Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Investor Presentation (August 2024)
86 slides from Enel Chile Sa's investor presentation, August 2024
Slide 1: Enel Chile Corporate presentation August 2024
IIIIIIIIIIIIIII Enel Chile Corporate presentation August 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
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: Energy sector agenda in Chile
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 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 the company Completion of the coal phase-out Consolidating our portfolio through a selective and f
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% value-driven Energy sold in Gx2 (TWh) 30.9 company in Chile leading energy Energy distributed3 (TWh) 14.2 electrification and decarbonizatio
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 a Efficiency and Boosting excellence, efficiency, and effective sustainable 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
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
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: Potential growth in Chile's energy demand and the right pipeline
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: Capital allocation in generation designed for 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: Reshaping grid operation for efficient electrification
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
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 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: Q2 & H1 2024 Results
Q2 & H1 2024 Results IIIIIIIIIIIIIII
Slide 25: 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 26: Remarkable hydrology continues to improve our energy balance
Remarkable hydrology continues to improve our energy balance, and our results Hydro generation Cumulated rainfall Historic Enel Chile hydro generation Enel Chile hydro production (mm) (TWh) (TWh) 2,200 (34% of consolidated Gx) +58% 5.8 2,000 2007 13.2 +72% 1,800 1,600 2.9 3.7 2008 13.8 1,400 2009 14
Slide 27: Renewable expansion is well on track
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 H1 2024 77% North 410 REN + BESS 5.8% ~250 MW Las Salinas1 MW 205 MW COD 16.
Slide 28: 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 4.7 3.1 0.5 +11% 74% 5.5 6.1 2.7 2.9 3.5 0.8
Slide 29: Strong integrated margin offering drives electrification forward
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 30: Significant regulatory milestones reached in the period
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 31: 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 32: Sustainable capex to continue improving portfolio flexibility
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 quarter (2024) 12% 7% 22% 20% 3% Q1 28% 290 290 155 USD mn USD mn Q2 18% USD mn 10% 30% 58% -9% yoy -9% yoy -23% yoy 66
Slide 33: 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 indexation in the free market and higher +6.4x volumes in the regulated market 13 301 12 Better portfolio generation mix reflecting in 60 the posit
Slide 34: Strong H1 2024 EBITDA despite lower gas trading
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 Lower gas margin due to exceptional 106 trading activities carried out in 2023
Slide 35: H1 2024 Net income boosted 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 Higher D&A mainly due to higher renewable (57) (11) projects in operation in 2024 vs. H1 2023 121 Taxes variation mainly
Slide 36: H1 2024 FFO higher than 2023 figures
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 37: 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 3,765 4,444 8,5 0.9 71% 0.5 0.4 0.5 0.1 1.1 0.
Slide 38: 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 38
Slide 39: Strategic plan 2024-26 Financial annexes
Strategic plan 2024-26 Financial annexes IIIIIIIIIIIIIII
Slide 40: 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 41: Capital allocation on generation in terms of technology and year
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 42: Improvements in 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 43: 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 44: Consolidated EBITDA increase according to a 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 45: 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 46: 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 47: Earnings recovery supported by growth initiatives
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 48: 2024-26 Annexes
2024-26 Annexes IIIIIIIIIIIIIII 48
Slide 49: 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 50: 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 51: 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 52: 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) 52
Slide 53: Q2 & H1 2024 Annexes
Q2 & H1 2024 Annexes IIIIIIIIIIIIIII 53
Slide 54: 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 55: 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 56: 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 46 280 37 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 57: 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% REN + BESS El Manzano3 99 MW 16.8% 40.2% +67 MW BESS Los Cóndores 150 MW Southern zone 2.3% 8.7 Don Humberto4 80 MW Renaico II 144 MW GW +67 MW BESS La Cabaña5 106 MW +34 MW BESS Nor
Slide 58: 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 9M 2024: 108 H1 2023: 2.8 H1 2023: 80 H1 2023: 137 168 90 94 91 138 138 140 136 4.7 86 123 124 118 85 119 116 3.1 2.8 3.2 83 84 82 83 83 78 110 118 2.5 2.5 2.6 2.5 2.6 2.7 2.0 2.1 82 85
Slide 59: Hydrology outlook
Hydrology outlook Historic Enel Chile hydro generation (TWh) Rainfall in our most relevant basins1 Rapel Maule 700 2,200 2007 13.2 650 (9% of consolidated Gx) (34% of consolidated Gx) 2,000 600 2008 13.8 1,800 Cumulated rainfall (mm) 550 Cumulated rainfall (mm) 500 1,600 2009 14.9 450 1,400 2010 12.
Slide 60: 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 61: 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 62: 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 63: Organization structure
Organization structure Enel Chile shareholders1 1.1% 64.9% 7.2% 22.6% Chile Market Cap2 Pension Funds USD 3.9 bn Institutional Investors ADR’s 4.1% 64.9% Enel SpA 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 64: 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 65: 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 65
Slide 66: 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 67: 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 B 3.2 3.4 2019 2020 2021 2022 2023 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Scale from 0 to 100 Scale from D- to A Scale from CCC to AAA Scale from 0 to 5 B 89 68 68 86 83 54 57 B- -B -B 49 77 C
Slide 68: 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 69: Chilean market and regulation annexes
Chilean market and regulation annexes IIIIIIIIIIIIIII
Slide 70: Chile country overview
Chile Country overview 2023 Demographic & Electricity industry data 2 economic data 1 20 million Total population ~87 TWh Energy demand 2023 80 years Life expectancy 4,227 kWh Consumption per capita CPI 2022 Metropolitan 7.6% Consumption per region 5,924 kWh capita 335 USD GDP 2021 European region B
Slide 71: Chile - Power Industry Overview
Chile - Power Industry Overview Transmission Chile has a regulated and highly competitive electricity industry, with clearly defined segments fully operated by private companies Generation Generation ▪ Production and sale of energy and capacity, either on the spot market or through supply contracts
Slide 72: Chile - Electricity sector
Chile - Electricity sector Main regulatory entities Autonomous organizations PRESIDENCIA Panel de Expertos MINISTERIO DE ENERGÍA MINISTERIO DE Coordinador Eléctrico ENERGÍA (Subsecretario) Empresas Eléctricas (AG) SUPERINTENDENCIA COMISIÓN CHILENA AGENCIA CHILENA COMISION NACIONAL ELECTRICIDAD Y DE
Slide 73: Chile - System operation
Chile - System operation Description Marginal Cost Model1 Hydro & NCRE Coal & Gas Diesel Marginal Cost (US$ / MWh) Spot Price Generation (MWh) • Physical energy dispatch for each generation company is independent from its contractual obligations, and each facility’s operation is coordinated centrall
Slide 74: Chilean electricity sector: generation overview
Chilean electricity sector Generation overview Chilean system I Net Installed Capacity by Net Generation by Net Installed Capacity by Player - SEN - Dec 2023 Player- SEN - Dec 2023 Technology - SEN - Dec 2023 II (MW) (GWh) (MW) III 10% S 99% of 25% 2% 22% E IV national installed 29% N V RM capacity(
Slide 75: Chilean coal phase out committed scenario
Chilean coal phase out committed scenario1 Complete phase-out of coal-energy sources by 2040. Coal capacity 2018 2023 2025 2030 2040 at year end (MW) 5,512 4,116 2,781 1,687 0 6,000 5,000 Enel Chile, the first Chilean generator to complete the coal phaseout process in 2022: • Tarapacá (158 MW) disco
Slide 76: Chilean scenarios in terms of clean electrification @2050
Chilean scenarios in terms of clean electrification @2050 Different scenarios have different assumptions/purposes and thus results. Benchmark of Energy Transition Scenarios @2050 EnerBase: The business-as-usual scenario, illustrating the effects of current policies and Consultant Electrification rat
Slide 77: Chilean market regulated auctions
Chilean market regulated auctions Brief history recap 2013-2024 USD/MWh DisCos Tender Volume DisCos Tender awarded price Spot price1 TWh 150 148 13 140 12 130 129 128 128 11 120 112 10 110 108 108 9 100 90 91 91 8 83 80 79 7 70 12.0 12.5 6 60 59 57 5 50 48 46 4 40 33 35 3 30 5.1 20 3.9 24 3.6 2 10 2
Slide 78: Energy tariff stabilization mechanism
Energy tariff stabilization mechanism PEC 01, PEC 02 & PEC 03 PEC 01 PEC 02 PEC 03 Total amount: 3,700 USD mn Total amount: 1,800 USD mn Total amount: 1,350 USD mn1 Balance to be settled: Up to 2035 Balance to be settled: Up to 20322 Balance to be settled: Up to 2027 (PEC 02 & PEC 03) 100% guarantee
Slide 79: Enel Chile - Generation business
Enel Chile - Generation business Facilities and Net installed capacity Net installed capacity (GW) Full year 2023 Hydro Solar Wind BESS Geo CCGT O&G Total 2023 North Facilities (#) 1 13 7 - 2 1 2 26 Zone 35% Net installed capacity (GW) 0.02 41% 8.5 1.8 0.5 - 0.1 0.7 0.3 3.4 GW Center Facilities (#)
Slide 80: Distribution regulatory framework (1/2)
Distribution regulatory framework (1/2) Overview Return on Recognition of asset value according to optimized network Regulatory investment WACC real post-tax ranging from 6% - 8% based on the WACC 2020-2024: 6% real term post-tax period length is assets’ value WACC 2024-2028: 6% real term post-tax 4
Slide 81: Distribution regulatory framework (2/2)
Distribution regulatory framework (2/2) Overview Distribution tariff Timeline review process Dec 2022 Apr 2023 Feb 2024 Jun 2024 VAD 2020-2024 Tariff (Process concluded) update completed VNR = USD 1,500 mn Regulatory Expert Panel Regulatory final Tariff decree (Dec 2018) technical final report tarif
Slide 82: Chilean electricity sector: distribution overview
Chilean electricity sector Distribution overview Sales - Dec 2023 Clients - Dec 2023 Networks - Dec 2023 Installed capacity - Dec 2023 (GWh) (#) (Km) (MVA*) 13% 14% 10% 8% 8% 32,501 44% 7,251,158 45% 181,125 44% 28% 18,889 GWh clients Kms. MVA* 51% 29% 36% 34% 11% 10% 12% Enel Distribución Chile Pee
Slide 83: Enel Chile - Networks' business
Enel Chile - Networks’ business Overview 2% 7% 1% 0% Main KPIs Concession area: 2023 End users: 33 municipalities in the metropolitan region FY 2022 FY 2023 End users (mn) 2.1 2.1 90% Physical energy sales (TWh) 17.2 14.4 Residential Others SAIDI (min) 159 122 Commercial Tolls Industrial Smart meter
Slide 84: Chilean regulated tariff
Chilean regulated tariff Bill components breakdown1 Distribution Energy Transmission Cost Taxes Bill of final client cost cost (VAD) ≤350 kWh/month Household 57% 9% 18% 16% Bill >350 kWh/month Household 63% 7% 15% 16% Bill 84 1. Average reference for Enel Distribución Chile concession area as of Jul
Slide 85: Contact us
Contact us Contacts Email ir.enelchile@enel.com Channels – Follow us Herramienta: Youtube » Recursos educativos digitales Forma linkedin, square icon instagram icon facebook, square icon Descripción generada automáticamente con confianza media Isabela Klemes Head of Investor Relations Enel Chile Web
Slide 86: 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