Engie Energia Chile S.a. · BCS:ECL
Engie Energia Chile — FY2024 Earnings Presentation
49 slides from Engie Energia Chile's earnings presentation, February 2025
Slide 1: 12M 2024 Investor Presentation
12M 2024 INVESTOR PRESENTATION FEBRUARY 2025 ENGIE ENERGIA CHILE FEBRUARY 2025
Slide 2: Part 1: FY2024 Performance
12M 2024 INVESTOR PRESENTATION PART 1 FY2024 Performance 2 ENGIE ENERGIA CHILE FEBRUARY 2025
Slide 3: 12M 2024 Highlights
12M 2024 INVESTOR PRESENTATION 12M 2024 HIGHLIGHTS Strong 2024 results, Pivotal expansion move PEC & MPC law guidance confirmed in battery storage Increased renewable Total exit of coal-fired generation + back-up generation announced PPA volumes 3 ENGIE ENERGIA CHILE FEBRUARY 2025
Slide 4: Excellent Execution in Renewables
12M 2024 INVESTOR PRESENTATION EXCELLENT EXECUTION IN RENEWABLES 0.9 GW RENEWABLE PROJECTS ALREADY DONE Under construction 1,455 GWh generated in 2024 308 MW 441 MW 46 MW 342MW WIND PV HYDRO Lomas de Taltal Wind US$459 million investment COD: 1Q25 98% advance rate as of 31-Dec-24 On time and on budg
Slide 5: Our Renewable Portfolio
12M 2024 INVESTOR PRESENTATION OUR RENEWABLE PORTFOLIO 850 GWh/y of additional renewable generation from Lomas de Taltal expected for 2025 308 MW 46 MW 441 MW WIND HYDRO PV 48 MW Monte Redondo 34 MW Laja 2MWac 6MWac wind farm Hydro El Aguila PV Pampa Camarones PV 163 MW Calama 11 MW Chapiquiña 46MWa
Slide 6: BESS: A Pivotal Year, Boosting Our Flexible Generation
12M 2024 INVESTOR PRESENTATION BESS: A PIVOTAL YEAR, BOOSTING OUR FLEXIBLE GENERATION 205 MW IN OPERATION 164 MW BATTERY PROJECTS UNDER Bess Tamaya COD Feb 2025 CONSTRUCTION 137MW / 638 MWh 68MW / 418 MWh 48MW / 254 MWh 116MW / 660 MWh BESS Coya BESS Tamaya BESS Capricornio BESS Tocopilla (storage)
Slide 7: Moving Away from Coal-Based Generation
12M 2024 INVESTOR PRESENTATION MOVING AWAY FROM COAL-BASED GENERATION Installation of synchronous Improvement and life Conversion of the condensers: a new life for extension of combined cycle Infraestructura Energética former U-15 coal unit plants to ensure supply Mejillones (IEM) coal-fired unit fl
Slide 8: Generation Portfolio Transformation
12M 2024 INVESTOR PRESENTATION GENERATION PORTFOLIO TRANSFORMATION 1.5 GW of coal capacity to be closed or converted by 3Q26 U12 U13 U14 U15 IEM -171 MW – 2019 -268 MW – 2022 =377MW – 3Q26 Dismantled in 2023 Closed in 2022 To be converted 2026 Being built in site of dismantled plants Coal to Synchro
Slide 9: Sizeable Transmission Portfolio with Growth Focused on Regulated Assets
12M 2024 INVESTOR PRESENTATION SIZEABLE TRANSMISSION PORTFOLIO WITH GROWTH FOCUSED ON REGULATED ASSETS Strong Pipeline of Regulated Projects Awarded • Regulated assets to increase their contribution to revenues 1,990 km to ~US$ 40 mln in 2030, transmission lines providing long-term cash flow 40 subs
Slide 10: Strong 12M 2024 Results / High End of Guidance
12M 2024 INVESTOR PRESENTATION STRONG 12M 2024 RESULTS / HIGH END OF GUIDANCE Financial Review EBITDA CAPEX US$ 515 million US$ 655 million 2024 guidance confirmed ND/EBITDA 3.8 times 10 ENGIE ENERGIA CHILE FEBRUARY 2025
Slide 11: Financial Highlights
12M 2024 INVESTOR PRESENTATION FINANCIAL HIGHLIGHTS Significant EBITDA improvement and turnaround in Net Results EBITDA: 28% increase 12M RESULTS MUSD Actual ∆ Gross1 • 2024 EBITDA reached US$515.8 million, a 28% or EBITDA 515 28% US$112.9 million increase as compared to 2023, mainly due to a decrea
Slide 12: 2024: Improvement in Margin and Portfolio Balancing
12M 2024 INVESTOR PRESENTATION 2024: IMPROVEMENT IN MARGIN AND PORTFOLIO BALANCING Lower energy supply cost: Increased back-up PPA volumes and renewable production US$/MWh 150 2023 Avg. monomic price: 144 USD/MWh 2024 Avg. monomic price: 125 USD/MWh Margin 2023 Margin 100 2024 2023 Average fuel & el
Slide 13: Ongoing Strengthening of EBITDA
12M 2024 INVESTOR PRESENTATION ONGOING STRENGTHENING OF EBITDA More balanced spot exposure + lower fuel prices offsetting drop in energy prices EBITDA (US$m) +15 +28 +12 -230 +64 +18 Insurance Margin +280 Net Margin gas transmission business Physical capacity business -50 sales purchases Average -25
Slide 14: 2024: Net Income Turnaround
12M 2024 INVESTOR PRESENTATION 2024: NET INCOME TURNAROUND Stronger operating and financial results, with absence of asset impairments NET RESULTS Recurring results (US$m) +32 +82 +25 228 Net D&A, FX, +491 +9 financial taxes & results (*) EBITDA other PEC 1(*) 89 financial Net expenses 2024 Income b
Slide 15: Healthier Cash Generation & PEC Sales
12M 2024 INVESTOR PRESENTATION HEALTHIER CASH GENERATION & PEC SALES Cash needs financed w/operations, PEC sales and ~US$97m net debt increase NET DEBT & FUND FLOWS +37 +20 -459 +161 (US$m) Insurance +127 Taxes (Income (Premium: -38, +626 Accrued Refund: +18) taxes: 22 -415 PEC interest / MTM Green
Slide 16: Price Stabilization Laws: Effects on Engie
12M 2024 INVESTOR PRESENTATION PRICE STABILIZATION LAWS: EFFECTS ON ENGIE PEC: three programs representing an aggregate US$5.6bn for the industry • PEC laws affected our liquidity and finance costs. • PEC-3 final sale for US$109 million scheduled for 2Q25, marking the end of PEC receivables build-up
Slide 17: Financial Structure
12M 2024 INVESTOR PRESENTATION FINANCIAL STRUCTURE Making progress in reducing ND/EBITDA and extending maturity profile Investment-grade ratings Net Debt / EBITDA Excluding IFRS-16 leases International: 8.7 Fitch (Mar 2024): BBB Stable S&P (Apr 2024): BBB Stable 4.6 National scale: 2.7 3.8 Fitch (Ma
Slide 18: 2024 Summary
12M 2024 INVESTOR PRESENTATION 2024 SUMMARY Re-balancing portfolio Moving forward with Accelerating Accelerating Securing liquidity and through renewable energy transition with development development of of financing needs additions, back-up PPAs strong CAPEX in renewable renewable projects and proj
Slide 19: Part 2: Medium Term Outlook
12M 2024 INVESTOR PRESENTATION PART 2 Medium term Outlook 19 ENGIE ENERGIA CHILE FEBRUARY 2025
Slide 20: Accelerating Investment in Renewables and BESS
12M 2024 INVESTOR PRESENTATION ACCELERATING INVESTMENT IN RENEWABLES AND BESS 2.5 GW renewable + BESS: 1.4 GW ready* and 1.1 GW under construction 1.4 GW 1.1 GW Already in portfolio Under Construction 2019 2020 2021 2022 2023 2024 2025 (e) 2026 -2027(e) MW 46 82 265 369 137 458 116 1,041 48 Monte Re
Slide 21: Renewable & BESS Projects
12M 2024 INVESTOR PRESENTATION RENEWABLE & BESS PROJECTS 1.1 GW additional renewable and BESS capacity 2025-2027e BESS Arica 30 MW BESS Tocopilla 116 MW BESS Lile 140 MW Pampa Fidelia 306 MW BESS Los Loros 46 MW 30MW BESS Arica 116MW BESS Tocopilla 140MW BESS Lile 306MW Wind Pampa Fidelia US$51 mill
Slide 22: Strong Pipeline of Regulated Transmission Projects Awarded
12M 2024 INVESTOR PRESENTATION STRONG PIPELINE OF REGULATED TRANSMISSION PROJECTS AWARDED Increased regulated contribution to provide long-term cash flow visibility CAPEX I Dolores New Works (*) COD (US$ mm) H Pozo Almonte A Manuel Rodríguez substation – Awarded in February 2025 22 3Q28 G Tamarugal
Slide 23: Accelerating Investment in Renewables and BESS
12M 2024 INVESTOR PRESENTATION ACCELERATING INVESTMENT IN RENEWABLES AND BESS US$1.4 bn expected investment in renewables + BESS between 2025 and 2027 1,000 MUSD 850 - 900 900 800 Renewables 700 400 -450 655 600 535 Renewables 500 281 Renewables 394 Renewables 350-400 400 276 BESS 330 300 BESS 174 2
Slide 24: EECL's Performance During the Energy Transition
12M 2024 INVESTOR PRESENTATION EECL’S PERFORMANCE DURING THE ENERGY TRANSITION Our guidance US$ millions times 1,000 9.0 900 8.0 800 7.0 700 6.0 600 5.0 500 4.0 400 3.0 300 200 2.0 100 1.0 0 0.0 2018 2019 2020 2021 2022 2023 2024 2025 (e) 2026 (e) EBITDA CAPEX ND/EBITDA 24 ENGIE ENERGIA CHILE FEBRUA
Slide 25: Energy Transition
12M 2024 INVESTOR PRESENTATION ENERGY TRANSITION EECL is embarked on a profound generation portfolio transformation 2019 + 2.5 GW Renewables + BESS (1) 2027 3% 7% 34% Installed Installed - 29% capacity 61% capacity 1.2 GW Coal disconnection(2) 66% 2.2 GW 3.5 GW Coal Gas Diesel Renewables Gas Renewab
Slide 26: Reducing Our Short Position During the Energy Transition
12M 2024 INVESTOR PRESENTATION 6 REDUCING OUR SHORT POSITION DURING THE ENERGY TRANSITION Diversified energy sources provide flexibility GWh 14,000 Gaby/Chuquicamata (*) 12,000 Dx North Sen (*) Abra (*) 10,000 8,000 L. De Taltal Pemuco 6,000 Pampa Libélula Fidelia Capricornio Libélula 4,000 Tocopill
Slide 27: FY 2025 Guidance
12M 2024 INVESTOR PRESENTATION FY 2025 GUIDANCE ~0.9 bn expected CAPEX and higher EBITDA than in 2024 • Stable fuel costs EBITDAE CAPEXE • LNG + Argentine gas sourcing • Stable average spot prices US$525-575 US$850-900 • Renewable generation increase million million • New storage projects • Last PEC
Slide 28: ESG
ESG
Slide 29: Our Sustainability Strategy
12M 2024 INVESTOR PRESENTATION OUR SUSTAINABILITY STRATEGY Embedded in our business and aiming to create value in our four sustainability pillars Our purpose is to act to accelerate the transition In 2024 we… towards a carbon-neutral economy, through reduced energy consumption and more environmental
Slide 30: Sustainable Finance
12M 2024 INVESTOR PRESENTATION SUSTAINABLE FINANCE The first Sustainability-linked loan of IFC in Chile A green loan that accounts for the work we do everyday hand in hand with the care of people and the environment US$400 million 10-year term financing available to refinance debt and finance green
Slide 31: Progress on ESG at Engie Chile
12M 2024 INVESTOR PRESENTATION PROGRESS ON ESG AT ENGIE CHILE People and Planet Climate change Renewable Gender Health mitigation energy balance & Safety GHG emissions 2030 Share of 2030 Gender diversity 2030 Frequency rate 2030 from energy GROUP renewables GROUP % of women in GROUP Lost time injury
Slide 32: ESG Rankings, Certifications and Initiatives
12M 2024 INVESTOR PRESENTATION ESG RANKINGS, CERTIFICATIONS AND INITIATIVES To track our performance Corporate Commitments EECL “ESG” Certifications SET Label certified that EDGE Certification ECOVADIS is the ISO 40001 our project sets the leading largest global Environmental ENGIE Group is part of
Slide 33: Corporate Social Responsibility
12M 2024 INVESTOR PRESENTATION CORPORATE SOCIAL RESPONSIBILITY A just energy transition to help communities thrive Just New Stakeholders Transition Projects Engagement Responsible coal-exit Accelerating renewables Our approach 1. Employment and new 1. Early citizen 1. Associativity Policy skills par
Slide 34: Company and Market Information
COMPANY AND MARKET INFORMATION
Slide 35: Industry and Company Highlights 12M24
12M 2024 INVESTOR PRESENTATION INDUSTRY AND COMPANY HIGHLIGHTS 12M24 EECL has 7% market share in terms of installed capacity and 16% in terms of electricity sales Gross capacity Generation Demand Market share Other Engie 7% Hydro 3% Solar 21% Coal Renewables AES SISTEMA 30% 35% Regulated 39% Enel An
Slide 36: PPA Portfolio with 7-Year Remaining Average Life
12M 2024 INVESTOR PRESENTATION PPA PORTFOLIO WITH 7-YEAR REMAINING AVERAGE LIFE Free clients: 7 yrs. Regulated clients: 5 yrs. 500 Unregulated contracts 450 Clients’ credit ratings Regulated contracts 400 Average demand (MW) Distribution (S&P/Moody’s/Fitch): 350 Companies (South SEN) - Codelco: BBB+
Slide 37: EECL's PPA Portfolio Provides the Basis for Stable Sales Revenue
12M 2024 INVESTOR PRESENTATION EECL’S PPA PORTFOLIO PROVIDES THE BASIS FOR STABLE SALES REVENUE The PPA price increase capturing high fuel prices has reversed since 2H23 Prices Energy sales GWh Energy sales and prices US$/MWh 200 3,000 2,500 150 2,000 100 1,500 1,000 50 500 0 0 Unregulated Regulated
Slide 38: Natural Gas Availability in the Chilean System
12M 2024 INVESTOR PRESENTATION NATURAL GAS AVAILABILITY IN THE CHILEAN SYSTEM Argentine gas available for EECL since October 2023 LNG prices LNG international markets 60 HH 50 JKM ▪ In 2022 the supply-demand imbalance, aggravated by the 40 Russia-Ukraine war, led countries to struggle to re-build st
Slide 39: Closing the Gap Through Back-up PPAs
12M 2024 INVESTOR PRESENTATION CLOSING THE GAP THROUGH BACK-UP PPAS Contracted energy purchases up to 3.8 TWh in 2025, reducing exposure to spot risk Supply sources to meet demand under Engie’s contracted portfolio [TWh] 13 12 11 10 9 8 7 6 5 4 0.5 0.4 0.3 0.3 3 0.4 0.2 2 0.3 2.9 3.1 3.4 3.2 3.2 1 2
Slide 40: Demand Supplied with Own Generation and Energy Purchases
12M 2024 INVESTOR PRESENTATION DEMAND SUPPLIED WITH OWN GENERATION AND ENERGY PURCHASES Portfolio balancing: More renewables, storage & back-up PPAs. Less coal and spot exposure Renewables 30% Coal 40% Installed Capacity In 2024, fuel costs dropped by 47% due to lower fuel prices globally and 2,685
Slide 41: Volatile Marginal Costs Affected by Renewable Intermittency
12M 2024 INVESTOR PRESENTATION VOLATILE MARGINAL COSTS AFFECTED BY RENEWABLE INTERMITTENCY A 10-day real example in the SEN grid (Dec 1 to 10, 2024) MW USD/MWh 200 10,000 8,000 150 6,000 100 4,000 50 2,000 0 0 1 6 11 16 21 2 7 12 17 22 3 8 13 18 23 4 9 14 19 24 5 10 15 20 1 6 11 16 21 2 7 12 17 22 3
Slide 42: Engie: A Relevant Player in Transmission
12M 2024 INVESTOR PRESENTATION ENGIE: A RELEVANT PLAYER IN TRANSMISSION 1,990 Kms. transmission lines, 40 substations and 50% share in TEN ENGIE’S transmission lines Substations 12 Transmission substations 14% 1,152 Generation 1,990 substations MVA Kms 28 946 86% Owned & Operated Operated Regulated
Slide 43: Dedicated Transmission Business
12M 2024 INVESTOR PRESENTATION DEDICATED TRANSMISSION BUSINESS US$ 27 million revenue in 2024 => 49% of total transmission revenue 2024 Dedicated transmission revenue Top-tier off-takers 28% (breakdown in US$ millions) National 17 Dedicated toll & service US$ 55.5 MM contracts w/8-yr avg. life Zonal
Slide 44: Regulatory Initiatives
12M 2024 INVESTOR PRESENTATION REGULATORY INITIATIVES GENERATION DISTRIBUTION • Tariff Normalization Law implementation (“PEC3”). • New Tariff Bill (Subsidy extension + PyMEs Price). • Tariff fixing process (VAD 2024-2028). • Ministry of Energy's decarbonization plan. • Coordination & Operation regu
Slide 45: Financing Activity
12M 2024 INVESTOR PRESENTATION FINANCING ACTIVITY Securing funding and liquidity for the energy transition PEC Accounts Receivable (ARs) Bank loans as of 31-Dec-24 Bonds as of 31-Dec-24 monetization programs US$1,024 million US$1,361 million US$840 million (o.w. US$95 mln < 1 yr.) (o.w. US$136 mln <
Slide 46: Dividends to Be Resumed in 2025 on Strong 2024 Results
12M 2024 INVESTOR PRESENTATION DIVIDENDS TO BE RESUMED IN 2025 ON STRONG 2024 RESULTS No dividends paid on account of 2022 and 2023 results 31-Dec-23 31-Dec-24 EECL: CLP 920 EECL: CLP 907 (-1%) IPSA: 6,710 (+8%) down 1% to CLP 907 120 IPSA: 6,198 Genco’s: 100 Genco’s: 96 (-4%) 100 80 Dec-23 Jan-24 F
Slide 47: Ownership Structure
12M 2024 INVESTOR PRESENTATION OWNERSHIP STRUCTURE 50% Pension Local Foreign 59.99% 15.65% 17.94% 7.04% Individuals 0.34% funds institutions institutions ENGIE Energía Chile S.A. “EECL” Red Eléctrica Chile S.A. 50% Gasoducto Norandino SpA Central Termoeléctrica Inversiones Edelnor Transmisión Transm
Slide 48: For More Information About ENGIE Energía Chile
12M 2024 INVESTOR PRESENTATION FOR MORE INFORMATION ABOUT ENGIE ENERGÍA CHILE +562 2353 3200 inversionistas@engie.com https://engie-energia.cl/inversionistas/ More information on 12M2024 results in our web page Presentation Addenda Press Release Recorded Financial Analyst pack conference Report audi
Slide 49: Disclaimer
Disclaimer Forward-Looking statements This presentation may contain certain forward-looking statements and information relating to ENGIE Energía Chile S.A. (“EECL” or the “Company”) that reflect the current views and/or expectations of the Company and its management with respect to its business plan