Enel Americas S.a. · BCS:ENELAM
Enel Americas — Q2 2023 Earnings Presentation
42 slides from Enel Americas's earnings presentation, Jul 26, 2023
Slide 1: Second Quarter & First Half Enel Américas Consolidated results
Second Quarter & First Half Enel Américas Consolidated results July 26th, 2023
Slide 2: Key highlights and operational performance
Q2 & H1 2023 Key highlights and operational performance Aurelio Bustilho CEO
Slide 3: Q2 2023 key highlights
Q2 2023 key highlights Operational Financial Net debt performance results evolution ~90%1 US$ 1.2 bn2 US$ 5.5 bn REScapacity +13% vs PY -20% vs YE2022 Disposal of thermal Gx in Q2 Adjusted EBITDA Net debt decrease due to Argentina and Colombia in increase mainly driven by higher cash position and li
Slide 4: Generation operational highlights
Generation operational highlights Strong growth in RES net production driven by better hydrology and capacity execution Installed capacity (GW) Net production & energy sales (TWh) -1% -2% 25.6 25.4 Net production 0.1 0.2 Hydro 12.5 3.0 1.2 3.0 0.0 0.2 12.2 3.9 Wind & Solar 6% 2% 2.7 0.5 0.8 0.7 5.9
Slide 5: Renewables development
Renewables development Over 540 MW of add. capacity in H1’23 in Brazil, Colombia, Peru and Panama H1 CAPEX breakdown Projects in execution Gross pipeline1 (GW) 2% 3% 2% 25% ~26 Brazil 33% US$ Colombia 1.9 0.6 bn Peru GW ~1 ~26 70% C. America 65% ~54 1.9 2 Gross Early Stage BESS Mature In Capacity ad
Slide 6: Grids operational highlights
Grids operational highlights Digitalization efforts and increase in net RAB to drive future growth and profitability Electricity distributed1 (TWh) Grid customers (mn) Quality indicators2-3 SAIDI (hours) SAIFI (times) +390k H1 2022 H1 2023 H1 2022 H1 2023 +3% Argentina 14.6 18.5 4.9 6.8 60.7 26.5 54
Slide 7: Gross CAPEX
Gross CAPEX Growth CAPEX mainly captured by Renewables in core countries Adj. CAPEX by country Adj. CAPEX by business1 Adj. asset development2 CAPEX by business 2% 2% 1% 2% 3% 6% 5% 14% 23% Q2 2023 42% US$ 804 mn US$ 804 mn US$ 460 mn (+4% YoY) (+4% YoY) (+32% YoY) 52% 64% Grids 84% Argentina Renewa
Slide 8: Corporate simplification process
Corporate simplification process Moving forward with our goal of focusing on core countries Completed & announced processes ▪ Thermal generation assets in Argentina Sales completed during H1 2023 Corporate simplification ▪ CELG, Fortaleza and Cien CELG and Fortaleza completed in 2022. Cien’s concess
Slide 9: Economic and financial performance
Q2 & H1 2023 Economic and financial performance
Slide 10: Financial highlights (US$ mn)
Financial highlights (US$ mn) Adjusted EBITDA increase mainly due to better results in Dx Brazil Q2 2022 Q2 2023 Δ% YoY H1 2022 H1 2023 Δ% YoY Reported EBITDA 1,030 955 -7.4% 2,036 1,899 -6.7% Adjusted EBITDA Increases in Dx Brazil and 1 renewables, partially offset by Fx Adjusted EBITDA 1,069 1,210
Slide 11: EBITDA breakdown: Q2 2023 results
EBITDA breakdown: Q2 2023 results Growth in Renewables and Grids more than offset Fx headwinds EBITDA evolution by business line (US$ mn) EBITDA by country (US$ mn) 1% -7% +16% 176 1,130 Brazil 1,030 106 1,041 40% 955 US$ Colombia 72 901 (13) 955 mn Peru (17) 59% (129) (86) C. America (9) 1% 8% Grid
Slide 12: EBITDA breakdown: H1 2023 results
EBITDA breakdown: H1 2023 results Generation and Grids lead adjusted EBITDA expansion EBITDA evolution by business line (US$ mn) EBITDA by country (US$ mn) 3% -7% +15% 367 2,266 132 Brazil 181 2,079 36% 2,036 US$ 1,801 23 1,899 Colombia (27) (30) 1,899 mn Peru (236) (180) 61% C. America 1% 7% Grids
Slide 13: Cash flow (US$ mn)
Cash flow (US$ mn) Lower FFO mainly due to higher NWC (253) PIS/COFINS and CVA-related (188) Pension provisions (130) Bad debt provisions 1,899 US$ 715 mn (571) growth CAPEX (342) (225) 761 (1,334) (573) 1 2 3 4 EBITDA NWC Taxes paid Net financial FFO CAPEX FCF expenses H1 2022 2,036 (323) (349) (26
Slide 14: Debt (US$ mn)
Debt (US$ mn) Peru deconsolidation & additional cash in from disposals improves Net debt/EBITDA ratio Gross and net debt1 Net debt evolution Gross debt breakdown Jun. 23 - 20% 11% - 5% 49 6,868 573 Currency (1,467) BRL 8,046 5,463 24% US$ 7,639 (907) 348 COP 1,178 7.6 bn USD 2,176 65% 6,868 5,463 1%
Slide 15: Closing remarks
Closing remarks Solid operational results across all businesses to confirm our 2023 target Strong financial position to execute our organic CAPEX plan Continued development and delivery of new renewable capacity, fostering green electrification Advancing on corporate simplification to focus on strat
Slide 16: Annexes
Q2 & H1 2023 Annexes ry Cl
Slide 17: Current scenario
Current scenario Local currencies, inflation, electricity distributed and interest rates Macroeconomic variables1 Electricity distributed Interest rates Local currencies Inflation3 vs USD ∆% Q22 ∆% H12 June June ‘23 vs ‘22 ‘23 vs ‘22 2022 2023 -1.2% June June Argentina Argentina -105% - 105% 64.0% 1
Slide 18: Regulation Update Q2 2023
Regulation Update Q2 2023 • Resolution ENRE 422/23: Published on May 29, it approved the Program for the Distribution Tariff Review in 2023 and the first quarter of 2024. It included a Gantt chart of tasks up to the first quarter of 2024. The schedule is being analyzed in order to define the next st
Slide 19: Operating exhibits: Net installed capacity & production
Operating exhibits Net installed capacity & Total net production: Breakdown by source and geography Net installed capacity (MW) MW Hydro Wind Solar Oil-Gas CCGT Coal Total Argentina 1,328 0 0 0 0 0 1,328 Brazil 1,272 2,904 1,234 0 0 0 5,410 Colombia 3,097 0 274 175 0 226 3,771 Peru 793 132 302 721 4
Slide 20: Operating exhibits: Distribution companies
Operating exhibits Distribution companies Energy sold SAIDI SAIFI Energy Concession Next tariff Distributor Clients City, Country LTM (GWh) (hours) (times) losses (%) area (km2) review Edesur 2,621,748 18,179 18.5 6.8 16.5% Buenos Aires, Argentina 3,309 2023 Enel Dx Rio 3,073,858 12,817 8.5 4.2 19.8
Slide 21: Operating exhibits: Enel X KPIs
Operating exhibits Enel X KPIs Jun. 2022 Jun. 2023 Δ% Charging points1 (th) 7.3 10.1 38% Street lighting (th) 887 933 +5% e-Buses (#) 1,113 3,402 >100% M&R2 contracts (th) 510 811 +59% PV3 (MWp installed) 36 51 +42% Credit cards (th) 945 919 -14% 21 (1) Includes charging points managed by Enel X Way
Slide 22: Financial exhibits: Reported results
Financial exhibits Reported results Q2 2023 Q2 2022 D YoY H1 2023 H1 2022 ∆YoY Revenues 3,230 3,580 -10% 6,370 7,001 -9% Gross Margin 1,337 1,461 -8% 2,667 2,867 -7% OPEX -382 -431 -11% -768 -831 -8% Reported EBITDA 955 1,030 -7% 1,899 2,036 -7% D&A1 -328 -440 -25% -615 -771 -20% EBIT 627 590 +6% 1,
Slide 23: Financial exhibits: Effects on EBITDA
Financial exhibits Effects on EBITDA Q2 2022 Q2 2023 Δ% YoY H1 2022 H1 2023 Δ% YoY Reported EBITDA 1,030 955 -7.4% 2,036 1,899 -6.7% Goiás -46 0 -93 0 Fortaleza -42 0 -67 0 Cien -13 1 -25 -13 Thermal Gx Argentina -29 0 -50 -17 FX effect 0 79 0 164 Peru 168 176 329 367 Adjusted EBITDA 1,069 1,210 13.
Slide 24: Generation business results
Generation business results Quarter & YTD results Q2 EBITDA evolution (US$ mn) H1 EBITDA by country (US$ mn) +6% EBITDA in Colombia - 17% explained by higher hydro production and prices 6% 4% +1% 469 385 390 +11% EBITDA in Brazil1 due to 791 39% growth in renewables (-11% YoY) 51% >95% of EBITDA com
Slide 25: Grids business results
Grids business results Quarter & YTD results Q2 EBITDA evolution (US$ mn) H1 EBITDA by country (US$ mn) + 3% Solid electricity distributed growth in Brazil and Colombia +12% 592 25% 573 527 +20% EBITDA in Brazil1 on tariff 1,171 indexation (-% YoY) 75% Tariff reviews in Brazil in line with expectati
Slide 26: Argentina (US$ mn) Quarter results
Argentina (US$ mn) Quarter results Generation 1 Grids 1 Total 2 Q2 2022 Q2 2023 % Q2 2022 Q2 2023 % Q2 2022 Q2 2023 % Revenues 57 3 -94% 229 271 18% 287 275 -4% Procurements -2 -1 -78% -187 -204 9% -190 -204 8% and Services OPEX -19 9 <-100% -71 -70 0% -91 -65 -28% EBITDA 35 11 -68% -28 -3 -91% 6 5
Slide 27: Argentina (US$ mn) YTD results
Argentina (US$ mn) YTD results Generation 1 Grids 1 Total 2 H1 2022 H1 2023 % H1 2022 H1 2023 % H1 2022 H1 2023 % Revenues 104 45 -57% 418 501 20% 522 546 4% Procurements -5 -3 -52% -317 -414 31% -323 -417 29% and Services OPEX -37 -14 -62% -134 -140 5% -172 -159 -7% EBITDA 62 29 -54% -32 -54 68% 27
Slide 28: Brazil (US$ mn) Quarter results
Brazil (US$ mn) Quarter results Generation 1 Grids 1 Total 2 Q2 2022 Q2 2023 % Q2 2022 Q2 2023 % Q2 2022 Q2 2023 % Revenues 355 272 -23% 2,126 1,751 -18% 2,392 2,029 -15% Procurements -130 -88 -32% -1,502 -1,137 -24% -1,539 -1,226 -20% and Services OPEX -30 -26 -12% -220 -186 -16% -269 -237 -12% EBI
Slide 29: Brazil (US$ mn) YTD results
Brazil (US$ mn) YTD results Generation 1 Grids 1 Total 2 H1 2022 H1 2023 % H1 2022 H1 2023 % H1 2022 H1 2023 % Revenues 678 542 -20% 4,251 3,541 -17% 4,766 4,097 -14% Procurements -261 -181 -31% -2,970 -2,268 -24% -3,060 -2,452 -20% and Services OPEX -56 -56 0% -429 -351 -18% -521 -457 -12% EBITDA 3
Slide 30: Colombia (US$ mn) Quarter results
Colombia (US$ mn) Quarter results Generation 1 Grids 1 Total 2 Q2 2022 Q2 2023 % Q2 2022 Q2 2023 % Q2 2022 Q2 2023 % Revenues 344 410 19% 488 483 -1% 825 846 3% Procurements -120 -176 46% -261 -287 10% -361 -411 14% and Services OPEX -23 -23 -2% -30 -30 2% -54 -54 0% EBITDA 200 211 6% 197 166 -16% 4
Slide 31: Colombia (US$ mn) YTD results
Colombia (US$ mn) YTD results Generation 1 Grids 1 Total 2 H1 2022 H1 2023 % H1 2022 H1 2023 % H1 2022 H1 2023 % Revenues 680 768 13% 951 908 -5% 1,570 1,584 1% Procurements -236 -321 36% -534 -545 2% -691 -770 11% and Services OPEX -45 -42 -7% -60 -59 -1% -106 -107 1% EBITDA 399 406 2% 356 304 -15%
Slide 32: Peru (US$ mn) Quarter results
Peru (US$ mn) Quarter results Generation 1 Grids 1 Total 2 Q2 2022 Q2 2023 % Q2 2022 Q2 2023 % Q2 2022 Q2 2023 % Revenues 177 207 17% 255 285 12% 432 492 14% Procurements -53 -78 48% -167 -193 15% -220 -271 23% and Services OPEX -24 -25 6% -18 -21 21% -41 -46 12% EBITDA 101 104 3% 70 70 1% 170 175 3
Slide 33: Peru (US$ mn) YTD results
Peru (US$ mn) YTD results Generation 1 Grids 1 Total 2 H1 2022 H1 2023 % H1 2022 H1 2023 % H1 2022 H1 2023 % Revenues 351 399 14% 506 573 13% 856 972 13% Procurements -109 -139 28% -336 -380 13% -445 -519 17% and Services OPEX -45 -49 10% -37 -40 7% -82 -89 8% EBITDA 197 211 7% 133 153 15% 329 364 1
Slide 34: Central America (US$ mn)
Central America (US$ mn) Quarter & YTD results Central America Q2 2022 Q2 2023 % H1 2022 H1 2023 % Revenues 76 80 6% 142 143 1% Procurements -28 -51 82% -60 -64 6% and Services OPEX -9 -18 97% -17 -28 63% EBITDA 38 11 -72% 65 51 -21% Net Income 21 -69 <-100% 33 -54 <-100% Gross Capex 13 11 -12% 19 1
Slide 35: Financial position
Financial position Liquidity, debt maturities and credit profile Liquidity position Debt maturities (US$ bn) Credit profile 3.8 Baa2/Stable Average maturity of (October 2022) 3.3 years 38% BBB-/Stable 1.9 (February 2023) US$ 3.5 bn 62% 0.9 1.0 BBB+/Stable (July 2023) 2023 2024 2025 After 2025 AA/Sta
Slide 36: Yearly improvements in our scores ESG positioning
Yearly improvements in our scores ESG positioning 4.2 4.4 94 AA AA AA AA 3.5 3.8 90 81 83 84 1 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 2023 Scale from CCC to AAA Scale from 0 to 5 Scale from 0 to 100 67 A- 85 87 53 56 81 83 47 B 2019 2020 2021 2022 2019 2020 2021 2022 20212 2022
Slide 37: Corporate governance structure
Corporate governance structure Shareholders’ meeting Audit firm 43% BoD’s composition Board of Directors (7 members) 57% Executive Independent Functions: Directors Committee Audit committee Sustainability committee Related parties' transactions 37
Slide 38: Board composition
Board composition Board of Directors Board of Directors’ diversity Borja Acha Besga Chair 43% 29% Francesca Gostinelli Director 14% Age Gender diversity 14% diversity Giulia Genuardi Director 29% 71% 41-50 51-60 Male Female 61-70 over 70 José Antonio Vargas Director 14% 14% Directors’ Committee (C)
Slide 39: Enel Américas - Policies, principles and codes
Enel Américas - 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
Slide 40: Disclaimer
Q2 & H1 2023 Consolidated results Disclaimer This presentation contains statements that could constitute forward-looking statements. These statements appear in a number of places in this presentation and include statements regarding the intent, belief or current expectations of Enel Américas and its
Slide 41: Thank you. Contact us
Q2 & H1 2023 Consolidated results Contact us Contacts Email - ir.enelamericas@enel.com Channels Website Mobile App www.enelamericas.com Enel Américas Investors Rafael de la Haza Head of Investor Relations Download App iOS Android Investor Relations team Jorge Velis Javiera Rubio Nicolás Gracia Franc
Slide 42: CNC
CNC