Enel Chile Q1 2020 Consolidated results May, 5th 2020
Key highlights of the period Business Corporate Shareholder Digitalization Liquidity continuity Governance remuneration Business 2019 Dividends Company fully Recognized by US$1Bn continuity 60% payout operational Corporate liquidity of cash and stability adjusted by practices 1 and despite global and committed supported by descarbonization contingence ESG leadership 2 credit lines 4 effect 3 digitalization Enel Chile among the top 10 in Latam and 2 nd in Chile in terms of corporate governance. “Corporate Governance 2020 Annual Study by Vigeo Eiris ang GovernArt ” 1. 1 2. Included in Sustainability RobecoSAM Yearbook, being recognized in the bronze category,. Enel Chile is part of three indices: DJSI Chile, DJSI MILA Pacific Alliance y DJSI Emerging Markets 3. Adjusted by impairment of the decarbonization 4. Committed credit lines with no material adverse charges (MAC) clauses
Responding to COVID-19 Measures to ensure the safety of our people and business continuity Main measures already in place Preventive measures and actions in accordance with the WHO 1 and the Chilean Ministry of Health recommendations Remote working fast implementation and focus on safeguarding our personnel that must go into work, guaranteeing their safety, at first, along with service´ continuity Temporarily closure of our distribution commercial offices 75% 100% Temporarily suspension of physical meter reading and bills distribution for residential clients 2 of Enel Chile total personnel of our plants in Enel Group insurance policy for all employees in the event Working remotely 3 Operation of hospitalization if they contract the COVID-19 virus 1. World Health Organization 2 2. Since March 25th, 2020 3. Data base of May, 4th 2020
Responding to COVID-19 Measures to support our clients services and communities Main measures already in place APP Clients Reinforcement of our digital channels, allowing our clients to “Enel Clientes Chile” manage their bills and to get answers to questions from home www.enel.cl Special campaigns to increase awareness of our digital platforms Special payment plans for our most vulnerable customers. There will be no power cuts due to unpaid bills 292 thousands 65% Campaign to work with our communities to solve urgent needs in health and nutrition Donation of two 100% electric ambulances to the users already Chilean Red Cross and support to public hospital for of total payment made via their most urgent needs Downloaded the APP 1 Digital channels 1 1. As of March 31st, 2020 3
Q1 2020 Financial results
Financial highlights (USD mn) Net Income 1 EBITDA 1 Capex 1 FFO 1 Net Debt 243 88 117 57 3,393 280 2 114 2 3,271 3 71 174 Q1 2019 1. Reported figures. Comparisons between periods in the Financial Income Statements are made using the average exchange rate for the period 804.47 CLP/USD 5 2. Adjusted by a PPA early termination: Ebitda 151 USD mn; Net income 103 USD mn Dec 31 st 2019 Net Debt 3.
Sustainable capex plan Business continuity: sustainable capex plan Execution of our sustainable capex plan, 95% linked to SDGs Capex by business and by nature 1 Capex asset development by business 1 9% 13% 21% Q1 2020 Q1 2020 Q1 2020 7% 91% 91 USD mn 117 USD mn 117 USD mn 74% +83% yoy +65% yoy +65% yoy 2% 5% 78% Networks & Enel X Asset development Networks & Enel X Renewable Customers Renewable Thermal Asset management Thermal 2020 Capex allocation 2020 2020 2020 23% 37% 30% by Quarter Q2 Q3 Q4 1. Reported figures. Comparisons between periods in the Financial Income Statements are made using the average exchange rate for the period 804.47 CLP/USD 6
EBITDA evolution 1 Results driven by commodities scenario EBITDA evolution (USD mn) -13% (151) 430 (10) (16) (17) 6 280 243 Q1 2019 PPA early Q1 2019 Hydrology Net commodity Natural gas PPA indexation and Q1 2020 termination proforma coverage Wholesale others 1. Reported figures. Comparisons between periods in the Financial Income Statements are made using the average exchange rate for the period 804.47 CLP/USD 7
Decarbonization & renewables Generation Business Main KPIs Energy balance (TWh) Production (TWh) Sector KPIs January February March 2019 2.2 1.6 1.5 Chilean system -13% hydro production -2% (TWh) 2.0 1.6 2020 1.3 5.5 5.9 5.9 5.8 5.8 4.8 0.8 0.4 2019 62.0 62.2 61.5 1.0 0.8 0.8 System marginal 0.3 2.7 0.1 0.1 3.1 cost (Quillota) 1.2 (USD/MWh) 1.1 2020 41.0 42.1 67.3 5.5 4.8 3.2 2.6 2.3 2.7 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Company generation KPI Hydro CCGT 1 Oil-Gas Production Purchases Free market sales 2 Coal Wind, Solar & Geothermal Regulated sales Q1 2019 Q1 2020 Thermal variable cost 3 52 40 (USD/TWh) 1. Combined Cycle Gas Turbine 8 2. Includes spot sales 3. Fuel cost per thermo production and operation variable cost
Decarbonization & renewables Generation Business Portfolio mix confirms high margins, despite one offs impacts EBITDA evolution (USD mn) 1 Net Installed Capacity (GW) 66% emissions free -13% 2 generation (+5% YoY) 382 9% 6% 65% Renewable Positive PPA indexation (USD 15mn) PPA early (+1% YoY) termination 151 agreement 7.2 20% 49% 200 GW Commodity coverage partially 231 offset by competitive fuel prices 200 16% Q1 2019 Q1 2020 Steady performance Hydro CCGT 3 Oil-Gas from renewable business Coal Wind, Solar & Geothermal EBITDA/ 44% 41% Margin (%) 2 1. Reported figures. Comparisons between periods in the Financial Income Statements are made using the average exchange rate for the period 804.47 CLP/USD 9 2. Adjusted by a PPA early termination 3. Combined Cycle Gas Turbine
Enabling Infrastructure & Ecosystems Networks and Enel X business Main KPIs Enel X main KPIs Networks digitalization main KPIs Q1 2019 Q1 2020 Q1 2019 Q1 2020 Electric buses 1 102 285 1,780 2,206 Telecontrol equipment installation Charging Points 1 274 493 (public and private) 51% 65% Online bill payment ratio 3 Public lighting (‘000) 242 264 184 292 App user (# Thousand) e-Home services 2 (‘000) 54.8 68.1 We are leading the We have strengthened e-Mobility in Chile our digital channels 1. Cumulative figures 10 2. Includes insurance services, air conditioning, and photovoltaic panels 3. Percentage of billing amount paid online over the total billing
Enabling Infrastructure & Ecosystems Networks and Enel X business Steady EBITDA evolution EBITDA evolution 1 (USD mn) Main KPIs Q1 2019 Q1 2020 I&N -1% End users (mn) 1.93 1.98 Smart lightening new contracts 57 56 Energy distributed (TWh) 2 4.2 4.3 Tariff Indexation SAIDI 3 LTM (minutes) 182 190 Timing effect of 26 additional buses booked on 1Q19 Q1 2019 Q1 2020 Energy losses (%) 4.83 5.25 1. Reported figures. Comparisons between periods in the Financial Income Statements are made using the average exchange rate for the period 804.47 CLP/USD 11 2. Energy distributed only in Enel Distribución concession area 3. SAIDI LTM: System Average Interruption Duration Index during the last twelve months
Profit & loss (USD mn) 1 ∆ yoy Q1 2020 Q1 2019 EBITDA 243 430 -44% D&A (76) (72) +6% D&A driven by accelerated depreciation as part of our decarbonization strategy and higher investments in Dx Impairment and Bad Debt (6) (2) +158% EBIT 160 356 -55% PPA early termination agreement booked in Q1 2019 Financial expenses (32) (37) -14% Results from equity investments (1) (1) -502% EBT 127 319 -60% Lower financial expenses due to renegotiation of EGP loan with EFI in 2019 Income taxes (32) (87) -63% Minorities (7) (15) -53% Lower Income Taxes and Minorities Group net income 88 217 -59% reflects period results Ajusted Group net income 2 88 114 -23% 1. Reported figures. Comparisons between periods in the Financial Income Statements are made using the average exchange rate for the period 804.47 CLP/USD 12 2. Adjusted by a PPA early termination
Debt (USD mn) 1 Cost of debt declined by 52 bps Gross debt Net debt evolution +4% +16% 40 22 117 4,170 (57) 3,393 3,585 777 3,271 314 3,393 3,271 2 2 2 Dec 31, 2019 Mar 31, 2020 Dec 31, 2019 FFO Capex Dividends FX Mar 31, 2020 Paid Net debt Cash Cost of gross debt 3 : 4.7% (vs 5.2% Dec 2019) Average Maturity: 6.76 years 1. Exchange rate at the end of the period: Jan 1st 2020 (748.74 CLP/USD); Mar/2020 (852.03 CLP/USD); Mar/2019 (757.74 CLP/USD). 13 2. the average exchange rate for the period 804.47 CLP/USD. 3. Cost of gross debt: Refers to the average cost of debt of each year
Liquidity position Business continuity supported by liquidity position Liquidity Position (US$ Bn) Debt maturity (US$ Bn) 98% of gross debt has a fixed rate 3.5 3.0 3.0 0.2 97% of gross debt is USD 2.5 denominated 2.0 1 US$ bn 1.5 1.0 Smooth debt maturity profile 0.5 0.8 0.2 0.3 0.2 0.5 0.0 2020 2021 2022 2023 After Committed credit lines 2023 Available committed with maturity 2024 credit lines 1 Enough liquidity to support the maturities Cash over the plan period 14
Closing remarks Quick management Digitalization will be Focus on the reaction to COVID Liquidity to key to meet sustainability of our pandemic support global customers new business and long supporting business headwinds needs and behavior term strategy continuity 15
Enel Chile Q1 2020 Consolidated results Annexes
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