Enel Americas S.a. · BCS:ENELAM
Enel Americas — Q3 2022 Earnings Presentation
43 slides from Enel Americas's earnings presentation, Oct 27, 2022
Slide 1: Third Quarter & Nine Months Enel Américas Consolidated results
Third Quarter & Nine Months Enel Américas Consolidated results October 27th, 2022
Slide 2: Third Quarter & Nine Months 2022 Consolidated results
Third Quarter & Nine Months 2022 Consolidated results Aurelio Bustilho CFO
Slide 3: 3Q 2022 key highlights
3Q 2022 key highlights Operational performance Financial results Push on renewables Asset rotation & Corporate simplification Net production and energy sales up 8% and 71% RES capacity, 73% of Asset rotation on track: 12% mainly due to Brazil Q3’22 EBITDA of US$ 1.1 bn; RES net production Fortaleza
Slide 4: Current scenario
Current scenario Inflation starts to peak across the region, significant COP depreciation affects results Macroeconomic variables1 Electricity distributed Collection rate5 Local currencies Inflation4 vs USD ∆% Q33 ∆% 9M3 September September ∆% Q3 ∆% September ‘22 vs ‘21 ‘22 vs ‘21 2021 2022 ‘22 vs ‘
Slide 5: Industrial Growth: Gross CAPEX
Industrial Growth: Gross CAPEX Investment in Renewables and Networks aligned with our Strategic Plan targets CAPEX by country CAPEX by business2 Asset development3 CAPEX by business 1% 2% 4% 1%1% 96% SDG-linked1 15% 10% 26% Q3 2022 14% US$ 883 mn US$ 883 mn US$ 396 mn 37% (+2% YoY) (+2% YoY) (-12% Y
Slide 6: Generation operational highlights
Generation operational highlights Solid growth in net production driven by renewables Installed capacity (GW) Net production & energy sales (TWh) 1% +383 MW added YTD +8% +10% 71% renewables 13% 14.9 40.5 Net production 13.8 0.0 0.1 36.7 0.2 Hydro1 0.0 0.4 1.2 1.0 9.7 Hydro1 0.5 3.4 11.1 15% 44% Win
Slide 7: Projects in execution
Focus EGP Américas 83 MW of add. capacity in Q3 2022 in Brazil Main operational KPIs CAPEX breakdown Gross pipeline1 (GW) 2% ~69 GW 13% +13 GW vs December 2021 Installed capacity 1.6 6% 29% Q3 2022 2% ~37 2.6 5.0 GW US$ 0.3 bn 51% 0.8 18% 79% Argentina ~72 ~1 ~31 Brazil Colombia Peru 4% 2% 1.6 2.9 P
Slide 8: Networks operational highlights
Networks operational highlights Steady volume growth and relevant organic increase of end users towards electrification Electricity distributed (TWh) End users (mn) Quality indicators1 SAIDI (hours) SAIFI (times) 9M 2021 9M 2022 9M 2021 9M 2022 +540k Argentina 13.5 14.1 4.8 4.9 +1% Brazil 10.8 9.7 5
Slide 9: Enel X and Retail operating highlights
Enel X and Retail operating highlights Strong growth in charging points and energy sold contributing to energy effciency Enel X Retail3 Q3 2021 Q3 2022 Δ% Delivery points (#) Energy sold (TWh) Charging points (#) 2,285 6,197 >100% +14% +20% Street lighting (final light points, mn#) 847 936 +11% 18.1
Slide 10: Asset rotation & Corporate simplification
Asset rotation & Corporate simplification Extraordinary operations in line with our strategy and goals Fortaleza sale completed: Brazil 100% renewable, with Wind & Solar representing ~75% of installed capacity Asset rotation Goiás sale well on track: CADE approval received, ANEEL approval pending. P
Slide 11: Financial highlights (US$ mn)
Financial highlights (US$ mn) Lower EBITDA mainly due to Networks, partially offset by Renewables Q3 2021 Q3 2022 Δ% YoY 9M 2021 9M 2022 Δ% YoY Quarter highlights Reported EBITDA 1,141 1,060 -7.1% 2,926 3,425 17.1% EBITDA decrease mainly due to Fx effect and lower Networks result, partially offset b
Slide 12: EBITDA breakdown: Q3 2022 results
EBITDA breakdown: Q3 2022 results Growth in Renewables offset by a decrease in Trading activities and Networks EBITDA evolution by business line (US$ mn) EBITDA by country (US$ mn) 4% 1% -7% 16% Argentina -1% Brazil US$ 1,060 mn 46% Colombia (-7% YoY) Peru 1,141 38 61 1,126 C. America 11 7 1,060 33%
Slide 13: EBITDA breakdown: 9M 2022 results
EBITDA breakdown: 9M 2022 results Growth across all our business lines EBITDA evolution by business line (US$ mn) EBITDA by country (US$ mn) 3%1% +17% 14% Argentina +20% Brazil US$ 3,425 mn Colombia 49% (+17% YoY) Peru 109 40 3,506 3,425 C. America 194 33% 281 (81) (48) 2,925 4 3% 8% 8% Networks Ren
Slide 14: Generation business results
Generation business results Growth in Peru offset by EBITDA drop in other geographies Q3 EBITDA evolution (US$ mn) 9M EBITDA by country (US$ mn) -% Consolidation of EGPA 558 557 continues to boost results 7% 6% 18% -5% and -2% EBITDA in Brazil and Colombia due to lower 1,640 32% trading EBITDA and h
Slide 15: Networks business results
Networks business results EBITDA decrease explained by Brazil, partially compensated by Colombia and Peru Q3 EBITDA evolution (US$ mn) 9M EBITDA by country (US$ mn) Steady electricity distributed -12% +9% growth across all countries 10% 610 -16% EBITDA in Brazil due to 583 537 535 lower revenues by
Slide 16: OPEX savings
OPEX savings Continued efforts to mitigate inflationary pressures and global context OPEX evolution (US$ bn) On track to meet US$ 0.2 mn in efficiencies for 2022-2024 target 0.17 0.02 1.36 Efficiencies related to network 1.24 (0.08) digitalization & platformization 1 9M 2021 FX & CPI ∆ Perimeter Eff
Slide 17: Cash flow (US$ mn)
Cash flow (US$ mn) FFO improvement due to better EBITDA and lower NWC 3,425 (381) (495) US$ 935 mn growth CAPEX (415) 2,134 (2,168) (34) 1 2 3 4 EBITDA NWC Taxes paid Net financial FFO CAPEX FCF expenses 9M 2021 2,926 (840) (600) (147) 1,339 (1,808) (469) Delta YoY +17.1% -54.6% -17.5% >100% +59.4%
Slide 18: Debt (US$ mn)
Debt (US$ mn) Net debt/EBITDA ratio remains stable Gross and net debt1 Net debt evolution Gross debt breakdown Sep. 22 154 83 6,637 547 5% (50) +11% 5,870 34 22% BRL Currency COP 8,202 US$ 8,202 mn USD 54% 7,401 PEN 1,565 1,531 18% 5,870 6,637 1% Dec. 21 Sep . 22 11% Argentina5 Dec. 21 FCF Net divid
Slide 19: Financial position
Financial position Solid liquidity to support our Strategic Plan goals Liquidity position Debt maturities (US$ bn) 4.3 36% Average maturity: US$ 2.5 bn 3.5 years 1.5 1.5 64% 0.9 2022 2023 2024 After 2024 Available committed credit lines Maturities / Gross debt 11% 19% 18% Cash and cash equivalents 1
Slide 20: Closing remarks
Closing remarks Solid operational Strong FFO generation Strong ability to develop, results in all deliver and execute our Fortaleza and Goiás Net debt/EBITDA ratio renewable capacity sale in line with our asset businesses despite a remains stable while challenging executing our CAPEX targets accordi
Slide 21: Annexes
Third Quarter & Nine Months Annexes
Slide 22: Regulation Update Q3 2022
Regulation Update Q3 2022 • Res. ENRE 314/22 & 435/22: On September 9, the ENRE approved the values of the Tariff Structure for Edesur, effective as of September 2022. They include new seasonal prices for residential segments (increase of 40%) and non-residential segments under 300 kW (increase of ~
Slide 23: Operating exhibits: capacity and net production
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 2,502 1,234 0 0 0 5,009 Colombia 3,097 0 0 122 180 0
Slide 24: 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 2,587,556 17,280 14.1 4.9 17.5% Buenos Aires, Argentina 3,309 2023 Enel Dx Rio 3,069,045 11,149 9.5 4.4 20.0
Slide 25: Financial exhibits
Financial exhibits Q3 2022 Q3 2021 D YoY 9M 2022 9M 2021 D YoY Revenues 3,871 4,930 -21% 11,619 11,680 -1% Gross Margin 1,512 1,565 -3% 4,784 4,169 +15% OPEX -452 -424 +7% -1,359 -1,243 +9% Reported EBITDA 1,060 1,141 -7% 3,425 2,926 +17% D&A1 -1,129 -389 >100% -1,967 -960 >100% EBIT -69 753 <-100%
Slide 26: Argentina (US$ mn) Quarter results
Argentina (US$ mn) Quarter results Generation 1 Networks 1 Total 2 Q3 2021 Q3 2022 % Q3 2021 Q3 2022 % Q3 2021 Q3 2022 % Revenues 62 55 -12% 220 251 14% 283 306 8% Procurements -5 -3 -41% -145 -192 32% -150 -195 30% and Services OPEX -20 -22 11% -63 -81 28% -83 -103 23% EBITDA 38 30 -20% 13 -21 <-10
Slide 27: Argentina (US$ mn) YTD results
Argentina (US$ mn) YTD results Generation 1 Networks 1 Total 2 9M 2021 9M 2022 % 9M 2021 9M 2022 % 9M 2021 9M 2022 % Revenues 168 159 -5% 568 670 18% 736 828 13% Procurements -13 -8 -40% -386 -509 32% -401 -518 29% and Services OPEX -53 -60 13% -168 -214 28% -221 -275 24% EBITDA 102 92 -10% 14 -53 <
Slide 28: Brazil (US$ mn) Quarter results
Brazil (US$ mn) Quarter results Generation 1 Networks 1 Total 2 Q3 2021 Q3 2022 % Q3 2021 Q3 2022 % Q3 2021 Q3 2022 % Revenues 1,012 328 -68% 2,670 2,137 -20% 3,594 2,415 -33% Procurements -799 -117 -85% -2,082 -1,609 -23% -2,789 -1,668 -40% and Services OPEX -31 -38 23% -179 -185 4% -225 -254 13% E
Slide 29: Brazil (US$ mn) YTD results
Brazil (US$ mn) YTD results Generation 1 Networks 1 Total 2 9M 2021 9M 2022 % 9M 2021 9M 2022 % 9M 2021 9M 2022 % Revenues 1,741 1,005 -42% 6,418 6,387 0% 7,933 7,181 -9% Procurements -1,288 -378 -71% -4,825 -4,580 -5% -5,878 -4,728 -20% and Services OPEX -62 -93 51% -602 -614 2% -712 -775 9% EBITDA
Slide 30: Colombia (US$ mn) Quarter results
Colombia (US$ mn) Quarter results Generation 1 Networks 1 Total 2 Q3 2021 Q3 2022 % Q3 2021 Q3 2022 % Q3 2021 Q3 2022 % Revenues 334 368 10% 424 415 -2% 653 694 6% Procurements -107 -145 36% -256 -239 -7% -254 -297 17% and Services OPEX -17 -17 0% -35 -28 -20% -53 -45 -15% EBITDA 210 206 -2% 133 148
Slide 31: Colombia (US$ mn) YTD results
Colombia (US$ mn) YTD results Generation 1 Networks 1 Total 2 9M 2021 9M 2022 % 9M 2021 9M 2022 % 9M 2021 9M 2022 % Revenues 931 1,047 13% 1,258 1,366 9% 1,887 2,264 20% Procurements -296 -381 29% -741 -774 4% -732 -988 35% and Services OPEX -50 -62 22% -104 -88 -15% -155 -151 -3% EBITDA 584 605 4%
Slide 32: Peru (US$ mn) Quarter results
Peru (US$ mn) Quarter results Generation 1 Networks 1 Total 2 Q3 2021 Q3 2022 % Q3 2021 Q3 2022 % Q3 2021 Q3 2022 % Revenues 148 182 23% 212 254 20% 323 384 19% Procurements -51 -63 24% -138 -170 24% -160 -185 16% and Services OPEX -24 -19 -21% -21 -16 -24% -44 -33 -24% EBITDA 73 100 38% 54 67 25% 1
Slide 33: Peru (US$ mn) YTD results
Peru (US$ mn) YTD results Generation 1 Networks 1 Total 2 9M 2021 9M 2022 % 9M 2021 9M 2022 % 9M 2021 9M 2022 % Revenues 418 523 25% 670 759 13% 978 1,130 16% Procurements -128 -165 29% -444 -506 14% -477 -526 10% and Services OPEX -59 -61 4% -55 -52 -5% -111 -110 -1% EBITDA 231 297 29% 171 200 17%
Slide 34: Central America (US$ mn)
Central America (US$ mn) Quarter & YTD results Central America Q3 2021 Q3 2022 % 9M 2021 9M 2022 % Revenues 78 72 -8% 145 214 48% Procurements -13 -16 17% -23 -76 >100% and Services OPEX -10 -9 -15% -18 -26 41% EBITDA 54 48 -12% 104 112 8% Net Income 34 29 -12% 61 62 2% Gross Capex 9 5 -48% 22 24 8%
Slide 35: Financial exhibits: Liquidity and credit profile
Financial exhibits Liquidity and credit profile Liquidity (US$ m) Total Used Available Committed credit lines 1,389 504 885 Cash and cash equivalents 1 1,565 0 1,565 Total liquidity 2,954 504 2,450 Credit Profile S&P Fitch Moody's as of September 2022 LT international debt BBB- BBB+ Baa2 LT local de
Slide 36: Our long-term strategy is recognized by the leading ESG raters
Our long-term strategy is recognized by the leading ESG raters MSCI S&P Dow Jones FTSE Russell Moody’s ESG Refinitiv CDP1 Solutions AA AA AA 4.2 86 B 3.8 85 3.5 67 83 84 56 81 83 47 53 81 2019 2020 2021 2019 2020 2021 2019 2020 2021 2019 2020 2019 2020 2021 2021 2022 2021 2022 Scale from CCC to AAA
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 committe 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 José Antonio Vargas Director 61-70 over 70 14% 14% Directors’ Committee (C)
Slide 39: 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 40: 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 41: Disclaimer
Q3 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 42: Thank you. Contact us
Q3 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 43: CNC
CNC