Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — FY2022 Earnings Presentation
40 slides from Enel Chile Sa's earnings presentation, Mar 1, 2023
Slide 1: Enel Chile's Consolidated results Q4 & FY 2022
Q4 & FY Enel Chile’s Consolidated results March 01, 2023
Slide 2: Key highlights
Q4 & FY 2022 Key highlights Fabrizio Barderi CEO
Slide 3: Key highlights of the period
Key highlights of the period Business & Economic Market Energy Financial Performance conditions transition performance +0.8GW new Sharp deleverage Earnings exceeded +2TWh of hydro renewable capacity of Enel Chile the upper range generation for Enel over 2022 (-60% ND/EBITDA vs. 2021) of our guidance
Slide 4: Track record confirmed despite challenging scenario
Track record confirmed despite challenging scenario Net Additional Capacity EBITDA Net Income We continue boosting the Earnings exceeded the upper range of our Guidance. Net Income energy transition greater than figures presented in our 2022 Investor Day RES Growth (GW) (USD bn) (USD bn) +14% +40% 6
Slide 5: Market and strategy outlook
Q4 & FY 2022 Market and strategy outlook Fabrizio Barderi CEO
Slide 6: Portfolio management actions have translated into a successful recovery plan
Portfolio management actions have translated into a successful recovery plan. Despite challenging context … Better hydro conditions and … boosted by a robust gas policy … supporting our 2022 Earnings renewables’ contribution… to guarantee higher volumes…. results guidance achievement Enel Chile rene
Slide 7: Our performance was boosted by renewables strategy contribution
… our performance was boosted by renewables strategy contribution, reinforcing our portfolio … Net installed capacity (as of Dec 2022) 7% 76% Renewable 17% 8.4 42% GW 34% Hydro CCGT2 Wind, Solar & Geothermal Oil-Gas 0.5 GW 0.8 GW 0.7 GW Operation of the 1st green hydrogen pilot COD approved Total co
Slide 8: Asset Rotation and Gas Valorization strategy unlocked value in 2022
… and by well-target actions, as the Asset Rotation and Gas Valorization strategy, that unlocked value in 2022 Sale of Transmission Assets Shell Agreement details Closing signed on December 9, 2022 USD 520 Mn received on Valorization of future surplus USD 1,399 mn December 29, 2022 on natural gas Re
Slide 9: Electrification as a pillar of our integrated strategy
Electrification as a pillar of our integrated strategy Quality and Digitalization are key to … and will be essential to speeding up the electrification process towards the transform today’s grids into smart grids… decarbonization of consumption FY 2021 FY 2022 Energy distributed +6% 13.3 14.1 (TWh)1
Slide 10: Among the Tier 1 ESG players in the region
All our actions and leadership have begun to pay off, being among the Tier 1 ESG players in the region Energy ESG Raters transition updates CAPEX: Enel Chile consolidated its position in the 92% SDG related 89% aligned to EU Taxonomy S&P Dow Jones Sustainability Index Coal phase out completed, and R
Slide 11: Business economic and financial performance
Q4 & FY 2022 Business economic and financial performance Giuseppe Turchiarelli CFO
Slide 12: Well-target actions and gas optimization translated into excellent results
Well-target actions followed by gas optimization strategy have translated into excellent results Adj. EBITDA1,2 Adj. Net Income1,3 Leverage Better performance mainly due to Improvements on adj Net Income due to Liability management after hydrology and gas agreement greater EBITDA and Asset Rotation
Slide 13: Sustainable capex plan pursuing climate goals
Sustainable capex plan pursuing climate goals, boosting energy transition and portfolio flexibility FY 2022 CAPEX by business and by nature1 FY 2022 Development CAPEX1 6% 5% 15% 17% 1,120 8% 1,120 856 USD mn USD mn USD mn +13% yoy +13% yoy +9% yoy 77% 76% 95% Grids & Enel X Asset development Grids &
Slide 14: Q4 2022 EBITDA explained by better hydrology and portfolio actions
Q4 2022 EBITDA explained by better hydrology and portfolio actions, despite high spot prices Q4 2022 adj. EBITDA evolution (USD mn)1 Main KPIs Q4 2021 Q4 2022 yoy 4.2x Hydrology 2.3 3.4 +48% (TWh) 40 11 932 169 81 4 (9) (15) Gx sales3 7.3 7.5 +3% (TWh) 520 (64) (25) Energy 3.4 3.5 +3% distributed (T
Slide 15: 2022 EBITDA mainly explained by well-target actions
2022 EBITDA mainly explained by well-target actions executed during the year FY 2022 adj. EBITDA evolution (USD mn)1 Main KPIs FY 2021 FY 2022 yoy 2.2x Hydrology 7.7 9.8 +26% (TWh) 469 169 43 1,468 Gx sales3 27.6 30.7 +11% 148 37 (39) (35) (TWh) 520 (240) (280) Energy 13.3 14.1 +6% distributed (TWh)
Slide 16: 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) +9% +17% Portfolio Mix evolution (TWh) Spot exposure reduction (TWh) 22.2 +1.2 TWh new renewable +3% -23% capacity 7.3 7.3 7.5 7.5 1.4 19.0 4.2 1.4 0.7 1.1 0.5 1.1 0.7 4.6 4.9 0.3 5.7 3
Slide 17: Net Income boosted by management initiatives to unlock value
Net Income boosted by management initiatives to unlock value in our portfolio FY 2022 adj. Net Income (USD mn)1 Higher EBITDA due to a better hydrology, portfolio optimization and gas valorization agreement 8.8x 769 1,517 D&A mainly reflects new renewables’ 793 32 operation and CLP devaluation (32)
Slide 18: Cash management actions to offset stabilization energy mechanism
Cash management actions to offset the impact of the stabilization energy mechanism FY 2022 FFO (USD mn)1 EBITDA results driven by better hydrology and 1,468 several actions executed in 2022 (90) (444) 68 (534) (74) Stabilization mechanism playing an import role in 2022; 672 new law approved to addre
Slide 19: Liability management focused on financial efficiency
Liability management focused on financial efficiency supporting energy transition Gross debt (USD mn)1 Liquidity position (USD mn) Debt maturities (USD bn)1 -7% Maturities/Gross Debt 2.8 5,669 28% 5% 12% 5% 12% 5,004 304 367 4,660 1.4 1.8 1,023 USD bn 5,365 4,637 0.7 0.7 3,637 72% 0.3 0.3 0.6 1.0 0.
Slide 20: Closing remarks
Closing remarks Outstanding 2022 Unlocking value Well-target actions Strong financial Earnings Results, initiatives through to reinforce our position, letting Enel confirming our Asset Rotation and Integrated Business Chile ready to face track record and Portfolio model resilience, in Energy Transit
Slide 21: Annexes
Q4 & FY 2022 Annexes ene
Slide 22: Annexes
Annexes Q4 & FY 2022 Financial and operational annexes Q4 & FY Profit & Loss (USD mn) Regulatory update Main business breakdown Commodities and Spot price outlook Hydrology outlook Enel Chile overview Renewables expansion update Enel Chile Corporate information Credit rating Organization structure M
Slide 23: Q4 Profit & Loss (USD mn)
Q4 Profit & Loss (USD mn)1 Q4 2022 Q4 2021 ∆ yoy Adjusted EBITDA2 932 221 4.2x Reported EBITDA 872 193 4.5x D&A (73) (65) 1.1x Bad Debt (5) (10) 0.5x Impairment (2) (38) 0.05x Reported EBIT 792 80 9.9x Financial expenses (56) (40) 1.4x Results from equity investments 1,126 15 76.7x Reported EBT 1,86
Slide 24: FY Profit & Loss (USD mn)
FY Profit & Loss (USD mn)1 FY 2022 FY 2021 ∆ yoy Adjusted EBITDA2 1,468 675 2.2x Reported EBITDA 1,348 599 2.2x D&A (274) (242) 1.1x Bad Debt (25) (22) 1.2x Impairment (2) (38) 0.05x Reported EBIT 1,047 298 3.5x Financial expenses (137) (180) 0.8x Results from equity investments 1,131 15 74.0x Repor
Slide 25: A regulatory framework in evolution
A regulatory framework in evolution Proposal on capacity payments regulation VAD 2020-24 regulatory period 6% Returns (real terms post tax) Recognition of BESS capacity payment and Tariff review process better attribution for reservoirs HPP Dec 2022 Jan 2023 Mar 2023 May 2023 Expert Final Regulator
Slide 26: Main business EBITDA breakdown
Main business EBITDA breakdown Adjusted EBITDA Adjusted EBITDA Generation business line (USD mn)1,2 Networks business line (USD mn)1 5.1x 2.4x +6% +23% 1,336 889 176 520 45 142 42 520 91 11 19 61 546 816 173 31 369 26 81 85 Q4 2021 Q4 2022 FY 2021 FY 2022 Q4 2021 Q4 2022 FY 2021 FY 2022 Gas valoriza
Slide 27: Commodities and Spot price outlook
Commodities and Spot price outlook Henry Hub (USD/mmbtu) Brent (USD/bbl) API 2 (USD/Ton) 9.4 8.9 8.7 123.7 389.0 118.8 113.3 112.7 352.9 364.9 7.3 98.2 104.4 100.0 319.3 6.9 6.7 325.3 328.5 6.3 6.6 6.2 89.9 93.3 91.7 87.2 81.1 267.9 5.3 328.1 4.7 4.6 173.0 213.6 4.0 4.4 5.8 82.8 83.7 81.4 167.5 194.
Slide 28: Hydrology outlook
Hydrology outlook Historic Enel Chile hydro generation (TWh) Rainfall in our most relevant basins1 600 Rapel 2500 Maule (34% of consolidated Gx) 2006 17.1 (9% of consolidated Gx) 500 2000 2007 13.2 Cumulated rainfall (mm) Cumulated rainfall (mm) 400 2008 13.8 1500 300 2009 14.9 1000 2010 12.6 200 20
Slide 29: 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 30: Sustained reinforcement of our renewable matrix throughout the country
Sustained reinforcement of our renewable matrix throughout the country Net installed capacity5 76% Central zone 7% Renewable 17% PMGD2 83 MW Southern zone 8.4 42% 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 & Geoth
Slide 31: 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 32: Organization structure
Organization structure Enel Chile shareholders1 64.9% 2.4% 6.2% Chile 22.4% Pension Funds Market Cap2 Institutional Investors USD 3.1 bn ADR’s 4.1% Enel SpA 64.9% Others 100.0% 93.5% 99.1% 100.0% 49.0% Green Power Chile Generación Chile Distribución Chile Enel X Chile Non-consolidated assets 1. As o
Slide 33: Management of the company
Management of the company Management Team F. Barderi Sustainability & Community 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 Servi
Slide 34: 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 34
Slide 35: 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 36: 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 37: ESG raters and rankings
ESG raters and rankings1 88 88 88 4.6 4.4 84 A- AA AA AA A B 3.2 3.4 2019 2020 2021 2022 2021 2022 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- -B 83 54 49 C 77 72 2019 2020 2021 2022 2019 2020 2021 2022 2019 202
Slide 38: 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 39: Contact us
Q4 & FY 2022 consolidated results Contact us Contacts Email ir.enelchile@enel.com Phone +56 2 2630 9606 Channels – Follow us Isabela Klemes Head of Investor Relations Enel Chile Investor Relations team Website Catalina González Enel.cl Claudio Ortiz Pablo Contreras Download the investor relations ap
Slide 40: Disclaimer
Q4 & FY 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 regarding the i