Endesa Chile IR presentation As of June 2012 Endesa Chile IR - PowerPoint PPT Presentation

Endesa Chile IR presentation As of June 2012

Endesa Chile IR presentation 1H 2012 Our company  Multinational electricity generation company based in Chile  Vast experience, with over 69 years of history  Efficient and diversified investment portfolio of generation assets  Conservative 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 2

Endesa Chile IR presentation 1H 2012 Ownership Structure 4% 17% 92% 4% 61% 60% 15% 60% ENERSIS Chilean Pension Funds ADR Holders Other Inst Shareholders Minority Shareholders  PEHUENCHE 93% • ENDESA BRASIL 39%  CELTA 100% AMPLA • COSTANERA 70%  COELCE SAN ISIDRO 96% • EDEGEL 62% • EMGESA 27% • EL CHOCON 65% FORTALEZA  ENDESA ECO 100% CDSA  CANELA 75% CIEN 3

Endesa Chile IR presentation 1H 2012 A unique portfolio in LATAM’s Generation business Colombia No. 2 Brazil 2,914 MW inst. capacity 987 MW inst. capacity 20% market share 1% market share in generation Peru No. 1 1,668 MW inst. capacity 26% market share Argentina No. 1 Chile No. 1 3,652 MW inst. capacity 12% market share 5,612 MW inst. capacity 32% market share Consolidated installed capacity: 13,845 MW Capacity including Brazil: 14,832 MW Consolidated energy sales 2011: 58,012 GWh Market shares based on installed capacity Figures as of June 2012 Consolidated energy sales 1H2012: 28,998 GWh 4

Endesa Chile IR presentation 1H 2012 Results affected by the drought in Chile and high fuel costs MM US$ * Million Ch$ 1H 2012 1H 2011 Change 1H 2012 Revenues 1,155,422 1,176,178 (2%) 2,345 Gross margin 469,037 504,733 (7%) 952 EBITDA 363,981 387,597 (6%) 739 EBIT 270,825 302,621 (11%) 550 Net financial expense (65,700) (62,080) (6%) (133) Net income 174,419 211,772 (18%) 354 Net attibutable income 101,443 161,726 (37%) 206 • Higher physical sales in Colombia, Chile and Peru. • Costs increased as a consequence of higher fuel costs in Chile, Colombia and Peru, 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 half of 2011. • Non-recurrence of a one-time effect on payroll expenses recorded in June 2011 in Peru, which implied booking a one-time benefit on payroll expenses of US$27 million*. • Related company results decreased by 6.8% due to lower results in Endesa Brasil, mainly related to higher net financial expenses. 5 *Amounts are expressed in US$, using the average exchange rate for each period.

Endesa Chile IR presentation 1H 2012 EBITDA Generation Total Generation (TTM): 53,564 GWh Total Installed Capacity: 13,845 MW Argentina Chile Chile 20% 39% Argentina 41% 26% Peru 17% Peru 12% Colombia Colombia 24% EBITDA 1H2012 TTM: 21% US$ 1.929 million Argentina 3% Peru Chile 15% 45% Endesa Brasil Colombia 37% • Endesa Chile’s ownership: 40% (38.9% direct) • Net Attributable Income (TTM): US$ 224 million 6

Endesa Chile IR presentation 1H 2012 Conservative Commercial Policy Physical Sales as of June 2012 Argentina Chile Peru Colombia 3% 6% 17% 30% 27% 29% 54% 65% 67% 83% 19% Regulated Unregulated Spot Physical Sales as of June 2011 Argentina Chile Peru Colombia 1% 9% 17% 33% 30% 50% 66% 65% 26% 83% 20% Regulated Unregulated Spot 7

Endesa Chile IR presentation 1H 2012 Strong Financial Position Million Ch$ 1H 2012 1H 2011 Chg. Chg % MM US$ 1H2012 Gross Debt 1,974,825 2,142,355 (167,530) (8%) 3,935 Cash & Equivalents 165,200 229,581 (64,381) (28%) 329 Net Debt 1,809,625 1,912,774 (103,149) (5%) 3,606 Leverage 0.93 0.92 (0.01) (1%) 0.93 Financial Expenses Coverage 4.5 5.5 (1.63) (30%) 4.5 Debt by Country Debt by Type Debt by Currency Peru, 9% Others, UF, 13% 17% Local Currency, 35% Colombia, Bank Debt, 30% Chile, 53% 16% Bonds, 68% US$, 52% Argentina, 7% Amounts expressed in US$, using the exchange rate as of June 30, 2012. 8

Endesa Chile IR presentation 1H 2012 Free Cash Flow 2,248 2,098 2,014 1,929 1,070 1,012 775 779 (235) (251) (260) (305) (308) (353) (394) (416) (435) (462) (477) (499) (523) (549) (564) EBITDA Net Financial Result CAPEX Income Tax FCF Dividends 1 2009 2010 2011 1H2012 TTM Amounts are expressed in US$, using the average exchange rate for each period. 1 Over Trail Twelve Months 9

Endesa Chile IR presentation 1H 2012 Electricity demand Evolution in LATAM Historic electricity demand growth (CAGR, last ten years) 180% 170% 5.4% 5.3% 160% 4.4% 150% Total Sales in GWh (% growth) 3.6% 140% 130% 2.4% 120% 110% 100% 90% Years 80% * 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 CHILE COLOMBIA PERU ARGENTINA BRAZIL *: Estimated growth using 1H2012 10

Endesa Chile IR presentation 1H 2012 Direct relation between GDP and electricity demand 18000 16000 FINLAND CANADA Electricity consumption, per cápita (Kwh per year) 14000 UNITED STATES 12000 AUSTRALIA 10000 8000 JAPAN AUSTRIA FRANCE SPAIN GERMANY IRELAND 6000 UNITED KINGDOM ITALY RUSSIA GREECE 4000 CHILE ARGENTINA CHINA BRAZIL 2000 MEXICO PERU BOLIVIA COLOMBIA 0 INDIA 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 Income per person (Fixed PPP $) Internal elaboration. Data source: International Energy Agency (EIA) and The World Bank. 11

Endesa Chile IR presentation 1H 2012 Competitive tariffs Final tariff to customers 1 as of December 2011 203 200 177 162 158 128 24 Latam Average Río de Ceará Lima Bogotá Buenos Aires Santiago Janeiro Dx Gx & Tx 1 US$/MWh. Reference values. Taxes not included. 12

Endesa Chile IR presentation 1H 2012 Projects Under Construction BOCAMINA II • Location: Next to the existing coal-fired plant Bocamina, in Bío-Bío region. • Installed capacity: 350 MW, coal fired. • Estimated investment: US$ 841 million • 1H 2012, Test on boiler burners and blowing steam pipe finished. • Commercial start-up in 2H 2012. Río Magdalena Río Magdalena EL QUIMBO Vertedero Vertedero • Location: Huila Department, upstream of Casa de Casa de Emgesa’s Betania plant. máquinas máquinas 400 MW 400 MW • Installed capacity: 400 MW, hydro. Conducción Conducción Dique Dique • Estimated investment: US$ 837 million Presa Presa Bocatoma Bocatoma • In 2009 the environmental license and h = 151 m h = 151 m Túnel de Túnel de building permissions were granted desviación desviación • River detour completed in March 2012 • Estimated start-up: December 2014 Embalse Embalse 720 msnm 720 msnm 13

Endesa Chile IR presentation 1H 2012 Projects Under Study Neltume, hydro Los Cóndores, hydro power plant run-of-the-river plant  Installed capacity:  Installed capacity: 150 MW 490 MW 1 Punta Alcalde, coal-steam Curibamba, hydro power plant power plant  Installed capacity:  Installed capacity: 740 MW 188 MW Hydroaysén, hydro power plant  Installed capacity:  2,750 MW 14 1 EIA rejected. On appeal to the Ministers Committee.

Endesa Chile IR presentation 1H 2012 HidroAysén • Installed capacity: 2,750 MW. • One of the most efficient hydroelectric • Endesa Chile owns 51% and Colbún 49%. projects in the world. • CO 2 emissions: Reduction of 16.2 million • Renewable resources tons/year • Average load factor: 77% • May 9, 2011: EIA was approved for the Energy / Flooded Surface Generation Plants. 350 312 • 300 June 2011: Pto Montt Court of Appeals issued GWh / year-km 2 an injunction, leaving the resolution in state of 250 abeyance. 200 144 134 150 • April 2012: The Supreme Court of Justice 81 81 100 75 69 65 54 54 53 45 rescinded seven protection requirements 41 29 50 23 12 12 7 presented to stop the construction of the project. 0 • The Chilean Government should present the “Electric Highway project” in 2H 2012. 15

Endesa Chile IR presentation 1H 2012 Seasonal Streaming from Hidroaysen and SIC rivers 1,400 1,400 1,200 1,200 1,000 1,000 Water Flow [ m³/s] 800 800 600 600 400 400 200 200 - - Apr-10 may jun jul ago sep oct nov dec Jan-11 feb mar Timeline MAIPO RIVER IN CABIMBAO BIOBIO RIVER IN RUCALHUE MAULE IN ARMERILLO (R.N.) CENTRAL BAKER 2 CENTRAL PASCUA 2.2 Seasonal Variability Annual Variability SIC : 23% SIC : 21% SIC + Hidroaysen : 9% SIC + Hidroaysen : 12% 16

Endesa Chile IR presentation 1H 2012 Hidroaysen Technical information Power Plants Zone HVDC Land Line HVDC Submarine Line 1.112 km 160 km 640 km 17

Endesa Chile IR presentation 1H 2012 Market Value and Dividends EBITDA Dividends 1 (Ch$ per Share) (US$ Million) 3 Dividend Yield: 3.2% 32.5 2.248 2.098 2.033 2.014 26.8 27.2 1.929 1.671 21.3 1.503 13.8 2006 2007 2008 2009 2010 2011 1H 2012 2007 2008 2009 2010 2011 TTM Market Value 2 (US$ Million) 15.364 13.963 13.878 12.102 10.393 10.072 9.428 2006 2007 2008 2009 2010 2011 1H 2012 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. 18 3 As of June 30 , 2012