Enel Chile Corporate Presentation | NDR June 2020 1
Company Representatives Paolo Pallotti Chief Executive Officer Enel Chile Giuseppe Turchiarelli Chief Financial Officer Enel Chile Isabela Klemes Head of Investor Relations Enel Chile Ollague 2 Chile
Key investment considerations Diversified and resilient long-term investment vehicle in energy sector in the country Leading decarbonization process with no coal exposure by 2022 First renewable operator in Chile with 76% renewable capacity by 2022 Diversified long-term contract position Boosting energy transition through Enel X business ESG integrated into strategy 3
Enel Chile Diversified long-term investment vehicle 4 Lalackama Chile
Enel Chile as part of Enel Group Enel Group is leading the new energy world… 1 st network 46 GW 39 GW 6.3 GW 70 mn operator 1 Renewable capacity 2 Conventional capacity 3 customers 4 Demand response Leading decarbonization New services enable World’s largest private player Largest retail customer base in 73 mn end users process , phasing out of coal decarbonization and in renewables Europe production electrification of consumption 1. By number of customers. Publicly owned operators not included 5 2. By installed capacity. Includes managed capacity for 4.2 GW 3. It includes nuclear 4. Includes customers of free and regulated power and gas markets
Our positioning We are the largest utility in Chile with a strong, unique and resilient portfolio 1 4.7 GW capacity 64% emission free Largest renewable player 17.1 TWh energy distributed 13.8 TWh generation 4.7 GW renewable Capacity 2.0 mn end users EBITDA 1.5 66% emission free Benchmark 2019 (USD bn) in the region 2.5 GW capacity Market Cap 5.1 7.2 TWh generation May 28, 2020 (USD bn) The company is leading Highly flexible the decarbonization & efficient Strategic plan 2.5 +2GW new renewable capacity 2020-2022 (USD bn) Electric mobility 285 electric buses 454 charging points Largest electricity distributor Growth through new services, 12.7 TWh regulated customers In terms of energy distributed products and solutions 10.8 TWh free customers 2 Better positioned to face the liberalization of Chilean market 1. As of Dec 31, 2019 2. Only generation business line 6
Strategy Rationale Leading energy transition, boosting renewables and electrification at a national level Generation Distribution Enel X +2GW 2019 2022 2019 2022 Renewable capacity 454 SAIDI LTM 1 2,954 Charging points 4 184 160 8.7 (minutes) 7.2 Smart lighting 2,148 2,969 277 348 Telecontrol equipmen t 3 (000’) 6.6 4.7 Energy distributed 2 E-home services 5 17.9 17.1 78 259 Capex US$ (000’) (TWh) +2.5 bn 2.5 2.1 4.99 4.9 Energy losses (%) 2019 2022 2020-2022 Thermal Renewables 1. Energy distributed only in Enel Distribución concession area 2. SAIDI LTM: System Average Interruption Duration Index during the last twelve months. 3. Cumulated figures 4. Public and private charging points. Also include e-buses charging points 7 5. Includes insurance services, air conditioning, and photovoltaic panels
Strategy Rationale Capital allocation aiming to reduce time to EBITDA and with direct impact on SDGs Capex purposes allocation SDGs impacts at 2022 Capex that generates Capex to SDGs EBITDA by 2022 2019 2022 Renewable capacity (GW) 4.7 6.6 2.5 2.5 Coal Thermal capacity (GW) 0.4 0.0 US$ bn US$ bn Digitalization 2,148 2,969 (Telecontrol equipment - #) 82% 95% Charging points(#)¹ 454 2,954 95% of our Capex 82% of our Capex generates Public Lighting (#000) 277 348 contributes to SDG 0.25 US$ bn EBITDA by 2022 1. Public and private charging points. Also include e-buses charging points 8
Enel Chile Leading the decarbonization process
Decarbonization & renewables Speeding up decarbonization process Early disconnection to promote decarbonization of our fleet Tarapacá Bocamina I Bocamina II 158 MW 128 MW 350 MW First Chilean electric company to phase out its coal fleet by 2022 Closed on Closure date Closure date Dec 31 st 2019 Up to Dec, 2020 Up to May, 2022 10
Decarbonization & renewables Coal-free fleet by 2022 (1/3) Consolidating our leadership as first renewable operator in Chile Positive outlook arising from coal phase out Net installed capacity by 2022 Increase attractiveness and visibility by a 24% new ESG better profile 24% Thermal 0% 42% coal 8.7 Potential increase on liquidity and value GW 9% 76% 1% renewable Reduce commodities volatility and environmental risks, bringing better margins 24% New financing instruments and better risk- Hydro Solar Geothermal Wind Thermal profile 11
Decarbonization & renewables Coal-free fleet by 2022 (2/3) Consolidating our leadership as first renewable operator in Chile Rational arguments 1 National coal fired power plants closure timeline Official decarbonization agreement (1,397 2 MW) and COP25 announcements Higher installed capacity and production of renewables sources in the National Electric Bocamina 1 System Bocamina 2 299 Clousure Capacity 141 606 Natural gas price reduction and availability 350 +2174 208 Installed capacity available vs. projected 128 114 demand 328 2019 2020 2021 2022 2023 2024 3 4 5 2025 2026 1. Estimated impairment of Bocamina II of 586 US$ mn 2. Official decarbonization agreement (1,047 MW) adds the early closure of Bocamina II (350 MW) 3. Includes: Mejillones 1 (166 MW); Mejillones 2 (172 MW); U14 (136 MW) and U15 (132) 4. Includes: Nueva Tocopilla (141 MW) 12 5. Includes: Guacolda U1 and U2 (299 MW)
Decarbonization & renewables Coal-free fleet by 2022 (3/3) Consolidating our leadership as first renewable operator in Chile Higher penetration of renewable energy Installed capacity Installed capacity Estimates as of 2020 Estimates as of 2019 (GW) (GW) 33.4 30.8 33.4 32.3 29.8 28.3 3.6 3.6 3.0 0.1 3.6 3.0 0.1 0.1 0.1 0.7 0.7 0.5 0.1 3.0 0.7 0.5 0.1 4.5 4.5 4.1 0.5 3.9 3.9 3.3 5.9 5.1 6.9 7.8 7.8 4.2 5.1 5.1 5.2 5.0 4.4 4.4 7.4 7.6 7.6 7.6 7.7 7.7 4.6 4.6 4.6 4.5 4.5 4.5 2021 2022 2023 2021 2022 2023 +2.7 GW +0.6 GW Diesel Biomass Wind Solar Coal Geo. Gas Hydro in additional in additional Solar projects Wind projects 13
Decarbonization & renewables Decarbonization strategy at a glance Driving the create value Net capacity evolution (GW) +20% 8.7 7.2 (0.3) (0.1) 6.6 4.7 +2GW 2.5 2020-2022 2.1 2019 2020 2021 2022 2020-22 Thermal Renewables Bocamina Disconnection 14
Renewables expansion Projects under construction + 61 MW Solar Renewables expansion to enhance commercial strategy + 126 MW Solar + 382 MW Solar Finis Terrae Azabache Campos del Sol Solar power plant. Capacity expansion Solar power plant. First hybrid plant Solar power plant 126 MW 61 MW Installed Installed 382 MW Installed Capacity Capacity Capacity 15
Renewables expansion Projects under construction Renewables expansion to enhance commercial strategy +33 MW Geothermal + 150 MW Hydro + 133 MW Wind Renaico II Los Cóndores Cerro Pabellón III Wind farm Run of the river power plant Geothermal plant expansion 133 MW Installed 33 MW Installed 150 MW Installed Capacity Capacity Capacity 16
Decarbonization, renewables & enabling ecosystem Customer centricity Energy transition comes with new consumption trends Energy transition sets a new consumption trend Renewable sources have been demanded by customers New trends towards a conscientious energy consumption worldwide Scaling ecosystem by Enel X to drive new revenue streams opportunities 100% Renewable PPA’s Up to signed with mining 7 TWh /year Enel Chile looks to be a customer- companies during 2019 engagement platform 17
Decarbonization & renewables Diversified client portfolio Commercial strategy leading to margin stability Contracts profile (TWh/year) 1 Supplying several industries 30 27.0 26.5 26.0 25.2 25 23.1 Mining 20 54% 54% 50% 58 % Warehouse 15 50% Pulp & paper 10 50% Universities 46% 50% 46% 42% 5 Vineyards Agriculture - Retail 2020 2021 2022 2023 2024 Brewing Regulated customers Unregulated customers Textile Avg. PPA prices US$ 70-75/MWh with an average duration of 11 years Active position in unregulated customers to capture all market opportunities leveraging on portfolio flexibility 1. Up to March, 2020 18
Enabling ecosystem Enel X business Boosting energy transition Customer centricity and new revenue streams National Electric Route Electric corridor Public lighting E-buses in Collahuasi From Arica to Punta Arenas First in Latam Efficient and intelligent lighting system Promoting electric mobility in mining transport 2 1,200 277k Public lighting points Charging Electric buses in 100% Electric 285 throughout Chile points public transportation buses Roll of opportunities, as Chile is better New growth opportunities through new Better positioned to face the liberalization prepared in Latin America to assimilate services, products and solutions. of the Chilean market. the transition of the energy sector 19
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