Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Investor Presentation (September 2020)
57 slides from Enel Chile Sa's investor presentation, September 2020
Slide 1: Enel Chile Corporate Presentation
Enel Chile Corporate Presentation
Slide 2: Company Representatives
Company Representatives Paolo Pallotti Chief Executive Officer Enel Chile Giuseppe Turchiarelli Chief Financial Officer Enel Chile Isabela Klemes Head of Investor Relations Enel Chile 2 Ollague Chile
Slide 3: Key investment considerations
Key investment considerations Diversified and resilient long-term investment vehicle in energy sector in the country ESG fully integrated into the corporate long- term strategy Leading the decarbonization process with no coal exposure by 2022 First renewable operator in Chile with 76% renewable capa
Slide 4: Enel Chile: Diversified long-term investment vehicle
Enel Chile Diversified long-term investment vehicle Lalackama Chile
Slide 5: Enel Chile as part of Enel Group
Enel Chile as part of Enel Group Enel Group is leading the new energy world… 1st network 46 GW 40 GW 6.1 GW 70 mn operator1 Renewable capacity2 Conventional capacity3 Demand response customers4 Leading decarbonization New services enable World’s largest private player Largest retail customer base in
Slide 6: Our positioning
Our positioning We are the largest utility in Chile with a strong, unique and resilient portfolio1 4.7 GW renewable capacity Largest renewable player 65% emission free 17.1 TWh energy distributed 4.7 GW renewable capacity 13.8 TWh generation 2.0 mn end users 66% emission free Benchmark in the region
Slide 7: Strategy Rationale
Strategy Rationale Leading energy transition, boosting renewables and electrification at a national level Generation Distribution Enel X +2GW 2019 2022 2019 2022 Renewable capacity SAIDI LTM1 454 184 160 Charging points4 2,954 8.7 (minutes) 7.2 Smart lighting Telecontrol equipment2 2,148 2,969 (000’
Slide 8: Strategy Rationale: Capital allocation
Strategy Rationale Capital allocation aiming to reduce time to EBITDA and with direct impact on SDGs Capex purposes allocation SDGs impacts at 2022 Capex that generates Capex to SDGs EBITDA by 2022 2019 2022 Renewable capacity (GW) 4.7 6.6 Coal Thermal capacity (GW) 0.4 0.0 2.5 2.5 US$ bn US$ bn Dig
Slide 9: Leading the decarbonization process
Enel Chile Leading the decarbonization process
Slide 10: 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 11: Coal-free fleet by 2022 (1/3)
Decarbonization & renewables Coal-free fleet by 2022 (1/3) Consolidating our leadership as first renewable operator in Chile Positive outlook arising from coal phase out Net installed capacity by 2022 Increase attractiveness and visibility by a new ESG better profile 24% 24% Thermal 0% 42% coal 8.7
Slide 12: Coal-free fleet by 2022 (2/3)
Decarbonization & renewables Coal-free fleet by 2022 (2/3) Consolidating our leadership as first renewable operator in Chile Rational arguments1 National coal fired power plants closure timeline Official decarbonization agreement (1,3972 MW) and COP25 announcements Higher installed capacity and prod
Slide 13: Coal-free fleet by 2022 (3/3)
Decarbonization & renewables Coal-free fleet by 2022 (3/3) Consolidating our leadership as first renewable operator in Chile Higher penetration of renewable energy Country installed capacity Country installed capacity Estimates as of 2019 Estimates as of 2020 (GW) (GW) 30.8 32.3 33.4 33.4 29.8 28.3
Slide 14: 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 Mature pipeline 2.1 jun-20 In execution (const
Slide 15: Renewables expansion: projects under construction
Decarbonization & renewables Renewables expansion Projects under construction + 61 MW Solar + 126 MW Solar Renewables expansion to enhance commercial strategy + 375 MW Solar Azabache Campos del Sol Finis Terrae Solar power plant. First hybrid plant Solar power plant Solar power plant. Capacity expan
Slide 16: Renewables expansion: projects under construction
Decarbonization & renewables Renewables expansion Projects under construction +28 MW Geothermal Renewables expansion to enhance commercial strategy + 150 MW Hydro + 144 MW Wind Los Cóndores Renaico II Cerro Pabellón III Run of the river power plant Wind farm Geothermal plant expansion 150 MW Net Ins
Slide 17: Customer centricity
enabling ecosystem Decarbonization, renewables & Customer centricity Energy transition comes with new consumption trends Energy transition sets a new consumption trend Renewable sources have been demanded by customers New trends towards conscientious energy consumption worldwide Scaling ecosystem by
Slide 18: Diversified client portfolio
Decarbonization & renewables Diversified client portfolio Commercial strategy leading to margin stability Contracts profile (TWh/year)1 Supplying several industries 25.8 25.6 26.9 24.2 59% 56% 55% 52% Mining Warehouse Universities Pulp & paper 41% 44% 45% 48% Vineyards 2021 2022 2023 2024 Retail Agr
Slide 19: 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 H1 2019 H1 2020 Electric buses1 102 435 Charging Points1-2 (public and private) 331 604 Public lighting1 (‘000) 251 285 e-Home services3 (‘000) 62.8 77.0 +150 New ele
Slide 20: Infrastructure & Networks portfolio
Enabling Infrastructure Infrastructure & Networks portfolio Resilient grids to anchor electrification High & Medium Voltage Plan Large Clients Connections E-Mobility connection 16 HV/MV 1 52 Km network 169 Telecomanded 3 Large clients 22 3 new electro Terminal 14 MVA MVA substations concluded equip.
Slide 21: ESG fully integrated into the strategy
Enel Chile ESG fully integrated into the strategy
Slide 22: Our ESG journey
Our ESG journey Open Power for a brighter future: We empower sustainable progress Enel Chile is part of Chile Index Emerging the Robecco SAM Enel Chile Top 100 “A” rate in 2019 Market and Sustainability MILA Index Latin America Emerging ISO 37001 Best EM Market Index Yearbook 2020 Emerging Markets I
Slide 23: Our ESG journey
Our ESG journey A path that shaped the Company as a key player in a new energy market 2018 2019 H1 2020 2022 Owned RES capacity/ Renewable capacity 63% 65% 65% 76% Total capacity Decarbonization & renewables Coal power plants # 3 2 2 - Clients # mn 1.92 1.97 1.99 2.13 Enabling Infrastructure Telecon
Slide 24: Chilean market updates
Chilean market updates Headquarters, Chile
Slide 25: 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 26: Responding to COVID-19: voluntary measures
Responding to COVID-19 Voluntary measures to support communities E-bus as a mobile laboratory to Two e-ambulances to the Diverse voluntary activities to conduct tests on COVID-19 Chilean Red Cross support our community Enel Chile is committed with its communities needs 26
Slide 27: COVID-19 outlook: commodity prices and FX
COVID-19 outlook Volatility on commodity prices and FX depreciation Henry Hub (US$/mmbtu) Brent (US$/bbl) API2 (US$/ton) 71.3 71.1 66.1 67.0 81.8 63.5 64.0 64.1 64.0 62.8 63.0 3.6 59.0 59.7 74.4 69.6 3.0 55.4 2.9 59.5 2.7 60.4 59.8 2.6 2.6 2.6 43.4 44.8 58.3 56.5 58.4 2.4 2.5 40.1 54.2 56.1 2.3 2.3
Slide 28: COVID-19 outlook: temporary demand decrease
COVID-19 outlook Temporary demand decrease Generation Business Demand1 (TWh) Energy distributed2 (TWh) 2.5 Lock-down 10.0% 1.6 Lock-down 10.0% 2.1 1.4 1.4 1.4 1.4 1.4 1.5 2.0 1.4 1.3 2.0 2.0 2.0 2.0 2.0 1.3 1.3 1.3 1.9 1.8 1.8 1.8 1.9 5.0% 1.2 5.0% 1.7 1.2 1.1 1.0 1.5 0.0% 1.0% 0.0% -0.9% -2.2% -1.8
Slide 29: COVID-19 outlook: digitalization in collection
COVID-19 outlook Digitalization to mitigate impacts in collection Collection (%)1 Evolution of digital payments (%) -2.2pp 99.6 97.4 20% 39% 34% 51% 44% In August 2020, 85% of payments 80% were made through digital channels 61% 66% 49% 56% New payments channels available H1 2019 H1 2020 2017 2018 20
Slide 30: Hydrology outlook
Hydrology outlook Slightly recover of the hydrology National Hydro production (GWh/day)1 Rainfall by dam1 Affluent Energy by Probability of Exceedance 600 Rapel 2500 Maule 80 500 Cumulated rainfall (mm) 2000 Cumulated rainfall (mm) 70 400 60 1500 300 50 1000 200 40 100 500 30 0 0 20 Jan Feb Mar Apr
Slide 31: 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 32: Guidance Update
Enel Chile Guidance Update
Slide 33: Guidance review (1/2)
Guidance review Adapting estimates to new scenario (1/2) H1 20201 Demand Others Bad debt COVID-19 (USD mn) impact Volumes lower than projected EBITDA (34) (10) (44) for the H1 2020 Others costs mainly related to Distribution business (i.e. higher losses and D&A (6) (6) costs with customer care) Bad
Slide 34: Guidance review (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 Negative range impact (USD mn) COVID-19 60 - 70 include current conditions Hydrology 110 - 120 350 – 450 CAPEX with no significant deviations M
Slide 35: H1 2020 Financial Results
Enel Chile H1 2020 Financial Results 35
Slide 36: 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) (--% 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 37: 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 asset development by H1 2020 Capex by business and by nature1 business1 Capex allocation by Quarter (2020) 8% 17% H1 2020 H1 2020 H1 2020 Q1 10% 5% 261 USD mn
Slide 38: 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) (33) 20 Hydrology 1.4 2.0 -30% 19 264 (TWh) (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 39: H1 2020 EBITDA evolution
H1 2020 EBITDA evolution Steady results, COVID-19 and hydrology offset by FX EBITDA evolution (USD mn)1 (149) -2% Hydrology impact offset 666 (42) 20 15 by lower spot prices (50) 54 19 8 517 (40) (22) 495 504 475 488 489 (10) Lower demand mainly result of COVID-19 Impact on PPA prices in H1 2019 PPA
Slide 40: 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-19 149 232 Lower hydrology generation (0.8TWh) 182 410 430 Reduction in spot prices resulting in Q2 2019 Q2 2020 H1 2019
Slide 41: 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 -29% -15% Lower demand due to lockdown measures 64 120 Higher energy losses driven by 46 101 logistic/ safety restrictions E-city new projects despite the lockdown Q
Slide 42: 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 43: Cash flow
Cash flow USD bn 600 .0 500 .0 504 400 .0 300 .0 29 200 .0 (280) (87) 166 100 .0 - Adjusted EBITDA ∆Working Income Financial FFO 1H201 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 44: 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 3,719 3,271 Dec 31, 2019 Jun 30, 2020 Dec 31, 2019 FFO 2 Capex 2 Dividends Paid2 FX Jun 30, 2020 Net debt Cash Cost of gross debt3: 4.6% (vs 5.2% Dec 2019) Avera
Slide 45: Liquidity position
Liquidity position1 Business continuity supported by liquidity position Liquidity Position (US$ Bn) Debt maturity (US$ Bn) 3.5 3.0 3.0 98% of gross debt has a fixed rate 2.5 2.0 0.4 97% of gross debt is USD 0.5 0.9 US$ bn denominated 1.5 1.0 0.5 0.5 0.2 0.2 0.3 0.0 Smooth debt maturity profile Avail
Slide 46: Closing remarks
Enel Chile Closing remarks Valle de los Vientos, Chile
Slide 47: Closing Remarks
Enel Chile Closing Remarks Resilient operations, regardless of COVID-19 outbreak Focus on the sustainability of our long term strategy Customer centricity strategy to support our clients needs Financial solidity to continue supporting energy transition 47
Slide 48: Investor Relations Contacts
Investor Relations 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 Francisco Basauri iOS A
Slide 49: CNC
CNC
Slide 50: Forward-looking statements 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 current expecta
Slide 51: Annexes
Enel Chile Annexes 7 A Vas } aN. AEG FS or
Slide 52: Shareholders Structure
Shareholders Structure Organization structure Enel Chile shareholders1 Others 64.9% 1.4% Pension Funds 14.2% Chile Institutional Investor 16.5% Market Cap2 4.8 $ bn Enel SpA 64.9% 93.5% ADR's 100.0% 99.1% 100.0% 3.1% Green Power Chile Generación Chile Distribución Chile Enel X Chile 1. As of August
Slide 53: 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 Aug/20 Affirmed Jun/20 Rated Jul/20 Upgraded Jan/20 Affirmed Jul/19 Enel Generación Enel Generación Standard & Poor’
Slide 54: Our positioning
Our positioning Enel Chile Largest Utility player in Chile in installed capacity and number of clients Thermal generation Renewables generation Distribution area Empresa Eléctrica Colina Finis Terrae Cerro Pabellón Pampa Norte Atacama Valle de los Vientos Luz Andes Lalackama I Lalackama II Sierra Go
Slide 55: People Centricity: Engaging local Communities
People Centricity Engaging local Communities Plan actions 2019¹ 2020-2022 targets¹ • High-quality, inclusive and fair • 139,000 beneficiaries in • 79,800 beneficiaries education 20221 • Access to affordable and • 200,000 beneficiaries in • 198.900 beneficiaries clean energy 20221 • Employment and •
Slide 56: Corporate Governance: Board of Directors
Corporate Governance Corporate governance structure Board of Directors H. Chadwick Chairman of the Board G. Fazio Director S. Bernabei Director F. Gazmuri Director D. Caprini Director G. Jofré Director P. Cabrera Director Independent Non independent 56
Slide 57: Corporate Governance: Management of the company
Corporate Governance Management of the company Management Team P. Pallotti Chief Executive Officer A. Pellegrini Sustainability & Community Relations G. Turchiarelli Chief Financial Officer R. Puentes Procurement L. Schnaidt People and Organization A. Barrios Digital Solutions M. De Martino Regulati