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

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

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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

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SLIDE 1

Endesa Chile IR presentation

As of June 2013

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Endesa Chile IR presentation 1H 2013

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  • COSTANERA, 70%
  • EL CHOCÓN, 65%
  • EDEGEL, 62%
  • EMGESA, 27%
  • ENDESA BRASIL, 39%

AMPLA COELCE FORTALEZA CDSA CIEN 61% 92% 60%  PEHUENCHE, 93%  CELTA, 100%  SAN ISIDRO, 96%  ENDESA ECO, 100%  CANELA, 75%

Ownership Structure

CHILE COLOMBIA PERU ARGENTINA BRAZIL

60% 14% 6% 4% 3% 12% ENERSIS Chilean Pension Funds Institutional Shareholders ADR Holders Minority Shareholders Other Institutional Shareholders

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Endesa Chile IR presentation 1H 2013

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A unique portfolio in LATAM’s Generation business

COLOMBIA 2,914 MW inst. capacity

Hydro: 2,470 MW Thermal : 444 MW

20% market share

  • No. 2

5,571 MW inst. capacity1

Hydro: 3.456 MW Thermal : 2,028 MW NCRE: 87 MW

30% market share PERU 1,657 MW inst. capacity

Hydro: 746 MW Thermal : 911 MW

23% market share CHILE BRAZIL 987 MW inst. capacity

Hydro: 665 MW Thermal : 322 MW

1% market share in generation

Consolidated installed capacity: 13,794 MW Capacity including Brazil: 14,781 MW Consolidated energy sales 2012: 59,020 GWh Consolidated energy sales 1H13: 27,237 GWh

3,652 MW inst. capacity

Hydro: 1,328 MW Thermal: 2.324 MW

12% market share ARGENTINA

  • No. 2
  • No. 1
  • No. 1

1 Excludes the proportional assets from GasAtacama (390 MW).

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Endesa Chile IR presentation 1H 2013

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Results affected by the drought in Chile

1Amounts expressed in US$, using the average exchange rate for the period (Ch$478.71 per US$). 2 Net of “Foreign currency exchange differences” 3 Closing share price for each period

Indicator 1H 2013 MM ch$ 1H 2012 MM ch$ Change 1H 2013 MM US$1 Revenues 1,015,797 1,127,497 (10%) 2,122 Operational Expenses (532,591) (679,683) (22%) (1,113) Contribution margin 483,206 447,814 8% 1,009 EBITDA 382,396 349,026 10% 799 EBIT 288,578 258,871 11% 603 Net financial charges2 (66,361) (65,317) 2% (139) Earnings before taxes 286,008 252,559 13% 597 Income Tax 90,240 78,152 15% 189 Net income 195,768 174,407 12% 409 Minorities 95,654 72,964 31% 200 Net attributable income 100,115 101,443 (1%) 209 EBITDA margin 37.6% 31.0% 22%

  • Net margin

9.9% 9.0% 10%

  • E.P.S.

12.21 12.37 (1.3%) P/E 3 61.5 68.1 (9.7%)

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Endesa Chile IR presentation 1H 2013

Chile 40% Colombia 21% Peru 12% Argentina 27% Chile 39% Colombia 26% Peru 16% Argentina 19% Chile 35% Colombia 46% Peru 16% Argentina 3%

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EBITDA by Country

Total Installed Capacity 1: 13,794 MW EBITDA 1H 2013 (TTM): US$ 1,812 million Total Generation 1 (TTM): 57,286 GWh

Endesa Brasil

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

direct).

  • Net Attributable Income2 (TTM): US$ 222

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.

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Endesa Chile IR presentation 1H 2013

68% 29% 3% 54% 19% 27% 65% 29% 6% 17% 83% 76% 22% 2% 50% 19% 31% 54% 36% 10% 19% 81%

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Prudent Commercial Policy

Regulated Spot Unregulated

Physical Sales as of June 2012

Chile Colombia Peru

Regulated Spot Unregulated

Argentina

Physical Sales as of June 2013

Chile Colombia Peru Argentina

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Endesa Chile IR presentation 1H 2013

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Debt by Type Debt by Currency Debt by Country (MM US$)

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”.

Strong Financial Position

Indicator 1H 2013 MM Ch$ 2012 MM Ch$ Change % Change 1H 2013 MM US$ Gross Debt 2,006,465 2,069,034 (62,569) (3%) 3,956 Cash1 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

Coverage 5.36 4.34 1.02 19%

  • Chile,

2,050 Argentina, 251 Colombia, 1,362 Peru, 294 Other local currency, 38% US$, 50% UF + CLP, 12% Others, 15% Bank Debt, 14% Bonds, 71%

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Endesa Chile IR presentation 1H 2013

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1Amounts are expressed in US$, using the average exchange rate for each period.

* For years 2010 to 2012 considers jointly controlled companies.

Free Cash Flow (US$ million)

2,098 (235) (499) (353) 1,012 (523) 2,014 (251) (549) (435) 779 (462) 1,714 (300) (538) (381) 494 (245) 1,812 (298) (477) (413) 625

EBITDA Net Financial Result CAPEX Income Tax FCF Dividends 2010 2011 2012 1H 2013 TTM

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Endesa Chile IR presentation 1H 2013

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Electricity demand Evolution in LATAM

4.0% 2.7% 4.6% 5.6% 3.2% 80% 100% 120% 140% 160% 180% 200% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Sales in GWh (% growth) Years

Historic electricity demand growth (CAGR, last ten years)

CHILE COLOMBIA PERU ARGENTINA BRAZIL

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Endesa Chile IR presentation 1H 2013

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Direct relation between GDP and electricity demand

ARGENTINA AUSTRALIA AUSTRIA BOLIVIA BRAZIL CANADA CHILE COLOMBIA FRANCE GERMANY INDIA ITALY JAPAN MEXICO PERU SPAIN UNITED KINGDOM UNITED STATES CHINA RUSSIA FINLAND GREECE IRELAND

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 Electricity consumption, per capita (Kwh per year) 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.

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Endesa Chile IR presentation 1H 2013

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.

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Projects Under Construction

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Endesa Chile IR presentation 1H 2013

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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.
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Endesa Chile IR presentation 1H 2013

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Projects Under Study

Los Cóndores

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

Region .

  • 150 MW of installed capacity.
  • EIS1 approved.

Curibamba

  • Hydro power plant.
  • Located in Junín Department, utilizes

streams coming from Comas and Uchubamba Rivers.

  • 188 MW of installed capacity.
  • EIS1 approved.

1 Environmental Impact Study.

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Endesa Chile IR presentation 1H 2013

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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.

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Endesa Chile IR presentation 1H 2013

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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.
  • EIS1 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%.
  • EIS1 approved for the generation

plants (5).

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Endesa Chile IR presentation 1H 2013

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Increase percentage over installed capacity, year 2012 (13,794 MW)

Expected Evolution for Endesa Chile Installed Capacity

13,794 13,794 13,794 145 145 400 400 490 120 150 188 740 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)

4% 16%

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Endesa Chile IR presentation 1H 2013

10,072 10,393 9,428 13,963 15,364 12,102 13,297 12,150 2006 2007 2008 2009 2010 2011 2012 1H 2013

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.

* For years 2010 to 2012 considers jointly controlled companies.

17 Dividends (Ch$ per Share) EBITDA (US$ Million) Market Value (US$ Million)

Market Value and Dividends

1

Source: Intern using Bloomberg

2

1,503 1,671 2,033 2,248 2,098 2,014 1,714 1,812 2006 2007 2008 2009 2010 2011 2012 1H 2013 TTM 13.8 21.3 26.8 32.5 27.2 14.3 2007 2008 2009 2010 2011 2012

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Endesa Chile IR presentation 1H 2013

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Multinational electricity generation company based in Chile. Efficient and diversified investment portfolio of generation assets.  Part of an important worldwide electricity group (Enel, Endesa, Enersis).

Key factors

Vast experience, with over 70 years of history. Balanced commercial policy leading to revenue and margin stability.  Among the most actively traded companies in Chilean stock markets.

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Endesa Chile IR presentation 1H 2013

19 Contact us at: ir@endesa.cl Susana Rey Investor Relations Director (56-2) 2630 9606 susana.rey@endesa.cl Catalina Gonzalez Head of Investor Relations (56-2) 2630 9603 cbgs@endesa.cl Guillermo Berguecio Investor Relations Executive (56-2) 2630 9506 gabb@endesa.cl

Endesa Chile’s Investor Relations Team

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EXHIBITS

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Highlights of 1H 2013

Lower generation revenues, mainly explained by lower hydro generation in Chile as a consequence of lower water availability. 5% lower Financial Result due to inflation. Lower generation costs, mainly explained by the commissioning of Bocamina II and lower LNG prices. 10% increase in consolidated EBITDA explained by better operations in Chile and Colombia.

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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: 4,481 GWh

EL CHOCÓN COSTANERA

Thermal 2,324 MW

El Chocón Costanera

* Based on installed capacity

Million US$

1H 2013 1H 2012 Change Revenues 278 330 (16%) EBITDA 14

  • 2
  • EBITDA Margin

5.1% (0%)

  • Physical Sales (GWh)

3,898 4,537 (14%)

Million US$

1H 2013 1H 2012 Change Revenues 35 51 (31%) EBITDA 13 29 (54%) EBITDA Margin 38.0% 56.9% (33%) Physical Sales (GWh) 1,386 1,498 8%

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Lima:

  • Edegel (Gx)

Ventanilla: 485 MW Santa Rosa: 426 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*: 23% Total Generation: 4,141 GWh

EDEGEL

Peru

* Based on installed capacity

Million US$

1H 2013 1H 2012 Change Revenues 273 296 (8%) EBITDA 150 150 (0%) EBITDA Margin 54.9% 50.7% 8% Physical Sales (GWh) 4,446 4,835 (8%)

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Endesa Chile IR presentation 1H 2013

24 Installed Capacity1: 5,571 MW Market Share*: 30% Total Generation1: 9,109 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 36% Thermal 2,028 MW

Tarapaca 182 MW

  • D. Almagro–Taltal:

269 MW Huasco: 64 MW San Isidro 1 and 2: 778 MW Bocamina 1 and 2 478 MW TG Quintero: 257 MW

2% NCRE2 87 MW

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

Chile

1 Excludes the proportional assets from GasAtacama (390 MW).

2 Non Conventional Renewable Energy.

  • Based on installed capacity

Million US$

1H 2013 1H 2012 Change Revenues 888 1,111 (20%) EBITDA 209 181 16% EBITDA Margin 23.5% 16.3% 44% Physical Sales (GWh) 9,543 10,157 (6%)

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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: 6,311 GWh

EMGESA

Cartagena

Bogotá

Colombia

* Based on installed capacity

Million US$

1H 2013 1H 2012 Change Revenues 648 568 14% EBITDA 413 371 11% EBITDA Margin 63.7% 65.3% (2%) Physical Sales (GWh) 7,965 7,719 3%

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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: 2,216 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

* Based on injstalled capacity

Million US$

1H 2013 1H 2012 Change Revenues 130 151 (14%) EBITDA 90 105 (14%) EBITDA Margin 69.5% 69.4% 0% Physical Sales (GWh) 1,814 2,145 (15%) Million US$ 1H 2013 1H 2012 Change Revenues 178 137 30% EBITDA 53 57 (7%) EBITDA Margin 30.0% 41.9% (28%) Physical Sales (GWh) 1,623 1,398 16%

Million US$

1H 2013 1H 2012 Change Revenues 71 79 (9%) EBITDA 49 54 (10%) EBITDA Margin 68.7% 69.2% (1%)

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  • Feb. 2010
  • Jan. 2010
  • Apr. 2011

BBB+ Baa2 BBB+ Since: Affirmed:

  • Dec. 2012
  • Jul. 2013

Credit Risk Ratings

  • Jun. 2012

Financial Debt Maturity

Healthy Debt Profile and Credit Risk Ratings

US$ Million 2013 2014 2015 2016 2017 Balance TOTAL Chile 742 165 219 15 12 897 2,050 Argentina 186 40 14 10

  • 251

Peru 15 52 36 60 50 81 294 Colombia

  • 73

151 21 109 1,007 1,362 TOTAL 943 331 420 106 171 1,985 3,956

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Net debt/EBITDA EBITDA/Net financial expenses

1 EBITDA / (Financial expenses + Income (Loss) for indexed assets and liabilities + Foreign currency exchange differences, net)

Endesa Chile

1H 2013 1H 2012 Financial Expense Coverage1 5.36 4.34 ROE (%) 9.3% 15.7% ROA (%) 6.9% 8.6%

Principal Financial Ratios

2.0 1.5 1.5 1.5 2.0 2.0 2008 2009 2010 2011 2012 1H 2013 TTM 5.6 7.4 8.9 8.0 5,7 6.1 2008 2009 2010 2011 2012 1H 2013 TTM

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American Stock Market Spanish Stock Market BOLSA DE SANTIAGO (CLP)2 Price 1H 2013 TTM (Avg) 800.3 Max 1H 2013 TTM 894.0 Min 1H 2013 TTM 699.7 Daily Avg Trans Vol (million ADR) 5.40 Avg Daily Trans (US$ million traded) 4,298.6 LATIBEX (€) Price 1H 2013 TTM (Avg) 1.3 Max 1H 2013TTM 1.5 Min 1H 2013TTM 1.0 Daily Avg Trans Vol (million shares) 0.01 Avg Daily Trans (€ million traded) 0.01 Chilean Stock Market NYSE (US$)1 Price 1H 2013 TTM (Avg) 49.2 Max 1H 2013 TTM 55.4 Min 1H 2013 TTM 40.6 Daily Avg Trans Vol (million shares) 0.12 Avg Daily Trans (CLP million traded) 5.9

Relevant Stock Presence

1 Considers NYSE and others stock markets within the USA. 2 Includes “Bolsa de Valparaiso” and “Bolsa electrónica de Chile”.

Source: Intern, using Bloomberg.

Average Daily Trans (US$ MM)

US$ 8.52; 57% US$6.42; 43% US$ 0.02; <1%

Santiago Stock Exchange NYSE LATIBEX

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“This document is the property of ENDESA and therefore must not be disseminated or published without ENDESA's prior written consent. The content of this document is provided for information purposes only and therefore has no contractual substance and should not be used as part of or construed as a legal contract. ENDESA does not assume any responsibility for the information contained in this document and does not offer any implicit or explicit guarantees of the impartiality, accuracy and completeness of this information and the opinions and statements contained therein. It shall also not be liable for any loss or damages that could arise as a result of using this information. ENDESA does not guarantee that the forward-looking statements in this document will apply in the future in the terms set forth. Neither ENDESA nor its subsidiaries intend to update such estimates, forecasts and objectives contained herein, except where required to do so by law”.