Enel Americas S.a. · BCS:ENELAM
Enel Americas — Q1 2023 Earnings Presentation
40 slides from Enel Americas's earnings presentation, Apr 28, 2023
Slide 1: First quarter Enel Américas consolidated results
First quarter Enel Américas Consolidated results April 28th, 2023
Slide 2: Key highlights and operational performance
Q1 2023 Key highlights and operational performance Aurelio Bustilho CFO
Slide 3: Q1 2023 key highlights
Q1 2023 key highlights Operational Sustainability Corporate Financial results performance progress simplification 13.2 TWh US$ 1.2 bn1 82%2 US$ 1.65 bn +1%vs PY +12% vs PY REScapacity Net production up Adjusted EBITDA Disposal of thermal Estimated Net income despite disposals, RES increase in all Gx
Slide 4: Current scenario
Current scenario Mixed inflation trends in the region, significant Colombian peso depreciation affects results Macroeconomic variables1 Electricity distributed4 Interest rates Local currencies Inflation3 vs USD ∆% Q12 March March ‘23 vs ‘22 2022 2023 March March Argentina 17.7% 2022 2023 Argentina -
Slide 5: Gross CAPEX
Gross CAPEX Growth CAPEX mainly captured by Renewables in Brazil Adj. CAPEX by country Adj. CAPEX by business1 Adj. asset development2 CAPEX by business 1% 3% 3% 2% 2% 7% 97% SDG-linked 7% Grids 19% 17% Argentina Renewables Q1 2023 Brazil Renewables US$ 622 mn Colombia US$ 622 mn Retail US$ 281 mn G
Slide 6: Generation operational highlights
Generation operational highlights Solid growth in net production, with thermal production replaced by renewables Installed capacity (GW) Net production & energy sales (TWh) +1% 7% 2% 0.1 13.1 0.1 13.2 ~90 MW added in Q1 2023 Net production 0.3 0.4 3.5 2.3 Hydro 82% renewables 9% 3.0 Wind & Solar 2.5
Slide 7: Renewables development
Renewables development ~90 MW of add. capacity in Q1’23 mainly in Brazil and Colombia CAPEX breakdown Projects in execution Gross pipeline1 (GW) 2% 3% 2% ~32 17% 28% Brazil ~1 ~25 US$ 2.2 ~59 Colombia 0.2 bn Peru GW 2.2 C. America 70% 78% 2 Gross Early Stage BESS Mature In Pipeline Execution 1.3 GW
Slide 8: Grids operational highlights
Grids operational highlights Steady volume growth and relevant organic increase of end users towards electrification Electricity distributed1 (TWh) Grid customers (mn) Quality indicators2-3 SAIDI (hours) SAIFI (times) +420k Q1 2022 Q1 2023 Q1 2022 Q1 2023 +5% Argentina 14.9 19.1 5.0 6.6 30.5 26.3 23
Slide 9: Integral tariff review – Dx Brazil
Integral tariff review – Dx Brazil Results in line with our expectations Enel Dx Río Enel Dx Ceará 3.28% tariff increase for final customers 3.06% tariff increase for final customers Quality parameters in line with our expectations Quality parameters in line with our expectations Net RAB: BRL 8,921
Slide 10: Enel X and Retail operating highlights
Enel X and Retail operating highlights Strong growth in charging points and energy sold contributing to energy transition Enel X Retail4 Mar. 2022 Mar. 2023 Δ% Customers (#) Energy sold (TWh) Charging points1 (th) 4.7 9.7 >100% +8% +11% Street lighting (th) 850 932 +10% 4,877 5,267 6.5 5.9 e-Buses (
Slide 11: Corporate simplification
Corporate simplification Moving forward with our goal announced in our Strategic Plan 2023-25 Announced processes Ongoing processes ▪ Complete exit from Argentina (Edesur and ▪ Disposal of thermal generation assets in Chocón) and Peru (Gx assets) Argentina in Q1 23 completed Focus on countries more
Slide 12: Best practices and certifications
Best practices and certifications 2022 Integrated Report already available and OECD-supported Certification New reports digitalized and aligned with best practices US, Australia and Japan announced the Blue Dot Network to make infrastructure 1 development more affordable, sustainable and reliable 20
Slide 13: Economic and financial performance
Q1 2023 Economic and financial performance Aurelio Bustilho CFO
Slide 14: Financial highlights (US$ mn)
Financial highlights (US$ mn) Adjusted EBITDA increase mainly due to better results in our perimeter exc. Argentina Q1 2022 Q1 2023 Δ% YoY Adjusted EBITDA increase mainly due Reported EBITDA 1,006 945 -6.0% to better results in our perimeter excluding Argentina Adjusted EBITDA1 1,093 1,222 11.7% Low
Slide 15: EBITDA breakdown: Q1 2023 results
EBITDA breakdown: Q1 2023 results Growth in Renewables and Grids more than offset Fx headwinds EBITDA evolution by business line (US$ mn) EBITDA by country (US$ mn) 4% -6% +11% Brazil 1,136 34% 191 US$ Colombia 37 1,038 1,006 96 945 mn Peru 933 11 945 65% C. America (26) (13) (72) (94) 1%1% 7% Grids
Slide 16: Generation business results
Generation business results Excluding disposals, EBITDA increased mainly due to Brazil and Central America Q1 EBITDA evolution (US$ mn) Q1 EBITDA by country (US$ mn) 4% -2% EBITDA in Colombia due to - 4% Fx devaluation, partially offset by higher production and prices 10% +2% 417 392 401 +6% EBITDA
Slide 17: Grids business results
Grids business results Excluding disposals, EBITDA expanded mainly in Brazil Q1 EBITDA evolution (US$ mn) Q1 EBITDA by country (US$ mn) - 4% Solid electricity distributed growth across all countries +4% 603 22% 556 579 +23% EBITDA in Brazil1 on tariff indexation and higher energy 579 distributed (-4
Slide 18: Cash flow (US$ mn)
Cash flow (US$ mn) FFO improvement mainly due to lower NWC 945 US$ 214 mn growth CAPEX (269) (86) 552 (38) (579) (27) 1 2 3 4 EBITDA NWC Taxes paid Net financial FFO CAPEX FCF expenses Q1 2022 1,006 (941) (127) (67) (129) (527) (656) 2022 figures include assets held for sale. (1) Net working capital
Slide 19: Debt (US$ mn)
Debt (US$ mn) Peru deconsolidation and additional cash from disposals improves Net debt/EBITDA ratio Gross and net debt1 Net debt evolution Gross debt breakdown Mar. 23 27 -11% 6,868 14% Currency BRL 8,046 20% US$ 7,122 COP 1,178 (1,466) 165 4,681 7.1 bn USD 66% 2,441 (913) 6,868 4,681 1% 1% Dec. 22
Slide 20: Financial position
Financial position Solid liquidity to support our Strategic Plan goals Liquidity position Debt maturities (US$ bn) Credit profile 3.3 Baa2/Stable Average maturity of (October 2022) 3.5 years 34% BBB-/Stable (February 2023) US$ 3.7 bn 1.7 66% 1.1 0.9 BBB+/Stable (October 2022) 2023 2024 2025 After 20
Slide 21: Closing remarks
Closing remarks Solid operational results across all businesses 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 strategic countries and assets 2
Slide 22: Annexes
First Quarter Annexes
Slide 23: Regulation Update Q1 2023
Regulation Update Q1 2023 • Resolution ENRE 307/23: Measure related to the intervention of control and supervision of Edesur for a period of 180 days as of the date of its notification, appointing an intervenor, who will supervise and control all the usual acts of administration and disposition rela
Slide 24: Operating exhibits
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 72 829 0 2,228 Brazil 1,272 2,588 1,234 0 0 0 5,094 Colombia 3,097 0 274 180 0 226 3,777 Peru 792 132 179 68
Slide 25: 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 2,611,203 18,233 19.1 6.6 17.8% Buenos Aires, Argentina 3,309 2023 Enel Dx Rio 3,067,488 12,957 9.0 4.3 19.5
Slide 26: Financial exhibits
Financial exhibits Q1 2023 Q1 2022 ∆YoY Revenues 3,140 3,422 -8% Gross Margin 1,330 1,406 -5% OPEX -385 -400 -4% Reported EBITDA 945 1,006 -6% D&A1 -287 -330 -13% EBIT 658 675 -3% Net financial results -184 -96 +91% Non operating results 18 0 >100% EBT 491 579 -15% Income taxes -154 -189 -18% Discon
Slide 27: Argentina (US$ mn)
Argentina (US$ mn) Quarter results Generation 1 Grids1 Total 2 Q1 2022 Q1 2023 % Q1 2022 Q1 2023 % Q1 2022 Q1 2023 % Revenues 47 42 -11% 189 229 21% 236 271 15% Procurements -3 -2 -28% -130 -211 62% -133 -213 60% and Services OPEX -18 -23 28% -63 -70 11% -81 -94 16% EBITDA 27 17 -35% -4 -52 >100% 22
Slide 28: Brazil (US$ mn)
Brazil (US$ mn) Quarter results Generation 1 Grids1 Total 2 Q1 2022 Q1 2023 % Q1 2022 Q1 2023 % Q1 2022 Q1 2023 % Revenues 323 271 -16% 2,125 1,790 -16% 2,374 2,068 -13% Procurements -131 -93 -29% -1,469 -1,131 -23% -1,521 -1,226 -19% and Services OPEX -26 -29 13% -209 -166 -21% -252 -220 -13% EBITD
Slide 29: Colombia (US$ mn)
Colombia (US$ mn) Quarter results Generation 1 Grids1 Total 2 Q1 2022 Q1 2023 % Q1 2022 Q1 2023 % Q1 2022 Q1 2023 % Revenues 336 358 7% 463 425 -8% 63 737 >100% Procurements -115 -145 25% -273 -258 -6% -331 -358 8% and Services OPEX -21 -19 -12% -30 -29 -4% -52 -53 2% EBITDA 199 195 -2% 159 138 -14%
Slide 30: Peru (US$ mn)
Peru (US$ mn) Quarter results Generation 1 Grids1 Total 2 Q1 2022 Q1 2023 % Q1 2022 Q1 2023 % Q1 2022 Q1 2023 % Revenues 174 192 11% 251 288 14% 425 479 13% Procurements -56 -61 9% -169 -187 11% -225 -248 10% and Services OPEX -21 -24 14% -20 -18 -6% -40 -42 5% EBITDA 96 107 11% 63 82 31% 159 189 19
Slide 31: Central America (US$ mn)
Central America (US$ mn) Quarter results Central America Q1 2022 Q1 2023 % Revenues 66 63 -5% Procurements -32 -13 -60% and Services OPEX -8 -10 23% EBITDA 26 40 53% Net Income 12 15 29% Gross Capex 6 7 23% Net Production 433 551 27% (GWh) Energy Sales 613 616 0% (GWh) Av. Spot Price - - - ($US/MWh)
Slide 32: Financial exhibits: liquidity and credit profile
Financial exhibits Liquidity and credit profile Liquidity (US$ m) Total Used Available Committed credit lines 1,534 253 1,281 Cash and cash equivalents 1 2,441 0 2,441 Total liquidity 3,975 253 3,722 Credit Profile S&P Fitch Moody's as of March 2023 LT international debt BBB- BBB+ Baa2 LT local debt
Slide 33: Yearly improvements in our scores ESG positioning
Yearly improvements in our scores ESG positioning Among the Top 10 in ESG performance at global scale 4.2 4.4 AA AA AA AA 3.5 3.8 90 81 83 84 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 Scale from CCC to AAA Scale from 0 to 5 Scale from 0 to 100 Top 5% S&P Yearbook 67 A- 85 87 53 56
Slide 34: 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 34
Slide 35: 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 36: 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 37: 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 38: Disclaimer
Q1 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 mana
Slide 39: Thank you. Contact us
Q1 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 Francisco
Slide 40: CNC
CNC