Company Presentation >> March 2009
Disclaimer This presentation contains statements that constitute or may constitute statements about the future, as established in the United States Private Securities Litigation Reform Act of 1995. Such statements appear frequently in this presentation with statements referring to our intentions, beliefs and expectations, which include, but are not limited to, any statement with respect to: (1) our investment program, (2) trends that affect our financial condition or operating income, and (3) the effects of changes in the regulatory framework for the electricity industry in one or more of the countries in which we operate. As such statements are subject to risks and inaccuracies, the effective results may differ significantly with respect to those expressed or implied in such statements with a view to the future. Such statements should not be unduly relied upon as they only refer to the position on the date on which they were prepared. We assume no obligation to publicly report on changes that might be applied to the statements with a view to the future. 2
Our Company � Multinational private electricity generator with leading market positions in most countries where we operate � Attractive portfolio of generation assets distributed within South America � Efficient and conservative commercial policy � Investment portfolio adds value to Endesa Chile � Excellent reputation and high level of technical standards � Through its vast experience, the Company has earned the confidence of investors and authorities � Commitment with regulatory authorities � Commitment with the environment � Corporate governance best practices � Solid balance sheet and liquidity; stable cash flow to face upcoming challenges � Part of an important electricity group worldwide (Enel, ENDESA, S.A., Enersis) 3
Important Presence in 5 countries Endesa Brasil Em gesa Affiliate I nstalled Cap.: 2 ,8 9 5 MW Hydro Cap.: 8 5 % Cachoeira ( Gx) : 6 6 5 MW 2 1 % m arket share Fortaleza ( Gx) : 3 2 2 MW 1 1 pow er plants Am pla ( Dx) : 2 .5 m ill. clients Coelce ( Dx) : 2 .9 m ill. clients Cien ( Tx) : 2 ,1 0 0 MW Edegel I nstalled Cap.: 1 ,4 6 7 MW Hydro Cap.: 5 1 % Argentina 2 9 % m arket share I nstalled Cap.: 3 ,6 5 2 MW 9 pow er plants Costanera: 2,324 MW El Chocón: 1,328 MW Chile Hydro Cap.: 3 6 % I nstalled Cap.: 5 ,2 8 4 MW 1 4 % m arket share Endesa Chile: 2,786 MW San Isidro I&II: 732 MW 5 pow er plants Pehuenche: 699 MW Pangue: 467 MW GasAtacama: 391 MW Total Consolidated: 1 3 ,2 9 8 MW (50% 781 MW) Num ber of pow er plants: 5 2 Celta: 182 MW Endesa Eco: 27 MW Hydro: 6 0 .0 % Hydro Cap.: 6 5 % Therm al: 3 9 .8 % 3 6 % m arket share W ind: 0 .1 % 2 7 pow er plants 4 As of March 2009
Long Term Investment Opportunities … room to grow Opportunities: Improvement in South America regulations contribute to meet long ‐ term electricity demand Electricity Dem and ( CAGR) Electricity Dem and ( CAGR) 200 Peru » Peru: 6.8% 170 Chile » Chile: 5.1% Argentina 140 Brazil » Argentina: 4.3% Colombia 110 » Brazil: 2.9% » Colombia: 3.0% 80 2004 2005 2006 2007 2008 Mar/09 1998 1999 2000 2001 2002 2003 1998: base 100% 5
Investment Opportunities Profile of electricity demand World economic scenario Our Investment Plan � Energy generation uses the maximum renewable resources to promote its development and energy independence � Growth and excellence of labor, environmental and productive standards � Leadership in the region is based on the construction and evaluation of projects in Chile, Colombia and Peru 6
Contributing with more generation capacity Start ‐ up during 2009 Quintero Canela II LNG Plant 250 MW 60 MW 9.5 millon m3/d Chile Chile Chile (Fast ‐ track) 2010, onwards HidroAysén Bocamina II Los Cóndores Neltume 2,750 MW 370 MW 150 MW 473 MW Chile Chile Chile Chile El Quimbo Santa Rosa Punta Alcalde Piruquina 400 MW 189 MW 740 MW 7.6 MW Colombia Peru Chile Chile 7
Summary of consolidated results %Var. %Var. 2008 (a) Billion Ch$ 1Q09 (b) 2008 vs 2007 1Q09 vs 1Q08 2,492 33% 661 24% Revenues 290 893 44% 76% Operating Income 166 443 111% Net Income (c) 142% Ebitda 338 1,146 38% 61% Physical Sales (GWh) 55,735 14,951 1% 6% 2008 Income : the highest in the history of the company a) 2008 figures: under Chilean accounting rules b) 1Q2009: under IFRS (International Financial Reporting Standards ) 8 c) Attributable to Endesa Chile’s shareholders
EBITDA by Country Peru EBITDA by Country 11.1% Generation Business Mar ‐ 08 Mar ‐ 09 Mar ‐ 09 Var.% Ch$ bn Ch$ bn US$ m YoY Chile 113 204 350 80% Colombia Chile Argentina 19 19 33 ‐ 1% 22.2% 61.1% Colombia 50 74 127 49% Peru 22 37 64 73% Total 204 335 574 64% Argentina 5.7% 9
Solid Financial Ratios Veces US$ m Times 2400 10 9 2000 1,915 8 1,800 7 1,540 1600 6.38 5.90 6 1,279 4.90 1200 4.34 5 971 1,105 4.29 3.97 875 4 3.51 2.81 800 2.98 2.61 2.63 3 3.17 2.37 2.41 2 349 346 355 322 400 335 305 300 1 0 0 TTM Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Mar-09 Ebitda Interest Expenses Debt/Ebitda Ebitda/IE � 14.5 EBITDA growth � EBITDA growth 14.5% over the past 5 years % over the past 5 years As of March 2009 and in historical dollars 10
Recognition of strong financial position Financial Debt Evolution Financial Debt by Currency 7,000 5,950 6,000 21% 4,920 4,702 5,000 4,426 4,343 4,374 4,087 4,124 3,859 3,904 4,076 4,000 US$ m 3,000 16% 63% 2,000 1,000 US$ UF-Ch$ Local Currencies - 9 0 1 2 3 4 5 6 7 8 9 9 0 0 0 0 0 0 0 0 0 0 9 0 0 0 0 0 0 0 0 0 - 1 2 2 2 2 2 2 2 2 2 r a M Consolidated figures as of March 2009 and in historical dollars Investment grade by rating agencies » S&P: BBB with Stable outlook » Fitch: BBB with Stable outlook » Moody’s: Baa3 with Stable outlook 11
Comfortable debt maturity profile US$ m US$ m Colombia : US$ 741 m Chile: US$ 2.8 bn 1400 800 1,205 1200 600 400 1000 248 156 125 119 200 800 73 19 0 0 600 414 410 e 9 0 1 2 3 4 360 0 1 1 1 1 1 c 0 0 0 0 0 0 n 400 2 2 2 2 2 2 a l 214 214 a B 200 18 US$ m Argentina US$ 308 m 0 2009 2010 2011 2012 Balance 800 2013 2014 600 400 Financial Debt by Country 100 79 81 200 25 24 0 7% 0 11% 2009 2010 2011 2012 2013 2014 Balance US$ m Peru: US$ 490 m 800 17% 600 65% 400 88 100 200 80 74 53 43 50 Chile Colombia Peru Argentina 0 2009 2010 2011 2012 2013 2014 Balance 12 Figures as of March 2009
Conservative commercial policy » Hydrology risk » Electricity demand growth Minimize variation of margin Minimize variation of margin » Portfolio of generation assets » Evolution of fuel prices » Exchange rate risk Physical sales as of March 2009 Peru Colombia Argentina Chile 15% 46% 17% 29% 45% 47% 52% 38% 19% 83% 9% Regulated Unregulated Spot 13
Chile: largest electricity generator Gen. Mix as of March 2009 Gen. Mix as of March 2009 1Q08 1Q09 Var. % 1Q09 Ebitda Ch$ 113 bn Ch$ 204 bn 80% US$ 350 m 1Q08 1Q09 Var. % 1Q09 45% Ph. Sales 5,162 GWh 5,528 GWh 7% ‐ 55% 1Q08 1Q09 Var. % 1Q09 Av Price EOC US$ 142/MWh US$ 122/MWh ‐ 14% Hydro Thermal � Electricity demand in the SIC decreased by 3.4% in 1Q09. s � Positive hydrology conditions. Hydro generation grew by 13% in the 1Q09 versus 1Q08. t h g � Decreasing trend of generation costs due to the decrease in commodity prices. i l h g � Average spot price in 1Q09 was US$ 134/MWh in the SIC, down 54% YoY. i H � Solid balance sheet and liquidity to face upcoming challenges and investment plan. 14
Argentina: leading privately ‐ owned electricity generator Gen. Mix as of March 2009 Gen. Mix as of March 2009 1Q08 1Q09 Var. % 1Q09 18% Ebitda Ch$ 19 bn Ch$ 19 bn ‐ 1% US$ 33 m 1Q08 1Q09 Var. % 1Q09 Ph. Sales 3,176 GWh 3,215 GWh 1% ‐ 1Q08 1Q09 Var. % 1Q09 82% Av Price Arg Subs Ar$ 127/MWh Ar$ 121/MWh ‐ 5% US$ 33/MWh Hydro Thermal � Electricity demand decreased by nearly 1% in 1Q09. � Capacity constraint of the Argentine electricity system. s t h � Foninvemem power plants operating in combined cycle during 2009. g i l h � Better water levels in El Chocón, thus increasing the energy dispatched. g i � Recovery of account receivable accrued (Resolution SE 724/08). H 15
Colombia: leading privately ‐ owned electricity generator Gen. Mix as of March 2009 Gen. Mix as of March 2009 1Q08 1Q09 Var. % 1Q09 5% Ebitda Ch$ 50 bn Ch$ 74 bn 49% US$ 127 m 1Q08 1Q09 Var. % 1Q09 Ph. Sales 3,760 GWh 3,955 GWh 5% ‐ 95% 1Q08 1Q09 Var. % 1Q09 Av Price Emgesa Col$ 86/MWh Col$ 108/MWh 26% US$ 45/MWh Hydro Thermal � Stable, transparent and market ‐ oriented regulatory framework. s � Electricity demand grew by nearly 1% in 1Q09. t h g � Better hydrology conditions allowed Emgesa to increase generation by 9%. i l h � Higher average sales price in the 1Q09 compared to 1Q08. g i � El Quimbo hydroelectric project was awarded to Emgesa, a 400 MW plant which is expected to start H operations by the end of 2014. 16
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