liquidity position
Liquidity position Business continuity supported by liquidity position Liquidity Position (US$ Bn)1 Debt maturities (US$ Bn)1 3.5 98% of gross debt has a fixed rate 3.0 3.0 2.5 0.4 0.5 0.9 US$ bn 2.0 1.5 97% of gross debt is USD denominated 1.0 0.5 0.5 0.2 0.2 0.3 0.0 Available committed credit line
Slide 32: H1 2020 Guidance Update
H1 2020 Guidance Update Giuseppe Turchiarelli CFO
Slide 33: Guidance review: adapting estimates to new scenario (1/2)
Guidance review Adapting estimates to new scenario (1/2) H1 20201 COVID-19 Demand Others Bad debt (USD mn) impact Volumes lower than projected EBITDA (34) (10) (44) for the H1 2020 Others costs mainly related to Distribution D&A (6) (6) business (i.e. higher losses and costs with customer care) Net
Slide 34: Guidance review: adapting estimates to new scenario (2/2)
Guidance review Adapting estimates to new scenario (2/2) 2020 Strategic Plan evolution Reported EBITDA Guidance (USD bn) 1.6 EBITDA 2020 guidance revised to include current conditions Negative range impact COVID-19 60 - 70 (USD mn) CAPEX with no significant deviations Hydrology 110 - 120 350 – 450 M
Slide 35: Closing remarks
Closing remarks Resilient Customer Focus on the Financial solidity operations, centricity strategy sustainability of to continue regardless of to support our our long term supporting COVID-19 clients needs strategy energy transition outbreak 34
Slide 36: Enel Chile H1 2020 Consolidated results Annexes
Enel Chile H1 2020 Consolidated results Annexes
Slide 37: 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 38: Credit Rating
Credit Rating Enel Chile and Enel Generación Chile International market Chilean market Enel Chile Enel Chile Standard & Poor’s Moody’s Fitch Ratings Fitch Ratings Feller Rate Affirmed Oct/19 Affirmed Jun/20 Rated Jul/20 Upgraded Jan/20 Affirmed Jul/19 Enel Generación Enel Generación Standard & Poor’
Slide 39: Disclaimer
H1 2020 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
Slide 40: Contact us
H1 2020 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