Enel Chile Cor orpor porate Pr e Pres esent entation on | Jul - - PowerPoint PPT Presentation
Enel Chile Cor orpor porate Pr e Pres esent entation on | Jul uly 2019 2019 Santiago, Chile Company Representatives Paolo Pallotti Chief Executive Officer Enel Chile Marcelo De Jesus Chief Financial Officer Enel Chile Isabela
Santiago, Chile
Isabela Klemes Head of Investor Relations Paolo Pallotti Chief Executive Officer Marcelo De Jesus Chief Financial Officer Enel Chile Enel Chile Enel Chile
Talinay, Chile
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1. Data as of December 31st, 2019 2. By number of customers. Publicly owned operators not included 3. By installed capacity. Includes managed capacity for 4.2 GW 4. It includes nuclear 5. Includes customers of free and regulated power and gas markets
1st network operator2 World’s largest private player3 in renewables Largest retail customer base in Europe 73 mn end users 70.4 mn customers5 43.4 GW capacity3 46.4 GW capacity4 6.2 GW demand response
Enel Group is leading the new energy world¹…
An important player as a network
Leader in renewable with a diversified portfolio Expanding our free customer base and services business lines 16.5 GWh energy distributed 1.9 mn end users ~292k digital meters Indefinite concession in the capital city 15.6 TWh regulated customers 10.2 TWh free customers Better positioned to face the liberalization of Chilean market 4.7 GW capacity 63% emission free 13.8 TWh generation 69% emission free 2.7 GW capacity 6.3 TWh generation Highly flexible & efficient Electric mobility + 100 electric buses Growth through new services, products and solutions
EBITDA ¹ US$ 1.4 bn
1. Data as of December 31, 2018.
Leading the energy transition in Chile
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93.5% 99.1% 100.0% Unique and diversified investment vehicle enhancing the sustainable long-term value creation
Generación Chile Distribución Chile
Chile
Green Power
1. As of May 31st, 2019; excludes treasury stocks 2. Market Cap as of Jun 11th, 2019
62% 14% 4% 2% 19%
Enel SpA Chilean Pension Funds ADRs (Citibank N.A.) Retail Institutional Investors
US$ 6.5 bn Market Cap2 Enel Chile Shareholders¹
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100.0%
Enel X
Lalackama Chile
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Shifts leveraging the Energy Transition:
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Shift to renewables
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Accelerated uptake of Electric Vehicles
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Accelerated electrification of residential (i.e. heat, cooking), and industry
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Improved efficiency gains and increased uptake of low emissions fuels
▪
More efficiency gains on recycling, low-emission feedstock in iron and steel production
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Increase of sustainability awareness, demanding low- emission and sustainable products and services
Source: Adapted from Mckinsey (2018)
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Large renewable resource (noticeably solar and wind)
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Vast resources associated with electrification (Copper and Lithium)
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Leading the coal power plants decommissioning in LatAm
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US-denominated power purchase agreements
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Three main urban centers concentrate nearly 70% of the population of Chile
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Public-private projects for electric buses
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Empowered clients, with high willingness of digitalization
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2019 COP25 (Conference of the Parties) will be held in Santiago, Chile
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Chile is better prepared in Latin America to tackle the energy transition opportunities
Natural resources Regulatory evolution Urbanization and electrification Innovation / Energy transition
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Headquarter, Chile
Generation Distribution Enel X Financials
the largest presence of renewables.
mitigate hydrology risk.
supporting country development and Company’ value creation.
implying in better profitability.
NCRE load factors.
process in Chile.
populated area in the country with the largest consumption.
Company in the country in terms of energy losses.
the national grid.
business.
the concession area.
leading to revenue stability.
70% in 2020.
Agencies.
new services, products and solutions.
electric buses for public transportation system.
better prepared in Latin America to assimilate the transition of the energy sector.
liberalization of the Chilean market.
Leading position in the Market
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1. NCRE (Non Conventional Renewable Energy)
Canela, Chile
e-Mobility Growth in renewable capacity Development and automation of the network Urban infrastructure Renewable at full speed to a profitable and completely decarbonized mix Promote digital networks as a key infrastructure in the energy transition Lead cities transformation through infrastructures and platforms Boost the electrification of mobility to capture the future value
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Gross Capex 2019-21
18% 75% 7% Asset Management Asset Development Customers
2.2 US$ bn
Installed Capacity Evolution (MW)
2,740 2,582 3,548 3,704 642 775 492 1,239 41 69
7,463
156 133 747 28 8,369
2018 Thermal Hydro Wind Solar Geothermal 2021 Thermal Hydro Wind Solar Geothermal
+12.1%
63% Renewable (2018) 69% Renewable (2021)
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14% 86%
Asset Management Asset Development
Gross Capex Generation 2019-21 1.6 US$ bn Gross Capex Distribution 2019-21
40% 30% 30%
Asset Development Asset Management Customers
0.5 US$ bn
Generation’s investment plan is focused in increasing its renewable capacity up to 69% in 2021 (+1.1 GW)
+ 133 MW Wind
(under construction)
+ 747 MW Solar +28 MW Geothermal
Renaico II wind farm Cerro Pabellón extension
Valle del Sol and Chile Solar
solar farms
Strong renewable pipeline improving diversification and mitigating risks
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Located in San Clemente, Region of Maule
(under construction)
hydro plant
per year
After 3 years of underground work in complex geological conditions, the excavation of the tunnel that will capture the water has been completed
1. As of March, 2019
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128 MW
Bocamina 1 | Bocamina 2
Enel Chile is leading the decarbonization process in Chile
Coal Power Plants closure timeline
158 MW Tarapacá 350 MW Tarapacá Up to 2020 Up to 2023 Up to 2040 Bocamina 1 Bocamina 2
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Contracts profile (GWh/year) Active position in free clients to capture all market
Most of our production is covered with contracts until 2024 with prices around US$ 80/MWh and an average duration of ~ 7 years. New contracts served by new renewable capacity
5.000 10.000 15.000 20.000
2019 2020 2021 2022 2023
Regulated customers Unregulated customers 39% 42% 50% 38% 36% 61% 58% 50% 62% 100% 64%
Energy Distributed (TWh) 16.5 18.6 2018 2021 +12.7%
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Gross Capex 2019-21
18% 75% 7% Asset Management Asset Development Customers
2.2 US$ bn
14% 86%
Asset Management Asset Development
Gross Capex Generation 2019-21 1.6 US$ bn Gross Capex Distribution 2019-21
40% 30% 30%
Asset Development Asset Management Customers
0.5 US$ bn
Capex of Distribution business is focused in facing the electric market transformation, converting the grid into a digital network
Metropolitan area
Premium presence to leverage other business Enel Distribución Chile
Empresa Eléctrica Colina Luz Andes Enel Distribución Chile
Clients
Market Share¹
Energy losses 2018
Located in a premium area
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1. In Distributed Energy 2. System Average Interruption Duration Index (Last 12-month)
Indefinite concession period
SAIDI LTM² 2018
Enel X addresses customers needs with new services and electric mobility
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234 259 Public lighting (‘000) 31.0 50.8 63 221 Charging points1 e-Home services2 (‘000) 2 76 Electric buses 275 114.5 540 285 2017 2018 2019 2017 2018 2019
1. Stock in 2017: 63 private & public charging station for electric vehicles. Stock in 2018: 147 public & private charging station plus 74 bus charging station. 2. Active contracts in the year for Micro Insurance in B2C segment
National presence
Opportunities outside the concession area
Valle dos Vientos, Chile
EBITDA (US$ bn) Net Ordinary Income¹ (US$ bn)
1.39 0.43 0.10 1.93
2018 Margin growth Growth 2021 +38.5%
0.56 0.76 0.81 0.87
41% 46% 45% 45% 2018 2019 2020 2021 Net Income Net Income/EBITDA +54.4%
Accretive business plan to our shareholding, reflecting an increase of the Net Ordinary Income of more than 54% within 2018 vs. 2021
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Since April 2016
Affirmed May/18
Since May 2018
Affirmed May/18
Since April 2016
Affirmed Feb/19
Since April 2016
Affirmed Jun/18
EBITDA & FFO (US$ bn) Gross and Net Debt (US$ bn)
ND/EBITDA:
Financial Debt Maturity (US$ bn) International market Chilean market
3.28 3.00 0.35 0.79 3.63 3.79
2018 2021 Net Debt Cash
2.4x 1.6x
+4.4%
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0.49 0.20 0.29 0.17 2.49 2019 2020 2021 2022 Beyond 2022
Bonds Banks & Others
1.39 1.66 1.78 1.93 1.11 1.20 1.31 1.39
80% 73% 74% 72%
2018 2019 2020 2021
EBITDA FFO FFO/EBITDA
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Earnings growth
2018 2019 2020 2021 CAGR 18-21 Ordinary EBITDA (US$ bn) 1.39 1.66 1.78 1.93 +11% Net Ordinary Income (US$ bn) 0.56 0.82 0.87 0.94 +16%
Value creation
Pay-out ratio 60% 65% 70% 70% +5% Implicit DPS (Ch$/Sh)¹ 3.1 4.4 5.0 5.4 +20% Implicit EPS (Ch$/Sh) 5.2 6.8 7.2 7.7 +14%
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Enel Chile increasing positioning in ESG ratings and recognitions
Admission to the FTSE4GOOD Emerging Markets Index 14° Electric Utilities Worldwide Admission to indexes DJSI Emerging Markets DJSI MILA Pacific Alliance DJSI Chile Enel Chile winner in Utilities Category Years 2018 and 2019 1st Place Good Practice Competition for a Sustainable Electric Future with Rural Electrification Project in Toconce. Year 2018 Cerro Pabellón "Best geothermal project in Latin America and the Caribbean". Year 2018 National Environment Award Category "Water" with the Maule Water Management Project. Year 2018 First ranking of Women in the Top Management of Women Entrepreneurs and DES UC. Year 2018. Enel Chile Prosecutor's Office obtains Silver Award as "Best Legal Department in Latin America". Year 2018. 2nd place Sustainability category. 2nd place Corporate Governance. Year 2018 Best Emerging Markets performers ranking. Year 2017 Since September 2018 Since June 2018
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Access to affordable and clean energy Employment and sustainable and inclusive economic growth
Engaging local communities (mn beneficiaries) High-quality, inclusive and fair education
Reduction of CO2 specific emissions (kg/kWheq)
Climate change
0.170
20181 0.362 0.039 0.192 2018
Enel Chile 0.175
0.363 0.039
1. Cumulated figures since 2015 2. Cumulated figures since 2016 Target already achieved before 2021
1Q 20191 20211
0.175
0.4472 0.107
Target
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Unique portfolio of assets in Chile Growth focused on renewable capacity Digitalization in all business lines Enel X as an agent of the energy transition Shareholders value creation improvement in a sustainable business model
Closing Remarks
Valle dos Vientos, Chile
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Net production (TWh) Distributed energy (TWh) Distribution Clients (mn) Energy Sales (TWh)
17.0 15.6 12.8 10.6 6.3 8.7 12.0 15.6 2.3 2.7 3.7 4.8
25.7 27.0 28.5 31.0 2017 2018 2019 2021
Regulated Gx Non Regulated Gx Non Regulated Dx
+14.6%
16.3 16.5 17.5 18.6 2017 2018 2019 2021 +12.7%
1.88 1.92 1.94 2.04 2017 2018 2019 2021 +6.0%
9.7 11.4 12.9 15.0 7.3 6.3 2.8 1.1 0.1 1.4 1.7 1.7 0.9 1.2 2.8 0.2 0.3 0.6
17.1 20.0 18.9 21.3 2017 2018 2019 2021
Hydro Thermal Wind Solar Geo
+6.3%
0.90 1.11 1.33 1.60 0.27 0.32 0.35 0.34
1.14 1.39 1.66 1.93
2017 2018 2019 2021 Generation Distribution Holding +16.3% 0.31 0.39 0.46 0.50 0.14 0.15 0.18 0.18
0.46 0.55 0.64 0.69
2017 2018 2019 2021 Generation Distribution Holding +24.6%
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EBITDA breakdown by business (US$ bn) CAPEX breakdown by business (US$ bn)
71.0 69.0 67.5 63.5 2018 2019 2020 2021
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Brent (US$/Bbll) Henry Hub (US$/MMBtu) CPI (%) FX (CLP/US$) AVG GDP (%) ELECTRICITY DEMAND (TWh)
641.0 618.0 616.0 612.0 2018 2019 2020 2021 4.0 3.2 3.2 3.2 2018 2019 2020 2021 2.4 3.0 3.1 3.1 2018 2019 2020 2021 76.5 77.8 80.4 82.5 2018 2019 2020 2021 3.1 3.0 3.1 3.2 2018 2019 2020 2021
31.0 31.7 32.8 34.1 34.7 35.1 35.5 36.0 39.3 40.6 41.6 42.4 44.1 46.0 47.8 49.3
70.3 72.4 74.4 76.4 78.8 81.1 83.3 85.2
2019E 2020 2021 2022 2023 2024 2025 2026 Unregulated Regulated
CPI3 (%) GDP growth3 (YoY%) SEN Energy demand (TWh)² Electric power consumption1 (MWh per capita)
CAGR: 2.8%
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8.0 5.9 3.9 2.6 2.1
1990 1994 1998 2002 2006 2010 2014
OECD Members European Union Chile Brazil Latin America & Caribbean
2.2 2.4 2.3 3.0 3.0 1.7 2.0 1.6 2.1 1.9 6.0 6.1 6.5 5.1 4.7
2017 2018 2019 2020 2021 Chile Advanced economies Latin America and the Caribbean
1.5 4.0 3.4 3.2 3.0 2.3 2.4 1.8 1.7 1.7 1.3 1.2 1.4 2.4 2.6
2017 2018 2019 2020 2021 Chile Advanced economies Latin America and the Caribbean
1. The World Bank. Last report as of 2014 2. CNE Chile, Dec-18 3. International Monetary Fund, May-19
Isabela Klemes Head of IR Enel Chile +56 2 2630 9606 isabela.taveira@enel.com
ir.enelchile@enel.com
For further information, visit our IR site at:
www.enelchile.cl
Catalina González Head of IR Enel Generación Chile +56 2 2630 9603 catalina.gonzalez@enel.com Gonzalo Juarez IR New York Office +1 (212) 520 1025 gonzalo.juarezdelarasilla@enel.com Claudio Ortiz Investor Relations Associate +56 2 2630 9506 claudio.ortiz@enel.com Pablo Contreras Investor Relations Associate +56 2 2630 9585 pablo.contreras@enel.com
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Investors Relation team
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 intent, belief or current expectations of Enel Chile and its management with respect to, among other things: (1) Enel Chile's business plans; (2) Enel Chile's cost-reduction plans; (3) trends affecting Enel Chile's financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere; (4) supervision and regulation of the electricity sector in Chile or elsewhere; and (5) the future effect
future performance and involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of various factors. These factors include a decline in the equity capital markets of the United States or Chile, an increase in the market rates of interest in the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere and other factors described in Enel Chile's Annual Report and Form 20-F. Readers are cautioned not to place undue reliance on those forward-looking statements, which state only as of their dates. Enel Chile undertakes no obligation to release publicly the result of any revisions to these forward-looking statements.
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