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

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 transportation costs Growth of 6.1% in consolidated generation due to 14.8% more hydro generation, mainly in Colombia, Chile and Argentina Better margins in Colombia and Peru Non-recurring accounting effects in Colombia and Peru Higher tax rate in Chile, from 18.5% to 20% 2

Endesa Chile consolidated results 9M 2012 Results affected by the drought in Chile and high fuel costs MM US$ 1 9M 2011 9M 2012 Change Million Ch$ 9M 2012 Revenues (3%) 3,583 1,803,980 1,754,084 Gross margin (7%) 1,563 826,203 764,873 EBITDA (8%) 1,247 664,416 610,507 EBIT (12%) 959 530,662 469,384 Net finance expenses 2 6% (206) (94,662) (100,718) Net income (19%) 617 371,066 302,177 Net attibutable income (40%) 340 278,006 166,367 • 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$27 million*. • Related company results decreased by 14.9% due to lower results in Endesa Brasil mainly explained by higher net financial expenses. 1 Amounts are expressed in US$, using the average exchange rate for each period. 3 2 Net of “Foreign currency exchange differences”

Endesa Chile consolidated results 9M 2012 EBITDA Generation Total Generation (TTM): 55,113 GWh Total Installed Capacity: 13,837 MW Chile Chile Argentina Argentina 41% 39% 20% 26% Peru 16% Peru 12% Colombia Colombia 21% 25% EBITDA 9M2012 TTM: US$ 1,879 million Argentina 3% Chile Peru 41% 15% Endesa Brasil • Endesa Chile’s ownership: 40% (38.9% Colombia direct) 41% • Net Attributable Income (TTM): US$ 205 million 4

Endesa Chile consolidated results 9M 2012 Conservative Commercial Policy Physical Sales as of September 2012 Chile Peru Argentina Colombia 5% 5% 17% 29% 30% 30% 53% 65% 65% 83% 18% Regulated Unregulated Spot Physical Sales as of September 2011 Argentina Chile Peru Colombia 4% 17% 8% 29% 32% 51% 64% 65% 27% 83% 20% Regulated Unregulated Spot 5

Endesa Chile consolidated results 9M 2012 Effective Commercial Policy in the long term Correlation between Hydrology and Contribution Margin, Quaterly 800 700 3Q10 3Q12 Contribution Margin (MMUS$) 600 1Q10 500 1Q12 2Q12 2Q11 4Q11 400 300 1Q10 3Q12 200 1Q12 2Q11 2Q12 100 0 30% 40% 50% 60% 70% 80% 90% 100% WET DRY 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) 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. 6

Endesa Chile consolidated results 9M 2012 Strong Financial Position MM US$ (Million Ch$) 9M 2011 9M 2012 Chg. Chg % 9M2012 Gross Debt 1,897,641 1,838,365 59,276 3.2% 3,880 Cash 281,464 147,299 134,165 91% 311 Net Debt 1,616,177 1,691,066 (74,888) (4%) 3,569 Leverage 0.93 0.87 (0.01) (1%) 0.87 Financial Expenses Coverage 6.0 5.0 (1.63) (33%) 5.0 Debt by Country Debt by Type Debt by Currency Peru, 9% Others, UF, 12% 16% Local Currency, 35% Colombia, Bank Debt, 30% 16% Chile, 53% Bonds, 69% US$, 52% Argentina, 7% Amounts expressed in US$, using the last registered exchange rate for the period (clp$ 473.77 per US$) 7

Endesa Chile consolidated results 9M 2012 Free Cash Flow (US$ million) 2,248 2,098 2,014 1,879 1,070 1,012 779 717 235 251 263 305 308 353 402 394 435 462 499 497 523 549 564 EBITDA Net Financial Result CAPEX Income Tax FCF Dividends 2009 2010 2011 9M 2012 TTM Amounts are expressed in US$, using the average exchange rate for each period. 8

Endesa Chile consolidated results 9M 2012 Chile Installed Capacity: 5,611 MW Market Share: 32% Total Generation: 15,296 GWh Tarapaca ENDESA CHILE D. Almagro – Taltal Los Molles : 18 MW Rapel-Sauzal : 466 MW Huasco 62% Hydro Maule : 875 MW 3,456 MW Laja : Los Molles 940 MW Ralco-Pangue : San Isidro 1,157 MW Santiago Tarapaca-G.Atacama : 572 MW Cachapoal Maule D. Almagro – Taltal : 269 MW Laja 37% Thermal Bocamina Huasco : 64 MW Bio Bio 2,068 MW San Isidro 1 and 2 : 778 MW Bocamina : 128 MW TG Quintero : 257 MW 1% NCRE Canela : 18 MW 87 MW Canela II : 60 MW Ojos de Agua: 9MW 9M 2011 9M 2012 Change Million US$ Revenues (11%) 1,886 1,682 EBITDA (38%) 653 406 EBITDA Margin (30%) 34.7% 24.1% Physical Sales (GWh) 2% 15,697 15,981 9

Endesa Chile consolidated results 9M 2012 Colombia Installed Capacity: 2,914 MW Market Share: 20% Total Generation: 10,249 GWh EMGESA Guavio: 1,213 MW Cartagena 85% Hydro Betania: 541 MW 2,470 MW Río Bogotá: 716 MW Cartagena: 208 MW Bogotá 15% Thermal 444 MW Termozipa: 236 MW 9M 2011 9M 2012 Change Million US$ Revenues 18% 747 882 EBITDA 43% 410 584 EBITDA Margin 21% 54.8% 66.3% Physical Sales (GWh) 11% 11,041 12,305 10

Endesa Chile consolidated results 9M 2012 Peru Installed Capacity: 1,657 MW Market Share: 24% Total Generation: 6,572 GWh EDEGEL Cuenca Río Rímac: 552 MW 45% Hydro Yanango : 43 MW 746 MW Chimay : 151 MW 55% Thermal Ventanilla: 493 MW 911 MW Santa Rosa : 429 MW Lima: 9M 2011 9M 2012 Change Million US$ • Edegel (Gx) Revenues 21% 356 431 EBITDA (1%) 216 213 EBITDA Margin (18%) 60.6% 49.4% Physical Sales (GWh) 2% 7,021 7,162 11

Endesa Chile consolidated results 9M 2012 Argentina Installed Capacity: 3,652 MW Market Share: 12% Total Generation: 8,914 GWh EL CHOCÓN Hydro El Chocón : 1,328 MW 1,328 MW 9M 2011 9M 2012 Change Million US$  Revenues 16% 71 83 CIEN Line EBITDA 30% (2x1,050 MW) 38 50 Interconnection with Brazil EBITDA Margin 12% 53.7% 60.1% Physical Sales (GWh) 25% 2,079 2,603 Costanera COSTANERA El Chocón Thermal Costanera : 2,324 MW 2,324 MW 9M 2011 9M 2012 Change Million US$ Revenues (19%) 627 507 EBITDA (113%) 40 -5 EBITDA Margin (117%) 6.5% (1%) Physical Sales (GWh) (7%) 7,158 6,686 12

Endesa Chile consolidated results 9M 2012 Brazil Installed Capacity: 987 MW Market Share: 1% Total Generation: 3,544 GWh CACHOEIRA Fortaleza Hydro Cachoeira: 665 MW 665 MW 9M 2011 9M 2012 Change Million US$ Revenues 20% 185 221 Cachoeira EBITDA 14% Rio de Janeiro 136 156 EBITDA Margin (4%) 73.8% 70.6% Physical Sales (GWh) 12% 2,849 3,178 CIEN 1 : Transmission FORTALEZA Brazil-Argentina Interconnection Thermal Two 500 Km lines Fortaleza: 322 MW 322 MW Total interconnection capacity: 2,100 MW 9M 2011 9M 2012 Change 9M 2011 9M 2012 Change Million US$ Million US$ Revenues (2%) Revenues 37% 202 199 79 109 EBITDA (17%) EBITDA (32%) 94 78 114 78 EBITDA Margin (16%) EBITDA Margin (50%) 46.3% 39.1% 143.1% 71.6% Physical Sales (GWh) 6% 2,012 2,124 13 1 Includes CIEN, CTM and TESA

Endesa Chile consolidated results 9M 2012 Projects Under Construction Bocamina II 1 • Thermal, coal fired power plant • Located in Coronel, BioBio region. • 350 MW of installed capacity • Estimated load factor: 65% • Capex: US$ 841 MM Investment 1 On October 29, Bocamina II got the formal authorization from CDEC-SIC to start its commercial operations. 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 14

Endesa Chile consolidated results 9M 2012 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. 15

Endesa Chile consolidated results 9M 2012 Projects Under Study Punta Alcalde 1 • 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. 16

Endesa Chile consolidated results 9M 2012 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. 17