Enel Chile SA · BCS:ENELCHILE
Enel Chile SA — Q3 2022 Earnings Presentation
35 slides from Enel Chile SA's earnings presentation, Oct 28, 2022
Slide 1: Q3 & 9M Enel Chile's Consolidated results
Q3 & 9M Enel Chile’s Consolidated results October 28, 2022
Slide 2: Key highlights
Q3 & 9M 2022 Key highlights Giuseppe Turchiarelli CFO
Slide 3: Key highlights of the period
INTERNAL Key highlights of the period Sustainable Market scenario Portfolio Climate change Economic management related performance Good hydrology as Several management Inclusive and expected actions boosted our Just transition: Margins recovery results and resilience Coal phase-out confirming our 20
Slide 4: Market and strategy outlook
Q3 & 9M 2022 Market and strategy outlook Giuseppe Turchiarelli CFO
Slide 5: Our recovery plan has been catalyzed by better hydrology and long-position on natural gas
INTERNAL Our recovery plan has been catalyzed by better hydrology and long-position on natural gas Better hydro conditions and … boosted by a conservative gas policy … have translated into results recovery, renewables’ contribution… to guarantee higher volumes…. supporting our 2022 guidance view Ene
Slide 6: The complete coal phase-out has demonstrated our commitment to our decarbonization strategy
INTERNAL The complete coal phase-out has demonstrated our commitment to our decarbonization strategy ... Repurposing • Analyzing several alternatives for the infrastructure and land use in renewables deployment, and social projects Circular Economy • Boost secondary market for materials and new life
Slide 7: Renewable platform growth all over the country
INTERNAL …that will be reinforced by our renewable platform growth all over the country Net installed capacity2 7% 74% Renewable Central zone 18% PMGD1 86 MW Southern zone 8.0 44% GW Los Cóndores 150 MW Renaico II 144 MW 31% La Cabaña 106 MW +30 MW BESS 3 Hydro CCGT Rihue 120 MW Wind, Solar & Geothe
Slide 8: Our electrification strategy is still ongoing, boosted by grids and circular cities approach
INTERNAL Our electrification strategy is still ongoing, boosted by grids and circular cities approach Quality and Digitalization are key to … and will be essential to speeding up the electrification process towards transform today’s grids into smart grids… the decarbonization of consumption 9M 2021
Slide 9: Business economic and financial performance
Q3 & 9M 2022 Business economic and financial performance Giuseppe Turchiarelli CFO
Slide 10: 2022 Adjusted Financial highlights (USD mn)
INTERNAL 2022 Adjusted Financial highlights (USD mn)1 EBITDA2 Net Income3 CAPEX FFO Better performance Higher EBITDA and Renewables’ 2021 FFO includes mainly due to better financial results deployment in line with USD 187 mn of PEC hydrology and drove the performance the strategy factoring portfolio
Slide 11: Sustainable capex plan
INTERNAL Sustainable capex plan CAPEX plan pursuing the climate goals 9M 2022 Capex by business and by nature1 9M 2022 Development CAPEX1 Capex allocation 7% 6% by Quarter (2022) 17% 16% Q1 15% 715 7% 715 552 USD mn USD mn USD mn Q2 33% +13% yoy +13% yoy +7% yoy 76% 77% Q3 19% 94% Q4E 32% Grids & En
Slide 12: Q3 2022 Adjusted EBITDA evolution
INTERNAL Q3 2022 Adjusted EBITDA evolution Results driven by hydrology and natural gas optimization Adj. EBITDA evolution (USD mn)1 Main KPIs Q3 2021 Q3 2022 yoy +201% Hydrology 1.6 2.9 +81% (TWh) 94 Gx Sales3 7.2 7.7 +7% 104 (TWh) (5) (13) 242 13 Energy 4.3 4.6 +6% 120 (76) (28) distributed (TWh) (
Slide 13: 9M 2022 Adjusted EBITDA evolution
INTERNAL 9M 2022 Adjusted EBITDA evolution Results driven by hydrology and natural gas optimization Adj. EBITDA evolution (USD mn)1 Main KPIs 9M 2021 9M 2022 yoy +18% Hydrology 5.4 6.3 +17% (TWh) 68 Gx Sales3 33 20.3 23.2 +14% 310 (TWh) (176) 32 Energy 12.2 13.0 +7% 128 543 distributed (TWh) 461 (30
Slide 14: Generation Business portfolio
INTERNAL Generation Business portfolio Main KPIs performance Net production (TWh) Energy sales evolution (TWh) +36% +20% +7% +0.8 TWh new renewable 7.2 0.0 (1.1) 7.7 16.5 capacity 1.7 2.7 3.3 13.8 3.1 4.5 4.5 6.3 2.3 1.3 57% Q3 2021 Δ Production Δ Purchases Δ Net spot2 Q3 2022 0.9 Emission free thir
Slide 15: Adjusted Net Income
INTERNAL Adjusted Net Income USD mn1 +140% 25 Higher EBITDA due to a better hydrology 215 and portfolio optimization 64 (14) 82 (32) D&A mainly reflects renewables’ connections 90 to the grid and CLP devaluation Lower financial expenses mainly due to the factoring cost of PEC accounts booked in 9M 2
Slide 16: FFO
INTERNAL FFO USD mn 543 EBITDA results driven by better (271) hydrology and portfolio optimization (67) (338) Stabilization mechanism playing an import role on the Q2 & Q3 2022; new law approved to address it (340) (54) (155) (343) Adjusted Stabilization Working Δ Income Financial FFO Working capita
Slide 17: Debt (USD mn)
INTERNAL Debt (USD mn)1 Liability management to reduce the cost of debt to 3.9% (4.4% in FY21) Gross debt Liquidity Position Debt maturities (USD bn) +20% Maturities/Gross Debt 6,008 3.1 245 5,004 36% 8% 22% 13% 8% 367 0.4 2.4 USD bn 5,762 1.3 4,637 64% 0.7 0.5 0.5 0.2 0.7 0.7 0.1 0.3 Dec 31, 2021 S
Slide 18: Closing remarks
INTERNAL Closing remarks The first The integrated Asset Rotation conventional management action Adj. EBITDA well on electric utility in plan ongoing is FY2022 guidance track as Chile that ceases offsetting the confirmed expected using coal from challenging market its operations context 18
Slide 19: Annexes
Q3 & 9M 2022 Annexes ene
Slide 20: Annexes: Financial and operational annexes
INTERNAL Annexes Q3 & 9M 2022 Financial and operational annexes Q3 & 9M 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 21: Q3 Profit & loss (USD mn)
INTERNAL Q3 Profit & loss (USD mn)1 Q3 2022 Q3 2021 ∆ yoy Adjusted EBITDA2 242 80 +201% Reported EBITDA 241 71 +242% D&A (69) (62) +10% Bad Debt (2) (3) -25% Impairment 0 0 N.A. Reported EBIT 170 6 N.A. Financial expenses (28) (34) -18% Results from equity investments 2 0 N.A. Reported EBT 144 (28)
Slide 22: 9M Profit & loss (USD mn)
INTERNAL 9M Profit & loss (USD mn)1 9M 2022 9M 2021 ∆ yoy Adjusted EBITDA2 543 461 +18% Reported EBITDA 483 413 +17% D&A (204) (180) +13% Bad Debt (20) (11) +76% Impairment 0 0 N.A. Reported EBIT 259 221 +17% Financial expenses (82) (142) -42% Results from equity investments 5 1 +639% Reported EBT 1
Slide 23: Commodities and Marginal cost outlook
INTERNAL Commodities and Marginal cost outlook Henry Hub (USD/mmbtu) Brent (USD/bbl) API 2 (USD/Ton) 9.4 389.0 8.9 8.7 364.9 118.8 123.7 352.9 113.3 112.7 325.3 319.3 7.3 104.4 328.5 6.6 98.2 100.0 6.3 5.8 6.2 87.2 89.9 328.1 231.4 5.3 5.4 4.6 194.5 173.0 4.0 4.0 4.4 167.2 148.4 3.6 83.7 81.4 132.8
Slide 24: Renewables expansion update
INTERNAL Renewables expansion update Projects in execution Net Installed End of Capacity (MW) Construction Boosting H2 Finis Terrae1 144 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) Guanchoi3 398 2022 Expect
Slide 25: Hydrology outlook
INTERNAL Hydrology outlook Better perspective for second half Rainfall in our most relevant basins1 600 Rapel 2500 Maule (9% of consolidated Gx) (34% of consolidated Gx) 500 Cumulated rainfall (mm) 2000 Cumulated rainfall (mm) 400 1500 300 1000 200 500 100 0 0 oct sep feb abr nov may ago ene mar jun
Slide 26: 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 27: Organization structure
INTERNAL Organization structure Enel Chile shareholders1 64.9% 1.6% 6.5% Chile 22.5% Pension Funds Market Cap2 Institutional Investors USD 2.1 bn ADR’s 4.5% 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 Chil
Slide 28: Enel Chile
INTERNAL Enel Chile 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 6.0 GW Renewable capacity net installed Enabler
Slide 29: Management of the company
INTERNAL 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. Rin
Slide 30: 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 30
Slide 31: 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 32: 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 33: Our long-term strategy is recognized by the leading ESG raters
INTERNAL Our long-term strategy is recognized by the leading ESG raters 4.6 AA AA 88 88 B A 84 3.4 3.2 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 87 68 -B 83 54 57 B- 49 77 C 72 2019 2020 2021 2022 2019 2020 2021
Slide 34: Contact us
INTERNAL Q3 & 9M 2022 consolidated results Contact us Contacts Email [email protected] 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 35: Disclaimer
INTERNAL Q3 & 9M 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