Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Investor Day (November 2023)
40 slides from Enel Chile Sa's investor day presentation, Nov 27, 2023
Slide 1: Investor Day Enel Chile
IIIIIIIIIIIIIII Investor Day Enel Chile November 27th, 2023 Santiago, Chile
Slide 2: Agenda
Agenda Strategic update Fabrizio Barderi, CEO The energy context in Chile Our journey & positioning 2024-26 2024-26 Strategic plan Strategic Plan How do we achieve our goals? Our value proposition Giuseppe Turchiarelli, CFO Financial update Plan in numbers 2024-26 Financial plan Strategic Plan Net i
Slide 3: The energy context in Chile
The energy context in Chile IIIIIIIIIIIIIII
Slide 4: Chile is fully committed to the Net Zero Journey despite challenges in macro and market conditions
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 5: Bringing additional complexity but several opportunities to resilient and fast-mover companies
Several topics continue to be addressed to guarantee that Chile reaches its long-term goals Energy sector agenda in Chile Bringing Genco's receivables: Energy Stabilization Mechanism “PEC 3” additional Transmission planning process review to prevent curtailments and complexity but infrastructure del
Slide 6: Our journey & positioning
Our journey & positioning IIIIIIIIIIIIIII
Slide 7: Our journey has been consistent, focused on building a resilient, sustainable, and 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 8: Building a solid portfolio: Enel Chile today
… Building a solid portfolio: Enel Chile today 2023E REN capacity1 (GW) 6.5 REN capacity over total1 (%) 76% A unique CO2 GHG free production over total (%) 74% integrated value-driven Energy sold in Gx2 (TWh) 30.7 company in Chile leading energy Energy distributed3 (TWh) 14.3 electrification and SA
Slide 9: 2024-26 Strategic plan
2024-26 Strategic plan IIIIIIIIIIIIIII
Slide 10: 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 11: How do we achieve our goals?
How do we achieve our goals? IIIIIIIIIIIIIII
Slide 12: Building a robust, resilient, flexible and profitable portfolio
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 13: 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) 2023E 2026 A Commercial strength (0.1) 0.2 ~1.0 Avg. PPA price1 75 65 0.3 Flexible & optimized sourcing Avg. sourcing (0.7) 41 26 0.6 Spot
Slide 14: 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 30.7 2023E 2026 PV1 Our new integrated sales (MWp) 3.6 8.0 61% 76% aimed at leveraging on the Demand response (MW) 10.0 14.7 positive momentum of th
Slide 15: Building a sound commercial strategy supported by long-term visibility, diversification, 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 2023E 2023E 2026 4% +9% 24% 27% 19% 28% 39% 30.7 24% TWh 32% 33% 33.4 57% 64% TWh 77% 45% 19% 9% Regulated s
Slide 16: Backboned by a flexible and effective sourcing allocation, natural hedging potential risks
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 2.6 CCGT 1.2 2.7 5.4 6.8 Spare prod 30.7 33.4 Vs. 6.3 7.5 5.3 1.4 2.6 5.2 3.8 2023E Add 2026 2
Slide 17: … and by 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) 2023E Shell agreement 58.2 57.0 (firm position) Yearly LNG shipment schedule 24.5 26.1 LNG 20.5 Gas Swap
Slide 18: We see an important potential growth in Chile's energy demand, and we have the right pipeline to pursue it
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 19: Our capital allocation in the generation is designed to bring flexibility and maintain our financial sustainability
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 20: We continue to reshape our grid operation, looking for additional efficiencies
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 21: 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 14.3 15.4 45 2024-26 46% 0.3 USD bn 37% 2023E 2026 2023E 2026 2023E 2026 SAIFI3 1.3 1.4 Quality, Grids Connections (
Slide 22: Our value proposition
Our value proposition IIIIIIIIIIIIIII
Slide 23: 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… 2023E 2026 REN capacity1 (GW) 6.5 7.8 A selective renewable REN capacity over total1 (%) 76% 79% platform centered on flexibility and profitability CO2 GHG free production over total (%) 74% 82% Energy sold in Gx2 (T
Slide 24: …confirmed by our plan's targets…
1 2 3 …confirmed by our plan’s targets… EBITDA (USD mn) Net income (USD mn) Payout ratio ~4.7% CAGR 23-26 Min Min Min Min 50% 50% 50% 50% ~15% 1.3-1.5 1.2-1.3 1.2-1.4 0.5-0.7 0.4-0.6 1.0-1.2 0.3-0.5 0.3-0.5 2023 2023E 2025 2026 2023 2023E 2025 2026 Old plan Old plan Old plan Proforma1 Old plan 1. Ne
Slide 25: Plan in numbers
Plan in numbers IIIIIIIIIIIIIII
Slide 26: New plan investments to improve our portfolio resiliency
1 2 3 New plan investments to improve our portfolio resiliency Cumulated total capex (USD mn) 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 27: Capital allocation on generation adequately designed in terms of technology and yearly assignment
1 2 3 Capital allocation on generation adequately designed in terms of technology and yearly assignment… Generation capex (USD mn) Cumulated development capex (USD mn) 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 28: … resulting in improvements in our integrated margin evolution despite the 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 0.03 1.5-1.7 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 Regulated Free market
Slide 29: Capital allocation in grids based on efficiencies as key drivers to sustain new investments
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 15 160-170 2024-26 46% 45 0.3 USD bn 14 25 110-120 37% Quality, Connections
Slide 30: 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% 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 margin margin Old plan
Slide 31: Financial plan
Financial plan IIIIIIIIIIIIIII 31
Slide 32: Our portfolio management and capital allocation aligned with our financial sustainable 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 33: Reducing exposure to current 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 2023E YE 2026 Share of sustainable 14% 8% 11% 21% 36% finance1 3.6 Avg. term of debt (years) 7.7 6.2 Share of USD debt1 94% 96% 0.7 0.6 Share
Slide 34: Net income evolution
Net income evolution IIIIIIIIIIIIIII
Slide 35: Earnings recovery supported by growth initiatives and managerial actions
1 2 3 Earnings recovery supported by growth initiatives and managerial actions Net income evolution 2023E-26 (USD bn) 0.6-0.8 (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 income Minorities Net Income 2023E gains
Slide 36: Targets and closing remarks
Targets and closing remarks IIIIIIIIIIIIIII
Slide 37: Strategic plan targets
Strategic plan targets 2023E 2023E 2024 2026 Proforma1 EBITDA (USD bn) 1.2-1.3 1.2-1.3 1.3-1.5 1.3-1.5 Net income (USD bn) 0.6-0.8 0.5-0.7 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. 37
Slide 38: Several opportunities in the short and long-term that are not included in our plan
Several opportunities in the short and long-term that are not included in our plan Our long-term value proposition… … and there is still much to come A unique integrated value-driven Green hydrogen potential company in Chile leading energy BESS adoption electrification, and decarbonization, reaching
Slide 39: Disclaimer
Strategic plan 2024-26 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
Slide 40: Contact us
Strategic plan 2024-26 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 Claudio Ortiz Download the investor relations app Carla Rojas iOS Android Francisco Basauri - ESG