Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Q3 2023 Earnings Presentation
31 slides from Enel Chile Sa's earnings presentation, Nov 2, 2023
Slide 1: Enel Chile - Consolidated results Q3 & 9M
Q3 & 9M Enel Chile - Consolidated results November 02, 2023
Slide 2: Key highlights of the period
Key highlights of the period Portfolio Market Business & management context financial perfomance ~ 0.4 GW of renewables added Distribution tariff 2020-2024 EBITDA +60% in 9M 2023 in the final stage higher than 9M 20221 Closing of Arcadia dial PEC 2.0 factoring process FFO + USD 790 mn (USD 556 mn eq
Slide 3: Leading the energy transition through continuous optimization of our portfolio and energy sourcing
Leading the energy transition through a continuous optimization of our portfolio and energy sourcing Additional renewables’ contribution Optimization of our solar portfolio up to 9M 2023 Growth contribution 9M 2023 Net installed capacity 9M 2023 Agreement to sell Arcadia Generación Solar ~0.4 GW Oil
Slide 4: Better hydrology and commodities management actions are contributing to improve our results
Better hydrology and commodities management actions are contributing to improve our results Full availability of LNG and Argentine Better hydro contribution in 2023 natural gas as planned Enel Chile hydro production Better snow levels in Enel Chile gas consumption and traded (MMm3/d) (TWh) Maule and
Slide 5: Grids focused on quality, and Enel X committed to boosting integrated margin offerings
Grids focused on quality, and Enel X committed to boosting integrated margin offerings Grids main KPIs Regulatory update Enel X Chile main KPIs 9M 2022 9M 2023 VAD 2020-2024 9M 2022 9M 2023 Charging points4,5 1.8 2.6 +44% Energy distributed1 +2% (‘000) 10.6 10.8 Regulatory (TWh) Dec Electric buses4,
Slide 6: Business performance as expected, following guidance and business plan for the year
Business performance as expected, following guidance and business plan for the year Economic & financial performance EBITDA1,2 Net income1,3 FFO4 (USD mn) (USD mn) (USD mn) +60% +87% 428 783 336 491 179 2.2x (362) 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 proforma proforma proforma proforma +7
Slide 7: Sustainable capex to continue improving portfolio flexibility boosting the energy transition
Sustainable capex to continue improving portfolio flexibility boosting the energy transition 9M 2023 CAPEX by business and by nature1 9M 2023 Renewable development CAPEX1 Capex allocation 12% by quarter (2023) 19% 29% 547 547 37% 364 Q1 12% 6% 19% USD mn 1% USD mn USD mn -27% yoy -27% yoy -33% yoy Q
Slide 8: Q3 2023 EBITDA reflects strong hydrology, better energy sourcing cost, and distribution performance
Q3 2023 EBITDA reflects strong hydrology, better energy sourcing cost, and distribution performance EBITDA evolution (USD mn)1 +55% PPA sales are mainly related to lower Chilean Pesos evaluation in the period +71% 132 Strong hydro contribution and a net 16 6 391 seller position in the spot market in
Slide 9: 9M 2023 EBITDA soars as a result of better hydrology and distribution performance
9M 2023 EBITDA soars as a result of better hydrology and distribution performance EBITDA evolution (USD mn)1 PPA sales growth mainly related to +38% indexation and higher capacity payments +60% 17 24 783 172 Strong hydro contribution and a net (19) seller position in the spot market in 567 98 the Q3
Slide 10: 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) +11% +6% Portfolio mix evolution (TWh)2 Spot performance (TWh) 17.6 +1.1 TWh from new 16.5 renewable capacity 7.7 7.7 7.8 7.8 0.8 0.8 0.9 0.6 0.5 4.1 3.1 4.5 4.6 0.3 0.2 7.0 7.0 -0.3 1.0
Slide 11: 2023 Net income reflecting operational improvement in the period
2023 Net income reflecting operational improvement in the period Net income evolution (USD mn)1 Strong performance in the generation +87% business drives EBITDA growth by 60% 293 23 (12) 336 (143) (4) Positive financial results reflect lower factoring costs and PEC 2.0 interests 179 9M EBITDA2 D&A3
Slide 12: 2023 FFO higher than 2022 figures due to cash management actions and PEC 2.0 factoring
2023 FFO higher than 2022 figures due to cash management actions and PEC 2.0 factoring FFO proforma evolution (USD mn)1 PEC 2.0 factoring execution offsetting the stabilization mechanism accounts accumulated during 2023 783 329 (119) (17) Working capital reflects IVA tax related 428 to the Stabiliza
Slide 13: Sound liquidity position to support debt maturity
Sound liquidity position to support debt maturity. Arcadia proceeds to support further deleveraging Gross debt (USD mn)1 Liquidity position (USD mn) Debt maturities (USD bn)1 +5% 2.9 Maturities/Gross Debt 30% 1% 17% 9% 14% 4,915 4,660 328 0.5 2.2 1,023 USD bn 4,587 0.8 70% 0.7 3,637 0.5 0.2 0.8 0.2
Slide 14: Closing remarks
Closing remarks Hydrology and gas availability boosted our results 2024 - 2026 Asset rotation plan successfully Strategic Plan concluded to be presented on Nov 27th Recovery of our financial position enables us to be ready to capture future opportunities 14
Slide 15: Q3 & 9M 2023 Annexes
Q3 & 9M 2023 Annexes ene
Slide 16: Q3 Profit & Loss (USD mn)
Q3 Profit & Loss (USD mn)1 Q3 2023 Q3 2022 ∆ yoy Proforma EBITDA2 391 229 +71% Reported EBITDA 391 252 +55% D&A (82) (72) +15% Bad Debt (3) (2) +36% Impairment 0 0 - Reported EBIT 306 178 +72% Financial expenses (1) (29) -95% Results from equity investments 1 2 -22% Reported EBT 306 150 2.0x Income
Slide 17: 9M Profit & Loss (USD mn)
9M Profit & Loss (USD mn)1 9M 2023 9M 2022 ∆ yoy Proforma EBITDA2 783 491 +60% Reported EBITDA 783 505 +55% D&A (223) (213) +5% Bad Debt (13) (21) -40% Impairment 0 0 - Reported EBIT 547 271 +102% Financial expenses (60) (86) -30% Results from equity investments 11 5 +123% Reported EBT 498 190 2.6x
Slide 18: Main business EBITDA breakdown
Main business EBITDA breakdown EBITDA Generation EBITDA Grids business line (USD mn)1,2 business line (USD mn)1,3 +56% +56% +157% +27% 742 78 61 475 376 241 26 10 Q3 2022 Q3 2023 9M 2022 9M 2023 Q3 2022 Q3 2023 9M 2022 9M 2023 Adjusted Adjusted Proforma Proforma 1. Comparisons between periods in the
Slide 19: Consolidation of our renewable matrix throughout the country
Consolidation of our renewable matrix throughout the country Central zone Net installed capacity4 PMGD1 83 MW 7% 77% Renewable 17% El Manzano 99 MW 8.8 40% +67 MW BESS 150 MW GW Los Cóndores Southern zone Don Humberto 80 MW Renaico II 144 MW 37% +67 MW BESS La Cabaña 106 MW Hydro CCGT5 +34 MW BESS N
Slide 20: Commodities and Spot price outlook
Commodities and Spot price outlook Henry Hub (USD/mmbtu) Brent (USD/bbl) API 2 (USD/Ton) 9M 2023: 2.7 9M 2023: 82 9M 2023: 130 9M 2022: 6.8 124 9M 2022: 105 9M 2022: 308 119 389 113 113 8.9 9.4 365 8.7 104 353 7.3 98 100 319 328 328 6.6 6.9 6.7 325 268 6.3 94 5.3 87 85 195 228 4.7 4.6 5.2 82 79 80 8
Slide 21: Hydrology outlook
Hydrology outlook Historic Enel Chile hydro generation (TWh) Rainfall in our most relevant basins1 2007 13.2 Rapel Maule 700 2,200 (9% of consolidated Gx) (34% of consolidated Gx) 2008 13.8 650 2,000 600 1,800 Cumulated rainfall (mm) 550 Cumulated rainfall (mm) 2009 14.9 500 1,600 450 1,400 2010 12.
Slide 22: 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 strategy supported by Leading the renewable sector in Chile Grid infrastructure to solid and diversified enable electrification assets 6.7 GW Renewable capacity net installed Enablers
Slide 23: 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 24: Organization structure
Organization structure Enel Chile shareholders1 64.9% 1.2% 6.2% Chile 23.5% Pension Funds Market Cap2 Institutional Investors USD 4.0 bn ADR’s 4.2% Enel SpA 64.9% Others 100.0% 93.5% 99.1% 100.0% 49.0% Green Power Chile Generación Chile Distribución Chile Enel X Chile Non-consolidated assets 1. As o
Slide 25: Management of the Company
Management of the Company Sustainability & Community F. Barderi Chief Executive Officer M. Palomar (CEO) Relations G. Turchiarelli Chief Financial Officer R. Puentes Procurement (CFO) L. Schnaidt People and Organization A. Barrios Digital Solutions D. Gomez Regulation M. Rinchi Services & Security J
Slide 26: Corporate governance structure
Corporate governance structure 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 26
Slide 27: Board composition
Board composition Board of Directors Board of Directors’ diversity Herman Chadwick Chair Monica Girardi Director 57% Age Gender 71% 29% diversity diversity Isabella Alessio Director 43% 41-50 Over 50 Male Female Salvatore Bernabei Director Directors’ Committee (C) Fernán Gazmuri 43% Director. Tenure
Slide 28: ESG raters and rankings
ESG raters and rankings1 88 88 88 4.6 4.4 84 A- AA AA AA A B 3.2 3.4 2019 2020 2021 2022 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 Scale from D- to A Scale from 0 to 5 Scale from 0 to 100 Scale from CCC to AAA B 89 68 57 B- -B 83 54 49 C 77 72 2019 2020 2021 2022 2019 2020 2021 2022 2019 202
Slide 29: 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 30: Contact us
Q3 & 9M 2023 consolidated results 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 Ba
Slide 31: Disclaimer
Q3 & 9M 2023 Results 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 i