Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Investor Presentation (July 2019)
37 slides from Enel Chile Sa's investor presentation, July 2019
Slide 1: Enel Chile Corporate Presentation July 2019
Enel Chile Corporate Presentation | July 2019 Santiago, Chile
Slide 2: Company Representatives
Company Representatives Paolo Pallotti Chief Executive Officer Enel Chile Marcelo De Jesus Chief Financial Officer Enel Chile Isabela Klemes Head of Investor Relations Enel Chile 2 Talinay, Chile
Slide 3: Overview
Enel Chile Overview =P
Slide 4: Enel Chile as part of Enel Group
Enel Chile as part of Enel Group Enel Group is leading the new energy world¹… 1st network operator2 73 mn end users 43.4 GW capacity3 World’s largest private 46.4 GW capacity4 player3 in renewables 6.2 GW demand response Largest retail customer 70.4 mn customers5 base in Europe 1. Data as of Decembe
Slide 5: Overview: Leading the energy transition in Chile
Enel Chile Overview Leading the energy transition in Chile 4.7 GW capacity 63% emission free Leader in 13.8 TWh generation 16.5 GWh energy renewable with a 69% emission free distributed diversified portfolio 1.9 mn end users ~292k digital meters Indefinite concession in the capital city 2.7 GW capac
Slide 6: Organization structure
Organization structure Enel Chile Shareholders¹ Chile 19% Enel SpA Chilean Pension 2% Funds 4% US$ 6.5 bn ADRs (Citibank N.A.) Market Cap2 100.0% 93.5% 99.1% 100.0% 14% 62% Retail Institutional Investors Green Power Generación Chile Distribución Chile Enel X Unique and diversified investment vehicle
Slide 7: Attractiveness of Chilean Market
Enel Chile Attractiveness of Chilean Market Lalackama Chile
Slide 8: Global Energy Perspective towards the Energy Transition
Global Energy Perspective towards the Energy Transition Shifts leveraging the Energy Transition: ▪ Shift to renewables Energy transition ▪ Accelerated uptake of Electric Vehicles reality ▪ Accelerated electrification of residential (i.e. heat, cooking), and industry is a ▪ Improved efficiency gains
Slide 9: Chile is well positioned to accelerate the Energy Transition
Chile is well positioned to accelerate the Energy Transition ▪ Large renewable resource (noticeably solar and wind) Natural resources ▪ Vast resources associated with electrification (Copper and Lithium) ▪ Leading the coal power plants decommissioning in LatAm Regulatory evolution ▪ US-denominated p
Slide 10: Key Investment Considerations
Enel Chile Key Investment Considerations 10 Headquarter, Chile
Slide 11: Our competitive advantages supports our growth and leadership in the Chilean Market
Our competitive advantages supports our growth and leadership in the Chilean Market Generation Distribution Enel X Financials Well diversified mix of generation, with Indefinite concession in most New growth opportunities through Long-term contracts profile the largest presence of renewables
Slide 12: Our Strategy
Enel Chile Our Strategy Canela, Chile
Slide 13: Sustainable long-term value creation
Sustainable long-term value creation Growth in Development and renewable capacity automation of the network Renewable at full speed Promote digital to a profitable and networks as a key completely infrastructure in the decarbonized mix energy transition Urban infrastructure e-Mobility Lead cities tr
Slide 14: Generation capex: allocation in renewables projects
Generation capex: allocation in renewables projects Gross Capex Generation 2019-21 14% 1.6 Gross Capex 2019-21 US$ bn 86% Installed Capacity Evolution (MW) +12.1% 747 28 8,369 7,463 156 133 69 Asset Management -158 41 1,239 Asset Development 492 69% 18% 2.2 642 63% Renewable 775 75% Gross Capex Dist
Slide 15: Renewables under construction
Renewables (under construction) Valle del Sol and Chile Solar +28 MW Geothermal solar farms Renaico II wind farm - COD 2020 + 747 MW Solar - COD 2020-2021 + 133 MW Wind - COD 2020 Cerro Pabellón extension Strong renewable pipeline improving diversification 15 and mitigating risks
Slide 16: HPP Los Cóndores 76% already completed
HPP Los Cóndores (under construction) 76%¹ already completed Located in San Clemente, Region of Maule - 150 MW run-of-river hydro plant - COD 2021 - ~ 600 GWh generated per year After 3 years of underground work in complex geological conditions, the excavation of the tunnel that will capture the wat
Slide 17: Decarbonization
Decarbonization Tarapacá 158 MW Coal Power Plants closure timeline Bocamina 2 Bocamina 1 Bocamina 1 | Bocamina 2 Tarapacá 128 MW 350 MW Up to 2040 Up to 2023 Up to 2020 Enel Chile is leading the decarbonization process in Chile 17
Slide 18: Our commercial strategy with highly contracted profile leading to margin stability
Our commercial strategy with highly contracted profile leading to margin stability Contracts profile (GWh/year) Active position in free clients to capture all market 20.000 opportunities leveraging on portfolio flexibility 38% 42% 50% 39% 36% 15.000 Most of our production is covered with contracts 1
Slide 19: Capex allocation in digitalization
Capex allocation in digitalization Gross Capex Generation 2019-21 14% 1.6 Gross Capex 2019-21 US$ bn 86% Energy Distributed (TWh) +12.7% Asset Management Asset Development 18.6 18% 2.2 75% US$ bn Gross Capex Distribution 2019-21 16.5 7% 40% 30% 0.5 US$ bn Asset Management Asset Development 2018 2021
Slide 20: Enel Distribution
Enel Distribution Located in a premium area Enel Distribución Chile Empresa Eléctrica Colina Clients Market Share¹ Metropolitan area 1.9 Luz Andes million >40% Energy losses SAIDI LTM² 2018 2018 Enel Distribución Chile 5.0% 178min Indefinite concession period Premium presence to leverage other busin
Slide 21: Enel X
Enel X National presence 2017 2018 2019 2017 2018 2019 Electric 2 76 285 Public lighting (‘000) 234 259 275 buses Charging 63 221 540 e-Home services2 (‘000) 31.0 50.8 114.5 points1 Enel X addresses customers needs with new services and Opportunities outside electric mobility the concession area 1.
Slide 22: Financial highlights
Enel Chile Financial highlights Valle dos Vientos, Chile
Slide 23: Business model allows to capture opportunities from energy transition
Business model allows to capture opportunities from energy transition EBITDA (US$ bn) Net Ordinary Income¹ (US$ bn) +38.5% +54.4% 0.43 0.10 1.93 41% 46% 45% 45% 1.39 0.81 0.87 0.76 0.56 2018 Margin Growth 2021 2018 2019 2020 2021 growth Net Income Net Income/EBITDA Accretive business plan to our sha
Slide 24: Deleveraging over the period of plan will sustain strategy of continuing growth
Deleveraging over the period of plan will sustain strategy of continuing growth EBITDA & FFO (US$ bn) Gross and Net Debt (US$ bn) 80% ND/EBITDA: 2.4x 1.6x 73% 74% 72% +4.4% 1.78 1.93 1.66 3.79 1.39 1.31 1.39 3.63 1.11 1.20 0.35 0.79 3.28 3.00 2018 2019 2020 2021 2018 2021 Net Debt Cash EBITDA FFO FF
Slide 25: Continuous business growth supports improvement in shareholders value creation
Continuous business growth supports improvement in shareholders value creation Earnings growth 2018 2019 2020 2021 CAGR 18-21 Ordinary EBITDA (US$ bn) 1.39 1.66 1.78 1.93 +11% Net Ordinary Income (US$ bn) 0.56 0.82 0.87 0.94 +16% Value creation Pay-out ratio 60% 65% 70% 70% +5% Implicit DPS (Ch$/Sh)
Slide 26: ESG achievements
Enel Chile ESG achievements 26
Slide 27: Value creation in the long-term
Value creation in the long-term 14° Electric Utilities Best Emerging Markets Worldwide performers ranking. Admission to indexes Year 2017 DJSI Emerging Markets DJSI MILA Pacific 2nd place Sustainability Alliance Admission to the FTSE4GOOD category. DJSI Chile Emerging Markets Index 2nd place Corpora
Slide 28: Strong commitment to our SDG targets
Strong commitment to our SDG targets Enel Chile Target Engaging local communities (mn beneficiaries) 20181 1Q 20191 20211 High-quality, inclusive and fair education 0.039 0.039 0.107 Access to affordable and clean energy 0.170 0.175 0.175 Employment and sustainable and inclusive economic growth 0.36
Slide 29: Closing remarks
Enel Chile Closing remarks > iS
Slide 30: Closing Remarks
Enel Chile Closing Remarks Unique portfolio of assets in Chile Growth focused on renewable capacity Digitalization in all business lines Enel X as an agent of the energy transition Shareholders value creation improvement in a sustainable business model 30
Slide 31: Appendix
Enel Chile Appendix Valle dos Vientos, Chile
Slide 32: Expected Businesses KPI's
Expected Businesses KPI’s Net production (TWh) Energy Sales (TWh) +6.3% +14.6% 21.3 31.0 20.0 18.9 27.0 28.5 17.1 0.2 0.3 0.6 2.8 25.7 4.8 0.1 0.9 1.4 2.7 3.7 1.2 1.7 1.7 2.3 6.3 1.1 6.3 7.3 2.8 8.7 12.0 15.6 12.9 15.0 17.0 9.7 11.4 15.6 12.8 10.6 2017 2018 2019 2021 2017 2018 2019 2021 Hydro Therma
Slide 33: Business model allows to capture opportunities for sustainable growth
Business model allows to capture opportunities for sustainable growth CAPEX breakdown by business (US$ bn) EBITDA breakdown by business (US$ bn) +24.6% +16.3% 0.69 1.93 0.64 1.66 0.55 0.18 1.39 0.34 0.46 0.18 0.35 0.15 1.14 0.32 0.14 0.27 0.50 1.60 0.46 1.11 1.33 0.39 0.90 0.31 2017 2018 2019 2021 2
Slide 34: Macroeconomic assumptions Strategic Plan
Macroeconomic assumptions Strategic Plan GDP (%) CPI (%) ELECTRICITY DEMAND (TWh) 4.0 82.5 3.0 3.1 3.1 80.4 3.2 3.2 3.2 76.5 77.8 2.4 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 FX (CLP/US$) AVG Henry Hub (US$/MMBtu) Brent (US$/Bbll) 3.1 3.0 3.1 3.2 641.0 71.0 618.0 616.0 612.0 69.0
Slide 35: Chile as one of the most advanced countries in Latin America
Chile as one of the most advanced countries in Latin America with many opportunities to come Electric power consumption1 (MWh per capita) GDP growth3 (YoY%) 4.0 8.0 3.4 3.2 3.0 5.9 2.3 2.4 2.4 1.8 2.6 3.9 1.5 1.7 2.6 1.7 2.1 1.3 1.2 1.4 1990 1994 1998 2002 2006 2010 2014 2017 2018 2019 2020 2021 OEC
Slide 36: Investors Relation team
Enel Chile Investors Relation team Isabela Klemes Head of IR Enel Chile +56 2 2630 9606 isabela.taveira@enel.com Catalina González Gonzalo Juarez Head of IR Enel Generación Chile IR New York Office +56 2 2630 9603 +1 (212) 520 1025 catalina.gonzalez@enel.com gonzalo.juarezdelarasilla@enel.com Claudi
Slide 37: Forward-looking statements 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 intent, belief or current expecta