Enel Chile SA · BCS:ENELCHILE
Enel Chile SA — H1 2021 Earnings Presentation
34 slides from Enel Chile SA's earnings presentation, Jul 28, 2021
Slide 1: Q2 & H1 Consolidated results
Q2 & H1 Consolidated results July 28, 2021 Chile
Slide 2: Key highlights and operational performance
Q2 & H1 2021 Key highlights and operational performance Paolo Pallotti CEO Chile
Slide 3: Key highlights of the period
INTERNAL Key highlights of the period Chile Decarbonization ESG Performance Retail & Services Sustainable Finance Continue to 1st Chilean Supporting 1st Chilean reinforce our utility included clients and utility to issue leadership in at S&P IPSA communities on an SDG linked decarbonization renewabl
Slide 4: Renewables expansion update
INTERNAL Renewables expansion update Projects under construction Chile Net Installed Overall End of Capacity (MW) Progress1 Construction Azabache 61 79% Q3 21 Campos del Sol 382 71% Q4 21 Sol de Lila 163 76% Q3 21 Domeyko 204 66% Q3 21 . Santiago Finis Terrae 126 46% Q4 21 / Q1 22 PMGD 75 26% 2021-2
Slide 5: Decarbonization of consumption: Boosting energy transition
INTERNAL Decarbonization of consumption Scaling ecosystem by Enel X, providing new services to our clients Chile Enel X main KPIs H1 2020 H1 2021 yoy Boosting energy transition Charging Points1-2 604 926 +53% (public and private) Targeting large clients +5% New partnership with Falabella, one of lar
Slide 6: Infrastructure & Networks portfolio
INTERNAL Infrastructure & Networks portfolio Resilient grids with improved performance Chile Energy distributed (TWh)1 Main KPIs H1 2020 H1 2021 +2% Tariff updates End users (million) 2.0 2.0 7.7 7.9 Distribution 2020-2023 Consultant final report on reference Client App users 360 494 model Company t
Slide 7: Infrastructure & Networks portfolio: collection
INTERNAL Infrastructure & Networks portfolio Digitalization improvements to mitigate impacts in collection Chile Collection (%) Current billing agreements (000’)1 Overdue clients debt (USD mn2) +3.8 pp +0.7 pp 20% 99.1 98.0 98.7 186 95.3 162 50% 62.9 50% Q2 2020 Q2 2021 H1 2020 H1 2021 H1 2020 H1 20
Slide 8: Financial results
Q2 & H1 2021 Financial results Giuseppe Turchiarelli CFO Chile
Slide 9: 2021 Adjusted Financial highlights (USD mn)
INTERNAL 2021 Adjusted Financial highlights (USD mn)1 Chile EBITDA2 Net Income3 Capex FFO Lower hydrology and EBITDA and liquidity Higher Expansion Better FFO as a result of commodities evolution actions drives the period renewables investments liquidity actions reflect higher purchases H1 2021 454
Slide 10: Business continuity: sustainable capex plan
INTERNAL Business continuity: sustainable capex plan Execution of our sustainable capex plan, 96% linked to SDGs Chile H1 2021 Capex by business and by nature1 H1 2021 Capex asset development by business1 6% 6% 17% Capex allocation by 12% Quarter (2021) 510 4% 510 415 USD mn USD mn USD mn Q1 25% +40
Slide 11: Q2 2021 Adjusted EBITDA evolution
INTERNAL Q2 2021 Adjusted EBITDA evolution Results mainly driven by PPAs margin Chile EBITDA evolution (USD mn)1 Main KPIs -22% Q2 2020 Q2 2021 yoy 17 298 Hydrology 19 1.4 1.7 +23% (TWh) 6 (47) (10) 233 (26) (10) Gx Sales 5.4 6.8 (15) +25% (TWh) Energy distributed 3.7 4.0 +9% (TWh) Marginal Cost3 (U
Slide 12: H1 2021 Adjusted EBITDA evolution
INTERNAL H1 2021 Adjusted EBITDA evolution Results mainly driven by PPAs margin Chile EBITDA evolution (USD mn)1 Main KPIs -20% H1 2020 H1 2021 yoy 569 3 56 Hydrology 3.8 3.8 +2% (TWh) (58) 454 (26) (2) (62) (18) (8) Gx Sales 11.2 13.2 +18% (TWh) Energy distributed 7.7 7.9 +2% (TWh) Marginal Cost3 4
Slide 13: Generation Business portfolio
INTERNAL Generation Business portfolio Main generation KPIs performance – Q2 2021 & H1 2021 Chile Production 2021 (TWh) Energy balance 2021 (TWh) +10% +2% +18% 9.2 13.2 9.0 11.2 2.4 (0.4) 1.5 5.9 8.2 1.5 4.7 1.2 5.3 4.9 1.0 4.3 0.4 0.3 0.7 H1 2020 Delta Delta H1 2021 0.7 Regulated Free market 0.7 2.
Slide 14: Main business breakdown: Generation
INTERNAL Main business breakdown Generation business EBITDA performance Chile Adjusted EBITDA generation business line (USD mn)1 -21% -18% Lower availability in the system of natural gas 262 485 207 400 PPAs indexation driven by CLP appreciation and higher commodity prices Higher activity on regasif
Slide 15: Main business breakdown: Networks
INTERNAL Main business breakdown Networks business EBITDA performance Chile Adjusted EBITDA Networks business line (USD mn)1 -27% -34% 108 New tariff provision in 47 networks (-USD 18mn) 38 19 35 71 One-off agreement impact 19 40 with unions (-USD 6mn) 70 28 Steady volumes in the period 16 31 (- USD
Slide 16: Adjusted Net Income
INTERNAL Adjusted Net Income Chile Adjusted Net Income evolution (USD mn)1 -45% Lower EBITDA due to higher spot prices mainly 216 due to lower hydrology and gas availability in system and PPA´s indexation 37 25 2 119 Lower D&A associated with Bocamina 2, which impairment was executed at Jun/20 (116)
Slide 17: FFO
INTERNAL FFO USD bn Chile 600 98 550 500 454 450 400 (117) 350 300 272 250 (162) 200 150 100 50 0 Adjusted Δ Working Income Financial FFO EBITDA1 Capital Taxes expenses & Others H1 20202 504 (280) 29 (87) 166 Delta YoY -10% +64% 1. Adjusted figures by decarbonization and the Voluntary Retirement Pro
Slide 18: Debt (USD mn)
INTERNAL Debt (USD mn) Steady cost of debt Chile Gross debt1 Liquidity Position1 Debt maturities (USD bn)1 +10% Maturities/Gross Debt 4,398 3,993 459 22% 467 4% 11% 6% 14% 2.9 0.8 USD bn 54% 3,525 3,939 2.5 23% 0.5 0.6 0.2 0.3 0.4 Dec 31, 2020 Jun 30, 2021 2021 2022 2023 2024 After Cash Net Debt SDG
Slide 19: Guidance update
INTERNAL Guidance update Adapting estimates to new hydrological and commodities scenario Chile 2021 Adjusted EBITDA evolution (USD bn) 1.1 – 1.2 EBITDA 2021 guidance updated to include current conjunctural conditions 0.6 – 0.7 New EBITDA guidance net of coal stock 0.5 impairment effect and retiremen
Slide 20: Closing remarks
INTERNAL Closing remarks Chile Execution of Tackling new Continue to Liquidity to our renewables opportunists consolidate our support current plan as a priority brought by the high ESG sector to strive our Decarbonization, standards and headwinds, decarbonization supporting our scores targeting SDG-
Slide 21: Annexes
Q2 & H1 2021 Annexes Chile
Slide 22: Q2 Profit & loss (USD mn)
INTERNAL Q2 Profit & loss (USD mn) Chile Q2 2021 Q2 2020 ∆ yoy Adjusted EBITDA2 233 298 -22% Reported EBITDA 202 281 -28% D&A and Bad Debt (75) (95) -22% Impairment 0 (966) -100% Reported EBIT 127 (780) -116% Financial expenses (76) (48) +58% Results from equity investments 0 1 -112% Reported EBT 52
Slide 23: H1 Profit & loss (USD mn)
INTERNAL H1 Profit & loss (USD mn) Chile H1 2021 H1 2020 ∆ yoy Adjusted EBITDA2 454 569 -20% Reported EBITDA 408 552 -26% D&A and Bad Debt (151) (188) -20% Impairment 0 (966) -100% Reported EBIT 257 (602) -143% Financial expenses (129) (84) +54% Results from equity investments 0 0 N.A. Reported EBT
Slide 24: Commodities and Fx outlook
INTERNAL Commodities and Fx outlook Volatility on commodity prices and FX depreciation Chile Henry Hub (USD/mmbtu) Brent (USD/bbl) 73.0 65.6 68.7 2.9 3.0 63.5 62.2 64.7 2.8 2.9 2.5 2.6 3.0 2.9 2.6 54.8 55.4 2.2 49.9 2.1 43.4 44.8 42.7 1.9 1.8 1.8 1.9 40.1 40.8 40.2 1.6 1.7 1.5 31.8 29.0 18.5 Jan Feb
Slide 25: Corporate governance structure
INTERNAL Corporate governance structure Chile 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 25
Slide 26: Board composition
INTERNAL Board composition Chile 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% D
Slide 27: Credit Rating
INTERNAL 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 Apr/21 Affirmed Jun/20 Affirmed Jan/21 Affirmed Jan/21 Affirmed Jun/21 Enel Generación Enel Generació
Slide 28: Organization structure
INTERNAL Organization structure Chile Enel Chile shareholders1 64.9% 1.3% 12.9% Chile Pension Funds 17.2% Market Cap2 Institutional Investors 3.7 $ bn ADR’s Enel SpA 3.7% 64.9% Others 100.0% 93.5% 99.1% 99.1% 100.0% Green Power Generación Chile Transmisión Chile Distribución Chile Enel X 1. As of Ju
Slide 29: CEO's short-term variable remuneration
INTERNAL CEO’s short-term variable remuneration Chile Macro objective Objective Type of target Weight Range Profitability Net Income Chile 25% Maximum 120% Economic Financial FFO Chile 15% Maximum 120% Financial Safety in the Safety 20% Maximum 120% ESG workplace Business Customers 20% Maximum 120%
Slide 30: Enel Chile
INTERNAL Enel Chile Chile Largest Utility player in Chile in installed capacity and number of clients Thermal generation Renewables generation Distribution area Tarapacá TG Azabache Finis Terrae Empresa Eléctrica Atacama Pampa Norte Cerro Pabellón Enel Colina Valle de los Vientos D. Almagro Lalackam
Slide 31: Hydrology outlook
INTERNAL Hydrology outlook Pacific temperatures confirm La Niña effect Chile Rainfall in our most relevant basins1 Rapel Maule (9% of consolidated Gx) (34% of consolidated Gx) Cumulated rainfall (mm) 600 2500 Cumulated rainfall (mm) 500 2000 400 1500 300 1000 200 100 500 0 0 oct sep feb abr may nov
Slide 32: Management of the company
INTERNAL Management of the company Chile Management Team P. Pallotti Chief Executive Officer A. Pellegrini Sustainability & Community Relations G. Turchiarelli Chief Financial Officer R. Puentes Procurement L. Schnaidt People and Organization A. Barrios Digital Solutions D. Gomez Regulation Enel X C
Slide 33: Disclaimer
INTERNAL Q2 & H1 2021 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
Slide 34: Contact us
INTERNAL Q2 & H1 2021 consolidated results Contact us Chile 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 Contr