Enel Americas S.A. · BCS:ENELAM
Enel Americas — Investor Day (November 2023)
35 slides from Enel Americas's investor day presentation, Nov 30, 2023
Slide 1: Investor Day Enel Américas
enel Investor Day Enel Américas NOVEMBER 30TH 2023
Slide 2: Agenda
Agenda Aurelio Bustilho – Chief Executive Officer Market context in LatAm Our track record Our strategy going forward 2024-2026 Financial figures Strategic Plan Financial management Our targets Closing Remarks 2
Slide 3: Market context in LatAm
Market context in LatAm Aurelio Bustilho
Slide 4: Improving regional macroeconomic context, but interest rates to remain high
Improving regional macroeconomic context, but interest rates to remain high… GDP growth1 Inflation1 Fx (vs USD)1 Brazil Colombia 11.0% 11.6% 4,600 4,329 7.50 Normalization of 4,400 4,182 7.00 8.3% 4,200 6.50 3,743 macro scenario in 4,000 3,800 6.00 5.50 our core countries… 5.0% 2.8% 3.1% 3.6% 3,600
Slide 5: Climate change risk adds market volatility and remains a concern
…and while climate change risk adds market volatility and remains a concern… Spot prices1 Reservoirs2 (%) BRL/MWh 100% 800 80% 600 60% Brazil 400 40% 200 20% 0 0% 2020 2021 2022 2023 2020 2021 2022 2023 COP/kWh 100% 1500 80% 1000 60% Colombia 40% 500 20% 0 0% 2020 2021 2022 2023 2020 2021 2022 2023
Slide 6: Region has significant growth potential and leads in RES penetration
…but the region has significant growth potential, while being a leader in RES penetration Electrification Renewables’ penetration Market liberalization Changes in energy consumption Increased role of renewables opens With unique growth opportunities as trends will trigger an increase in opportunitie
Slide 7: Our track record
Our track record Cre
Slide 8: A solid track record towards decarbonization and electrification
A solid track record towards decarbonization and electrification, with sustainable financial metrics 2016 2023E % EBITDA (USD bn) 2.4 4.6 +88% Value driven integrated CAPEX (USD bn) 1.2 2.8 >2x company with a solid financial position Net debt / EBITDA (times) 0.6 1.4 +0.8 Grid customers (mn) 14.1 23
Slide 9: Our strategy going forward
Our strategy going forward Cre
Slide 10: Our strategic pillars 2024-26
Our strategic pillars 2024-26 Corporate simplification 1 Focus efforts on strategic countries, completing main processes announced on 2022 2 Grids 3 Generation 4 Customers Focus on countries with Selective investments Prioritize products and constructive regulation, based on a risk-reward services t
Slide 11: Completing M&A execution, optimizing our portfolio in the region
Completing M&A execution, optimizing our portfolio in the region… Corporate simplification execution Net proceeds2 of USD 3.8 bn from deals Argentina: Thermal generation assets closed and signed, with USD 0.9 bn in net debt Deals deconsolidation closed Brazil: Tx Cien concession ~95% of proceeds & d
Slide 12: Selective CAPEX allocation on strategic businesses focused on returns
…with selective CAPEX allocation on our strategic businesses focused on returns… Total CAPEX 2024-261 By country / business line By country By business line Core countries (Brazil & Colombia) capturing most of our investments 1% 3% 1% 1% 5% Focus on Grids, deploying CAPEX on visible and remunerative
Slide 13: Grids investments aimed towards digitalization and profitability
…and Grids investments aimed towards digitalization and profitability… Gross CAPEX1 Grid customers (mn) Energy distributed (TWh) +5% +4% 19.5 20.5 87.0 1% 83.6 4% 0.9 2.9 21% 2023E 2026 2023E 2026 Proforma Proforma 2024-26 Smart meters USD 3.9 bn Key drivers RAB2 (USD bn) 74% +21% OPEX / CAPEX effic
Slide 14: High quality standards and lower energy losses to boost profitability
…while focusing on high quality standards, coupled with lower energy losses to boost profitability Key drivers Energy losses (%) SAIDI (hours) SAIFI (times) Quality - 0.6 p.p. - 4% -% Investments to improve quality and resiliency, along with lower energy losses 11.9% 7.2 4.0 4.0 to increase profitab
Slide 15: Reaching 98% renewable capacity, exiting non-core geographies
…reaching 98% renewable capacity, exiting non-core geographies… Gross CAPEX1 Installed capacity (GW) Net production (TWh) 14.5 12.1 1.4 +12% 2.4 3.9 0.2 1.5 42.3 3.4 37.8 3% 1%1% 3.6 1.3 3.5 7.0 0.2 4.9 2023E Disposals Added 2026 2023E 2026 42% 2024-26 capacity Proforma USD 1.5 bn Hydro Wind Solar T
Slide 16: Robust pipeline and 1 GW under execution
…along with a robust pipeline and 1 GW under execution Capacity in execution Pipeline2 (GW) 70% ~20 ~47 GW 23% capacity additions under construction ~1 ~25 ~48 1.0 GW 1.0 77% Gross Pipeline Early Stage BESS Mature In execution Brazil Colombia By technology By country 3% 2% By technology By COD1 15%
Slide 17: Customers investments to maximize clients' engagement and satisfaction
Customers investments to maximize clients’ engagement and satisfaction Gross CAPEX1 Free market customers (th) Key drivers +87% 9.4 3% 3% Profitability 5.0 Prioritize products and services that can accelerate electrification (i.e. electromobility and public lighting) 32% 2024-26 2023E 2026 USD 0.3 b
Slide 18: Financial figures
Financial figures Cre
Slide 19: Capital allocation driving profitability and sound EBITDA generation
Capital allocation driving profitability and sound EBITDA generation… Gross CAPEX1 EBITDA evolution (USD bn) Key drivers Focus on Grids with higher visibility on returns 1% 3% 1% +17% 0.2 4.3-4.5 0.4 Selective approach to renewables 3.8 CAPEX, with focus on tech/country returns 30% 2024-26 USD 5.7 b
Slide 20: OPEX efficiencies to offset CPI and Fx dynamics
…along with OPEX efficiencies to offset CPI and Fx dynamics… OPEX evolution1 (USD bn) Key drivers Efficiencies for ~USD 0.1 bn to - USD 0.1 bn offset FX & CPI dynamics 1.2 1.1 Insourcing of Grids activities in Brazil and Sao Paulo pension fund settlement mainly explain the improvement Leveraging tec
Slide 21: Grids with visible and predictable returns
…focusing on Grids with visible and predictable returns… Gross CAPEX EBITDA evolution (USD bn) 2023E 2026 Quality, +9% Resiliency & Grids OPEX/Grid cust.1 Digitalization management 2.2-2.3 (USD/grid cust.) 30 25 2.1 0.2 (0.1) 0.1 0.1 23% RAB/Grid cust. (USD/grid cust.) 436 503 37% 2024-26 USD 3.9 bn
Slide 22: Growth focus on Generation is fully on Renewables
…while the growth focus on Generation is fully on Renewables… Gross CAPEX EBITDA evolution (USD bn) 2023E 2026 +24% Maintenance EBITDA/MWh 1.7-1.8 (USD/MWh) 38 42 24% 0.01 0.28 1.4 OPEX/MW (0.01) 0.04 (th USD/MW)1 24 18 2024-26 USD 1.5 bn 76% 100% sales coverage through Growth own production and PPA
Slide 23: Continue boosting electrification through Customers
…and to continue boosting electrification through Customers CAPEX by country EBITDA evolution (USD bn) 3% 3% +32% 0.42-0.44 32% 2024-26 0.33 0.19 USD 0.3 bn (0.03) 62% (0.05) 2023 Fx & CPI OPEX Growth 2026 Brazil Colombia Proforma Argentina Peru Rounded figures. 2023E Proforma excludes Argentina & P
Slide 24: Financial management
Financial management Cre
Slide 25: Managerial actions and CAPEX optimization drive cash generation
Managerial actions and CAPEX optimization drive cash generation… 13.7 (0.3) (2.2) Managerial actions to improve (1.4) 9.7 NWC1 dynamics.. (5.7) … along with selective capital (2.0) allocation to drive organic 2.1 cash generation EBITDA Provisions Taxes paid Net financial FFO Gross Dividends Net FCF
Slide 26: Defined uses for funds generated from corporate simplification
…with defined uses for funds generated from corporate simplification… Proceeds & uses from M&A1 (USD bn) Leverage goals Multiple alternatives to re-leverage the company to a sound level during the plan period Liability management Net debt / EBITDA 1.9 & others 1.4 ~1.0 – 3.8 1.5 Sao Paulo pension 1.
Slide 27: Reducing cost and risk profile of gross debt
…while we reduce the cost and risk profile of our gross debt… 2026 Gross debt structure Cost of debt evolution By currency By interest rate Financial Expenses 0.69 0.48 0.39 0.36 (USD bn) 13.6% Fixed 13.2% 10.9% 9.7% 9% 9.2% 8.9% 45% USD 5.3 bn USD 5.3 bn 55% 4.0% 4.0% 91% 2023E 2024 2025 2026 BRL C
Slide 28: Strong liquidity position and smooth maturities calendar
…and with a strong liquidity position and smooth maturities calendar Liquidity available1 Debt maturity by year1 (USD bn) Maturities / 27% 13% 17% Gross debt Cash 5.1 1.1 USD 2.6 bn 1.5 Available 2.4 committed credit lines 1.6 1.1 2024 2025 2026 Total + USD 3.8 bn of net proceeds from 2024-26 our co
Slide 29: Financial targets
Financial targets Cre
Slide 30: Strategic Plan targets 2024-26
Strategic Plan targets 2024-26 EBITDA (USD bn) Group net income (USD bn) CAPEX (USD bn) +5% +20% CAGR 23-26 CAGR 23-26 2.8 1.4-1.5 4.4-4.6 4.3-4.5 2.3 0.3-0.4 1.0-1.1 3.8 1.6 0.8 4.1-4.2 2023E 2024 2026 2023E 2024 2026 2023E 2024 2026 Proforma Proforma Disposals Rounded figures. 2023E Proforma exclu
Slide 31: Closing remarks
Closing remarks Cre
Slide 32: Closing remarks
Closing remarks Completing corporate simplification process, focusing on countries that offer the highest growth potential Investing on Grids with constructive regulation, with improvements in quality and energy losses Tailored approach to Selective approach to RES investments to maximize profitabil
Slide 33: Disclaimer
Strategic Plan 2024-26 Disclaimer This presentation contains statements that could constitute forward-looking statements. These statements appear in a number of places in this presentation and include statements regarding the intent, belief or current expectations of Enel Américas and its management
Slide 34: Thank you. Contact us
Strategic Plan 2024-26 Contact us Contacts Email - [email protected] Channels Website Mobile App www.enelamericas.com Enel Américas Investors Rafael de la Haza Head of Investor Relations Download App iOS Android Investor Relations team Jorge Velis Nicolás Gracia Francisco Basauri Monica De Ma
Slide 35: CNC
CNC