Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Investor Presentation (June 2023)
90 slides from Enel Chile Sa's investor presentation, June 2023
Slide 1: Enel Chile Corporate presentation June 2023
Enel Chile Corporate presentation June 2023 0
Slide 2: Country overview & market context
Country overview & market context 1
Slide 3: Chile today and country's potential
Chile today and country’s potential Net ZERO: the unavoidable journey for Chile ~2 TW of renewable energy potential in Chile1 80% Renewable generation by 2030 +28% expected increase of energy New vehicle sales to be A champion demand by 20302 only electric cars by in the 2035 transition to Total pop
Slide 4: New scenario bringing some challenges and several opportunities
New scenario bringing some challenges and several opportunities for the following years Even though the energy market is experiencing challenges… ….there are opportunities arising from the current context An increasingly Energy back up to cope with Transmission’s New regulation complex expansions no
Slide 5: Challenging market context in 2022, reducing pressure in 2023
Challenging market context in 2022, although reducing pressure in some indicators in 2023 Macro and commodities scenario reducing pressure A compound set of factors impacted spot prices Henry Hub API 2 Brent USD/CLP1 Chilean CPI2 Avg. Spot Quillota 220kV Avg. Spot Alto Jahuel 220kV FY 2022 FY 2022 F
Slide 6: A regulatory framework in evolution
A regulatory framework in evolution Consumer Protection Mechanism (PEC 2) VAD 2020-2024 | Distribution Tariff Receivables process Tariff review process (Estimated timeline) (Estimated timeline) 6% Returns (real terms post tax) Aug Apr May Q3 Q4 2022 2023 2023 2023 2023 Dec Jan Apr Jun 2022 2023 2023
Slide 7: Enel Chile at a glance
Enel Chile at a glance 6
Slide 8: Our consistent journey paving the way for a sustainable future
Our consistent journey paving the way for a sustainable and brighter future Sustainable growth > Consolidating growth in Renewables Speeding up decarbonization by a selective and flexible portfolio > Coal phase-out > Reducing risks and volatility of our > 1.7 GW of renewable capacity portfolio conne
Slide 9: Positioning Enel Chile as a unique, integrated and resilient utility
Positioning Enel Chile as a unique, integrated and resilient utility in Chile FY 2022 Figures Integrated commercial strategy supported by solid 8.4 GW 13.8 TWh and diversified assets Net installed capacity Energy distributed1 Enablers of decarbonization and electrification in Chile 2.1 mn 30.7 TWh S
Slide 10: Strategic actions
Strategic actions 9
Slide 11: Our strategic actions
Our strategic actions 1 2 3 4 Foto clients Enhance the resiliency Maximize the value for Grids digitization to Sustainable growth, and flexibility of our our clients through continue enabling the portfolio mix supporting with stronger electrification energy transition balance sheet the decarbonizati
Slide 12: Our strategic actions
Our strategic actions 1 2 3 4 Foto clients Enhance the resiliency Maximize the value for Grids digitization to Sustainable growth, and flexibility of our our clients through continue enabling the portfolio mix supporting with stronger electrification energy transition balance sheet the decarbonizati
Slide 13: Rebalancing our portfolio for a new market context
1 2 3 4 Rebalancing our portfolio to have a better risk-return and faster response in a new market context Coal phase-out, poor hydrology and transmission … therefore, we need to act quickly to shield our constraints brought high volatility to spot market… margins and profitability in a new market c
Slide 14: Portfolio management actions offsetting system headwinds in Q1 2023
1 2 3 4 Portfolio management actions continuing to offset system headwinds in the Q1 2023 Better hydro and additional renewables’ contribution Full availability of LNG and Argentinean natural gas Enel Chile renewable Net installed capacity 1 Enel Chile gas consumption (MMm3/d) production (TWh) Q1 20
Slide 15: Renewables development targeting a cleaner, flexible matrix
1 2 3 4 Renewables development to continue targeting a cleaner, flexible and balanced matrix Renewable net capacity Net capacity by technology Renewables pipeline by evolution (GW) by 2025 technology and maturity (GW)1 +1.9 GW 79% BESS 2025 vs. 2021 renewable ~4 21% 7.5 +0.4 ~11 6.4 39% 5.6 +1.2 2%
Slide 16: Sustained reinforcement of our renewable matrix
1 2 3 4 Sustained reinforcement of our renewable matrix throughout the country Net installed capacity5 7% 76% Central zone Renewable 17% PMGD2 83 MW 41% Southern zone 8.5 El Manzano 99 MW GW Renaico II4 144 MW Los Cóndores 150 MW 34% La Cabaña 106 MW +34 MW BESS 6 Hydro CCGT Rihue 120 MW Wind, Solar
Slide 17: Several initiatives aimed at rebalancing and optimizing our portfolio
1 2 3 4 Several initiatives aimed at rebalancing and optimizing our portfolio Additional flexibility Continue reducing Spot exposure to be concentrated initiatives spot exposure in solar hours (TWh) Enhance modulation -10 pp -26% capabilities to better allocate 5.9 hydro production 12% 19% 2.6 3.9 I
Slide 18: Fresh-new green start, with 0.6 GW of coal capacity disconnected
1 2 3 4 All in all, as a fresh-new green start, with 0.6 GW of coal capacity disconnected since 2019 CO2 emissions Scope 1 Generation (gCO2eq/kWh) 2021 20221 2025 2040 < 273 218 <105 0 Tarapacá Bocamina I Bocamina II December 2019 December 2020 September 2022 The road towards The first Chilean gener
Slide 19: Our strategic actions
Our strategic actions 1 2 3 4 Foto clients Enhance the resiliency Maximize the value for Grids digitization to Sustainable growth, and flexibility of our our clients through continue enabling the portfolio mix supporting with stronger electrification energy transition balance sheet the decarbonizati
Slide 20: Commercial strategy supported by long-term visibility and diversification
1 2 3 4 Commercial strategy supported by long-term visibility, geographic diversification and solid client portfolio Portfolio by off-taker PPAs geographic location PPAs by residual duration 2022 2022 2025 +4% 22% 23% 24% 27% 34% 30.9 TWh 25% 47% 39% 32.0 44% 60% 67% TWh 31% 29% 18% 10% Free market
Slide 21: Innovative technologies to bring value added services to clients
1 2 3 4 Innovative technologies to bring value added services to all clients B2B We are boosting B2G B2C electrification for smarter, more efficient and Enabling cities to become Helping our clients to give the We are energy partners in the greener energy use more circular, supporting step forward o
Slide 22: Creating value in an integrated strategy
1 2 3 4 Creating value in an integrated strategy Beyond Commodity strategy Commercial Strategy enhances our offer of Total Generation sales (TWh)1 products and services 33.1 32.0 Our integrated Approach 30.7 30.9 63% 61% 69% PPA + Product & Services 65% 39% 35% 37% 31% +35 other companies 2022 2023
Slide 23: Our strategic actions
Our strategic actions 1 2 3 4 Foto clients Enhance the resiliency Maximize the value for Grids digitization to Sustainable growth, and flexibility of our our clients through continue enabling the portfolio mix supporting with stronger electrification energy transition balance sheet the decarbonizati
Slide 24: Grid infrastructure evolution as a pillar for energy transition
1 2 3 4 Grid infrastructure evolution as a pillar for energy transition, focused on efficiency and quality Main KPIs1 2022 Q1 2023 2025 Grid Blue Sky End users A new operating model (mn) 2.1 2.1 2.2 We are implementing technology Energy developments to boost our service distributed1 14.1 3.6 14.1 qu
Slide 25: Improving our client's journey through digitalized channels
1 2 3 4 Improving our client's journey through new digitalized channels Main KPIs Commercial service at a glance 2022 Q1 2023 2025 Customer centricity Clients App as a core strategic pillar 656 974 1,085 Our journey in numbers2 users1 (´000#) Platformization and We are enhancing our grids and digiti
Slide 26: Our strategic actions
Our strategic actions 1 2 3 4 Foto clients Enhance the resiliency Maximize the value for Grids digitization to Sustainable growth, and flexibility of our our clients through continue enabling the portfolio mix supporting with stronger electrification energy transition balance sheet the decarbonizati
Slide 27: Leading the decarbonization and the electrification
1 2 3 4 All these trends to take advantage of potential new opportunities by 2025 2022 2025 RES Capacity 6.4 7.5 (GW) RES Capacity 76% 79% % on total Leading the GHG free 63% 79% % production on total decarbonization and Grids end users 2.1 mn 2.2 mn the electrification Energy losses 5.1% 5.1% Telec
Slide 28: Creating Value for ALL our stakeholders
1 2 3 4 Creating Value for ALL our stakeholders 2025 Financial community Dividend payout ratio1 Min 50% New connections on grids Clients (‘000) +101 Planet Scope 1 - CO2 Reduction vs 2021 -62% Beneficiaries from projects with communities2 Communities (SDGs 4,7 & 8) 5.6 mn Employees Women in selectio
Slide 29: Plan in numbers 2023-2025
2023-2025 Plan in numbers enel
Slide 30: New plan investments to improve portfolio resiliency
1 2 3 4 New plan investments to improve our portfolio resiliency Investments centered on clients’ needs… …focused on SDG goals CAPEX allocation (USD bn) SDG 0.8 1% 13% 0.7 1% 1% 8% 18% 16% 10% 2023-25 2023-25 10% 1.7 USD bn 1.7 USD bn 0.3 77% 3% 73% 34% 71% 13% 90% 50% 2023 2024 2025 Renewable Grids
Slide 31: Generation CAPEX driven by decarbonization strategy
1 2 3 4 Generation CAPEX driven by decarbonization strategy Generation CAPEX 2023-2025 (USD bn) Renewable’s development CAPEX (USD bn) Total CAPEX by type Total CAPEX by year 1% 0.7 14% 22% 0.1 0.5 0.1 14% 2023-2025 2023-2025 47% 1.4 USD bn 1.1 USD bn 0.5 0.2 0.4 78% 0.1 25% 0.1 2023 2024 2025 Devel
Slide 32: Our investments to bring additional flexibility to our portfolio
1 2 3 4 Our investments to bring additional flexibility to our portfolio Production evolution (TWh) Energy balance (TWh) Portfolio Mix evolution (TWh) Spot exposure reduction (TWh) +5% +4% -33% 23.4 32.0 32.0 22.2 30.7 30.7 -51% 3.9 4.2 8.8 5.9 5.9 Non-solar 4.7 2.6 18.9 22.2 2.6 3.9 9.8 9.7 1.3 1.2
Slide 33: EBITDA improvement thanks to our integrated margin strategy
1 2 3 4 EBITDA improvement thanks to our integrated margin strategy FY 20221 Integrated EBITDA evolution (USD bn) Main performance indicators 1.3 2022 2025 CAGR +41% Avg. PPA price 74 64 -5% 1.4 (USD/MWh)3 0.2 (0.2) 1.3 EBITDA (0.5) (0.04) adjusted1 44 -3% 0.9 0.6 (USD/MWh) (0.2) EBITDA 39 proforma1
Slide 34: Grids investments to support electrification and performance
1 2 3 4 Grids investments to support electrification and performance CAPEX tailored to improve EBITDA evolution (USD bn) performance and electrification +17% FY 2022 31% 0.08 (0.01) 0.11 44% 2023-2025 0.09 0.02 0.3 USD bn 25% Quality & Resiliency 2022E Indexation Inflation 2025 Digitization & Volume
Slide 35: Consolidated EBITDA increase in a more conservative scenario
1 2 3 4 Consolidated EBITDA increase in a more conservative scenario EBITDA evolution (USD bn) EBITDA Old vs. New Plan (USD bn) FY 20221 1.5 +30% +3% 1.5 0.2 (0.2) 1.3 4.0 4.1 0.5 (0.2) (0.5) 0.0 1.0 0.5 (0.1) 0.6 (1.6) 0.9 (0.2) 0.4 USD bn (+42% yoy) Adj. Gas 2022E EBITDA Energy Sourcing Growth Gas
Slide 36: Financial management 2023-2025
2023-2025 Financial management 35
Slide 37: Strong cash generation financing our integrated strategy
1 2 3 4 Strong cash generation financing our integrated strategy Source of funds allocation 2023-2025 Net debt/EBITDA evolution Strategic plan scenario (USD bn) (Times) FY 2022 3.0-3.2 2.7x ~3.4x ~1.1x 2.8x-3.0x (1.7) ~2.4x 2.3x-2.5x (1.0) 0.3-0.5 Sources of Gross Dividends Change in 2022E Gas 2022E
Slide 38: Sustainable instruments to fund our growth
1 2 3 4 Sustainable instruments to fund our growth Financial flexibility & main ratios Debt maturity evolution by year with managerial actions (USD bn) YE 2022 Q1 2023 YE 2025 SDG-linked gross 1.1 0.8 0.9 3.2 3.3 debt USD bn Share of sustainable 24% 19% 27% finance Avg. term of debt (years) 6 6 6 0.
Slide 39: Earnings evolution 2023-2025
2023-2025 Earnings evolution 38
Slide 40: Earnings recovery supported by growth initiatives and managerial action
1 2 3 4 Earnings recovery supported by growth initiatives and managerial action Net Income evolution 2022E Net Income evolution 2022E-2025 FY 20221 (USD bn) (USD bn) 1.5 2022 Adj. Net Income 2 1.4 1.5 +38% 0 Gas valorization 0.4 one-off3 Net Tx 0.7 (0.5) sale3 1.0 2022 Adj. Net 0.3 FY 2022 Income Pr
Slide 41: Financial targets 2023-2025
2023-2025 Financial targets 40
Slide 42: Strategic plan targets
Strategic plan targets 2022 20221 proforma1,2 2023 2024 2025 Adj. EBITDA 1.5 0.9 1.0-1.2 1.3-1.5 1.2-1.4 (USD bn) Adj. Net income 1.5 0.4 0.3-0.5 0.5-0.7 0.3-0.5 (USD bn) Dividend payout 30% Min 50% Min 50% Min 50% (%) 1. FY 2022 adjusted by the Coal Stock Impairment (CSI) and projects write-off: EB
Slide 43: Closing remarks
Closing remarks Decarbonization Integrated and electrification commercial Strong financial Creating value for remaining as strategy boosted position and ALL our priorities to our by several optionality for stakeholders sustainable diversification future growth strategy actions 42
Slide 44: Q1 2023 Financial results
Q1 2023 Financial results 43
Slide 45: First Quarter in line with expected, following guidance
First Quarter in line with expected, following guidance and Business Plan for the year Business Performance EBITDA1,2 Net Income1,3 FFO (USD mn) (USD mn) (USD mn) +53% +95% +166% 343 99 225 173 89 (151) Adj. Q1 2022 Q1 2023 Adj. Q1 2022 Q1 2023 Q1 2022 Q1 2023 1. Average exchange rate for the period
Slide 46: Sustainable capex to improve portfolio flexibility
Sustainable capex to improve portfolio flexibility boosting energy transition H1 2023 CAPEX by business and by nature1 Q1 2023 Renewable development CAPEX1 1% Capex allocation 13% by Quarter (2023) 21% 24% Q1 12% 127 127 65 48% USD mn USD mn 54% USD mn Q2E 33% 61% -24% yoy 18% 33% -24% yoy -44% yoy
Slide 47: Q1 2023 EBITDA portfolio management actions supporting performance
Q1 2023 EBITDA portfolio management actions supporting higher performance Q1 2023 EBITDA evolution (USD mn)1 PPA sales growth mainly related to +53% indexation offsetting increase on variable costs +78% 147 2 343 (7) Gas optimization mainly reflects sale 90 (16) of gas to international markets 225 n
Slide 48: New renewable capacity and better hydrology improving energy balance
New renewable capacity and better hydrology improving our energy balance Net production (TWh) Energy balance (TWh) -2% -3% 1.0 TWh Non solar +0.1 TWh hour new renewable capacity 8.1 8.1 7.8 7.8 5.2 5.1 1.0 2.2 2.3 1.3 0.5 66% Emission free 0.7 5.3 0.4 4.9 0.3 0.4 production 1.6 1.4 5.2 5.1 1.8 2.0 2
Slide 49: Q1 2023 Net Income boosted by portfolio management actions
Q1 2023 Net Income boosted mainly by portfolio management actions improvements in EBITDA Q1 2023 Net Income (USD mn)1 1.5x EBITDA due to a better hydrology and +95% portfolio optimization actions 18 118 (1) Financial results translate higher interests 173 (41) on cash investments and lower financial
Slide 50: Cash management offsetting the stabilization energy mechanism
Cash management continuing to play a role to partially offset the impact of the stabilization energy mechanism Q1 2023 FFO (USD mn)1 EBITDA results driven by better hydrology, 343 renewables contribution and natural gas optimization (135) Stabilization mechanism continues to play an import role; 1st
Slide 51: Cash-in from 2022 management actions to optimize leverage
Cash-in from 2022 management actions to support the optimization of our leverage in the period Gross debt (USD mn)1 Liquidity position (USD mn) Debt maturities (USD bn)1 2.8 -5% Maturities/Gross Debt 6% 14% 6% 9% 4,660 4,404 2.2 1.4 1,023 767 47% USD bn 53% 0.6 3,637 3,638 0.4 0.3 0.6 0.3 0.2 0.6 0.
Slide 52: Q1 2023 Financial results Annexes
Q1 2023 Financial results Annexes 51
Slide 53: Q1 2023 Profit & Loss (USD mn)
Q1 2023 Profit & Loss (USD mn)1 Q1 2023 Q1 2022 ∆ yoy Adjusted EBITDA2 343 225 +53% Reported EBITDA 343 204 +68% D&A (69) (70) -1% Bad Debt (8) (7) +20% Impairment 0 0 - Reported EBIT 266 128 +108% Financial expenses (21) (36) -43% Results from equity investments 3 1 +226% Reported EBT 248 92 +169%
Slide 54: Main business EBITDA breakdown
Main business EBITDA breakdown EBITDA Generation EBITDA Distribution business line (USD mn)1,2 business line (USD mn)1 +87% -7% 336 24 22 179 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Adjusted 1. Comparisons between periods in the Financial Income Statements are made using the average exchange rate for the pe
Slide 55: Commodities and spot price outlook
Commodities and spot price outlook Henry Hub (USD/mmbtu) Brent (USD/bbl) API 2 (USD/Ton) 9.4 123.7 389.0 8.9 8.7 118.8 113.3 112.7 352.9 364.9 7.3 325.3 328.1 328.5 6.6 104.4 6.3 100.0 267.9 98.2 93.3 5.3 5.2 89.9 91.7 227.9 4.7 4.6 6.9 87.2 319.3 213.6 6.7 82.5 84.9 81.1 167.2 194.5 3.1 140.3 2.5 1
Slide 56: Hydrology outlook
Hydrology outlook Historic Enel Chile hydro generation (TWh) Rainfall in our most relevant basins1 2007 13.2 Rapel Maule 600 (9% of consolidated Gx) 2,500 (34% of consolidated Gx) 2008 13.8 500 2,000 Cumulated rainfall (mm) Cumulated rainfall (mm) 2009 14.9 400 2010 12.6 1,500 300 2011 11.9 1,000 20
Slide 57: Enel Chile is the largest utility player in Chile
Enel Chile is the largest Utility player in Chile in installed capacity and number of clients Integrated commercial strategy supported by Leading the renewable sector in Chile Grid infrastructure to solid and diversified enable electrification assets 6.4 GW Renewable capacity net installed Enablers
Slide 58: Credit Rating - Enel Chile and Enel Generación Chile
Credit Rating - Enel Chile and Enel Generación Chile International market Chilean market Enel Chile Enel Chile Standard & Poor’s Fitch Ratings Fitch Ratings Feller Rate Ref. January/2022 Ref. January/2023 Ref. January/2023 Ref. June/2022 Enel Generación Enel Generación Standard & Poor’s Fitch Rating
Slide 59: Organization structure
Organization structure Enel Chile shareholders1 64.9% 2.4% 6.2% Chile 22.5% Pension Funds Market Cap2 Institutional Investors USD 3.9 bn ADR’s 4.0% Enel SpA 64.9% Others 100.0% 93.5% 99.1% 100.0% 49.0% Green Power Generación Chile Distribución Chile Enel X Chile Non-consolidated assets Chile 1. As o
Slide 60: Strategic Plan 2023-2025 Annexes
Strategic Plan 2023-2025 Annexes 59
Slide 61: Main assumptions
Main assumptions GDP Demand Growth CPI Macroeconomics (%) (%) (%) 2023 2024 2025 2023 2024 2025 2023 2024 2025 -1.1% 2.4% 2.6% -0.5% 2.9% 3.9% 5.3% 3.2% 3.1% Henry Hub Brent Commodities (USD/MMbtu) (USD/bbl) 2023 2024 2025 2023 2024 2025 5.7 5.0 4.3 93.0 80.0 70.0 Quillota marginal cost Crucero marg
Slide 62: Main sensitivities for 2023-2025 figures
Main sensitivities for 2023-2025 figures Annual Impact on 2023-2025 EBITDA (USD mn) System demand +10% +1% Hydrology ~53 ~32 -10% ~(45) ~(22) -1% GAS +60% -38% Commodities (Henry Hub) ~156 OIL (Brent) +62% -40% ~(162) COAL (API2) +33% -30% 61
Slide 63: Capex by Business line
Capex by Business line Gross CAPEX (USD bn) CAPEX 2023-2025 allocation (USD bn) 0.8 0.0 0.1 0.7 0.0 Business line 2022 2023 2024 2025 0.1 0.1 Renewable 0.9 0.6 0.5 0.2 0.1 Thermal 0.1 0.1 0.1 0.0 0.3 Grids 0.2 0.1 0.1 0.1 0.6 0.0 0.5 0.1 Enel X 0.0 0.0 0.0 0.0 0.0 Others 0.0 0.0 0.0 0.0 0.2 2023 202
Slide 64: Installed capacity and production by technology
Installed capacity and production by technology Net installed capacity (GW) Net production (TWh) 2022 2025 2022 2025 +12% +5% 1% 7% 5% 6% 20% 16% 17% 39% 26% 8.4 42% 9.5 22.2 44% 23.4 41% GW GW TWh TWh 6% 34% 40% 37% 19% Coal1 CCGT2 Oil&Gas Hydro Renewable (ex - Hydro + BESS) 1. Includes Bocamina II
Slide 65: ESG Annexes
-ESG f Annexes See
Slide 66: Corporate governance structure
Corporate governance structure Shareholders’ meeting Audit firm 14% 43% BoD’s composition Board of Directors (7 members) 43% Non executive Executive Independent Functions: Directors Committee Audit committe Sustainability committe Related parties transactions 65
Slide 67: Board composition
Board composition Board of Directors Board of Directors’ diversity Herman Chadwick Chair Monica Girardi Director 57% Age Gender 71% 29% diversity diversity Isabella Alessio Director 43% 41-50 Over 50 Male Female Salvatore Bernabei Director Directors’ Committee (C) Fernán Gazmuri 43% Director. Tenure
Slide 68: 2022 CEO's short-term variable remuneration
2022 CEO’s short-term variable remuneration Macro objective Objective Type of target Weight Range Maximum Profitability Net Income Chile 15% Economic 120% Integrated gross Maximum Profitability 15% Economic margin Chile 120% Maximum Financial FFO Chile 20% Financial 120% Maximum Business Strategy Ch
Slide 69: Management of the Company
Management of the Company Sustainability & Community F. Barderi Chief Executive Officer M. Palomar (CEO) Relations G. Turchiarelli Chief Financial Officer R. Puentes Procurement (CFO) L. Schnaidt People and Organization A. Barrios Digital Solutions D. Gomez Regulation M. Rinchi Services & Security J
Slide 70: Our strategy for sustainable progress
Our strategy for sustainable progress We create long-term value with and …promoting the protection of 1 for all our stakeholders, helping them natural capital and biodiversity… 2 to grow and meet challenges… Just Transition Biodiversity Inclusion & Uniqueness Sustainable Supply Chain Sustainability
Slide 71: Just Transition for Enel Chile's People, Communities and suppliers
Just Transition for Enel Chile’s People, Communities and suppliers Strategy for a Just Transition promotes sustainable and human rights approach for all stakeholders Enel Chile People Communities Suppliers & Contractors Internal redeployment and upskilling/reskilling Fostering Green Jobs through ded
Slide 72: Inclusion & uniqueness
Inclusion & uniqueness Inclusion of people’s multiple and unique talents is an essential factor in Enel Chile’s approach to create long term value for all stakeholders Purpose Enel Chile puts in place an organic set of actions aimed at: allowing expression of people uniqueness ensuring nondiscrimina
Slide 73: Sustainability and Innovation in the Procurement Process
Sustainability and Innovation in the Procurement Process - Suppliers and Contractors + Innovation by vendors Health & Safety Partnerships Procurement involves Environment Circular Economy Human Rights & Social with suppliers suppliers in some innovation challenges Performance Scouting Qualification
Slide 74: Sustainability initiatives with local communities
Sustainability initiatives with local communities An approach along the entire value chain: business Key pillar of our strategy is to establish development, supply chain & design, engineering and solid, long-lasting relationships with local construction, operation and maintenance up to the end of li
Slide 75: Valuation of Ecosystem Services - Natural Heritage of Enel Chile
Environmental Sustainability Biodiversity Valuation of Ecosystem Services - Natural Heritage of Enel Chile IDENTIFICATION PHASE I PHASE II PHASE III PHASE IV Definition of the logistics Identification of relevant Hierarchy, Materiality, and Management Plan based strategy properties' group environmen
Slide 76: Health & Safety
Health & Safety Health & Safety Management system is based on hazard identification, on qualitative and quantitative risk analysis. Certification of the whole Group according to ISO 45001 and relative implementation Data driven Data-driven approach based on digital tools, dashboard and analytics, us
Slide 77: Circular economy: some examples
Circular economy : some examples 2022 Circular economy main project streams: Decommissioning Sale and Internal reuse of materials, spare and grid mining parts and equipment Sale of waste water enables efficiency Industrial improvement at San Isidro power plant, symbiosis resulting in savings of fres
Slide 78: Innovation: Haru Oni H2 plant – First of its kind
Innovation : Haru Oni H2 plant – First of its kind 3.2 MW 5,000 EOH 1.2 MW The project Integration of variable renewable energy generation for hydrogen production using PEM technology Green hydrogen delivered to our partner for e-Methanol and e-Fuels production COD received at YE 2022 77
Slide 79: Environmental sustainability
Environmental sustainability CO2 emission targets 2021 2022 2023 2024 2025 2040 SCOPE 1 GENERATION (gCO2e/kWh) 273 218 <100 <90 <105 0 Zero Emissions Main actions Accelerate renewables deployment Exit from Gas by 2040 Pushing electrification of our clients 78 No use of carbon removal
Slide 80: Our long-term strategy recognized by leading ESG raters
Our long-term strategy recognized by the leading ESG raters1 88 88 88 4.6 4.4 84 A- AA AA AA A B 3.2 3.4 2019 2020 2021 2022 2021 2019 2020 2021 2022 2019 2020 2021 2022 Scale from D- to A Scale from 0 to 5 Scale from 0 to 100 Scale from CCC to AAA B 89 68 57 B- 83 49 54 -B C 77 72 2019 2020 2021 20
Slide 81: Policies, principles and codes
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 Rights Policy •
Slide 82: Regulatory framework Annexes
Regulatory framework Annexes 81
Slide 83: Electricity sector - Main regulatory entities
Electricity sector - Main regulatory entities Autonomous organizations PRESIDENCIA Panel de Expertos MINISTERIO DE ENERGÍA Coordinador Eléctrico MINISTERIO DE ENERGÍA (Subsecretario) Empresas Eléctricas (AG) SUPERINTENDENCIA COMISION COMISIÓN CHILENA AGENCIA CHILENA ELECTRICIDAD Y NACIONAL DE DE ENE
Slide 84: Electricity sector - Business segments
Electricity sector - Business segments Generation Transmission Distribution (Natural Monopoly) (Natural Monopoly) Generation companies Unegulated customers Transmission Subtransmission Spot market Distribution Contracts grids Regulated customers Generation companies Free clients VNR1: USD 1,537 mill
Slide 85: Generation business - Revenue sources
Generation business - Revenue sources Capacity payment Energy sales Ancillary services Spot market Intended to provide a Defined by the Supply and demand determine the hourly reliable, safe and quality regulator marginal price operation of electricity Regulated Prices system through the Fixed paymen
Slide 86: Regulated Tariff - Generation segment
Regulated Tariff - Generation segment The CNE organizes public biddings for long-term energy supply for regulated clients. Awarding of the electricity tender seeks the most efficient mix for customers. The resulting lower price is passed through to customers. Short-term average price: Fare adjustmen
Slide 87: Regulated Tariff - Bill components breakdown
Regulated Tariff - Bill components breakdown1 Bill of final client (Average) Energy Transmission Distribution cost cost cost (VAD) 74% 10% 16 % 1. Source: Enel Chile 2022 Sustainability Report. 86
Slide 88: Regulated Tariff - Distribution segment
Regulated Tariff - Distribution segment Indefinite administrative concessions (DFL1 - 1982) Tariff cycle: 4 years – Tariff process for 2020-2024 period in progress Return on investment according to the value of assets: • Recognition of asset value according to optimized network (New Replacement Valu
Slide 89: Disclaimer
Corporate presentation 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
Slide 90: Contact us
Corporate presentation Contact us Contacts Email: ir.enelchile@enel.com Channels – Follow us Isabela Klemes Head of Investor Relations Enel Chile Website Investor Relations team Enel.cl Catalina González Claudio Ortiz Download the investor relations app Carla Rojas iOS Android Francisco Basauri - ES