Enel Americas S.a. · BCS:ENELAM
Enel Americas — Q2 2022 Earnings Presentation
46 slides from Enel Americas's earnings presentation, Jul 27, 2022
Slide 1: Second Quarter & First Half Enel Américas Consolidated results
Second Quarter & First Half Enel Américas Consolidated results July 27th, 2022
Slide 2: Second Quarter 2022 Consolidated results
Second Quarter 2022 Consolidated results Maurizio Bezzeccheri CEO
Slide 3: 2Q 2022 key highlights
2Q 2022 key highlights Operational performance Financial results Push on renewables Asset rotation & Corporate simplification +15% and 4% net +20% EBITDA and Group 264 MW RES added production in Brazil and net income on strong Dx in Q2 2022 Sale of Fortaleza: Colombia and Gx results Decarbonization
Slide 4: Current scenario
Current scenario Inflation ramps up across the region, BRL appreciation offset by COP depreciation Macroeconomic variables1 Electricity distributed Collection rate5 Local currencies Inflation4 vs USD ∆% Q23 ∆% H13 June June ∆% Q2 ∆% June ‘22 vs ‘21 ‘22 vs ‘21 2021 2022 ‘22 vs ‘21 ‘22 vs ‘21 Argentin
Slide 5: Industrial Growth: Gross CAPEX
Industrial Growth: Gross CAPEX Significant investment in Renewables and Networks CAPEX by country CAPEX by business2 Asset development3 CAPEX by business 2% 2% 2% 5% 3% 98% SDG-linked1 11% 7% 25% Q2 2022 18% US$ 772 mn 34% US$ 772 mn US$ 348 mn (+11% YoY) (+11% YoY) (+3% YoY) 59% 70% 62% Argentina N
Slide 6: Generation operational highlights
Generation operational highlights Higher sales in Brazil and Colombia Installed capacity (GW) Net production & energy sales (TWh) 1% +264 MW added in Q2 -5% +12% 69% renewables 25.6 13% 22.9 0.1 Net production 0.1 0.6 Hydro1 13.2 0.0 12.5 0.8 6.3 Hydro1 0.0 Wind & Solar 0.4 0.3 7.1 Wind & Solar 17%
Slide 7: Projects in execution
Focus EGP Américas 264 MW of add. capacity in Q2 2022 in Brazil and Colombia Main operational KPIs CAPEX breakdown Gross pipeline1 (GW) 5% 13% ~64 GW Installed capacity 13% 1.6 +8 GW vs Q4 2021 Q2 2022 6% 3% 2.6 5.0 GW ~37 22% US$ 0.3 bn 0.8 60% 78% Argentina Brazil ~66 ~1 ~26 Colombia Peru 5% 1.0 3
Slide 8: Networks operational highlights
Networks operational highlights Steady volume growth and relevant organic increase of end users Electricity distributed (TWh) End users (mn) Quality indicators1 SAIDI (hours) SAIFI (times) H1 2021 H1 2022 H1 2021 H1 2022 +560k Argentina 14.7 14.8 4.9 4.9 +1% Brazil 10.7 10.0 5.1 4.6 25.9 26.5 59.3 6
Slide 9: Enel X and Retail operating highlights
Enel X and Retail operating highlights Strong growth in charging points and energy sold Enel X Retail3 Q2 2021 Q2 2022 Δ% Delivery points (#) Energy sold (TWh) Charging points (#) 1,916 4,331 ~120% +19% +19% Street lighting (final light points, mn#) 845 887 +5% 4,947 11.8 4,163 9.9 PV1 (MWρ installe
Slide 10: Fortaleza thermal plant disposal
Fortaleza thermal plant disposal In line with our sustainability goals and our asset rotation policy Relevant KPIs Brazil energy matrix – Post Fortaleza disposal Technology CCGT Installed capacity2 Location Caucaia, Ceará 26% Net Installed Capacity 319 MW EV / EBITDA ~1.0x 4.9 GW 100% renewable Amou
Slide 11: NYSE delisting & SEC deregistration
NYSE delisting & SEC1 deregistration Delisting completed; deregistration ongoing Schedule of Voluntary Delisting from the NYSE SEC Deregistration 1 Notice to the NYSE of its application to delist May 31, 2022 2 Last day of trading on the NYSE June 20, 2022 ADSs suspended from trading on the NYSE & e
Slide 12: Second Quarter 2022 Consolidated results
Second Quarter 2022 Consolidated results Aurelio Bustilho CFO
Slide 13: Financial highlights (US$ mn)
Financial highlights (US$ mn) Significant improvement in EBITDA and FFO Q2 2021 Q2 2022 Δ% YoY H1 2021 H1 2022 Δ% YoY Quarter highlights Reported EBITDA 995 1,199 20.5% 1,784 2,365 32.5% EBITDA growth mainly due to tariff indexation in Brazil and Colombia and lower energy purchases in Gx Brazil Adju
Slide 14: EBITDA breakdown: Q2 2022 results
EBITDA breakdown: Q2 2022 results Solid growth in Retail, Networks and Renewables EBITDA evolution by business line (US$ mn) EBITDA by country (US$ mn) 3% 1% +20% 14% Argentina +20% Brazil US$ 1,199 mn 48% Colombia (+20% YoY) Peru 57 22 1,191 1,199 65 34% C. America 995 56 (8) (4) 3% 9% 10% Networks
Slide 15: EBITDA breakdown: H1 2022 results
EBITDA breakdown: H1 2022 results Growth across all our business lines EBITDA evolution by business line (US$ mn) EBITDA by country (US$ mn) 3%1% +33% 14% Argentina +33% Brazil US$ 2,365 mn Colombia (+33% YoY) 50% Peru 98 33 2,380 2,365 294 32% C. America 244 1,784 15 (15) 3% 9% 9% Networks Renewabl
Slide 16: Generation business results
Generation business results Solid results in Brazil, Colombia and Peru Q2 EBITDA evolution (US$ mn) H1 EBITDA by country (US$ mn) +9% Consolidation of EGPA 569 522 continues to boost results 6% 6% 18% +25% EBITDA in Brazil due to 33% 1,083 higher sales in EGP Brasil and (+27% YoY) better hydro condi
Slide 17: Networks business results
Networks business results Growth driven mainly by Brazil and Colombia on tariff indexation Q2 EBITDA evolution (US$ mn) H1 EBITDA by country (US$ mn) +28% 643 Steady electricity distributed growth across all countries 10% 500 +33% EBITDA in Brazil due to 27% 1,309 tariff indexation and IFRIC121 (+34
Slide 18: OPEX savings
OPEX savings On track to meet 2022-2024 Strategic Plan target OPEX evolution (US$ bn) On track to meet US$ 0.2 mn in 0.15 0.02 efficiencies for 2022-2024 target 0.91 0.82 (0.08) Efficiencies related to network digitalization & platformization H1 2021 FX & CPI ∆ Perimeter Efficiencies H1 2022 18
Slide 19: Cash flow (US$ mn)
Cash flow (US$ mn) FFO improvement due to better EBITDA and lower NWC 2,365 (248) US$ 539 mn (405) growth CAPEX 1,435 (1,334) (276) 101 1 2 3 4 EBITDA NWC Taxes paid Net financial FFO CAPEX FCF H1 2022 & others expenses H1 2021 1,784 (659) (436) (108) 581 (993) (412) Delta YoY +32.5% -62.4% -7.2% >1
Slide 20: Debt (US$ mn)
Debt (US$ mn) Solid Net debt/EBITDA ratio remains below 2x Gross and net debt1 Net debt evolution Gross debt breakdown Jun. 22 261 6,644 203 34 377 7% 5,870 +19% (101) 20% BRL Currency COP 8,787 US$ 8,787 mn USD 55% 7,401 2,143 PEN 1,531 18% Others5 5,870 6,644 1% Dec. 21 Jun. 22 11% Argentina6 Dec.
Slide 21: Financial position
Financial position Solid liquidity to support our Strategic Plan goals Liquidity position Debt maturities (US$ bn) 4.2 28% Average maturity: US$ 3.0 bn 1.7 3.4 years 1.6 1.4 72% 2022 2023 2024 After 2024 Available committed credit lines Maturities / Gross debt 19% 16% 18% Cash and cash equivalents 2
Slide 22: Closing remarks
Closing remarks Solid operational Strong ability to develop, results in all Strong results in deliver and execute our Fortaleza sale in line with EBITDA, Group net renewable capacity our decarbonization and businesses despite a income and FFO, and challenging solid financial position targets accordi
Slide 23: Annexes
Second Quarter & First Half Annexes
Slide 24: Regulation Update Q2 2022
Regulation Update Q2 2022 • Res. ENRE 172/22: On May 31, the ENRE approved the values of the Tariff Structure for Edesur, effective as of June 2022. They include new seasonal prices for residential segments (increase of 13%) and non-residential segments under 300 kW (increase of 17%). No adjustment
Slide 25: Operating exhibits
Operating exhibits Net installed capacity & Total net production: Breakdown by source and geography Net installed capacity (MW) Large Hydro MW Wind Solar Oil-Gas CCGT Coal Total Hydro EGPA Argentina 1,328 0 0 0 1,169 1,922 0 4,419 Brazil 1,038 234 2,420 1,234 0 319 0 5,245 Colombia 3,097 0 0 122 180
Slide 26: Operating exhibits
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 2,572,544 17,073 14.8 4.9 18.3% Buenos Aires, Argentina 3,309 2023 Enel Dx Rio 3,084,232 11,350 9.8 4.6 21.1
Slide 27: Financial exhibits
Financial exhibits Q2 2022 Q2 2021 D YoY H1 2022 H1 2021 D YoY Revenues 3,953 3,475 +14% 7,747 6,750 +15% Gross Margin 1,668 1,405 +19% 3,272 2,604 +26% OPEX -469 -410 +15% -907 -820 +11% Reported EBITDA 1,199 995 +20% 2,365 1,784 +33% D&A1 -474 -300 +58% -837 -572 +47% EBIT 725 695 +4% 1,527 1,213
Slide 28: Argentina (US$ mn)
Argentina (US$ mn) Quarter results Generation 1 Networks 1 Total 2 Q2 2021 Q2 2022 % Q2 2021 Q2 2022 % Q2 2021 Q2 2022 % Revenues 63 57 -9% 191 229 20% 254 287 13% OPEX -16 -20 26% -57 -71 23% -73 -91 24% Dock Sud EBITDA 42 35 -18% -1 -28 2299% 41 6 -86% 846 MW* Net Income -29 11 -137% -127 20 -116%
Slide 29: Argentina (US$ mn)
Argentina (US$ mn) YTD results Generation 1 Networks 1 Total 2 H1 2021 H1 2022 % H1 2021 H1 2022 % H1 2021 H1 2022 % Revenues 106 105 -1% 348 418 20% 453 522 15% OPEX -33 -38 15% -105 -134 27% -138 -172 25% Dock Sud EBITDA 64 62 -4% 2 -32 -2015% 64 27 -57% 846 MW* Net Income -26 2 -109% -133 25 -119
Slide 30: Brazil (US$ mn)
Brazil (US$ mn) Quarter results Generation 1 Networks 1 Total 2 Q2 2021 Q2 2022 % Q2 2021 Q2 2022 % Q2 2021 Q2 2022 % Revenues 324 355 10% 1,953 2,126 9% 2,202 2,392 9% Fortaleza 319 MW* OPEX -24 -30 24% -188 -220 17% -230 -269 17% EBITDA 156 195 25% 303 404 33% 445 583 31% Enel Dx Ceará Net Income
Slide 31: Brazil (US$ mn)
Brazil (US$ mn) YTD results Generation 1 Networks 1 Total 2 H1 2021 H1 2022 % H1 2021 H1 2022 % H1 2021 H1 2022 % Revenues 729 678 -7% 3,748 4,251 13% 4,340 4,766 10% Fortaleza 319 MW* OPEX -31 -56 80% -423 -429 1% -487 -521 7% EBITDA 209 360 73% 581 852 46% 763 1,185 55% Enel Dx Ceará Net Income 12
Slide 32: Colombia (US$ mn)
Colombia (US$ mn) Quarter results Generation 1 Networks 1 Total 2 Q2 2021 Q2 2022 % Q2 2021 Q2 2022 % Q2 2021 Q2 2022 % Revenues 307 344 12% 421 488 16% 623 825 32% OPEX -18 -23 31% -35 -30 -16% -53 -54 1% Enel Codensa EBITDA 193 200 3% 142 197 38% 336 411 22% Emgesa Clients: 3.6 m 409 MW* Net Incom
Slide 33: Colombia (US$ mn)
Colombia (US$ mn) YTD results Generation 1 Networks 1 Total 2 H1 2021 H1 2022 % H1 2021 H1 2022 % H1 2021 H1 2022 % Revenues 597 680 14% 834 951 14% 1,234 1,570 27% OPEX -34 -45 33% -69 -60 -13% -103 -106 3% Enel Codensa EBITDA 374 399 7% 280 356 27% 654 773 18% Emgesa Clients: 3.6 m 409 MW* Net Inc
Slide 34: Peru (US$ mn)
Peru (US$ mn) Quarter results Generation 1 Networks 1 Total 2 Q2 2021 Q2 2022 % Q2 2021 Q2 2022 % Q2 2021 Q2 2022 % Revenues 142 173 21% 224 255 13% 328 374 14% Enel Gx Piura OPEX -19 -22 16% -17 -18 3% -35 -39 12% 336 MW* EBITDA 81 101 24% 56 70 24% 135 168 24% Net Income 40 59 50% 23 32 40% 60 89
Slide 35: Peru (US$ mn)
Peru (US$ mn) YTD results Generation 1 Networks 1 Total 2 H1 2021 H1 2022 % H1 2021 H1 2022 % H1 2021 H1 2022 % Revenues 270 341 26% 458 505 10% 655 746 14% Enel Gx Piura OPEX -35 -42 21% -34 -37 7% -67 -77 14% 336 MW* EBITDA 158 197 24% 117 133 14% 271 329 21% Net Income 83 122 46% 46 61 33% 123 18
Slide 36: Central America (US$ mn)
Central America (US$ mn) Quarter results Central America Q2 2021 Q2 2022 % Revenues 67 76 13% OPEX -8 -9 14% EBITDA 50 38 -23% Net Income 27 21 -23% Gross Capex 12 13 4% Net Production 708 534 -24% (GWh) Energy Sales 872 902 3% (GWh) Av. Spot Price - - - Hydro plant ($US/MWh) Solar plant Energy loss
Slide 37: Central America (US$ mn)
Central America (US$ mn) YTD results Central America H1 2021 H1 2022 % Revenues 67 142 111% OPEX -8 -17 110% EBITDA 50 65 31% Net Income 27 33 21% Gross Capex 12 19 50% Net Production 708 967 37% (GWh) Energy Sales 872 1,578 81% (GWh) Av. Spot Price - - - Hydro plant ($US/MWh) Solar plant Energy los
Slide 38: Financial exhibits
Financial exhibits Liquidity and credit profile Liquidity (US$ m) Total Used Available Committed credit lines 1,558 719 839 Cash and cash equivalents 1 2,143 0 2,143 Total liquidity 3,700 719 2,982 Credit Profile S&P Fitch Moody's as of June 2022 LT international debt BBB- A- Baa2 LT local debt - -
Slide 39: ESG positioning
ESG positioning ESG scores and indices MSCI S&P Dow Jones FTSE Russell Moody’s ESG Refinitiv CDP1 Solutions AA AA AA 4.1 84 3.8 56 83 B 85 3.5 53 81 83 81 47 2019 2020 2021 2019 2020 2021 2019 2020 2021 2019 2020 2021 2019 2020 2021 2021 Scale from CCC to AAA Scale from 0 to 100 Scale from 0 to 5 Sc
Slide 40: 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 committe Related parties transactions 40
Slide 41: 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 José Antonio Vargas Director 61-70 over 70 14% 14% Directors’ Committee (C)
Slide 42: 2022 CEO's short-term variable remuneration
2022 CEO’s short-term variable remuneration Macro objective Objective Type of target Weight Range Net Income Maximum Profitability 15% Economic Latin America 120% Integrated gross Maximum Profitability 15% Economic margin Latin America 120% Maximum Financial FFO Latin America 20% Financial 120% Stra
Slide 43: 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 44: Disclaimer
Q2 2022 Consolidated 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 presentation and include statements regardi
Slide 45: Thank you.
Q2 2022 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 Francisco
Slide 46: CNC
CNC