Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — 9M 2020 Earnings Presentation
41 slides from Enel Chile Sa's earnings presentation, Oct 30, 2020
Slide 1: Enel Chile 9M 2020 Consolidated results
Enel Chile 9M 2020 Consolidated results October, 30th 2020 Chile
Slide 2: 9M 2020 Consolidated results
9M 2020 Consolidated results Paolo Pallotti CEO Chile
Slide 3: Key highlights of the period
Key highlights of the period Chile COVID-19 Decarbonization Electrification Innovation 1.3GW already in Operational construction and New alliances to First green resilience and Bocamina I boost e-mobility hydrogen pilot clients support closure in in Chile project in Latam 2-months 2
Slide 4: Responding to COVID-19
Responding to COVID-19 Measures to ensure the safety of our people and business continuity Chile Our People Our operations Our clients Boosting digitalization 74% 100% to mitigate impacts in collection of Enel Chile total personnel of our plants and networks Giving more flexibility working remotely
Slide 5: Responding to COVID-19
Responding to COVID-19 Supporting the economy recovery, guarantying safety conditions Chile Boosting the local economy Renewables cumulated temporary jobs creation1 #´000 Creation of new 4.6 JOBS temporary jobs 3.6 +1.0 JOBS 3.0 2.7 Promoting the 1.8 1.9 2.1 1.8 1.7 local hiring 1.6 Job reconversion
Slide 6: COVID-19 outlook: temporary demand decrease
COVID-19 outlook Temporary demand decrease Chile Generation Business Demand1 (TWh) Energy distributed2 (TWh) Lock-down Lock-down 5.9 5.8 6.0 6.1 5.5 5.7 4.1 4.1 4.1 4.2 3.9 3.7 -1.9% -0.4% -6.1% -6.5% -8.4% -10.9% Q1 Q2 Q3 Q1 Q2 Q3 2019 2020 Chg (YoY%) Electricity demand reflects the COVID-19 outbre
Slide 7: COVID-19 outlook: digitalization to mitigate collection impacts
COVID-19 outlook Digitalization to mitigate impacts in collection Chile Collection (%) Number of digital payments (%) -3.9pp -2.8pp 96.3 92.4 98.4 95.6 27% 23% 51% 44% 39% 85% of the collection in September came through digital channels 73% 77% 49% 56% 61% New payments channels available Q3 2019 Q3
Slide 8: Main Regulatory updates (1/2)
Main Regulatory updates (1/2) Regulation evolves according to energy transition and COVID-19 Chile Basic services Law Distribution updates Unbundling Starting from Jan 1st, 2021 Distribution companies will only perform distribution activity Measures to benefit most vulnerable population Enel Distrib
Slide 9: Main Regulatory updates (2/2)
Main Regulatory updates (2/2) Regulation evolves according to energy transition Chile Tariff stabilization mechanism Bill on Portability Law Mechanism stablishes the balance Proposal presented to the Energy Proposed type of clients recovery by 2027 at latest Commission of the Lower Chamber Large >5,
Slide 10: 9M 2020 Strategy updates
9M 2020 Strategy updates Paolo Pallotti CEO Chile
Slide 11: Speeding up decarbonization process
Decarbonization & renewables Speeding up decarbonization process Early disconnection to promote decarbonization of our fleet Chile Tarapacá Bocamina I Bocamina II 158 MW 128 MW 350 MW First Chilean electric company to phase out its coal fleet by 2022 Closed on Closure date Closure date Dec 31st 2019
Slide 12: Renewables expansion to enhance commercial strategy
Decarbonization & renewables Speeding up decarbonization process Renewables expansion to enhance commercial strategy Chile Net installed capacity1 (GW) +0.7GW 8.8 +1.3GW 77% 7.2 (0.4) 65% Coal phase out 6.7 4.7 +2GW acceleration Renewable expansion 2.5 Mature pipeline 2.1 Jun-20 In execution Mature
Slide 13: Boosting renewables expansion: quarter announcements
Decarbonization & renewables Boosting renewables expansion Quarter announcements (1/2) Chile The driest desert and the highest solar radiation levels worldwide Beginning of First pilot project for Construction of green hydrogen Domeyko production in Chile solar power plant 204 MW 2021 JV with AME an
Slide 14: Boosting renewables expansion: projects under construction
Decarbonization & renewables Boosting renewables expansion Projects under construction (2/2) Chile Campos del Sol Renaico II Recent updates Recent updates Environmental permit already issued Photovoltaic (PV) modules and 2020/21 Environmental permit already issued First Wind Turbines batch a
Slide 15: Hydrology outlook
Hydrology outlook Slight recovery during 3Q2020 Chile Oct 2019 Oct 2020 Rainfall in our most relevant basins1 Maule Maule Rapel Maule 2500 600 (9% of consolidated Gx) (34% of consolidated Gx) Cumulated rainfall (mm) Cumulated rainfall (mm) 2000 500 400 1500 300 1000 200 500 100 Laja Laja 0 0 Jul Oct
Slide 16: Generation Business portfolio: main KPIs performance
Decarbonization & renewables Generation Business portfolio Main KPIs performance Chile Net Installed Capacity (GW) Production (TWh) Energy balance (TWh) -12% -5% 6% 65% 18.0 18.0 17.0 17.0 9% 16.0 Renewable 14.0 2.0 (+1% YoY) 2.3 2.9 2.2 8.1 2.8 8.7 20% 7.2 49% 0.3 1.6 0.5 GW 3.2 3.4 16.0 14.0 9.8 8
Slide 17: Infrastructure & Networks portfolio
Enabling Infrastructure Infrastructure & Networks portfolio Resilient grids to anchor electrification Chile Energy distributed (TWh)1 Main KPIs -6% 9M 2019 9M 2020 Clients (million) 2.0 2.0 12.4 11.7 Client App users (#´000) 233 424 9M 2019 9M 2020 Telecontrol equipments 1,964 2,328 SAIDI2 (min.) 20
Slide 18: Enel X business portfolio
Enabling Ecosystems Enel X business portfolio Scaling ecosystem by Enel X, providing new services to our clients Chile Enel X main KPIs 9M 2019 9M 2020 Electric buses1* 285 435 Charging Points1-2 (public and private) 355 677 Public lighting1 (‘000) 251 279 e-Home services3 (‘000) 65.0 70.4 Joint Ven
Slide 19: 9M 2020 Financial results
9M 2020 Financial results Giuseppe Turchiarelli CFO Chile
Slide 20: 9M 2020 Adjusted Financial highlights
9M 2020 Adjusted Financial highlights (USD mn)1 Chile EBITDA Net Income Capex FFO Net Debt 8082 3242 586 566 3,646 (-6% yoy) (-17% yoy) (+132% yoy) (+47% yoy) (+11% yoy) 9M 2019 8593 3913 253 3853 3,2714 1. Reported figures. Average exchange rate for the period of 801.83 CLP/USD. Spot exchange rate
Slide 21: COVID-19 Impacts
COVID-19 Impacts Demand evolution and bad debt Chile Net of 9M 20201 Demand Adjusted2 (net of Others Bad debt COVID-19 (USD mn) purchases) impact Volumes lower than expected EBITDA 808 (49) (9) 866 for the 9M 2020 Others costs mainly in Bad Debt (13) Distribution business Net Income 324 (36) (7) (10
Slide 22: Business continuity: sustainable capex plan
Sustainable capex plan Business continuity: sustainable capex plan Execution of our sustainable capex plan, 97% linked to SDGs Chile 9M 2020 Capex by business and by nature1 9M 2020 Capex asset development by business1 Capex allocation by Quarter (2020) 8% 18% 586 586 476 Q1 11% USD mn USD mn 81% 5%
Slide 23: Q3 2020 EBITDA evolution
Q3 2020 EBITDA evolution Results mainly driven by hydrology and demand performance Chile EBITDA evolution (USD mn)1 Main KPIs -11% Q3 2020 Q3 2019 yoy (24) Hydrology 2.6 2.8 -7% 24 (8) (TWh) (13) (11) 334 (11) (8) (7) 319 (4) (5) Gx Sales 310 307 (TWh) 5.8 6.1 -5% 302 302 301 297 297 292 292 Dx Sale
Slide 24: 9M 2020 EBITDA evolution
9M 2020 EBITDA evolution Results mainly driven by hydrology and demand performance Chile EBITDA evolution (USD mn)1 Main KPIs -6% 9M 2020 9M 2019 yoy (151) Hydrology 6.4 7.4 -14% (TWh) 1,010 (54) 80 23 (22) (9) Gx Sales (7) (37) 24 (20) 17.0 18.0 -5% (34) (48) (TWh) 859 837 838 (20) 805 828 821 808
Slide 25: Generation Business EBITDA performance
Generation Business Decarbonization & renewables EBITDA performance Chile EBITDA Q3 2020 evolution (USD mn)1 EBITDA 9M 2020 evolution (USD mn)1 -5%2 1%2 843 Steady EBITDA margins despite 151 demand reduction driven by COVID-19 275 262 Lower hydrology generation 692 699 (-1.0TWh) in the period Q3 201
Slide 26: Networks and Enel X EBITDA performance
& Ecosystems Enabling Infrastructure Networks and Enel X business EBITDA performance Chile EBITDA Q3 2020 (USD mn)1 9M 2020 EBITDA (USD mn)1 -35% -22% Demand reduction led 68 by lockdown measures 189 14 18 147 44 Energy losses driven by logistic 54 171 8 constrains and safety restrictions 3 139 42 E
Slide 27: 9M Profit & loss
9M Profit & loss (USD mn) 9M 20201 9M 20191 ∆ yoy Chile Adjusted EBITDA2 808 859 -6% Reported EBITDA 788 1,010 -22% PPA early termination agreement booked in Q1 2019 D&A and Bad Debt (243) (223) +9% Impairment (868) (347) +150% Reported EBIT (323) 439 -174% Lower EBIT due to Bocamina II impairment b
Slide 28: Cash flow
Cash flow USD bn Chile 808 (159) 26 (109) 566 Adjusted ∆Working Income Financial FFO 9M201 EBITDA capital taxes expenses & other PY2 859 (267) (96) (110) 385 Delta YoY -6% -41% -128% -1% +47% 1. Adjusted figures by coal fuel impairment on 9M 2020 (20 USD mn). Average exchange rate for the period 801
Slide 29: Debt
Debt (USD mn) Cost of debt declined by 60 bps Chile Gross debt1 Net debt evolution1 +16% +11% 4,155 389 (34) 510 3,646 3,585 (566) 586 314 3,271 3,646 3,271 Dec 31, 2019 Sep 30, 2020 Dec 31, 2019 FFO 2 Capex 2 Dividends 2 FX & Sep 30, 2020 Paid Others Net debt Cash Cost of gross debt3: 4.6% (vs 5.2%
Slide 30: Liquidity position
Liquidity position Business continuity supported by liquidity position Chile Liquidity Position (US$ Bn)1 Debt maturities (US$ Bn)1 3.5 98% of gross debt has a fixed rate 3.1 3.0 2.5 0.5 1.0 US$ bn 0.5 2.0 1.5 97% of gross debt is USD denominated 1.0 0.5 0.5 0.2 0.2 0.3 0.0 Available committed credi
Slide 31: Closing remarks
Closing remarks Chile Focus on the Customer centricity Financial solidity sustainability of to support our Accelerated to continue our long-term clients' needs and Decarbonization supporting the strategy quality of services plan, fully on-track energy transition 30
Slide 32: Annexes
Enel Chile 9M 2020 Consolidated results Annexes Chile
Slide 33: 3Q2020 main figures
3Q2020 main figures Chile 3Q20 P&L (USD mn) 3Q 2020 Total Capex by business and by nature1 3Q 20201 3Q 20191 ∆ yoy Adjusted EBITDA2 297 334 -11% Reported EBITDA 292 334 -13% 264 9% 18% 264 D&A and Bad Debt (75) (73) +3% USD mn USD mn 81% +168% yoy 79% 10% +168% yoy Reported EBIT 217 261 -17% 3% Fina
Slide 34: ESG Focus Indexes and Recognitions
ESG Focus Indexes and Recognitions Indexes, recognitions and certifications Chile Enel Chile Chile Index Emerging Enel Chile is part of the Enel Chile reached third place in MILA Index “A” rate in 2019 Market and Robecco SAM Latin America Emerging ISO 37001 the 2020 Informe Sustainability Yearbook E
Slide 35: Credit Rating
Credit Rating Enel Chile and Enel Generación Chile Chile International market Chilean market Enel Chile Enel Chile Standard & Poor’s Moody’s Fitch Ratings Fitch Ratings Feller Rate Affirmed Aug/20 Affirmed Jun/20 Rated Jul/20 Upgraded Jan/20 Affirmed Jul/19 Enel Generación Enel Generación Standard &
Slide 36: Commodities and Fx outlook
Commodities and Fx outlook Volatility on commodity prices and FX depreciation Chile Henry Hub (US$/mmbtu) Brent (US$/bbl) 71.3 71.1 66.1 67.0 3.6 64.0 64.1 64.0 62.8 63.5 59.0 59.7 63.0 3.0 2.9 2.7 59.5 55.4 44.8 2.6 2.6 2.6 2.6 43.4 2.4 2.5 40.1 40.8 2.2 2.3 2.1 1.9 1.8 1.8 31.8 29.0 1.6 1.7 1.5 2.
Slide 37: Hydrology outlook
Hydrology outlook Slight recovery during 3Q2020 Chile National Hydro production (GWh/day)1 Historic hydro generation in the SEN system (GWh) Affluent Energy by Probability of Exceedance 24.5 80 23.6 23.9 23.2 70 21.2 21.8 20.7 20.2 20.8 19.6 19.5 60 39% 51% 50% 51% 50 41% 42% 46% 56% 49% 13.4 40 50%
Slide 38: Shareholders Structure
Shareholders Structure Organization structure Chile Enel Chile shareholders1 ADR's 64.9% 3.1% Institutional Investors 16.3% Chile Pension Funds Market Cap2 14.3% 4.8 $ bn Enel SpA 64.9% 100.0% 93.5% 99.1% 100.0% Others 1.4% Green Power Chile Generación Chile Distribución Chile Enel X Chile 1. As of
Slide 39: Our positioning
Enel Chile Our positioning Largest Utility player in Chile in installed capacity and number of clients Chile Thermal generation Renewables generation Distribution area Empresa Eléctrica Tarapacá TG Finis Terrae Cerro Pabellón Pampa Norte Colina Atacama Valle de los Vientos Luz Andes Lalackama I Lala
Slide 40: Disclaimer
9M 2020 Results Disclaimer Chile 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 41: Contact us
9M 2020 consolidated results Contact us Chile 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 Download