Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Q2 2024 Earnings Presentation
33 slides from Enel Chile Sa's earnings presentation, Jul 25, 2024
Slide 1: Enel Chile - Consolidated results Q2 & H1
Q2 & H1 Enel Chile - Consolidated results July 25th, 2024
Slide 2: Key highlights of the period
Key highlights of the period Portfolio Regulatory Business management context profitability Outstanding hydro production Regulatory decree on PEC 3 Robust H1 2024 EBITDA continues in Q2 2024, resulting in a better published. Important milestone and Net income vs. portfolio mix generation towards fac
Slide 3: Remarkable hydrology continues to improve our energy balance, and our results
Remarkable hydrology continues to improve our energy balance, and our results Hydro generation Historic Enel Chile hydro generation Enel Chile hydro production Cumulated rainfall (mm) (TWh) (TWh) 2,200 (34% of consolidated Gx) +58% 5.8 2,000 +72% 1,800 2007 13.2 1,600 2.9 3.7 2008 13.8 1,400 2009 14
Slide 4: Renewable expansion is well on track, bringing us more flexibility
Renewable expansion is well on track, bringing us more flexibility and consolidating our generation portfolio REN & BESS growth contribution Net additional capacity COD granted Net installed capacity H1 2024 up to July 2024 North 410 H1 2024 77% ~250 MW Las Salinas1 MW 5.8% REN + BESS 205 MW COD 16.
Slide 5: New renewable capacity and better hydrology improved our energy balance
New renewable capacity and better hydrology improved our energy balance Net production (TWh) Energy balance (TWh) +0.3 TWh Portfolio mix evolution1 Spot performance +15% from new renewable 8.5 8.5 1.7 12.1 capacity 7.6 7.6 1.1 1.7 1.3 0.9 1.1 10.6 0.4 5.0 0.5 4.7 3.1 +11% 74% 5.5 6.1 0.8 0.7 2.7 3.5
Slide 6: Strong integrated margin offering continues to drive the electrification journey
Strong integrated margin offering continues to drive the electrification journey forward Integrated offering – Main KPIs Grids main KPIs H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 REN + BESS capacity +5% Charging points2,3 +25% Energy distributed6 +3% (GW) 6.5 6.8 (‘000) 2.4 3.0 7.1 7.4 (TWh) R
Slide 7: In Chile's regulatory landscape, significant milestones were reached
In Chile’s regulatory landscape, significant milestones were reached during this period Stabilization energy mechanism (PEC 3) Distribution tariff review process PEC 01 PEC 02 PEC 03 VAD 2020-2024 (Process concluded) Total amount: 1,350 USD mn 1,800 USD mn 3,700 USD mn Dec 2022 Apr 2023 Feb 2024 Jun
Slide 8: Strong business performance in the first half of 2024
Strong business performance in the first half of 2024, mainly driven by better hydro and portfolio mix contribution Economic & financial performance1 EBITDA Net income FFO2 (USD mn) (USD mn) (USD mn) 597 +74% +2.2x 267 343 8,5 52 121 (4) H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 Q2 47 301 +6.4
Slide 9: Sustainable capex to continue improving portfolio flexibility and profitability
Sustainable capex to continue improving portfolio flexibility and profitability CAPEX by business and by nature1 REN and BESS development CAPEX1 H1 2024 H1 2024 Capex allocation by 12% 7% quarter (2024) 22% 20% 3% Q1 28% 290 290 155 USD mn 10% 30% USD mn USD mn 58% -23% yoy Q2 18% -9% yoy -9% yoy 44
Slide 10: Q2 2024 EBITDA positively impacted by strong hydrology
Q2 2024 EBITDA positively impacted by strong hydrology and better portfolio generation mix EBITDA evolution (USD mn)1 Higher PPA sales mainly related to +6.4x indexation in the free market and higher 13 301 volumes in the regulated market 12 60 Better portfolio generation mix reflecting in 70 the po
Slide 11: Strong H1 2024 EBITDA despite lower gas trading activities
Strong H1 2024 EBITDA despite lower gas trading activities in 2024 EBITDA evolution (USD mn)1 Higher PPA sales mainly related to indexation in the free market and higher +74% volumes in the regulated market 16 16 597 108 106 Lower gas margin due to exceptional trading activities carried out in 2023
Slide 12: H1 2024 Net income boosted mainly by improvements in EBITDA
H1 2024 Net income boosted mainly by improvements in EBITDA Net income evolution (USD mn)1 Higher EBITDA due to better hydrology and renewable contribution +2.2x 254 (34) (6) 267 (57) Higher D&A mainly due to higher renewable (11) projects in operation in 2024 vs. H1 2023 121 Taxes variation mainly
Slide 13: H1 2024 FFO higher than 2023 figures due to solid EBITDA
H1 2024 FFO higher than 2023 figures due to solid EBITDA contribution FFO evolution (USD mn)1 PEC accounts continue playing an important role 597 in H1 2024, despite factorings already executed 70 (216) (142) Income taxes include taxes paid on the sale of Arcadia assets (137) 52 (120) EBITDA Stabili
Slide 14: Sound liquidity to support our investment plan
Sound liquidity to support our investment plan and short-term capital needs Debt and liquidity Gross debt (USD mn)1 Liquidity position (USD bn) Debt maturities (USD bn)1 Maturities/Gross Debt +8% 2.8 4,750 29% 2% 10% 18% 10% 4,408 305 642 1.1 1.8 USD bn 4,444 0.9 3,765 8,5 0.5 0.5 71% 0.4 1.1 0.1 0.
Slide 15: Closing remarks
Closing remarks 1 2 3 2024 NCRE Evolving Business growth regulatory performance in successfully framework with line with the deployed as relevant updates 2024 guidance expected 15
Slide 16: Q2 & H1 2024 Annexes
Ss Q2 &H1 2024 Annexes enel
Slide 17: Q2 Profit & Loss (USD mn)
Q2 Profit & Loss (USD mn)1 Q2 2024 Q2 2023 ∆ yoy Reported EBITDA 301 47 +543% D&A (79) (64) +24% Bad Debt (8) (1) +499% Impairment 0 0 - Reported EBIT 215 (18) n.m. Financial expenses (55) (33) +67% Results from equity investments 2 5 -69% Reported EBT 162 (45) -456% Income taxes (41) 17 -344% Minor
Slide 18: H1 Profit & Loss (USD mn)
H1 Profit & Loss (USD mn)1 H1 2024 H1 2023 ∆ yoy Reported EBITDA 597 343 +74% D&A (154) (123) +26% Bad Debt (11) (9) +34% Impairment 0 0 - Reported EBIT 431 211 +104% Financial expenses (52) (51) +2% Results from equity investments 2 8 -71% Reported EBT 382 168 +127% Income taxes (90) (33) +170% Min
Slide 19: Main business EBITDA breakdown
Main business EBITDA breakdown EBITDA Generation EBITDA Grids business line (USD mn)1 business line (USD mn)1 +9.4x +79% +39% +28% 571 319 58 46 37 280 26 30 Q2 2023 Q2 2024 H1 2023 H1 2024 Q2 2023 Q2 2024 H1 2023 H1 2024 1. Comparisons between periods in the Financial Income Statements are made usi
Slide 20: Consolidation of our renewable matrix throughout the country
Consolidation of our renewable matrix throughout the country Net installed capacity6 Central zone 5.8% PMGD 83 MW 77% 16.8% El Manzano3 99 MW REN + BESS +67 MW BESS 40.2% 2.3% 8.7 Los Cóndores 150 MW Southern zone GW Don Humberto4 80 MW Renaico II 144 MW +67 MW BESS La Cabaña5 106 MW 34.8% +34 MW BE
Slide 21: Commodities and Spot price outlook
Commodities and Spot price outlook Henry Hub (USD/mmBTU) Brent (USD/bbl) API 2 (USD/Ton) H1 2024: 2.1 H1 2024: 84 H1 2024: 108 H1 2023: 2.8 H1 2023: 80 H1 2023: 137 94 168 90 91 85 83 86 83 138 138 140 136 83 84 82 124 118 4.7 78 119 116 110 118 123 3.1 2.5 2.0 2.1 2.5 2.6 2.5 2.6 2.8 3.2 2.7 82 85
Slide 22: Hydrology outlook
Hydrology outlook Historic Enel Chile hydro generation (TWh) Rainfall in our most relevant basins1 Rapel Maule 700 2,200 (9% of consolidated Gx) (34% of consolidated Gx) 650 2007 13.2 600 2,000 1,800 Cumulated rainfall (mm) 550 Cumulated rainfall (mm) 2008 13.8 1,600 500 450 1,400 2009 14.9 400 1,20
Slide 23: 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 Leading the renewable sector in Chile Grid infrastructure strategy supported by to enable electrification solid and diversified assets REN+BESS 6.8 GW Net installed capacity Enablers o
Slide 24: Glossary
Glossary Term Definition Term Definition AGM Annual general meeting HH Henry hub (natural gas) API2 Coal price reference indicator KPI Key performance indicator BESS Battery energy storage system LNG Liquefied natural gas CCGT Combined cycle gas turbine LTM Last twelve months CLP Chilean pesos curre
Slide 25: 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 BBB Stable BBB+ Stable AA+(cl) Stable AA(cl) Stable Enel Generación Enel Generación Standard & Poor’s Fitch Ratings Fitch Ratings F
Slide 26: Organization structure
Organization structure Enel Chile shareholders1 64.9% 1.1% 7.2% Chile 22.6% Pension Funds Market Cap2 Institutional Investors USD 3.9 bn ADR’s 4.1% Enel SpA 64.9% Others 100.0% 93.5% 99.1% 100.0% Green Power Chile Generación Chile Distribución Chile Enel X Chile 1. As of June 30, 2024 2. Market cap
Slide 27: Management of the Company
Management of the Company G. Turchiarelli Chief Executive Officer R. Puentes Procurement G. Turchiarelli Chief Financial Officer (a.i) A. Barrios ICT Real Estate and C. Navarrete Deputy Chief Financial Officer M. Rinchi General Services L. Schnaidt People and Organization A. Pinto Security D. Valdés
Slide 28: Corporate governance structure
Corporate governance structure Shareholders’ meeting Audit firm 43% BoD’s composition Board of Directors (7 members) 57% Executive of Enel SpA Independent Functions: Directors Committee Audit committe Sustainability committe Related parties transactions 28
Slide 29: Board composition
Board composition Board of Directors Board of Directors’ diversity Marcelo Castillo Chair Monica Girardi Director 43% Gender diversity 57% Isabella Alessio Director Male Female Salvatore Bernabei Director Directors’ Committee (C) María Teresa Vial1 43% Director Tenure 57% Nationality 43% diversity d
Slide 30: Sustainability raters and rankings
Sustainabilty raters and rankings1 88 88 88 86 4.6 4.4 4.5 84 A- AA AA AA AA A- A 3.2 3.4 B 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2021 2022 2023 Scale from 0 to 100 Scale from D- to A Scale from CCC to AAA Scale from 0 to 5 89 B 68 68 86 -B 83 54 57 B- -B 49 77 C
Slide 31: 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 32: Contact us
Q2 & H1 2024 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 Carla Rojas Download the investor relations app Francisco Basauri - ESG iOS Android Mo
Slide 33: Disclaimer
Q2 & H1 2024 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