Endesa Chile IR Presentation As of December 2011 Endesa Chile IR - - PowerPoint PPT Presentation

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Endesa Chile IR Presentation As of December 2011 Endesa Chile IR - - PowerPoint PPT Presentation

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Endesa Chile IR Presentation As of December 2011 Endesa Chile IR Presentation December 2011 Our company Multinational electricity generation company based in Chile Vast experience, with over 68 years of history Leading position in

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Endesa Chile IR Presentation

As of December 2011

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Our company

Endesa Chile IR Presentation December 2011 Part of an important worldwide electricity group (Enel, Endesa S.A, Enersis) Conservative commercial policy leading to revenue and margin stability Vast experience, with over 68 years of history Multinational electricity generation company based in Chile Leading position in most of the countries where it operates Efficient and diversified investment portfolio of generation assets Among the most actively traded companies in Chilean stock markets

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Ownership Structure

Endesa Chile IR Presentation December 2011

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

AMPLA COELCE FORTALEZA CDSA CIEN 61% 92% 60%

  • PEHUENCHE, 93%
  • PANGUE, 95%
  • CELTA, 100%
  • SAN ISIDRO, 100%
  • ENDESA ECO, 100%
  • CANELA, 75%

60% 15% 4% 17% 4% ENERSIS Chilean Pension Funds ADR Holders Other Inst Shareholders Minority Shareholders

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A unique portfolio in LATAM’s Generation business

Colombia

2,914 MW inst. capacity 20% market share

  • No. 2

5,611 MW inst. capacity 32% market share

Peru

1,668 MW inst. capacity 26% market share

Chile Brazil

987 MW inst. capacity 1% market share in generation

Market shares based on installed capacity Figures as of December 2011

Consolidated installed capacity: 13,845 MW Capacity including Brazil: 14,832 MW Consolidated energy sales 2010: 56,641 GWh Consolidated energy sales 2011: 58,012 GWh

3,652 MW inst. capacity 12% market share

Argentina

  • No. 1
  • No. 1
  • No. 1

Endesa Chile IR Presentation December 2011

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Results 2011:

  • Higher physical sales in Colombia and Peru
  • Higher costs primarily as a consequence of the drought in Chile and

higher fuel cost in Argentina

  • One time effect of Colombian equity tax (US$ 83 million)

Results from recent years

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

Endesa Chile IR Presentation December 2011

US$ Millions

2009 2010 2011 Change Revenues 4,326 4,773 4,972 4% Gross margin 2,580 2,438 2,455 1% EBITDA 2,248 2,098 2,014 (4%) EBIT 1,819 1,746 1,629 (7%) Net finance expenses (305) (235) (251) 7% Net income 1,381 1,342 1,202 (10%) Net attibutable income 1,121 1,046 924 (12%)

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Chile 51% Colombia 30% Peru 14% Argentina 5% Chile 39% Colombia 23% Peru 17% Argentina 21%

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Total Installed Capacity: 13,845 MW EBITDA 2011: US$ 2,014 millions Total Generation: 52,766 GWh Affiliate Company: Endesa Brasil

Endesa Chile ownership: 39% Net Attributable Income: US$ 238.5 million

EBITDA Generation

Endesa Chile IR Presentation December 2011

Chile 41% Colombia 21% Peru 12% Argentina 26%

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Conservative Commercial Policy

Chile Colombia Peru

Regulated Spot Unregulated

Chile Argentina Colombia

Regulated Spot Unregulated

Physical Sales as of December 2010

Chile Colombia Peru

Regulated Spot Unregulated

Chile Argentina Colombia

Regulated Spot Unregulated

Physical Sales as of December 2011

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Endesa Chile IR Presentation December 2011

63% 30% 7% 56% 18% 26% 64% 24% 12% 19% 81% 61% 31% 8% 51% 19% 30% 64% 27% 9% 19% 81%

Endesa Chile IR Presentation December 2011

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Strong Financial Position

Debt by Type Debt by Currency Debt by Country

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

Endesa Chile IR Presentation December 2011

Others, 8% Bank Debt, 17% Bonds, 75% Local Currency, 34% US$, 55% UF-Ch, 11%

Chile, 53% Colombia, 29% Peru, 10% Argentina, 8%

US$ Millions 2009 2010 2011 Chg. Chg % Gross Debt 4,172 3,775 3,769 (5) (0.1%) Cash 880 712 811 99 13.9% Net Debt 3,291 3,062 2,958 (104) (3.4%) Leverage 1.09 0.94 0.91 (0.03) (3.2%) Financial Expenses Coverage 6.67 8.25 6.52 (1.73) (21.0%)

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Free Cash Flow

Endesa Chile IR Presentation December 2011

2.248 (305) (564) (308) 1.070 2.098 (235) (499) (353) 1.012 2.014 (251) (549) (435) 779

EBITDA Net Financial Result CAPEX Income Tax FCF 2009 2010 2011

Free Cash Flow by year (2009-2011)

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

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Historic electricity demand growth

Endesa Chile IR Presentation December 2011

146% 118% 162% 133% 161% 90% 100% 110% 120% 130% 140% 150% 160% 170% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total Sales in GWh (%) Year

CHILE COLOMBIA PERU BRAZIL ARGENTINA

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Direct relation between GDP and electricity demand

Endesa Chile IR Presentation December 2011

Data Source: World Energy Outlook 2010, IEA ARGENTINA AUSTRALIA AUSTRIA CANADA CHILE COLOMBIA FRANCE GERMANY INDIA ITALY JAPAN MEXICO PERU SPAIN UNITED KINGDOM UNITED STATES

  • 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 cápita (Kwh) Income per person (Fixed PPP $)

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Competitive tariffs

Distribution (average VAD) ,

US$/MWh 1 4 8 3 8 1 6 7 1 6 6 9 8

2 1 1 1 5 9 6 6 2 1 1 8 5 2 3 0 1 7 7 0 3 6

1 5 8

1 3 2 2 6

1 7 9

2 5 1 5 4

1 7 1

7 6 9 5

1 3 1

4 7 8 4

Taxes not included Generation, Transmission &

  • thers

,

148 38 167 166 98

21 115 96 62 118 52 30 17 70 36

158

132 26

179

25 154

171

76 95

131

47 84

Latam Average

Final tariff to customers as of December 2010

Endesa Chile IR Presentation December 2011

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Projects Under Construction

 Location: Next to the existing coal-fired plant Bocamina I in Bío-Bío Region  Installed capacity: 370 MW, coal fired  Estimated Investment: US$ 841 millions*  Estimated start-up: June, 2012

BOCAMINA II

 Location: Huila Department, upstream

  • f Emgesa’s Betania plant

 Installed capacity: 400 MW, hydro  Estimated investment: US$ 837 millions*  In 2009 the environmental license and building permissions were granted  Estimated start-up: December 2014

Vertedero Presa h = 151 m

Río Magdalena

Casa de máquinas 400 MW Túnel de desviación Bocatoma Dique Conducción Embalse 720 msnm Vertedero Presa h = 151 m

Río Magdalena

Casa de máquinas 400 MW Túnel de desviación Bocatoma Dique Conducción Embalse 720 msnm

EL QUIMBO

* US$ 1 equals Ch$ 483.57 corresponding to the average exchange rate for the period

Endesa Chile IR Presentation December 2011

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Portfolio Projects in Chile

Endesa Chile IR Presentation December 2011

Neltume, hydro Run-of-the-river plant 490 MW Los Cóndores, hydro power plant 150 MW Piruquina, mini-hydro run-

  • f-the-river plant

7.6 MW Hydroaysen, hydro power plant 2,750 MW Punta Alcalde, coal-steam power plant 740 MW

Hydro Thermal N.C.E.S.

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Portfolio Projects in Peru & Colombia

Endesa Chile IR Presentation December 2011

Colombia Peru

Curibamba, hydro power plant 188 MW

Hydro Thermal N.C.E.S.

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HidroAysén

 One of the most efficient hydroelectric projects in the world.  Renewable resources  Average load factor 77% Installed capacity: 2,750 MW. Endesa Chile’s owns 51% and Colbún 49%. CO2 emissions: Reduction of 16.2 million tons/year

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May 9, 2011: EIA was approved. June 2011: Puerto Montt Court of Appeals issued an injunction, leaving the resolution in state of abeyance. October 2011: The Court ruled in favor

  • f

HidroAysén, rejecting all seven protection requirements presented on June. The Commission is preparing the Environmental Impact Study of the Aysén Transmission System, expected to be filed by the first half 2012.

312 144 134 81 81 75 69 65 54 54 53 45 41 29 23 12 12 7 50 100 150 200 250 300 350

GWh / year-km2

Energy / Flooded Surface

Endesa Chile IR Presentation December 2011

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  • 200

400 600 800 1,000 1,200 1,400

Apr-10 may jun jul ago sep

  • ct

nov dec Jan-11 feb mar Timeline Water Flow [ m³/s]

  • 200

400 600 800 1,000 1,200 1,400

MAIPO RIVER IN CABIMBAO BIOBIO RIVER IN RUCALHUE MAULE IN ARMERILLO (R.N.) CENTRAL BAKER 2 CENTRAL PASCUA 2.2

Seasonal Streaming from Hidroaysen and SIC rivers

17 SIC : 23% SIC : 21% SIC + Hidroaysen : 9% SIC + Hidroaysen : 12% Seasonal Variability Annual Variability

Endesa Chile IR Presentation December 2011

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Hidroaysen Technical information

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Endesa Chile IR Presentation December 2011

Power Plants Zone HVDC Land Line HVDC Submarine Line 640 km 160 km 1.112 km

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Market Value and Dividends

Endesa Chile IR Presentation December 2011

Dividends (Ch$xShare)

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

Operating Income (US$ Millions)

1.022 1.189 1.674 1.819 1.746 1.629 2006 2007 2008 2009 2010 2011

EBITDA (US$ Millions)

1.503 1.671 2.031 2.248 2.098 2.014 2006 2007 2008 2009 2010 2011

Market Value (US$ Millions)

*Year 2011, includes only the intern dividend paid on January 2012 10.112 9.901 11.524 12.663 14.093 12.993 2006 2007 2008 2009 2010 2011 13.4 13.8 21.3 26.8 32.5 5.1* 2006 2007 2008 2009 2010 2011 Intern Definitive

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Endesa Chile’s Investor Relations Team

Contact us at:

ir@endesa.cl

Juan Pablo Vicuña Investor Relations Executive (56-2) 630 5585 jpvp@endesa.cl Susana Rey Investor Relations Director (56-2) 630 96 06 susana.rey@endesa.cl Catalina González 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 IR Presentation December 2011

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EXHIBITS

Endesa Chile IR Presentation December 2011

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Highlights in 2011

Endesa Chile IR Presentation December 2011 Better margins in generation in Peru and Colombia One-off net worth tax in Colombia US$83 millions* Growth of 2% in physical sales, primarily in Peru and Colombia Growth of 3% in electricity demand in the region Growth of 4% in physical energy purchases primarily in Chile, due lower water availability Growth of 11% in fuel costs primarily in Chile and Argentina Growth of 34% in related companies results primarily due Endesa Brasil and GNL Quintero

* US$ 1 equals Ch$ 483.57 corresponding to the average exchange rate for the period

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Analysis by country – Argentina

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

36% Hydro 1,328 MW

Installed Capacity: 3,652 MW Market Share: 12% EL CHOCON COSTANERA

64% Thermal 2,324 MW

El Chocon Costanera

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

Endesa Chile IR Presentation December 2011

US$ Millions

2010 2011 Change Revenues 118 100 (15.3%) EBITDA 72 55 (23.6%) EBITDA Margin 60.8% 54.9% (9.6%) Physical Sales 3,361 2,888 (14.1%)

US$ Millions

2010 2011 Change Revenues 611 707 15.8% EBITDA 52 41 (21.7%) EBITDA Margin 8.5% 5.8% (32.3%) Physical Sales 8,018 8,493 5.9%

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Guavio: 1.213 MW Betania: 541 MW Río Bogotá: 716 MW

85% Hydro 2,471 MW 15% Thermal 444 MW

Cartagena: 208 MW Termozipa: 236 MW

Installed Capacity: 2,914 MW Market Share: 20% EMGESA Cartagena

Bogota

Analysis by country – Colombia

Endesa Chile IR Presentation December 2011

US$ Millions

2010 2011 Change Revenues 1,050 1,031 (1.8%) EBITDA 616 601 (2.4%) EBITDA Margin 58.7% 58.3% (0.7%) Physical Sales 14,817 15,112 2%

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Lima:

  • Edegel (Gx)

Ventanilla: 493 MW Santa Rosa: 429 MW

55% Thermal 922 MW

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

45% Hydro 747 MW

Installed Capacity: 1,668 MW Market Share: 26% EDEGEL

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Analysis by country – Peru

Endesa Chile IR Presentation December 2011

US$ Millions

2010 2011 Change Revenues 437 496 13.5% EBITDA 224 292 30.3% EBITDA Margin 51.4% 58.9% 14.7% Physical Sales 8,598 9,450 9.9%

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Installed Capacity: 5,611 MW Market Share: 32% ENDESA CHILE

  • D. Almagro–Taltal

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

Santiago

Analysis by country – Chile

Los Molles: 18 MW Rapel-Sauzal: 466 MW Maule: 884 MW Laja: 940 MW Ralco-Pangue: 1,157 MW

61% Hydro 3,465 MW 37% Thermal 2,068 MW

Tarapacá-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% Wind 78 MW

Canela: 18 MW Canela II: 60 MW

Endesa Chile IR Presentation December 2011

US$ Millions

2010 2011 Change Revenues 2,782 2,601 (6.5%) EBITDA 1,235 1,007 (18.5%) EBITDA Margin 44.4% 38.7% (12.8%) Physical Sales 21,847 22,070 1.0%

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Fortaleza: 322 MW

33% Thermal 322 MW

Cachoeira: 665 MW

67% Hydro 665 MW

Installed Capacity: 987 MW Market Share: 1% CACHOEIRA FORTALEZA Fortaleza Rio de Janeiro

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

CIEN: Transmission Brazil-Argentina Interconnection

Analysis by country - Brazil

Cachoeira

Endesa Chile IR Presentation December 2011

US$ Millions

2010 2011 Change Revenues 239 262 9.5% EBITDA 172 194 12.6% EBITDA Margin 72.0% 74.0% 2.8% Physical Sales 3,833 3,986 4.0%

US$ Millions

2010 2011 Change Revenues 205 124 (39.5%) EBITDA 167 175 4.8% EBITDA Margin 81.7% 141.6% 73.3% US$ Millions 2010 2011 Change Revenues 311 268 (13.9%) EBITDA 139 119 (14.7%) EBITDA Margin 44.7% 44.3% (0.9%) Physical Sales 2,957 2,842 (3.9%)

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Customers Installed Capacity, Output

Installed Capacity Output

Endesa Chile IR Presentation December 2011

MW as of FY2011 Chile Colombia Brasil Perú Argentina Total Total

5,611 2,914 987 1,668 3,652 14,832

Hydro

3,456 2,471 665 746 1,328 8,666

Nuclear

  • Coal

286 236

  • 522

Oil-Gas

1,782 208 322 922 2,324 5,557

CHP / Renewables

87

  • 87

GWh as of FY 2011

  • chg. Vs.

FY2010 Chile Colombia Brasil Peru Argentina Total Total

20,722 (0.9%) 12,090 7.2% 4,155(18.5%) 9,153 8.1% 10,801 (1.3%) 56,921 0.4%

Hydro

11,874 (5.6%) 11,620 13.3% 3,121 (9.0%) 4,615 4.8% 2,404 (19.2%) 33,635 0%

Nuclear

  • 0%
  • 0%
  • 0%
  • 0%
  • 0%
  • 0%

Coal

1,820 53.2% 264 (66.7%)

  • 0%
  • 0%
  • 0%

2,084 5.3%

Oil-Gas

6,854 (1.5%) 206 (3.7%) 1,033(37.9%) 4,538 11.8% 8,397 5.4% 21,028 0.7%

CHP / Renewables

173 (10%)

  • 0%
  • 0%
  • 0%
  • 0%

173 (0.0%)

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Healthy Debt Profile

Financial Debt BBB

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

BBB+

Baa3

Baa2 BBB+

BBB Credit Risk Ratings Recognition

Endesa Chile IR Presentation December 2011

Since: Affirmed: Jan 2012 Nov 2011

US$ Millions 2012 2013 2014 2015 2016 2017 Balance TOTAL Chile 104 419 185 218 14 12 1,042 1,995 Argentina 129 63 53 35 17

  • 297

Perú 60 52 50 34 57 47 82 382 Colombia 157

  • 73

129

  • 88

649 1,095 TOTAL 450 534 362 416 89 146 1,773 3,769

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Principal Financial Ratios

Net debt/EBITDA EBITDA/Net financial expenses

Endesa Chile IR Presentation December 2011

2,0 1,5 1,5 1,5 2008 2009 2010 2011 5,6 7,4 8,9 8,0 2008 2009 2010 2011

Endesa Chile

2010 2011 Net Debt/ EBITDA 1.5 1.5 P/U 13.5 14.1 EPS* 65.1 54.5 ROE (%) 24% 18.1% ROA (%) 11.2% 9.2%

*Net attributable income /Total shares

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Integrated risk management capability

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100%

  • Rainfall
  • Growth in demand
  • Fuel prices
  • Exchange rates
  • Inflation

Risk variables affecting margins

Our aim is to ensure a 95% reliability with a margin of at least 90% of budget even in the following scenarios:

  • Lower rainfall than historical levels
  • Increases in fuel prices
  • Higher growth in demand

Risk limit Real margin ≥ 0.9x expected margin

Spot

Extreme hydro volatility

Thermal

Target

  • utput

Target sales

Target output and sales in future years

Hydro Regulated and unregulated contracts

75%

Relative Frequency

Results

MMUS$ 5%

MaR 95%

Endesa Chile IR Presentation December 2011

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Stable Results, Long Play Company

Consolidated EBITDA (Quarterly) 2001-2010 vs. Chilean SIC Hydrology

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Endesa Chile IR Presentation December 2011

  • 5.000

10.000 15.000 20.000 25.000 30.000 35.000

  • 0,5

1,0 1,5 2,0 2,5 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 US$ Mllions 1Q EBITDA 2Q EBITDA 3Q EBITDA 4Q EBITDA SIC Hydrology (GWh)

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

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Relevant Stock Presence

USA Stock Market Spain Stock Market Chilean Stock Market

Endesa Chile IR Presentation December 2011

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NYSE (US$) Price 2011 (Avg) 51.0 Max 2011 57.6 Min 2011 40.6 Daily Avg Trans Vol (million shares) 120.7 Avg Daily Trans (US$ millions traded) 6.08 LATIBEX (€) Price 2011 (Avg) 1.2 Max 2011 1.4 Min 2011 1.0 Daily Avg Trans Vol (million shares) 17.9 Avg Daily Trans (€ millions traded) 0.02 BOLSA DE SANTIAGO (CLP) Price 2011 (Avg) 819.2 Max 2011 899.9 Min 2011 700.5 Daily Avg Trans Vol (million shares) 5.6 Avg Daily Trans (CLP millions traded) 4,723.1

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Endesa Chile IR Presentation December 2011