Endesa Chile IR Presentation 1Q 2016 Organization structure - - PowerPoint PPT Presentation

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Endesa Chile IR Presentation 1Q 2016 Organization structure - - PowerPoint PPT Presentation

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Endesa Chile IR Presentation 1Q 2016 Organization structure Endesa Chile (before Spin-off) Committed Shareholders ITALY 61% 14% CHILE Enersis S.A. 60% 6% Chilean Pension Funds 4% ADRs (Citibank N.A.) Retail 60% 16% Institutional

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1Q 2016

Endesa Chile

IR Presentation

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

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 PEHUENCHE, 93%  CELTA, 96%  GASATACAMA, 98%

  • COSTANERA, 76%
  • EL CHOCÓN, 65%
  • EDEGEL, 62%
  • EMGESA, 27%
  • ENEL BRASIL, 37%

AMPLA, 17%

COELCE, 22% FORTALEZA, 37% CDSA, 37% CIEN, 37%

61% 60% COLOMBIA PERU ARGENTINA BRAZIL1 CHILE

Committed Shareholders

ITALY CHILE

1 Recognized as equity method investments.

  • GNL Quintero, 20%
  • Transquillota ,48%
  • Electrogas, 43%
  • GNL Chile, 33%

CHILE1

60% 16% 4% 6% 14%

Enersis S.A. Chilean Pension Funds ADRs (Citibank N.A.) Retail Institutional Investors

Organization structure

Endesa Chile (before Spin-off)

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

 12/18/2015: ESMs approved the spin-off.  03/01/2016: Spin-off of Enersis, Endesa Chile and Chilectra becomes effective.  2H16: ESMs call to vote merger.

Enersis Chilectra Endesa

99% 60%

Enel SpA Enel Iberoamérica

100%

Enersis Chile Chilectra Chile Endesa Chile

60% 99% 61%

Enersis Américas Enel SpA Enel Iberoamérica

100%

Chilectra Américas Endesa Américas

60% 99%

Enersis Chile

61%

Enel SpA Enel Iberoamérica

100%

Chilectra Chile Endesa Chile

60% 99% >50%

Chilectra Américas Endesa Américas Enersis Américas ARG BR PE COL These companies are expected to merge in 2H16.

Structure as of December 2015 Spin - off

61% 61%

As of March 1st, Endesa Chile and Endesa Americas spin-off became effective. ARG BR PE COL CHI

Reorganization highlights

Spin-off of Latam assets to Endesa Américas

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

 PEHUENCHE, 93%  CELTA, 96%  GASATACAMA, 98%

61% 60% CHILE ITALY CHILE

1 Recognized as equity method investments.

 GNL Quintero, 20%  Transquillota ,48%  Electrogas, 43%  GNL Chile, 33% CHILE1

Organization structure

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Committed Shareholders

Endesa Chile (after Spin-off)

60% 16% 4% 6% 14%

Enersis S.A. Chilean Pension Funds ADRs (Citibank N.A.) Retail Institutional Investors

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

One of the largest electricity generation companies in Chile.

  • Proven track record with more than 70 years of experience

Well diversified portfolio of generation assets, including all types of technologies.

  • Hydrological assets predominating in the Chilean Central Interconnected System SIC.
  • Competitive thermal assets to reduce hydrological risks.

Conservative commercial policy to cope with hydrological risks. Best investment grade in the region. Stable ratings by credit risk agencies (BBB+)

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Key investment considerations

Attractive business in Chile

Stable regulatory framework to develop reliable long term business. More than doubled its installed capacity in the last 20 years.

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

1:Calculated based on total sales of the country.

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Well diversified generation assets

Energy sales 1Q16 : 6,025 GWh Energy sales 1Q15 : 5,716 GWh Market Share 1 : 35%

55% 10% 34% 1%

HYDRO COAL OIL-GAS NCRE

55% of Endesa Chile’s installed capacity corresponds to hydro resources Installed Capacity 6,351 MW

2: Non Conventional Renewable Energy.

Hydro : 3,456 MW Oil-gas : 2,173 MW Coal : 636 MW NCRE 2 : 87 MW

  • D. Almagro–

Taltal Bocamina Laja Maule Bio Bío Tarapaca Huasco San Isidro Los Molles Cachapoal Santiago

Most relevant player in hydro

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

201 261 311 46 60 54 3 34 25 1Q 2014 1Q 2015 1Q 2016 80% 15% 5%

1 Compared with FY14

Balanced commercial policy

Leading to revenue stability

Physical sales: 6,025 GWh

Spot Unregulated Customers

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Regulated Customers Spot Unregulated Customers

355 250 Historical revenues by type of customer (Billion Ch$) 390 Chile – Contracted energy with Regulated Customers (GWh) Physical Sales 1Q16 GWh Change1 REGULATED 4,850 11% UNREGULATED 882

  • 18%

SPOT 293 5% TOTAL 6,025 5%

6,873 7,110 7,180 6,745 7,129 6,795 5,114 7,350 6,883 6,469 5,694 5,597 5,589 4,670 1,673 1,762 1,806 1,775 1,795 1,775 1,811 2,541 2,374 2,309 2,146 824 872 812 2016 2017 2018 2019 2020 2021 2022 Chilectra CGE Chilquinta Saesa 18,437 18,130 17,765 16,361 15,344 15,030 12,407 Regulated Customers

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

Ch$ million1 1Q 2016 1Q 2015 Change3 MM US$ 2 1Q 2016 Revenues 415,283 369,804 12% 592 Costs (230,478) (268,740)

  • 14%

(329) Contribution Margin 184,805 101,064 83% 263 EBITDA 157,461 69,530 126% 224 EBIT 125,041 40,144 211% 178 Net Financial Expenses 934 (28,121)

  • 103%

1 Related Company Results 2,452 1,175 109% 3 Taxes (13,436) (5,067) 165% (19) Net Income 194,646 86,924 124% 277 Attributable to shareholders of Endesa Chile 152,568 39,105 290% 218

1 Under IFRS, Endesa Chile has adopted the Chilean Peso as functional currency, comparisons between periods have been only made using Ch$. 2 Referential average exchange rate was 701,43 Ch$/US$ as of March 31, 2016. 3 When comparing 1Q2016 with 1Q2015

Financial Highlights

Improving results in Chile

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

8 8 8 87 43 1,098 3 3 3 153 3 14 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 < 1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years and beyond Bonds Banks and Other Debt by T ype1 Debt by Currency1

1 Includes arrangements and other consolidation adjustments.

Total Debt: US$ 1,431 MM Financial Debt Maturity1

as of March 2016

Healthy debt maturity profile

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  • Cash:

US$ 180 MM

  • Committed Credit Lines:

US$ 360MM

  • Non-Committed Credit Lines:

US$ 168 MM

  • Average life of debt:

11.7 year

  • International Credit Rating: BBB+

Solid financial ratios and investment grade category (BBB+)

US$ 93% UF + CLP 7% Others 12% Bonds 88%

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

(73) (44) 183 (99) 213 172

50 100 150 200 250 300 350 400 450

Cash and equivalents March-15 Funds from operations Capex Financing activities & Exchange rate effects Dividend payment Cash and equivalents March-16

  • 1. Referential average exchange rate was 701.43 Ch$/US$ as of March 31, 20156
  • 2. Dividend payment considers cash outflows to Enersis and all minorities’ shareholders.
  • 3. Funds from assets disposal includes sale of Tunel El Melon.

Consolidated Cash Flow Generation (US$million)1

Including discontinued operations

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

Direct relation between GDP and electricity demand

ARGENTINA AUSTRALIA AUSTRIA BOLIVIA BRAZIL CANADA CHILE CHINA COLOMBIA FINLAND FRANCE GERMANY GREECE INDIA IRELAND ITALY JAPAN MEXICO PERU RUSSIA SPAIN UNITED KINGDOM UNITED STATES 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 10,000 20,000 30,000 40,000 50,000 60,000 Electricity consumption, per capita (Kwh per year) GDP per capita (current PPP, US$)

Data source: The World Bank.

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

Markets with high potential for growth

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Annual growth of 3.4% in electricity demand in Chile*

* Average for 2005-2015 period.

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

87% 72% 76% 62% 55% 55% 13% 28% 24% 37% 44% 44%

1% 1% 1%

1995 2000 2005 2010 2016 Under construction

  • A well diversified generation matrix incorporating all types of generation technologies (Coal, LNG and NCRE), providing a better position

to cope with the hydrologic risk

  • 2% increase in installed capacity through projects under construction.

Los Cóndores 150 MW

GasAtacama 781 MW*

* Capacity added in 2014.

Historical evolution of Endesa Chile’s installed capacity

Endesa Chile has more than doubled its capacity in the last 20 years

2,513 4,035 4,477 5,611 6,351 6,501

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

  • Hydro power plant, run of the river.
  • Located in San Clemente, in Maule region, Chile.
  • 150 MW of installed capacity.
  • Estimated generation of 600 GWh/year.
  • Estimated load factor: 46%.
  • Total CAPEX of US$ 662 million.
  • 29% progress as of March, 2016.

Los Cóndores

Projects under construction

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To support growth of the country

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

BBB+ Baa2 BBB+

Since: Affirmed:

  • Jan. 2010
  • Apr. 2011
  • Feb. 2010
  • Jun. 2015
  • Dec. 2015
  • Nov. 2015

AA (cl) AA

  • Jan. 2010
  • Apr. 2010
  • Jun. 2015
  • Dec. 2015

International market Chilean market

RATINGS BASED UPON:

  • Well diversified and efficient assets
  • Leading market share in the four countries where we operate
  • Transparent and favorable regulatory framework in Chile
  • Solid financials, good cash flow generation and prudent financial

management

  • Conservative commercial policy

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Credit Risk Agencies Recognition

Attractive ratings since 2010

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

Contact us at: ir.endesacl@enel.com

Susana Rey

Head of Investor Relations Enersis Chile (56) 22630 9606 susana.rey@enel.com

Catalina Gonzalez

Head of Investor Relations Endesa Chile (56) 22630 9603 catalina.gonzalez@enel.com

Guillermo Berguecio

Investor Relations Analyst Endesa Chile (56) 22630 9506 guillermo.berguecio@enel.com

Francisco Basauri

Investor Relations Analyst Endesa Chile (56) 22630 9585 francisco.basauri@enel.com

Endesa Chile’s Investor Relations Team

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

EXHIBITS

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

1943 1987 1994 1999 2004 2005 2015

  • December 1943, Endesa

Chile is incorporated as a Stock Company and an affiliate of the Corporación de Fomento de la Producción (CORFO)

  • July 1994, Endesa Chile’s stock

begins to trade on the New York Stock Exchange

  • September 2004, Ralco hydroelectric

plant started operations adding 690 MW

  • f installed capacity to Endesa Chile
  • As of December 2015, Endesa Chile and its

subsidiaries 192 electricity units with an installed capacity of 15,147 MW

  • In 1987,the process of privatization begins,

and was completed in 1989 through a series of public offerings

  • May 1999, Enersis S.A. becomes the

majority owner of Endesa Chile

  • In 2005, the Company incorporates

Endesa Brasil S.A.

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Endesa Chile’s corporate history

  • As of December

2015, ESM held on December 18, 2015, approves the first stage of the Reorganization Proposal (Enersis, Endesa Chile and Chilectra Spin-Off).

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

  • Chilean EBITDA amounted to 224 million dollars in 1Q16, increasing 126%
  • Net income attributable to shareholders rose 290% to 218 million dollars
  • Total energy sales rose by 5% in 1Q16
  • Improved generation mix (+ 150 GWh hydro generation, + 497 GWh coal generation)
  • Credit Rating Agencies have reaffirmed Endesa Chile in BBB+ (stable)
  • New companies were constituted on March 1st , 2016

Highlights 1Q16

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

ENDESA CHILE

Million US$ 1Q16 1Q15 Chg % Revenues 592 533 12% EBITDA 224 99 126% EBITDA MARGIN 38% 19% 49.6% Physical Sales (GWh) 6,025 5,716 5%

1Q16 Results

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

1 : Compared with 1Q15

Installed capacity and energy generation

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Los Molles: 18 MW Rapel-Sauzal: 466 MW Maule: 875 MW Laja: 940 MW Ralco-Pangue: 1,157 MW

54% Hydro 3,456 MW 44% Thermal 2,808 MW

GasAtacama 780 MW Tarapaca 182 MW

  • D. Almagro–Taltal:

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

2% NCRE1 87 MW

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

Installed Capacity: 6,351 MW Market Share*: 31% Total Generation: 4,573 GWh

Net Generation 1Q16 Gwh Change1

HYDRO

2,460 7%

COAL

738 206%

OIL-GAS

1,336 (21%)

NCRE

39 (2%)

Total

4,573 7% Historical energy generation by type of technology

* Based on installed capacity 1000 2000 3000 4000 5000 6000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2012 2013 2014 2015 2016

CHP / Renewables Oil-Gas Coal Hydro

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

1Amounts translated into US$ using the exchange rate as of March (Ch$ 669.8 per US$).

*Financial ratio as of March 2016.

Strong financial position

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(Million Ch$) March 2016 Dec 2015 Chg. Chg % MM US$ 20161 Gross Debt 997.332 945.119 52.213 5% 1.404 Cash 120.384 37.425 82.959 69% 170 Net Debt 876.948 907.694 (30.746) (4%) 1.235 Leverage 1.22x 1.05x 0.17x 16% Financial Expenses Coverage (289)X 4.51x

  • (102%)

ROE (%) 11.8% 14.7% (2.9x) (19.7%) ROA (%) 7.4% 8.7% (1.3x) (14.9%)

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Endesa Chile Investor Presentation 1Q 2016 USE: Public, Investor Relations

This presentation contains statements that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this announcement and include statements regarding the intent, belief or current expectations of Endesa Chile and its management with respect to, among other things: (1) Endesa Chile’ business plans; (2) Endesa Chile’ cost-reduction plans; (3) trends affecting Endesa Chile’ financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere; (4) supervision and regulation of the electricity sector in Chile or elsewhere; and (5) the future effect of any changes in the laws and regulations applicable to Endesa Chile or its subsidiaries. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of various factors. These factors include a decline in the equity capital markets of the United States or Chile, an increase in the market rates of interest in the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere and other factors described in Endesa Chile’ Annual Report on Form 20-F. Readers are cautioned not to place undue reliance on those forward-looking statements, which state only as of their dates. Endesa Chile undertakes no obligation to release publicly the result of any revisions to these forward-looking statements.

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