Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — H1 2022 Earnings Presentation
39 slides from Enel Chile Sa's earnings presentation, Jul 28, 2022
Slide 1: Enel Chile's Consolidated results Q2 & H1 2022
Q2 & H1 Enel Chile’s Consolidated results July 28, 2022
Slide 2: Key highlights
Q2 & H1 2022 Key highlights Fabrizio Barderi CEO
Slide 3: Key highlights of the period
INTERNAL Key highlights of the period Portfolio Regulatory Economic Asset Management updates performance rotation Adverse market conditions partially 2.0 Energy Temporary effect Sale purchase offset by several Stabilization on margins agreement signed management actions Mechanism approved Commoditie
Slide 4: Market and Strategy outlook
Q2 & H1 2022 Market and Strategy outlook Fabrizio Barderi CEO
Slide 5: The adverse context remains with new caveats carrying us to take several corporate actions
INTERNAL The adverse context remains with new caveats carrying us to take several corporate actions… Despite a compound set of factors that have …we’ve put in place a conservative gas … and continue focusing in reducing had under pressure the energy sector… policy, to guarantee higher volumes… non-h
Slide 6: Continuing to speed up our renewables platform
INTERNAL …while we continue working to speed up our renewables platform all over the country… Net installed capacity3 7% 4% Central zone 18% 71% PMGD2 86 MW Southern zone 8.1 43% Renewable GW Los Cóndores 150 MW Renaico II 144 MW La Cabaña 106 MW 28% +30 MW BESS Rihue 120 MW Hydro Oil-Gas Wind, Sola
Slide 7: Better perspective for the second half of the year
INTERNAL … all elements together could be catalyzed by a better perspective for the second half of the year Snowing period representing a good perspective … which together with our corporate actions will enable us to for the next melting season … maintain a resilient portfolio H2 2022 scenario and a
Slide 8: Main regulatory updates in the period
INTERNAL Main regulatory updates in the period 2.0 Stabilization Mechanism Distribution main updates Basic Service Law 1,800 MUSD Mechanism (MPC) to avoid Subsidies to residential’ clients regulated tariff increase to the final client <250 Government subsidies up affected by COVID kWh/month to 15% o
Slide 9: Temporary effects don't change our strategy commitments towards decarbonization and electrification
INTERNAL Temporary effects don’t change our strategy commitments towards decarbonization and electrification Quality and Digitalization continues to … also for decarbonization of our matrix … all in all, backboned by an ESG be key towards electrification… and our clients’ final consumption… leadersh
Slide 10: Business economical and financial performance
Q2 & H1 2022 Business economical and financial performance Giuseppe Turchiarelli CFO
Slide 11: 2022 Adjusted Financial highlights (USD mn)
INTERNAL 2022 Adjusted Financial highlights (USD mn)1 EBITDA2 Net Income3 CAPEX FFO Performance mainly Lower EBITDA partially Renewable’ 2021 FFO includes due to Commodities offset by better deployment in line with 189 USD mn of PEC price effect financial result the strategy factoring H1 2022 313 10
Slide 12: Sustainable capex plan
INTERNAL Sustainable capex plan Robust CAPEX plan pursuing the climate goals H1 2022 Capex by business and by nature1 H1 2022 Development CAPEX1 Capex allocation 7% 3% by Quarter (2022) 15% 14% Q1 15% 5% 499 499 397 USD mn USD mn USD mn Q2 33% +12% yoy +12% yoy +10% yoy Q3E 26% 80% 79% 97% Q4E 26% N
Slide 13: Q2 2022 Adjusted EBITDA evolution
INTERNAL Q2 2022 Adjusted EBITDA evolution Results mainly driven by indexation coming from commodities and FX rates EBITDA evolution (USD mn)1 Main KPIs Q2 2021 Q2 2022 yoy -54% Hydrology 1.7 1.6 -10% Mainly due to (TWh) 12 Commodity price 100 effect Gx Sales3 6.7 7.4 (11) (TWh) +10% 203 Energy 4.0
Slide 14: H1 2022 Adjusted EBITDA evolution
INTERNAL H1 2022 Adjusted EBITDA evolution Results mainly driven by indexation coming from commodities and FX rates EBITDA evolution (USD mn)1 Main KPIs H1 2021 H1 2022 yoy -21% Hydrology 3.8 3.4 -11% Mainly due to (TWh) 190 20 Commodity price effect Gx Sales3 13.1 15.5 +18% (27) (TWh) 395 (100) Ene
Slide 15: Generation Business portfolio
INTERNAL Generation Business portfolio Main KPIs performance Net production (TWh) Energy sales evolution (TWh) +8% +11% +10% +0.5 TWh 7.4 new renewable 6.7 0.1 0.2 10.2 0.4 capacity 2.6 2.9 9.2 2.0 4.2 4.5 1.5 4.7 5.1 0.8 53% Q2 2021 Δ Production Δ Purchases Δ Net spot2 Q2 2022 1.2 0.7 Emission free
Slide 16: Main business forecast
INTERNAL Main business forecast Generation & Networks businesses EBITDA performance Adjusted EBITDA evolution (USD mn)1 -21% 395 Lower Gx Adj. EBITDA mainly due to higher commodity and spot prices 41 313 (8) (116) Networks higher Adj EBITDA as a result of indexation, demand and VAT4 conclusion H1 20
Slide 17: Repositioning and management actions catalyzed by better than expected hydrology scenario
INTERNAL Repositioning and management actions catalyzed by better than expected hydrology scenario Last years Gx Adj. EBITDA Adj. Enel Chile EBITDA Guidance (USD bn)2 Seasonality Evolution (2017-2020)1 New macro, 1.0-1.1 Improvements commodities and ~60% Gx Seasonality hydrological ~40% 0.3 scenario
Slide 18: Adjusted Net Income
INTERNAL Adjusted Net Income USD mn1 -3% EBITDA penalized by high spot prices mainly due to commodities 105 49 102 (1) 59 D&A mainly reflects renewable’ connections to the grid and CLP devaluation (82) Lower financial expenses mainly due to the factoring (28) cost of the PEC account booked in H1 202
Slide 19: FFO
INTERNAL FFO USD mn 313 EBITDA results driven by higher commodity and spot prices (144) Q2 (211) Stabilization mechanism playing an import role on the Q2 2022; new law approved to address it (187) (35) (100) (219) Working capital driven by payment seasonality Adjusted Stabilization Working Δ Income
Slide 20: Debt (USD mn)
INTERNAL Debt (USD mn)1 Liability management to reduce the cost of debt to 3.9% (4.4% in H1 2021) Gross debt Liquidity Position Debt maturities (USD bn) +13% Maturities/Gross Debt 5,669 3.1 5,004 304 8% 17% 13% 8% 367 38% 0.5 2.3 USD bn 5,365 62% 4,637 1.0 0.7 0.5 0.5 0.7 0.2 0.7 0.1 0.3 Dec 31, 202
Slide 21: Asset Rotation strategy on track. First transaction already signed
INTERNAL Asset Rotation strategy on track. First transaction already signed contributing our leverage’ optimization Tx Asset description Main valuation KPIs 2022 Expected timeline 683 km USD 1,345 mn Jul 28th … Dec Transmission lines Equity Value (99.09%)1 60 Signing FNE Buyer Tender Closing Payment
Slide 22: Closing remarks
INTERNAL Closing remarks The management Focusing our action plan is strategic efforts in Active portfolio ongoing to offset renewables management and FY2022 guidance the challenging deployment and the Asset Rotation are confirmed market context electrification of our well on track as locally and fin
Slide 23: Annexes
Q2 & H1 2022 Annexes ene
Slide 24: Annexes
INTERNAL Annexes Q2 & H1 2022 Financial and operational annexes Q2 & H1 Profit & loss (USD mn) Commodities and Marginal cost outlook Renewables expansion update Hydrology outlook Enel Chile Corporate information Credit Rating Organization structure Enel Chile business lines Management of the company
Slide 25: Q2 Profit & loss (USD mn)
INTERNAL Q2 Profit & loss (USD mn)1 Q2 2022 Q2 2021 ∆ yoy Adjusted EBITDA2 92 203 -54% Reported EBITDA 51 176 -71% D&A (72) (61) +18% Bad Debt (12) (4) +191% Impairment 0 0 N.A. Reported EBIT (33) 111 -130% Financial expenses (20) (66) -69% Results from equity investments 2 0 -1948% Reported EBT (51
Slide 26: H1 Profit & loss (USD mn)
INTERNAL H1 Profit & loss (USD mn)1 H1 2022 H1 2021 ∆ yoy Adjusted EBITDA2 313 395 -21% Reported EBITDA 251 356 -29% D&A (140) (122) +15% Bad Debt (19) (9) +107% Impairment 0 0 N.A. Reported EBIT 92 224 -59% Financial expenses (56) (112) -50% Results from equity investments 3 0 +676% Reported EBT 39
Slide 27: Commodities and Marginal cost outlook
INTERNAL Commodities and Marginal cost outlook Henry Hub (USD/mmbtu) Brent (USD/bbl) API 2 (USD/Ton) 8.9 118.8 123.7 352.9 113.3 325.3 319.3 7.3 104.4 98.2 6.3 5.8 6.2 87.2 83.7 81.4 328.1 231.4 5.3 5.4 75.0 70.8 74.6 68.7 73.0 74.1 173.0 4.6 194.5 4.0 4.4 62.2 65.6 64.7 167.2 148.4 4.0 3.6 132.8 14
Slide 28: Renewables expansion update
INTERNAL Renewables expansion update Projects in execution Net Installed End of Capacity (MW) Construction Boosting H2 Finis Terrae1 126 2022 Enel Chile is developing the first pilot project for green hydrogen production in Chile PMGD2 (I & II) 86 2022-23 JV with AME (HIIF) Guanchoi 398 2022 Expecte
Slide 29: Hydrology outlook
INTERNAL Hydrology outlook Better perspective for second half Rainfall in our most relevant basins1 Rapel 2500 Maule (9% of consolidated Gx) (34% of consolidated Gx) 600 Cumulated rainfall (mm) Cumulated rainfall (mm) 2000 500 400 1500 300 1000 200 500 100 0 0 may jun feb mar jul abr ago nov dic ene
Slide 30: Credit Rating
INTERNAL 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/2022 Ref. January/2022 Ref. June/2022 Enel Generación Enel Generación Standard & Poor’s Fitch
Slide 31: Organization structure
INTERNAL Organization structure Enel Chile shareholders1 64.9% 1.4% 6.8% Chile 22.2% Pension Funds Market Cap2 Institutional Investors 1.7 $ bn ADR’s 4.7% Enel SpA 64.9% Others 100.0% 93.5% 99.1% 99.1% 100.0% 49.0% Green Power Chile Generación Chile Transmisión Chile Distribución Chile Enel X Chile
Slide 32: Enel Chile
INTERNAL Enel Chile Largest Utility player in Chile in installed capacity and number of clients Renewables generation1 Thermal generation1 Networks1 Valle del Sol Tarapacá TG Azabache Finis Terrae Cerro Pabellón Pampa Norte Atacama Domeyko Sol de Lila Valle de los Vientos Sierra Gorda Este Distribut
Slide 33: Management of the company
INTERNAL Management of the company Management Team F. Barderi Sustainability & Community Chief Executive Officer A. Pellegrini (CEO) Relations G. Turchiarelli Chief Financial Officer R. Puentes Procurement (CFO) L. Schnaidt People and Organization A. Barrios Digital Solutions D. Gomez Regulation M.
Slide 34: Corporate governance structure
INTERNAL 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 34
Slide 35: Board composition
INTERNAL Board composition Board of Directors Board of Directors’ diversity Herman Chadwick Chair 29% Monica Girardi Director 57% Age Gender diversity diversity Isabella Alessio Director 43% 71% 41-50 Over 50 Male Female Salvatore Bernabei Director Directors’ Committee (C) Fernán Gazmuri 43% Directo
Slide 36: 2022 CEO's short-term variable remuneration
INTERNAL 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 St
Slide 37: ESG Ratings
INTERNAL ESG Ratings Main scores 4.6 AA AA 88 88 B A 84 3.4 3.2 B/A C 2019 2020 2021 2021 2019 2020 2021 2019 2020 2021 Scale from 0 to 100 Scale from D- to A Scale from CCC to AAA Scale from 0 to 5 B 83 57 B- 54 49 77 C 72 2019 2020 2021 2019 2020 2021 2019 2020 2021 Scale from 0 to 100 Scale from
Slide 38: Contact us
INTERNAL Q2 & H1 2022 consolidated results Contact us Contacts Email ir.enelchile@enel.com Phone +56 2 2630 9606 Channels Follow us Website Isabela Klemes Enel.cl Head of Investor Relations Enel Chile Investor Relations team Mobile App Catalina González Enel Investors Claudio Ortiz Pablo Contreras D
Slide 39: Disclaimer
INTERNAL Q2 & H1 2022 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 announcement and include statements regard