Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Investor Presentation (June 2024)
58 slides from Enel Chile Sa's investor presentation, June 2024
Slide 1: Enel Chile Corporate presentation June 2024
IIIIIIIIIIIIIII Enel Chile Corporate presentation June 2024
Slide 2: The energy context in Chile
The energy context in Chile IIIIIIIIIIIIIII
Slide 3: Chile is fully committed to the Net Zero Journey despite challenges
Chile is fully committed to the Net Zero Journey despite challenges in macro and market conditions Commitments towards Energy context decarbonization in recent years Price volatility coming from an 80% renewable generation by increase in commodities prices 2030 Inflationary pressure over the cost Ne
Slide 4: Several topics continue to be addressed to guarantee Chile reaches its long-term goals
Several topics continue to be addressed to guarantee that Chile reaches its long-term goals Energy sector agenda in Chile Bringing Transmission planning process review to prevent curtailments and additional infrastructure delays complexity but Energy storage framework and adoption several Green tax
Slide 5: Our journey & positioning
Our journey & positioning IIIIIIIIIIIIIII
Slide 6: Our journey has been consistent, focused on building a resilient, sustainable, long-term value company
Our journey has been consistent, focused on building a resilient, sustainable, and long-term value company 2016 – 2021 2022 – 2023 2024 – 2026 Integration Unlocking value Sustainable growth Creation of a unique and Completion of the coal phase-out Consolidating our portfolio integrated company throu
Slide 7: Building a solid portfolio: Enel Chile today
… Building a solid portfolio: Enel Chile today 2023 REN capacity1 (GW) 6.5 REN capacity over total1 (%) 77% A unique CO2 GHG free production over total (%) 74% integrated value-driven Energy sold in Gx2 (TWh) 30.9 company in Chile leading energy Energy distributed3 (TWh) 14.2 electrification and SAI
Slide 8: 2024-26 Strategic plan
2024-26 Strategic plan IIIIIIIIIIIIIII
Slide 9: Our strategic pillars and value proposition
Our strategic pillars and value proposition Resiliency, Optimize selective capital allocation, 1 flexibility and strengthening our resilience and flexibility value generation Enel Chile as an Efficiency and Boosting excellence, efficiency, and effective integrated 2 effectiveness response of our ass
Slide 10: How do we achieve our goals?
How do we achieve our goals? IIIIIIIIIIIIIII
Slide 11: Rebalancing our portfolio to diversify and have a better risk-return profile
1 2 3 Rebalancing our portfolio to diversify and have a better risk-return profile in a new market context Continue to shield our margins in a fast-moving environment Integrated offering Leveraging on partnerships (retaining control and improving Building a approach (beyond commodities) returns) rob
Slide 12: Strengthening our generation integrated margin as the core of our strategy
1 2 3 Strengthening our generation’ integrated margin as the core of our strategy Integrated power margin evolution (USD bn) Unitary indicators B ~1.3 (USD/MWh) 2023 2026 A Commercial strength (0.1) 0.3 0.9 Avg. PPA price1 75 65 0.3 Flexible & optimized sourcing Avg. sourcing (0.7) 46 26 0.5 Spot pr
Slide 13: Our commercial strategy brings us sales growth and integrated sales opportunities
1 2 3 Our commercial strategy brings us sales growth and integrated sales opportunities A Integrated offering Sales (TWh) Enel X main products 33.4 B2B 30.9 2023 2026 PV1 Our new integrated sales (MWp) 4.0 8.0 62% 76% aimed at leveraging on the Demand response (MW) 10.0 14.7 positive momentum of the
Slide 14: Building a sound commercial strategy supported by long-term visibility and solid off-takers
1 2 3 Building a sound commercial strategy supported by long-term visibility, diversification, and solid off-takers A Portfolio by off-taker PPAs geographic location PPAs by residual duration 2023 2023 2026 4% +8% 23% 27% 19% 28% 38% 30.9 24% TWh 32% 33% 33.4 57% 64% TWh 77% 45% 20% 9% Regulated sal
Slide 15: Backboned by a flexible and effective sourcing allocation
Backboned by a flexible and effective sourcing allocation, natural hedging potential risks,… A Sales (TWh) Flexible and flexible sourcing (TWh) NCRE Production (TWh) Buy PPAs (TWh) CCGTs production (TWh) B 2.5 CCGT 1.8 2.5 5.5 6.8 Spare prod 30.9 33.4 Vs. 5.7 7.5 5.3 1.3 2.8 5.1 3.8 2023 Add 2026 20
Slide 16: A solid and active commodities portfolio management, guaranteeing gas availability
1 2 3 … and by a solid and active commodities portfolio management, guaranteeing gas availability B Mejillones LNG Natural Gas availability: Firm and complementary position Terminal 2022 (mmBtu) 2023 Shell agreement 58.2 57.0 (firm position) Yearly LNG shipment schedule 24.5 26.1 LNG 20.5 Gas Swap 1
Slide 17: We see an important potential growth in Chile's energy demand
1 2 3 We see an important potential growth in Chile’s energy demand, and we have the right pipeline to pursue it B Several electrification scenarios for Chile1 REN pipeline by maturity2 (GW) Max external scenario (TWh) ~29 ~10 ~3 ~8 Solar ~400 ~5 Enel’s energy transition ~19 Wind Roadmaps scenario ~
Slide 18: Our capital allocation in generation is designed to bring flexibility
1 2 3 Our capital allocation in the generation is designed to bring flexibility and maintain our financial sustainability B Total capex generation: Old vs. New plan (USD bn) Net capacity by technology 34% Additional Additional capacity 2023-25 capacity 2024-26 (GW) 1.9 (GW) 35% 37% 1.4 0.5 9.9 GW 0.
Slide 19: We continue to reshape our grid operation
1 2 3 We continue to reshape our grid operation, looking for additional efficiencies with a more constructive view Continue to shield our margins in a fast-moving environment Building an Continue working with authorities in the regulatory framework Customers digital and self-service effective and sy
Slide 20: Resilience and quality in distribution as a key driver for clean electrification
1 2 3 Resilience and quality in distribution as a key driver for clean electrification Total capex (USD mn) Main KPIs Energy distributed1 (TWh) OPEX / client2 (USD/cl) 17% +8% -19% 55 14.2 15.4 45 2024-26 46% 0.3 USD bn 37% 2023 2026 2023 2026 2023 2026 SAIFI3 1.3 1.4 Quality, Grids Connections (x)
Slide 21: Our value proposition
Our value proposition IIIIIIIIIIIIIII
Slide 22: A value-driven proposition leading to a strong operating positioning in 2026
1 2 3 A value-driven proposition leading to a strong operating positioning in 2026 2023 2026 REN capacity1 (GW) 6.5 7.8 A selective renewable REN capacity over total1 (%) 77% 79% platform centered on flexibility and profitability CO2 GHG free production over total (%) 74% 82% Energy sold in Gx2 (TWh
Slide 23: Strategic plan targets
Strategic plan targets 2023 2023 2024 2026 Proforma1 EBITDA (USD bn) 1.2 1.2 1.3-1.5 1.3-1.5 Net income (USD bn) 0.8 0.6 0.5-0.7 0.4-0.6 Dividend payout (%) Min 50% Min 50% Min 50% Min 50% 1. Excludes the net effect of Arcadia’s sale capital gain of 0.16 USD bn. 23
Slide 24: Q1 2024 Results
Q1 2024 Results IIIIIIIIIIIIIII
Slide 25: Key highlights of the period
Key highlights of the period Portfolio Regulatory Business management context profitability PEC 03’ law was approved Remarkable performance of in the Congress 2024 EBITDA and Net income hydro generation continues results are in line with 2024 New distribution tariff 2020-2024 projections Regulated s
Slide 26: Better generation mix and positive hydrology continue to improve our energy balance
Better generation mix and positive hydrology continue to improve our energy balance Hydro generation Net production and Energy balance (TWh) Historic Enel Chile hydro generation Net production Portfolio mix evolution1 Spot performance (TWh) 2007 13.2 +19% 8.5 8.5 2.3 2008 13.8 6.1 7.8 7.8 1.4 2009 1
Slide 27: A solid portfolio focused on quality and boosting integrated margin
A solid portfolio focused on quality and committed to boosting integrated margin offerings and profitability Integrated offering – Main KPIs Grids main KPIs Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 REN + BESS capacity 6.4 6.5 +1% Charging points2,3 2.3 3.0 +28% Energy distributed6 3.6 3.7 +4%
Slide 28: The energy regulatory framework continues to evolve
The energy regulatory framework continues to evolve; important stages ahead Stabilization energy mechanism (PEC 3) Distribution regulatory cycle Receivables process 2020-2024 Tariff review process (Estimated timeline) (Estimated timeline) Apr 2024 Apr 2024 Q2 2024 Q2 2024 Q3 2024 Dec 2022 Apr 2023 F
Slide 29: First quarter 2024 in line with projected numbers for the year
First quarter 2024 in line with projected numbers for the year Economic & financial performance1 EBITDA Net income FFO (USD mn) (USD mn) (USD mn) Stable +6% +34% 294 293 148 157 8,5 114 85 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 1. Comparisons between periods in the Financial Income Statemen
Slide 30: Sustainable capex to continue improving portfolio flexibility
Sustainable capex to continue improving portfolio flexibility boosting the energy transition CAPEX by business and by nature1 REN and BESS development CAPEX1 Q1 2024 Q1 2024 Capex allocation by 5% quarter (2024) 12% 19% 3% 22% Q1 25% 179 179 96 USD USD USD mn Q2 27% 9% 30% 38% mn mn 58% 73% yoy +65%
Slide 31: Q1 2024 EBITDA in line with projected numbers for the year
Q1 2024 EBITDA in line with projected numbers for the year EBITDA evolution (USD mn)1 Higher PPA sales mainly related to indexation in the free market and higher volumes in Stable regulated market Lower gas margin due to exceptional trading activities carried out in 2023 294 47 4 293 40 (1) Better p
Slide 32: Q1 2024 Net income in line with projected numbers for the year
Q1 2024 Net income in line with projected numbers for the year Net income evolution (USD mn)1 Higher D&A mainly due to higher renewable projects in operation in Q1 2024 +6% 19 2 1 157 Positive financial results mainly related to PEC 2.0 148 interest recognition 0 (13) Taxes positive variation mainly
Slide 33: Q1 2024 FFO higher than 2023 figures due to lower PEC effects
Q1 2024 FFO higher than 2023 figures due to lower PEC effects FFO evolution (USD mn)1 Stabilization mechanism accounts continue playing an 293 important role in Q1 2024 FFO 15 (105) (29) (26) 114 Working capital results as expected (34) EBITDA Stabilization PEC Working Income Financial FFO mechanism
Slide 34: Sound liquidity to support our short-term capital needs
Sound liquidity to support our short-term capital needs Debt and liquidity Gross debt (USD mn)1 Liquidity position (USD bn) Debt maturities (USD bn)1 Maturities/Gross Debt -1% 22% 18% 5% 9% 10% 2.6 4,408 4,384 642 450 2.1 Already paid USD bn in April 1.8 3,765 3,934 8,5 0.8 78% 0.4 0.4 0.5 0.2 0.8 0
Slide 35: Closing remarks
Closing remarks 1 2 3 Strong operating Continue to and financial Sound liquidity monitor performance position fulfills evolution of the in the quarter our short-term regulatory supports FY needs framework targets for Dx and Gx 35
Slide 36: Strategic plan 2024-26 Financial Annexes
Strategic plan 2024-26 Financial Annexes IIIIIIIIIIIIIII
Slide 37: New plan investments to improve our portfolio resiliency
1 2 3 New plan investments to improve our portfolio resiliency Cumulated total capex (USD bn) Total capex allocation (USD bn) Old plan 2023-25 New plan 2024-26 0.9 2% ~0.8 0.8 18% ~0.7 0.7 0.7 1% 2023-25 15% 10% 1.7 USD bn 62% 9% 2024-26 44% ~0.3 15% 2.3 USD bn 25% Old New Old New Old New New 2023 2
Slide 38: Capital allocation on generation adequately designed
1 2 3 Capital allocation on generation adequately designed in terms of technology and yearly assignment… Generation capex (USD bn) Cumulated development capex (USD bn) Cumulated total capex by type Total capex by year by technology Total capex by technology Additional capacity (GW) 0.5 2% 4% 0.3 0.4
Slide 39: Improvements in our integrated margin despite termination of regulated PPAs
1 2 3 … resulting in improvements in our integrated margin evolution despite the termination of regulated PPAs Generation EBITDA evolution (USD bn) +6% ~0.4 FY 2023: 0.03 1.5-1.7 US$ 1,181 mn 0.2 (0.3) 1.2-1.4 1.1-1.3 0.3 (0.1) (0.03) Flexible & optimized sourcing (0.7) 0.6 Commercial strength 2023E
Slide 40: Capital allocation in grids based on efficiencies
1 2 3 Capital allocation in grids based on efficiencies as key drivers to sustain new investments Grids cumulated total capex (USD bn) Efficiency as key driver EBITDA evolution (USD mn) Opex/client1 (USD/cl) -19% +48% 17% 55 FY 2023: 15 160-170 US$ 103 mn 2024-26 46% 45 0.3 USD bn 14 25 110-120 37%
Slide 41: Consolidated EBITDA increase according to a more conservative scenario
1 2 3 Consolidated EBITDA increase according to a more conservative scenario EBITDA evolution (USD bn) EBITDA Old vs. New plan (USD bn) ~15% ~3% FY 2023: US$ 1,237 mn 2.6-3.0 0.1 0.1 0.1 2.7-3.1 (0.3) 0.1 1.3-1.5 (0.1) 1.2-1.3 0.3 2023E Energy Gas Grids 2026 2024-25 Energy Gas Grids Others 2024-25 m
Slide 42: Portfolio management and capital allocation aligned with financial strategy
1 2 3 Our portfolio management and capital allocation aligned with our financial sustainable strategy Source of funds (USD bn) Net debt evolution (USD bn) Net debt/ ≤ 2.5x ≤ 3.0x EBITDA (x) 3.4-3.8 -14% Partnership 0.5-0.9 3.8 (2.3) 3.6-3.2 (1.0) 0.1-0.5 Sources of Gross Dividends Change in 2023E 20
Slide 43: Reducing exposure to market volatility with a comfortable debt profile
1 2 3 All in all, reducing exposure to current market volatility with a comfortable debt profile Financial main indicators Debt maturity by year2 (USD bn) YE 2023 YE 2026 Share of sustainable 14% 8% 11% 23% 36% finance1 3.6 Avg. term of debt (years) 6.1 6.2 Share of USD debt1 93% 96% 0.7 0.6 Share o
Slide 44: Earnings recovery supported by growth initiatives and managerial actions
1 2 3 Earnings recovery supported by growth initiatives and managerial actions Net income evolution 2023-26 (USD bn) FY 2023: US$ 0.8 bn FY 2023: 0.6-0.8 US$ 0.6 bn (0.16) 0.15 (0.10) 0.5-0.7 0.5-0.7 0.4-0.6 (0.04) (0.01) (0.03) Net Income Capital Net Income Δ EBITDA Δ D&A Δ Financial Δ Taxes Net in
Slide 45: 2024-26 Annexes
2024-26 Annexes IIIIIIIIIIIIIII 45
Slide 46: Annexes
Annexes 2024-26 Financial and operational annexes Main assumptions and macroeconomics Total capex per business lines Generation installed capacity and production Enel Chile corporate information Credit ratings Organization structure Asset's location Management Enel Chile corporate information Invest
Slide 47: Main assumptions
Main assumptions GDP CPI Foreign exchange YE Macroeconomics (%) (%) (CLP/USD) 2024 2025 2026 2024 2025 2026 2024 2025 2026 1.8 2.4 2.5 3.4 2.7 3.0 818 820 828 Commodities Henry Hub Brent (USD/MMbtu) (USD/bbl) 2024 2025 2026 2024 2025 2026 3.7 4.0 4.3 84 81 75 Quillota spot price Crucero spot price A
Slide 48: Capex by business lines
Capex by business lines Total capex (USD bn) Capex 2024-26 allocation (USD bn) Business lines 2024 2025 2026 2024-26 0.9 1% Renewable 0.3 0.3 0.4 1.0 0.7 13% 3% 0.7 12% BESS 0.2 0.2 0.3 0.6 17% 1% 17% 15% 29% Thermal 0.1 0.1 0.1 0.3 17% 22% Grids 0.1 0.1 0.1 0.3 25% Others 0.0 0.0 0.0 0.0 43% 45% 40
Slide 49: Installed capacity and production by technology
Installed capacity and production by technology Net installed capacity (GW) Net production (TWh) 2023 2026 2023 2026 +16% -11% 18% 26% 35% 37% 35% 41% 8.5 9.9 24.1 21.5 47% GW GW TWh 51% TWh 35% 8% 24% 0% 23% 21% Thermal Hydro Renewable BESS (ex - hydro) 49
Slide 50: Credit ratings: Enel Chile and Enel Generación Chile
Credit ratings: 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 51: Organization structure
Organization structure Enel Chile shareholders1 64.9% 1.1% Chile 6.9% Pension Funds 22.8% Institutional Investors Market Cap2 ADR’s USD 4.0 bn Enel SpA Others 100.0% 93.5% 99.1% 100.0% 4.3% 64.9% Green Power Chile Generación Chile Distribución Chile Enel X Chile 1. As of March 31, 2024 2. Market cap
Slide 52: 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 52
Slide 53: 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 54: Enel Chile is the largest utility player in Chile in installed capacity and clients
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 6.5 GW Net installed capacity Enablers o
Slide 55: 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 L. Schnaidt People and Organization M. Rinchi General Services D. Gomez Regulatory Karla Zapata Enel X Chile (CEO) J. Díaz Audit J. St
Slide 56: 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 57: Disclaimer
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, belief or curr
Slide 58: Contact us
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 Monica de Martino - NY Office Mobile