Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — ESG Presentation (December 2020)
64 slides from Enel Chile Sa's sustainability presentation, December 2020
Slide 1: Enel Chile ESG Presentation
Enel Chile ESG Presentation 12/07/2021
Slide 2: Enel Chile at a glance
Enel Chile at a glance Chile The largest utility in Chile with a 4.7 GW Leader in renewables and decarbonization with a diversified portfolio 2.5 GW Highly flexible & efficient. Based on LNG Renewable Capacity Thermal Capacity strong, unique and resilient portfolio, 2.0 Million clients Benchmark in
Slide 3: Our journey toward CO2 reduction, reshaping our Company into platform-based business model
Our journey toward CO2 reduction, reshaping our Company into platform-based business model Chile Utility as a Platform The pathway to 0% Coal generation Zero Coal Leading the Chilean decarbonization process Speed up Looking forward decarbonization Integrated offering of commodity and Decarbonizatio
Slide 4: Chilean Market Context
Chile Chile Chilean Market Context 4
Slide 5: Transition towards low-carbon energy system (1/2)
Transition towards low-carbon energy system (1/2) The Chilean reality and opportunities Chile Decarbonization Chilean renewable growth potential Chile on the path toward a Renewable potential +70x clean generation matrix compared to current installed capacity1 Emissions reduction Total 1.100 MtCO2eq
Slide 6: Transition towards low-carbon energy system (2/2)
Transition towards low-carbon energy system (2/2) The Chilean reality and opportunities Chile Technological evolution Electrification Digital revolution and new New energy uses and decarbonization technologies boosting efficiency will increase energy consumption Solar energy costs Energy ~80 TWh -80
Slide 7: Value proposition
Chile Value proposition 7
Slide 8: Our mission
Our mission Chile Commitment to creating long term share value with the local communities Leading the decarbonization process with no coal production by mid-2022 Boosting energy transition through Enel X business and innovation. Seeking a sustainable future through the UN SDGs commitment 8
Slide 9: Sustainable business model, driving change through growth accelerators
Sustainable business model, driving change through growth accelerators… Chile 1 2021 – 2023 Sustainability Plan 2 Sustainability Country inputs SDGs Enel Group indexes National context Materiality 3 Determined National Contribution * 9 * Growth accelerators include innovation, cyber security, digita
Slide 10: Backbone by a solid sustainable long-term strategy process
…Backbone by a solid sustainable long-term strategy process… Chile Open power for a brighter Sustainability planning process future: We empower sustainable Environmental1 Social1 Governance1 progress • Decarbonization • People we work with • ISO 37001 • Electrification • Community Engagement • Human
Slide 11: … and consolidated Governance practices and policies
… and consolidated Governance practices and policies… Chile Governance We take care of transparency We care about the environment Integrity in our core as a and privacy protection communities, and our workers Ethical code Sustainability and backbone Tax transparency and reporting Community Relations
Slide 12: … reflecting in the sharp improvements of our main ESG scores
… reflecting in the sharp improvements of our main ESG scores Chile MSCI1 FTSE Russell1 SAM ESG Rating 88 1st Company in A 3.2 84 EM BBB Mila 2.7 Chile 76 Categoría 1 Categoría 1 2018 2019 2018 2019 2018 2019 2020 Scale from CCC to AAA Scale from 0 to 5 Scale from 0 to 100 Indexes and ratings 12 1.
Slide 13: Capex allocation with direct impact on SDGs
With Capex allocation with direct impact on SDGs… Chile CAPEX by SDG 2021-23 Circular economy VALUE & Fog collection in PV plants SUSTAINABLE 2% Reuse of concrete from damaged poles GROWTH 20% US$ 2.2 bn Capex related to SDGs 71% PV modules and EV Chargers integrated in Reverse logistic service for
Slide 14: Delivering value for ALL
…Delivering value for ALL Chile Shareholders Society Environment Cumulated Temporary Job DPS (US$/sh ‘000)1 creation deploying new CO2 Emissions reduction renewable capacity (gCO2/KWh) 6,0 5,0 200,00 5.1 5.8K 204 4,0 4.6K 150,00 100,00 50,00 <100 3,0 3.7 2020E 2023 0,00 2020E 2023 2,0 Just transitio
Slide 15: 1. Energy transition
Chile 1. Energy transition 15
Slide 16: Energy Transition leader in Chile, fostering the decarbonization
Decarbonization Energy Transition leader in Chile, fostering the decarbonization… Chile Strategic actions Renewables growth (GW) 2023 Net installed capacity Support profitability through 9,00 00 23% de-risking our matrix 8,00 00 Thermal 7% 0% 7,00 00 16% 6,00 00 2.4 coal 38% Solid pipeline to enable
Slide 17: Robust pipeline and new technologies development
Decarbonization … supported by a robust pipeline and new technologies development… Chile Renewables pipeline (GW) H2 Pilot project GENERATION STORAGE First pilot project for green hydrogen production in Chile 5.4 JV with AME and prospective 13.8 partners 4.6 1.2 Electrolyzer fueled by wind 2.6 energ
Slide 18: Backboned by our coal phase-out strategy
Decarbonization … backboned by our coal phase-out strategy Chile Coal capacity evolution (GW) 0,6 2020E 2022 2023 Coal production 0.1 - 0,5 0.5 (TWh) 2.0 0,5 Coal production on 10% 0.7% - 0,4 Coal phase out total 0.4 0,4 May 2022 Coal emissions 1.8 0.1 - 0,3 (mn ton CO2) 0.3 0,3 Plants YE1 (#) 1 - -
Slide 19: To be fully decarbonized by 2050
Decarbonization To be fully decarbonize by 2050 Chile CO2 equivalent specific emissions, gCO2/kWh 500 ,000 -64% 450 ,000 400 ,000 350 ,000 300 ,000 FULL DECARBONIZATION 278 250 ,000 228 200 ,000 Scope 1 150 ,000 204 (gCO2/kWh) 100 ,000 50, 000 <100 0,0 00 2017 2019 2020E 2023 2050 Emissions free 57%
Slide 20: Improvements in the quality and resilience of our networks
Networks Improvements in the quality and resilience of our networks Chile Strategic actions Key business drivers Main KPIs 2020E 2023 Ensuring the highest level of Digitization End users 2.0 2.1 (mn) quality and efficiencies Energy distributed 15.8 16.9 (TWh) Reliability Improving clients journey an
Slide 21: Enabling electrification, decarbonization and share value creation
Electrification To be our clients reference choice, enabling electrification, decarbonization and share value creation Chile Strategic actions Main KPIs Recharging 2020E 2023 solutions for Promoting electrification, +17k Charging Points1-2 2030E Mining sector efficiency and sustainability (public an
Slide 22: Our vision in numbers 2021-2023
2021-2023 Our vision in numbers
Slide 23: Strategic plan at a glance
Strategic plan at a glance Chile EBITDA (US$ bn) Net Income (US$ bn) CAPEX (US$ bn) Net debt/EBITDA +38% +38% -7% -1.2x 1,2 0 3,0 1,0 0 3.1 2,5 2.5 2.4 2,0 0,8 0 0.7 1.6 1.9 1,5 1.2 0,6 0 0.5 0,4 0 1,0 0,2 0 0,5 0,0 0 0,0 2020E 2023 2020E 1 2023 2020-22 2021-23 2020E 2023 EBITDA FFO/ 36%1 43% 78% 88
Slide 24: Capex allocation focusing on de-risk margins and accelerating electrification
Capex allocation focusing on de-risk margins and accelerating the electrification Chile Total Capex 2021-23 Capex development by business line Capex allocation by 1% year 1% 5% 2021 59% 20% 4% 2.4 2.4 72% 1.7 21% 70% US$ bn US$ bn US$ bn 90% 2022 25% 8% 8% 2023 16% Renewables Thermal Asset developme
Slide 25: Main strategic actions to reach sustainable EBITDA growth by 2023
Main strategic actions, to reach sustainable EBITDA growth by 2023 Chile EBITDA evolution 2020E-23 (US$ bn) +2.4GW renewable in operation up to 2023 and 0% coal production since +38% June/22 0.02 0.02 Renewables PPAs and energy 0.09 Strategic actions 0.32 1.6 services addressing clients sustainabili
Slide 26: Debt evolution reflects capital allocation dynamics
Debt evolution reflects capital allocation dynamics, supported by high cash conversion levels Chile Source of funds allocation 2021-23 (US$ bn) Net debt evolution (US$ bn) Net Debt FFO/EBITDA 7,0 5,0 6,0 3.8 0.2 4.0 (2.4) -14% 4,0 5,0 3,0 4,0 3.6 3.3 3,0 2,0 (1.0) 3.1 2,0 1,0 0.7 88% 1,0 78% 58% 0,0
Slide 27: Sound liquidity position, hedged debt and smooth maturities
Sound liquidity position, hedged debt and smooth maturities Chile Financial Flexibility & main rations Debt maturity by year (US$ bn) YE 2020E YE 2023 3,5 Maturities/Gross Debt New refinancing 3,0 (avg. gross debt) 3.2% 3.5% 3.1 2,5 5% 12% 6% Avg. term of new debt 7 8 2,0 (years) 1,5 % of US$ denomi
Slide 28: Sensitivities & Targets 2021-2023
2021-2023 Sensitivities & Targets 28
Slide 29: Risks & opportunities sensitivities
2021-2023 Risks & opportunities sensitivities Annual average EBITDA impact Chile Commodities & CPI Demand (%) (US$ bn) (US$ bn) +1% +10% commodities Macroeconomics 0.01 0,01 +1% CPI -1% -10% commodities -0.01 -0,01 -1% CPI Hydro production (TWh) (US$ bn) +1TWh Hydro Generation 0.04 -1TWh -0.06 29
Slide 30: Visible value creation for our shareholders
Visible value creation for our shareholders Chile CAGR (%) Plan main drivers 2020E1 2021 2022 2023 2020E-23 EBITDA (US$ bn) 1.2 1.4~1.5 1.4~1.6 1.5~1.7 +9 / +13% Net income (US$ bn) 0.4~0.6 0.6~0.7 0.6~0.7 0.6~0.8 +11 / +16% Pay-out ratio2 50% ≥ 50% ≥ 50% ≥ 50% - 1. 2020E adjusted by decarbonization
Slide 31: 2. People centricity
Chile 2. People centricity 31
Slide 32: Responding to COVID-19
Responding to COVID-19 Measures to ensure the safety of our people and business continuity Chile Our people & Operation Our clients Our communities 74% 100% Boosting digitalization to mitigate impacts in More power of Enel Chile total of our plants collection together personnel and networks working
Slide 33: Smart working program
Smart working program Chile ~6x 74% of Enel Chile total personnel 22% 17% 12% 2017 2018 2019 2020 The Smart Working or telework This initiative makes it possible program allows employees to to reduce emissions due to work one day a week from their transport and provide home or another place with a r
Slide 34: Training, development and people care initiatives
Training, development and people care initiatives Chile 2019 worforce training 22% Enel Chile offers its employees a series of training initiatives to provide them with the necessary skills to perform their daily 48,511 activities, which also contributes to their career development Hours and mobilit
Slide 35: Responding to COVID-19
Responding to COVID-19 Measures to ensure the safety of our people and business continuity Chile Our people & Operation Our clients Our communities 74% 100% Boosting digitalization to mitigate impacts in More power of Enel Chile total of our plants collection together personnel and networks working
Slide 36: The needs of clients are evolving
Levels of complexity and new clients Chile needs evolution Climate change Digital The needs oriented Digital clients +8 TWh /year since of clients are 2019 PPAs 100% renewable +50% Interactions During 2020 evolving Clients centricity constantly Energy as a service - Partnership with 292 k Users Down
Slide 37: Customer centricity
Customer centricity Digitalization to mitigate impacts in collection Chile Collection (%) Number of digital payments (%) -3.9pp -2.8pp 96.3 98.4 95.6 27% 23% 92.4 39% 51% 44% 85% of the collection in September came through digital channels 73% 77% 56% 61% 49% New payments channels available Q3 2019
Slide 38: Responding to COVID-19
Responding to COVID-19 Measures to ensure the safety of our people and business continuity Chile Our people & Operation Our clients Our communities 74% 100% Boosting digitalization to mitigate impacts in More power of Enel Chile total of our plants collection together personnel and networks working
Slide 39: Responding to COVID-19: supporting the economy recovery
Responding to COVID-19 Supporting the economy recovery, guarantying safety conditions Chile Boosting the local economy Renewables cumulated temporary jobs creation1 #´000 Creation of new 4.6 JOBS temporary jobs 3.6 +1.0 JOBS 3.0 2.7 Promoting the 1.8 1.9 2.1 1.8 1.7 local hiring 1.6 Job reconversion
Slide 40: People centricity: local communities
Local communities People centricity Chile Plan actions 2020E1 2030 targets 1 High-quality, inclusive and fair education ~ 99,800 beneficiaries 240,000 beneficiaries in 2030 Access to affordable and clean energy ~ 207,000 beneficiaries 315,000 beneficiaries in 2030 Employment and sustainable 515,000
Slide 41: 3. ESG Backbones
Chile 3. ESG Backbones
Slide 42: Promoting sustainability in Procurement
Promoting sustainability in Procurement Chile Environment Safety Human Rights Circular Economy Partnership with suppliers Qualification Tender Contracts Contract Mgmt ➢ Human Rights & Ethics ➢ Sustainability K ➢ Global Compact Principles ➢ Supplier Performance Mgmt ➢ Health & Safety ➢ Circular by de
Slide 43: Health and safety
Health and safety Chile Total accidents Accident frequency days lost rate due to accidents 30 1.22 13.39 27 1.08 0.76 9.07 18 1.97 2017 2018 2019 2017 2018 2019 2017 2018 2019 43
Slide 44: Shareholders Structure
Shareholders Structure Organization structure Chile Enel Chile shareholders1 Others 1,4% 64.9% Pension Funds 14,5% Chile Institutional Market Cap2 Enel SpA Investors 5.0 $ bn 64,9% 16,2% 100% 93.5% 99.1% 100% ADRs 3,1% Green Power Generación Chile Distribución Chile Enel X 1. As of October 31 2020 4
Slide 45: Focus on Corporate Governance
Focus on Corporate Governance Corporate governance structure Chile Shareholders’ meeting Audit firm 14% 43% BoD’s composition Board of Directors (7 members) 43% Non executive Executive Independent Functions: Directors Committee Audit committe Sustainability committe Related parties transactions 45
Slide 46: Focus on Corporate Governance: Board composition
Focus on Corporate Governance Board composition Chile Board of Directors Board of Directors’ diversity Herman Chadwick Chair Giulio Fazio Director 57% Age Gender diversity diversity Salvatore Bernabei Director 43% 100% 41-50 Over 50 Male Female Daniele Caprini Director Directors’ Committee (C) Ferná
Slide 47: Focus on Corporate Governance: CEO remuneration
Focus on Corporate Governance 40% ESG weight on CEO’s short-term variable remuneration Chile Macro objective Objective Type of target Weight Range Profitability Net Income Chile 25% Maximum 120% Economic Efficiency OPEX Chile 20% Maximum 120% Economic Cash and debt FFO Chile 15% Maximum 120% Financi
Slide 48: Focus on Corporate Governance: Management Team
Focus on Corporate Governance Experience Management Chile 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 Daniel Gome
Slide 49: Closing remarks
Closing remarks Chile Continue to Decarbonization Platformization and Networks to support embrace strategy paved by combined offerings renewables sustainability, renewables and are key to address expansion and ESG tear 1 solid pipeline new clients needs electrification player in Latam 49
Slide 50: Contact us
ESG Presentation Contact us Chile 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 Francisc
Slide 51: Annexes
Chile Annexes
Slide 52: Sustainable Development Goals
Sustainable Development Goals Enel Chile’s commitment Chile 52 making specific contributions, without excluding the company’s contribution to reaching the rest of the goals.
Slide 53: Main KPIs
Main KPIs Chile Emissions (tons CO2e) Water consumption (MMm3) 2017 2018 2019 2017 2018 2019 Scope 1 4,745,000 4,026,000 4,796,822 Total water withdrawal 6.00 5.93 7.00 Scope 2 10,000 11,000 31,672 Net wáter consumption 3.31 2.73 3.82 Scope 3 247,000 225,000 286,298 9,600,983 10,224,976 Waste (tons)
Slide 54: Our workers
Our workers In figures Chile By gender By age By functions Handicap workers 7% 7% 7% 1% 1 22% 3 23% 2,148 2,148 33% 2,148 6 15 78% 5 92% 30% Executives 30< 31-40 41-50 Enel Chile Enel Gx Male Female Professionals and technicians 51-61 61> Enel Dx EGP Employees and others 1. As of December 31, 2019 5
Slide 55: Focus on Corporate Governance: Policies, principles and codes
Focus on Corporate Governance Policies, principles and codes Chile 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
Slide 56: Circular Economy projects
Chile Circular Economy projects
Slide 57: Circular Economy Opportunities
Circular Economy Opportunities Chile • Low exposure to • New Technologies as commodities' price enabling solutions • Low exposure to • New models that create environmental risks value from use vs. sale • Minimize environmental • Keep the value of impacts materials over time • Maintenance + Services
Slide 58: Enel's Circular Economy Strategy
Enel's Circular Economy Strategy Chile CirculAbility Model CIRCULAR SHARING PRODUCT AS A LIFE NEW LIFE CICLES INPUTS PLATFORMS SERVICE EXTENSION % eficiency % upcycling % renewable % of reuse Life % of reuse Increase the Increase the Extension of use factor use factor use % of recycle % of recycle %
Slide 59: PV Facade
PV Facade PV modules and EV Chargers integrated in building from design Chile CIRCULAR PILLAR: Design, supply of equipment, installation and commissioning of a Solar Photovoltaic generation system, with an installed solar power of 186.30 kWp, installed 592 PV modules on the facade of the building, g
Slide 60: Reverse logistic service for network materials
Reverse logistic service for network materials Generating income while recovering valuable materials Chile CIRCULAR PILLAR: I&N CHILE Reverse logistic service for managing scrap materials from Network operation. The service manages all materials, some of SERVICE PROVIDER REVERSE LOGISTIC which gener
Slide 61: Reuse of concrete from damaged poles
Reuse of concrete from damaged poles: Avoiding waste while providing reused material Chile CIRCULAR PILLAR: I&N CHILE On a yearly basis, 1600 m3 (3620ton approx)of concrete form damaged poles are landfilled. The idea is to obtain a milled concrete and use it in civil works as ground stabilizer or as
Slide 62: Circular Management of wastewater in San Isidro
Circular Management Circular Management of wastewater in San Isidro Chile CIRCULAR PILLAR: POWER GENERATION CHILE San Isidro power plant uses freshwater in the cooling towers, which comes from own wells and external sources. Water from own wells is high in sulfates, thus water from external sources
Slide 63: Fog Collection in PV plants
Fog Collection in PV plants Sustainable water supply in the desert Chile CIRCULAR PILLAR: POWER GENERATION CHILE In the north of Chile there is a phenomenon called Camanchaca, which consists of a mist that enters from the coast towards the interior of the continent, which contains a large amount of
Slide 64: Disclaimer
Disclaimer Chile 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 o