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

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

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Endesa Chile IR presentation As of March 2013 Endesa Chile IR presentation 1Q 2013 Our company Multinational electricity generation company based in Chile. Vast experience, with over 70 years of history. Efficient and diversified

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Endesa Chile IR presentation

As of March 2013

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Endesa Chile IR presentation 1Q 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).

Our company

Vast experience, with over 70 years of history. Conservative 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 1Q 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

60% 14% 6% 4% 4% 12%

ENERSIS Chilean Pension Funds Institutional Shareholders ADR Holders Minority Shareholders Other Institutional Shareholders

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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 1Q13: 12,738 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 1Q 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$472.38 per US$). 2 Net of “Foreign currency exchange differences” 3 Closing share price for each period

Indicator 1Q 2012 MM ch$ 1Q 2013 MM ch$ Change 1Q 2013 MM US$1 Revenues 541,703 489,433 (10%) 1,036 Operational Expenses (308,108) (244,770) (21%) (518) Contribution margin 233,595 244,663 5% 518 EBITDA 182,422 195,975 7% 415 EBIT 137,323 147,816 8% 313 Net financial charges2 (39,409) (33,134) (16%) (70) Earnings before taxes 126,684 144,289 14% 305 Income Tax (20,371) (35,321) 73% 75 Net income 106,313 108,969 2% 231 Minorities 40,083 45,635 14% 97 Net attributable income 66,230 63,334 (4%) 134 Net profit margin 33.7% 40.0% 19%

  • Profit Margin

12.2% 12.9% 6%

  • E.P.S.

8.1 7.7 (4.9%) 0.5 P/E 3 108.6 108.2 (0.3%)

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Endesa Chile IR presentation 1Q 2013

Chile 40% Colombia 21% Peru 12% Argentina 27% Chile 38% Colombia 25% Peru 16% Argentina 21% Chile 35% Colombia 45% Peru 17% Argentina 3%

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EBITDA by Country

Total Installed Capacity 1: 13,794 MW EBITDA 1Q 2013 (TTM): US$ 1,791 million Total Generation 1 (TTM): 53,255 GWh

Endesa Brasil

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

direct).

  • Net Attributable Income2 (TTM): US$ 233

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 1Q 2013

75% 24% 1% 49% 19% 32% 53% 34% 13% 18% 82%

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Prudent Commercial Policy

Regulated Spot Unregulated

Physical Sales as of March 2012

Chile Colombia Peru

Regulated Spot Unregulated

Argentina

Physical Sales as of March 2013

Chile Colombia Peru Argentina 68% 31% 1% 53% 20% 27% 64% 28% 8% 73% 74% 26%

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

Amounts expressed in US$, using the close exchange rate for the period (Ch$ 472.03 per US$)

1 Considers “Cash and cash equivalents” and “Other current financial assets”.

Strong Financial Position

Indicator 1Q 2012 MM Ch$ 1Q 2013 MM Ch$ Change % Change 1Q 2013 MM US$ Gross Debt 1,861,469 1,897,402 35,933 2% 4,020 Cash1 260,798 206,417 (149,569) (72%) 437 Net Debt 1,505,482 1,690,985 185,502 11% 3,582 Leverage 0.90 0.89 (0.01) (1%) 0.89 Financial Expenses Coverage 3.92 5.15 1.10 21% 5.15

Chile 2,005 Argentina 262 Colombia 1,434 Peru 319 Other Local Currency 40% US$ 49% UF + CLP 11% Others 14% Bank Debt 14% Bonds 72%

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

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 (248) 1,791 (295) (622) (424) 450

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

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Electricity demand Evolution in LATAM

4.4% 2.2% 5.3% 5.5% 3.3% 80% 90% 100% 110% 120% 130% 140% 150% 160% 170% 180% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total Sales in GWh (% growth) Years

Historic electricity demand growth (CAGR, last ten years)

CHILE COLOMBIA PERU ARGENTINA BRAZIL

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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

2000 4000 6000 8000 10000 12000 14000 16000 18000 5000 10000 15000 20000 25000 30000 35000 40000 45000 Electricity consumption, per capita (Kwh per year) Income per capita (Fixed PPP $)

Data source: International Energy Agency (EIA) and The World Bank.

 Chile aims to be in the group of developed countries.  There is no development without energy.

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Endesa Chile IR presentation 1Q 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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Projects Under Construction

Salaco Chain (optimization)

  • Repowering the minor plants to reach 260

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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Projects Under Study

Renaico

  • Wind farm
  • Located in the Araucanía region

(SIC)

  • 88 MW of installed capacity
  • EIA1 approved for the generation

plants and the transmission line.

1 Environmental Impact Assessment.

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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
  • EIA1 approved.

Curibamba

  • Hydro power plant
  • Located in Junín Department,

utilizes streams coming from Comas and Uchubamba Rivers

  • 188 MW of installed capacity
  • EIS2 approved for the generation

plant and the transmission line.

1 Environmental Impact Assessment. 2 Environmental Impact Study.

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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
  • EIS1 approved by the Ministers´

Committee on Dec 3, 2012 Neltume

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

Region (SIC).

  • 490 MW of installed capacity.

1 Environmental Impact Study.

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Projects Under Study

HidroAysén

  • Hydro power plants located in Aysén Region
  • 2,750 MW of installed capacity
  • EIS1 approved for the generation plants (5)
  • One of the most efficient hydroelectric projects in

the world, using renewable resources

  • Average load factor: 77%
  • Endesa Chile owns 51% and Colbún 49%
  • CO2 emissions: Reduction of 16.2 million tons/year

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

1 Environmental Impact Study.

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

Expected Evolution for Endesa Chile Installed Capacity

13,794 400 145 150 188 740 490 1,403 12000 13000 14000 15000 16000 17000 18000 2012 Under Construction On Basic Engineering Installed Capacity (MW) Year 2012 Quimbo Salaco Renaico Los Condores Curibamba Punta Alcalde Neltume HidroAysen (51%)

+ 16% + 4%

88

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Endesa Chile IR presentation 1Q 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.

19 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 1,791 2006 2007 2008 2009 2010 2011 2012 1Q 2013 TTM 13.8 21.3 26.8 32.5 27.2 3.04 14.3 2007 2008 2009 2010 2011 2012 10,072 10,393 9,428 13,963 15,364 12,102 13,297 14,479 2006 2007 2008 2009 2010 2011 2012 1Q 2013

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Endesa Chile IR presentation 1Q 2013

20 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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Higher Revenues in Colombia, mainly explained by higher average sales price as a consequence of lower water availability.

Highlights of 1Q 2013

Non-recurring tax effects in Colombia and Chile. Lower generation costs, mainly explained by the commissioning of Bocamina II and lower LNG price. 7% increase in consolidated EBITDA explained by our operations in Chile, Colombia and Peru.

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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: 2,628 GWh

EL CHOCÓN COSTANERA

Thermal 2,324 MW

El Chocón Costanera Million US$

1Q 2012 1Q 2013 Change Revenues 99 98 (1%) EBITDA 5 1527% EBITDA Margin 0.3% 5% 1549% Physical Sales (GWh) 2,392 2,230 (7%) Million US$ 1Q 2012 1Q 2013 Change Revenues 24 17 (27%) EBITDA 13 8 (36%) EBITDA Margin 53.4% 47.2% (12%) Physical Sales (GWh) 673 574 (15%)

* Based on installed capacity

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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: 2,180 GWh

EDEGEL

Peru

Million US$

1Q 2012 1Q 2013 Change Revenues 149 138 (7%) EBITDA 78.6 79.3 1% EBITDA Margin 52.8% 57.5% 9% Physical Sales (GWh) 2,439 2,270 (7%)

* Based on installed capacity

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Endesa Chile IR presentation 1Q 2013

25 Installed Capacity1: 5,571 MW Market Share*: 30% Total Generation1: 4,894 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$

1Q 2012 1Q 2013 Change Revenues 589 456 (23%) EBITDA 110 122 10% EBITDA Margin 18.7% 26.7% 42% Physical Sales (GWh) 5,059 5,006 (1%)

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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: 3,036 GWh

EMGESA

Cartagena

Bogotá

Colombia

Million US$

1Q 2012 1Q 2013 Change Revenues 286 324 13% EBITDA 184 198 8% EBITDA Margin 64.4% 61.2% (5%) Physical Sales (GWh) 3,737 3,833 3%

* Based on installed capacity

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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: 1,246 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 installed capacity

Million US$

1Q 2012 1Q 2013 Change Revenues 71 68 (4%) EBITDA 46 41 (10%) EBITDA Margin 64.7% 60.7% (6%) Physical Sales (GWh) 1,075 923 (14%)

Million US$

1Q 2012 1Q 2013 Change Revenues 68 88 28% EBITDA 27 25 (8%) EBITDA Margin 39.4% 28.3% (28%) Physical Sales (GWh) 707 804 14%

Million US$

1Q 2012 1Q 2013 Change Revenues 40 36 (10%) EBITDA 28 25 (8%) EBITDA Margin 68.6% 69.8% 2%

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Installed Capacity and Energy Generation

Installed Capacity (MW) Generation (GWh)

Chile Colombia Brazil Peru Argentina Total Total 5,571 2,914 987 1,657 3,652 15,766 Hydro 3,456 2,471 665 746 1,328 8,666 Nuclear Coal 636 236 872 Oil-Gas 1,392 208 322 911 2,324 6,142 CHP / Renewables 87 87 Total 4,894 2.9% 3,035

  • 1.2%

1,246 27.7% 2,180

  • 4.1%

2,628

  • 9.3%

13,983 0.1% Hydro 2,160

  • 20.4%

2,716

  • 7.8%

605

  • 32.2%

1,268

  • 4.4%

453

  • 16.7%

7,202

  • 14.5%

Nuclear 0 -100.0%

  • 0 -100.0%

Coal 1,119 134.6% 281 347.5%

  • 1,401

159.3% Oil-Gas 1,557 2.7% 38

  • 41.7%

641 667.5% 912

  • 3.6%

2,175

  • 7.5%

5,323 7.3% CHP / Renewables 57 16.0%

  • 57

16.0%

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

BBB+ Baa2 BBB+ Since: Affirmed:

  • Dec. 2012
  • Oct. 2012

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 685 132 220 16 13 939 2,005 Argentina 216 39 7

  • 262

Peru 37 54 36 60 50 83 319 Colombia

  • 77

159 22 115 1,061 1,434 TOTAL 939 302 422 98 177 2,082 4,020

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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

1Q 2012 1Q 2013 Financial Expense Coverage1 3.92 5.15 ROE (%) 16.2% 9.0% ROA (%) 8.9% 6.6%

Principal Financial Ratios

2.0 1.5 1.5 1.5 1.9 2.0 2008 2009 2010 2011 2012 1Q 2013 TTM 5.6 7.4 8.9 8.0 7.4 6.1 2008 2009 2010 2011 2012 1Q 2013 TTM

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American Stock Market Spanish Stock Market NYSE (US$)1 Price 1Q 2013 TTM (Avg) 808.2 Max 1Q 2013 TTM 894.0 Min 1Q 2013 TTM 700.5 Daily Avg Trans Vol (million ADR) 5.26 Avg Daily Trans (US$ million traded) 4,230.7 LATIBEX (€) Price 1Q 2013 TTM (Avg) 1.3 Max 1Q 2013TTM 1.5 Min 1Q 2013TTM 1.0 Daily Avg Trans Vol (million shares) 0.01 Avg Daily Trans (€ million traded) 0.01 Chilean Stock Market BOLSA DE SANTIAGO (CLP) Price 1Q 2013 TTM (Avg) 49.7 Max 1Q 2013 TTM 55.4 Min 1Q 2013 TTM 40.6 Daily Avg Trans Vol (million shares) 0.12 Avg Daily Trans (CLP million traded) 6.05

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”.