Endesa Chile IR presentation As of June 2013 Endesa Chile IR - PowerPoint PPT Presentation

Endesa Chile IR presentation As of June 2013

Endesa Chile IR presentation 1H 2013 Ownership Structure ENERSIS 92% Chilean Pension Funds 12% 3% Institutional 4% Shareholders 61% 6% ADR Holders 60% 14% Minority Shareholders Other Institutional 60% Shareholders ARGENTINA PERU BRAZIL CHILE COLOMBIA  PEHUENCHE, 93% • ENDESA BRASIL, 39%  CELTA, 100% AMPLA • COSTANERA, 70%  COELCE SAN ISIDRO, 96% • EDEGEL, 62% • EMGESA, 27% • EL CHOCÓN, 65% FORTALEZA  ENDESA ECO, 100% CDSA  CANELA, 75% CIEN 2

Endesa Chile IR presentation 1H 2013 A unique portfolio in LATAM’s Generation business COLOMBIA No. 2 BRAZIL 2,914 MW inst. capacity 987 MW inst. capacity Hydro: 2,470 MW Hydro: 665 MW Thermal : 444 MW Thermal : 322 MW 20% market share 1% market share in generation PERU No. 1 1,657 MW inst. capacity Hydro: 746 MW ARGENTINA Thermal : 911 MW 23% market share No. 2 3,652 MW inst. capacity No. 1 CHILE Hydro: 1,328 MW 5,571 MW inst. capacity 1 Thermal: 2.324 MW Hydro: 3.456 MW 12% market share Thermal : 2,028 MW NCRE: 87 MW Consolidated installed capacity: 13,794 MW Capacity including Brazil: 14,781 MW 30% market share Consolidated energy sales 2012: 59,020 GWh Consolidated energy sales 1H13: 27,237 GWh 3 1 Excludes the proportional assets from GasAtacama (390 MW).

Endesa Chile IR presentation 1H 2013 Results affected by the drought in Chile 1H 2013 1H 2012 1H 2013 Indicator Change MM US$ 1 MM ch$ MM ch$ Revenues (10%) 1,015,797 1,127,497 2,122 Operational Expenses (22%) (532,591) (679,683) (1,113) Contribution margin 8% 483,206 447,814 1,009 EBITDA 10% 382,396 349,026 799 EBIT 11% 288,578 258,871 603 Net financial charges 2 2% (66,361) (65,317) (139) Earnings before taxes 13% 286,008 252,559 597 Income Tax 15% 90,240 78,152 189 Net income 12% 195,768 174,407 409 Minorities 31% 95,654 72,964 200 Net attributable income (1%) 100,115 101,443 209 EBITDA margin 22% - 37.6% 31.0% Net margin 10% - 9.9% 9.0% E.P.S. (1.3%) 12.21 12.37 P/E 3 (9.7%) - 61.5 68.1 1 Amounts expressed in US$, using the average exchange rate for the period (Ch$478.71 per US$). 2 Net of “Foreign currency exchange differences” 4 3 Closing share price for each period

Endesa Chile IR presentation 1H 2013 EBITDA by Country Total Generation 1 (TTM): 57,286 GWh Total Installed Capacity 1 : 13,794 MW Chile Chile Argentina Argentina 39% 40% 19% 27% Peru 16% Peru 12% Colombia Colombia 21% 26% EBITDA 1H 2013 (TTM): US$ 1,812 million Argentina 3% Chile 35% Peru 16% Endesa Brasil • Endesa Chile’s ownership: 40% (38.9% direct). • Net Attributable Income 2 (TTM): US$ 222 Colombia 46% million. 1 Excludes the proportional assets from GasAtacama (390 MW). 2 Considers the total contributions of Endesa Brasil recognized by Endesa Chile as an equity method investment. 5

Endesa Chile IR presentation 1H 2013 Prudent Commercial Policy Physical Sales as of June 2013 Chile Peru Argentina Colombia 2% 10% 19% 22% 31% 50% 54% 36% 76% 81% 19% Regulated Unregulated Spot Physical Sales as of June 2012 Argentina Chile Peru Colombia 3% 6% 17% 27% 29% 29% 54% 65% 83% 68% 19% Unregulated Spot Regulated 6

Endesa Chile IR presentation 1H 2013 Strong Financial Position 1H 2013 2012 1H 2013 Indicator Change % Change MM Ch$ MM Ch$ MM US$ Gross Debt 2,006,465 2,069,034 (62,569) (3%) 3,956 Cash 1 172,777 260,798 (88,021) (51%) 341 Net Debt 1,833,688 1,808,236 25,451 1% 3,616 Leverage 0.89 0.88 0.01 1% - Financial Expenses - 5.36 4.34 1.02 19% Coverage Debt by Country Debt by Type Debt by Currency (MM US$) UF + CLP, Others, 12% Peru, 294 15% Other local currency, 38% Bank Debt, Colombia, 14% Chile, 1,362 2,050 Bonds, US$, 50% 71% Argentina, 251 Amounts expressed in US$, using the close exchange rate for the period (Ch$ 507.16 per US$) 1 Considers “Cash and cash equivalents” and “Other current financial assets”. 7

Endesa Chile IR presentation 1H 2013 Free Cash Flow (US$ million) 2,098 2,014 1,812 1,714 1,012 779 625 494 (235) (251) (245) (298) (300) (353) (381) (413) (435) (462) (477) (499) (523) (538) (549) EBITDA Net Financial Result CAPEX Income Tax FCF Dividends 2010 2011 2012 1H 2013 TTM 1 Amounts are expressed in US$, using the average exchange rate for each period. * For years 2010 to 2012 considers jointly controlled companies. 8

Endesa Chile IR presentation 1H 2013 Electricity demand Evolution in LATAM Historic electricity demand growth (CAGR, last ten years) 200% 5.6% 180% 4.6% Total Sales in GWh (% growth) 4.0% 160% 3.2% 140% 2.7% 120% 100% Years 80% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 CHILE COLOMBIA PERU ARGENTINA BRAZIL 9

Endesa Chile IR presentation 1H 2013 Direct relation between GDP and electricity demand 18,000 16,000 FINLAND Electricity consumption, per capita (Kwh per year) CANADA 14,000 UNITED STATES 12,000 AUSTRALIA 10,000 8,000 JAPAN AUSTRIA FRANCE SPAIN GERMANY IRELAND 6,000 UNITED KINGDOM ITALY RUSSIA GREECE 4,000 CHILE ARGENTINA CHINA BRAZIL 2,000 MEXICO PERU BOLIVIA COLOMBIA 0 INDIA 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 Income per capita (Fixed PPP $USD) Data source: International Energy Agency (EIA) and The World Bank.  Chile aim to be in the group of developed countries.  There is no development without energy. 10

Endesa Chile IR presentation 1H 2013 Projects Under Construction El Quimbo • Hydro power plant. • Located in the Huila Department. • Utilizes stream coming from Magdalena River. • 400 MW of installed capacity. • Estimated load factor: 60%. • River detour in March 2012. 11

Endesa Chile IR presentation 1H 2013 Projects Under Construction Salaco Chain (optimization) • Repowering the minor plants to reach 221 MW power. • Located in the Bogotá River system. • Optimization works started on January 2013. • 145 MW will be added to the capacity. 12

Endesa Chile IR presentation 1H 2013 Projects Under Study Los Cóndores • Hydro power plant. • Located in San Clemente, in the Maule Region . • 150 MW of installed capacity. • EIS 1 approved. Curibamba • Hydro power plant. • Located in Junín Department, utilizes streams coming from Comas and Uchubamba Rivers. • 188 MW of installed capacity. • EIS 1 approved. 1 Environmental Impact Study. 13

Endesa Chile IR presentation 1H 2013 Projects Under Study Punta Alcalde • Thermal, Coal-steam power plant. • Located in Huasco, in the Atacama Region (SIC). • 740 MW of installed capacity. Taltal (Convertion) • Closure engineering work to the existing LNG power plant. Conversion to Combined Cycle. • Located in the Antofagasta region (SIC). • 120 MW will be added to the current 245 MW capacity. 14

Endesa Chile IR presentation 1H 2013 Projects Under Study Neltume • Hydro power plant, run of the river. • Located in Panguipulli, in Los Ríos Region (SIC). • 490 MW of installed capacity. • EIS 1 under review. HidroAysén • Hydro power plants located in Aysén Region. • Endesa Chile owns 51% and Colbún 49%. • 2,750 MW of installed capacity • Average load factor: 77%. • EIS 1 approved for the generation plants (5). 15

Endesa Chile IR presentation 1H 2013 Expected Evolution for Endesa Chile Installed Capacity Increase percentage over installed capacity, year 2012 (13,794 MW) 16% 740 188 150 120 490 4% 400 400 145 145 13,794 13,794 13,794 2012 Under Construction On Basic Engineering Year 2012 Salaco (145 MW) El Quimbo (400 MW) Neltume (490 MW) TalTal (120 MW) Los Cóndores (150 MW) Curibamba (188 MW) Punta Alcalde (740 MW) 16

Endesa Chile IR presentation 1H 2013 Market Value and Dividends Dividends EBITDA 1 (Ch$ per Share) (US$ Million) 32.5 2,248 27.2 2,098 2,033 2,014 26.8 1,812 1,714 1,671 21.3 1,503 14.3 13.8 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012 1H 2013 TTM Market Value 2 (US$ Million) 15,364 13,963 13,297 12,102 12,150 10,393 10,072 9,428 2006 2007 2008 2009 2010 2011 2012 1H 2013 Source: Intern using Bloomberg 1 Amounts expressed in US$, using the average exchange rate for each period. 2 Amounts expressed in US$, using the last exchange rate for each period. 17 * For years 2010 to 2012 considers jointly controlled companies.

Endesa Chile IR presentation 1H 2013 Key factors  Multinational electricity generation company based in Chile.  Vast experience, with over 70 years of history.  Efficient and diversified investment portfolio of generation assets.  Balanced commercial policy leading to revenue and margin stability.  Part of an important worldwide electricity group (Enel, Endesa, Enersis).  Among the most actively traded companies in Chilean stock markets. 18

Endesa Chile IR presentation 1H 2013 Endesa Chile’s Investor Relations Team Susana Rey Catalina Gonzalez Investor Relations Director Head of Investor Relations (56-2) 2630 9606 (56-2) 2630 9603 susana.rey@endesa.cl cbgs@endesa.cl Guillermo Berguecio Investor Relations Executive (56-2) 2630 9506 gabb@endesa.cl Contact us at: ir@endesa.cl 19

Endesa Chile IR presentation 1H 2013 EXHIBITS 20