Enel Chile (ENIC) Investor Day 2024 summary

Market context and regulatory environment

• Chile targets 80% renewable energy generation by 2030 and aims to phase out coal by 2040, with energy demand expected to rise 41% from 2023 to 2035.

• Regulatory reforms, including tariff stabilization and storage regulation, are evolving to support decarbonization and grid resilience.

• Distribution regulatory model is seen as outdated, prompting advocacy for urgent reform to align with electrification goals.

• Recent tariff updates and PEC mechanisms have improved financial stability and cash flow recovery.

• Climate events and social challenges have driven a focus on grid resilience and regulatory adaptation.

Strategic pillars and business developments

• Expansion of renewable capacity continues, with new BESS, solar, wind, and hydro projects coming online in 2024.

• Los Cóndores hydro plant synchronized and expected to reach full production by year-end.

• Integrated commercial strategy focuses on resiliency, flexibility, and value generation, with 78% renewable capacity by year-end.

• Selective CapEx allocation prioritizes high-return, sustainable projects and grid modernization.

• Distribution investments are contingent on regulatory improvements for proper remuneration and resilience.

Financial guidance and capital allocation

• 2025-2027 CapEx plan totals $1.8 billion: $1.4 billion for generation (mainly BESS and wind), $0.4 billion for distribution.

• Generation CapEx is front-loaded in 2025 to support commercial strategy and de-risking.

• EBITDA for 2025-2027 expected at $4.4–$4.6 billion; 2027 EBITDA target is $1.4–$1.6 billion, net income $0.5–$0.7 billion.

• Dividend payout ratio confirmed at minimum 50%, with flexibility for increases based on opportunities.

• Net debt/EBITDA ratio to improve from <2.6 in 2024 to ≤2.0 by 2027, with gross debt at $3.6 billion and 94% fixed-rate.