endesa chile 9M 2012 results Endesa Chile consolidated results 9M - - PowerPoint PPT Presentation

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endesa chile 9M 2012 results Endesa Chile consolidated results 9M - - PowerPoint PPT Presentation

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07 | 11 | 2012 endesa chile 9M 2012 results Endesa Chile consolidated results 9M 2012 Highlights of 9M 2012 Growth of 2.5% in electricity demand in the region Lower Revenues due to an increase in Operating Costs, related with higher fuel and

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endesa chile 9M 2012 results

07 | 11 | 2012

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Endesa Chile consolidated results 9M 2012

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Growth of 2.5% in electricity demand in the region

Highlights of 9M 2012

Better margins in Colombia and Peru Non-recurring accounting effects in Colombia and Peru Growth of 6.1% in consolidated generation due to 14.8% more hydro generation, mainly in Colombia, Chile and Argentina Higher tax rate in Chile, from 18.5% to 20% Lower Revenues due to an increase in Operating Costs, related with higher fuel and transportation costs

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Endesa Chile consolidated results 9M 2012

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Results affected by the drought in Chile and high fuel costs

  • Higher physical sales, mainly in Colombia.
  • Costs increased as a consequence of higher fuel costs in Chile, Peru and Colombia and higher transportation costs

in Chile.

  • Non-recurrence of a one-time effect of the equity tax reform in Colombia which implied booking a total amount of

US$87 million* during the first quarter of 2011.

  • Non-recurrence of a one-time effect on payroll expenses recorded in June 2011, which implied booking a one-time

benefit on payroll expenses of US$27 million*.

  • Related company results decreased by 14.9% due to lower results in Endesa Brasil mainly explained by higher net

financial expenses.

1Amounts are expressed in US$, using the average exchange rate for each period. 2 Net of “Foreign currency exchange differences”

Million Ch$

9M 2011 9M 2012 Change MM US$ 1 9M 2012 Revenues 1,803,980 1,754,084 (3%) 3,583 Gross margin 826,203 764,873 (7%) 1,563 EBITDA 664,416 610,507 (8%) 1,247 EBIT 530,662 469,384 (12%) 959 Net finance expenses2 (94,662) (100,718) 6% (206) Net income 371,066 302,177 (19%) 617 Net attibutable income 278,006 166,367 (40%) 340

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Endesa Chile consolidated results 9M 2012

Chile 41% Colombia 21% Peru 12% Argentina 26% Chile 39% Colombia 25% Peru 16% Argentina 20% Chile 41% Colombia 41% Peru 15% Argentina 3%

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EBITDA Generation

Total Installed Capacity: 13,837 MW EBITDA 9M2012 TTM: US$ 1,879 million Total Generation (TTM): 55,113 GWh

Endesa Brasil

  • Endesa Chile’s ownership: 40% (38.9%

direct)

  • Net Attributable Income (TTM): US$ 205

million

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Endesa Chile consolidated results 9M 2012

64% 32% 4% 51% 20% 29% 65% 27% 8% 17% 83% 65% 30% 5% 53% 18% 29% 65% 30% 5% 17% 83%

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Conservative Commercial Policy

Regulated Spot Unregulated

Physical Sales as of September 2011

Chile Colombia Peru

Regulated Spot Unregulated

Argentina

Physical Sales as of September 2012

Chile Colombia Peru Argentina

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Endesa Chile consolidated results 9M 2012

Correlation between Hydrology and Contribution Margin, Quaterly

Effective Commercial Policy in the long term

6 Our commercial policy and diversified asset portfolio in LATAM have partially compensated “La Niña” hydrological condition, which means drought in Chile, giving Endesa Chile stable results in the long term.

100 200 300 400 500 600 700 800 30% 40% 50% 60% 70% 80% 90% 100%

Contribution Margin (MMUS$) Exceedance Probability

Contribution Margin (MMUSD) Endesa Chile; Consolidated Contribution Margin (MMUSD) Endesa Chile; Chile Lineal (Contribution Margin (MMUSD) Endesa Chile; Consolidated) Lineal (Contribution Margin (MMUSD) Endesa Chile; Chile) 1Q10 2Q11 WET DRY 1Q10 4Q11 2Q11 3Q10 2Q12 1Q12 2Q12 1Q12 3Q12 3Q12

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Endesa Chile consolidated results 9M 2012

Chile, 53% Argentina, 7% Colombia, 30% Peru, 9% Local Currency, 35% US$, 52% UF, 12% Others, 16% Bank Debt, 16% Bonds, 69%

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Debt by Type Debt by Currency Debt by Country

Amounts expressed in US$, using the last registered exchange rate for the period (clp$ 473.77 per US$)

Strong Financial Position

(Million Ch$) 9M 2011 9M 2012 Chg. Chg % MM US$ 9M2012 Gross Debt 1,897,641 1,838,365 59,276 3.2% 3,880 Cash 281,464 147,299 134,165 91% 311 Net Debt 1,616,177 1,691,066 (74,888) (4%) 3,569 Leverage 0.93 0.87 (0.01) (1%) 0.87 Financial Expenses Coverage 6.0 5.0 (1.63) (33%) 5.0

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Endesa Chile consolidated results 9M 2012

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Amounts are expressed in US$, using the average exchange rate for each period.

Free Cash Flow (US$ million)

2,248 305 564 308 1,070 394 2,098 235 499 353 1,012 523 2,014 251 549 435 779 462 1,879 263 497 402 717 EBITDA Net Financial Result CAPEX Income Tax FCF Dividends 2009 2010 2011 9M 2012 TTM

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Endesa Chile consolidated results 9M 2012

9 Installed Capacity: 5,611 MW Market Share: 32% Total Generation: 15,296 GWh

ENDESA CHILE

  • D. Almagro–Taltal

Bocamina Laja Maule Bio Bio Tarapaca Huasco San Isidro Los Molles Cachapoal

Santiago

Los Molles: 18 MW Rapel-Sauzal: 466 MW Maule: 875 MW Laja: 940 MW Ralco-Pangue: 1,157 MW

62% Hydro 3,456 MW 37% Thermal 2,068 MW

Tarapaca-G.Atacama: 572 MW

  • D. Almagro–Taltal:

269 MW Huasco: 64 MW San Isidro 1 and 2: 778 MW Bocamina: 128 MW TG Quintero: 257 MW

1% NCRE 87 MW

Canela: 18 MW Canela II: 60 MW Ojos de Agua: 9MW

Chile

Million US$

9M 2011 9M 2012 Change Revenues 1,886 1,682 (11%) EBITDA 653 406 (38%) EBITDA Margin 34.7% 24.1% (30%) Physical Sales (GWh) 15,697 15,981 2%

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Endesa Chile consolidated results 9M 2012

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Guavio: 1,213 MW Betania: 541 MW Río Bogotá: 716 MW

85% Hydro 2,470 MW 15% Thermal 444 MW

Cartagena: 208 MW Termozipa: 236 MW

Installed Capacity: 2,914 MW Market Share: 20% Total Generation: 10,249 GWh

EMGESA

Cartagena

Bogotá

Colombia

Million US$

9M 2011 9M 2012 Change Revenues 747 882 18% EBITDA 410 584 43% EBITDA Margin 54.8% 66.3% 21% Physical Sales (GWh) 11,041 12,305 11%

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Endesa Chile consolidated results 9M 2012

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Lima:

  • Edegel (Gx)

Ventanilla: 493 MW Santa Rosa: 429 MW

55% Thermal 911 MW

Cuenca Río Rímac: 552 MW Yanango: 43 MW Chimay: 151 MW

45% Hydro 746 MW

Installed Capacity: 1,657 MW Market Share: 24% Total Generation: 6,572 GWh

EDEGEL

Peru

Million US$

9M 2011 9M 2012 Change Revenues 356 431 21% EBITDA 216 213 (1%) EBITDA Margin 60.6% 49.4% (18%) Physical Sales (GWh) 7,021 7,162 2%

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Endesa Chile consolidated results 9M 2012

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Argentina

Costanera: 2,324 MW El Chocón: 1,328 MW

Hydro 1,328 MW

Installed Capacity: 3,652 MW Market Share: 12% Total Generation: 8,914 GWh

EL CHOCÓN COSTANERA

Thermal 2,324 MW

El Chocón Costanera

CIEN Line (2x1,050 MW) Interconnection with Brazil

Million US$

9M 2011 9M 2012 Change Revenues 627 507 (19%) EBITDA 40

  • 5

(113%) EBITDA Margin 6.5% (1%) (117%) Physical Sales (GWh) 7,158 6,686 (7%)

Million US$

9M 2011 9M 2012 Change Revenues 71 83 16% EBITDA 38 50 30% EBITDA Margin 53.7% 60.1% 12% Physical Sales (GWh) 2,079 2,603 25%

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Endesa Chile consolidated results 9M 2012

Million US$

9M 2011 9M 2012 Change Revenues 79 109 37% EBITDA 114 78 (32%) EBITDA Margin 143.1% 71.6% (50%)

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Fortaleza: 322 MW

Thermal 322 MW

Cachoeira: 665 MW

Hydro 665 MW

Installed Capacity: 987 MW Market Share: 1% Total Generation: 3,544 GWh

CACHOEIRA FORTALEZA

Fortaleza Rio de Janeiro

Two 500 Km lines Total interconnection capacity: 2,100 MW

CIEN1: Transmission Brazil-Argentina Interconnection

Brazil

Cachoeira

1Includes CIEN, CTM and TESA

Million US$

9M 2011 9M 2012 Change Revenues 202 199 (2%) EBITDA 94 78 (17%) EBITDA Margin 46.3% 39.1% (16%) Physical Sales (GWh) 2,012 2,124 6%

Million US$

9M 2011 9M 2012 Change Revenues 185 221 20% EBITDA 136 156 14% EBITDA Margin 73.8% 70.6% (4%) Physical Sales (GWh) 2,849 3,178 12%

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Endesa Chile consolidated results 9M 2012

El Quimbo

  • Hydro power plant.
  • Located in Huila Department
  • Utilizes stream coming from

Magdalena river

  • 400 MW of installed capacity
  • Estimated load factor: 60%
  • River detour completed in March

2012

  • Capex: US$ 837 MM Investment
  • Estimated start-up: Dec 2014

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Projects Under Construction

Bocamina II1

  • Thermal, coal fired power plant
  • Located in Coronel, BioBio region.
  • 350 MW of installed capacity
  • Estimated load factor: 65%
  • Capex: US$ 841 MM Investment

1On October 29, Bocamina II got the formal authorization from CDEC-SIC to start its commercial operations.

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Endesa Chile consolidated results 9M 2012

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Projects Under Study

Neltume

  • Hydro power plant, run of the river
  • Located in Panguipulli, in Los Ríos

region (SIC).

  • 490 MW of installed capacity.

Los Cóndores

  • Hydro power plant
  • Located in San Clemente, in Maule

region (SIC)

  • 150 MW of installed capacity
  • EIS approved.
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Endesa Chile consolidated results 9M 2012

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Projects Under Study

Punta Alcalde1

  • Thermal, Coal-steam power plant
  • Located in Huasco, in Atacama

region (SIC)

  • 740 MW of installed capacity
  • EIS rejected. On appeal to the

Ministers Committee. Curibamba

  • Hydro power plant
  • Located in Junín Department,

utilizes streams coming from Comas and Uchubamba rivers

  • 188 MW of installed capacity
  • EIS approved.
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Endesa Chile consolidated results 9M 2012

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Projects Under Study

Hidroaysén

  • Hydro power plant
  • Located in Aysén region.
  • 2,750 MW of installed capacity
  • EIS approved for the generation

plants. Renaico

  • Wind farm
  • Located in Araucanía region (SIC)
  • 106 MW of installed capacity
  • EID approved for the generation

plants.

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Endesa Chile consolidated results 9M 2012

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Conclusions

Non-recurrent accounting effects Difficult electric situation in Chile Revenues and Margin stability Diversified portfolio

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Endesa Chile consolidated results 9M 2012

19 Contact us at: ir@endesa.cl Juan Pablo Vicuña Investor Relations Executive (56-2) 630 9585 jpvp@endesa.cl Susana Rey Investor Relations Director (56-2) 630 96 06 susana.rey@endesa.cl Catalina Gonzalez Head of Investor Relations (56-2) 630 96 03 cbgs@endesa.cl Guillermo Berguecio Investor Relations Executive (56-2) 630 9506 gabb@endesa.cl

Endesa Chile’s Investor Relations Team

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Endesa Chile consolidated results 9M 2012

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 Endesa Chile and its management with respect to, among other things: (1) Endesa Chile’ business plans; (2) Endesa Chile’ cost- reduction plans; (3) trends affecting Endesa Chile’ 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

  • r elsewhere; and (5) the future effect of any changes in the laws and regulations applicable to Endesa Chile’ or

its subsidiaries. Such forward-looking statements are not guarantees of 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 Endesa Chile’ Annual Report on Form 20-F. Readers are cautioned not to place undue reliance on those forward-looking statements, which state only as of their dates. Endesa while undertakes no obligation to release publicly the result of any revisions to these forward- looking statements. 20

Disclaimer

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Endesa Chile consolidated results 9M 2012

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