endesachileirpresentation AS OF MARCH 31st, 2010 Index Who is - PDF document

endesachileirpresentation AS OF MARCH 31st, 2010

Index Who is Endesa Chile? Operational aspects Financial aspects Where are we heading to? Conclusions endesachileirpresentation 2

whoisendesachile? General highlights  Multinational electricity generation company, based in Chile, with leading market positions in most of the countries where it operates  Large portfolio of generation assets distributed within South America  Efficient investment portfolio adds value to Endesa Chile  Excellent reputation and high level of technical standards  Vast experience, with over 65 years of history  Committed with regulatory authorities, the environment and Corporate Governance best practices  Part of an important worldwide electricity group (Enel, Endesa, S.A., Enersis) endesachileirpresentation 3

whoisendesachile? Ownership structure 92% 61% Chilean Pension Other Inst. Minority ADR Holders Funds Shareholders Shareholders 18% 5% 60% 13% 4% Edegel Pehuenche San Isidro Emgesa Costanera Endesa Brasil 62.46% 92.65% 100.00% 26.87% 69.76% 38.88% Endesa Eco Pangue El Chocón Ampla 100.00% 94.99% 65.37% Coelce Fortaleza Celta Canela CDSA 100.00% 75.00% CIEN endesachileirpresentation 4

whoisendesachile? Important presence in 5 countries Colombia Brazil #1 2,895 MW 987 MW 21% market share 1% market share in generation Output 2009: 12,674 GWh Output 2009: 3,319 GWh Output 1Q10: 951 GWh Output 1Q10: 2,260 GWh 5.4 million customers in distribution Peru #1 1,667 MW Argentina 27% market share Output 2009: 8,163 GWh #1 Output 1Q10: 1,987 GWh 3,652 MW 13% market share Chile Output 2009: 11,955 GWh #1 Output 1Q10: 2,738 GWh 5,650 MW 37% market share Output 2009: 22,239 GWh Output 1Q10: 5,190 GWh Consolidated installed capacity: 13,864 MW Capacity including Brazil: 14,851 MW Market shares based on installed capacity Consolidated energy sales 2009: 59,859 GWh Consolidated energy sales 1Q10: 13,574 GWh endesachileirpresentation 5

Index Who is Endesa Chile? Operational aspects Financial aspects Where are we heading to? Conclusions endesachileirpresentation 6

operationalaspects Conservative commercial policy » Evolution of fuel prices » Hydrology risk Minimize margin » Exchange rate risk » Electricity demand growth variation » Portfolio of generation assets Physical sales as of March 2010 Argentina Chile Colombia Peru 10% 14% 19% 20% 22% 55% 31% 18% 81% 62% 68% Regulated Unregulated Spot endesachileirpresentation 7

operationalaspects Summary of consolidated results Var. % 1Q10/1Q09 US$ Million FY09 1Q09 1Q10 (a) 4,322 1,086 1,021 (6.0%) Revenues Operating income 1,817 476 338 (29.0%) 42% 44% 33% - Operating margin 2,246 554 435 (21.6%) Ebitda (33.7%) 1,120 Net income (b) 273 181 59,859 (9.2%) 14,951 13,574 Physical sales (GWh) Main drivers: lower average energy prices in Chile and higher operating costs in Colombia and Peru a) Throughout this presentation, variations may not coincide due to rounding of figures b) Attributable to Endesa Chile’s shareholders endesachileirpresentation 8

operationalaspects Ebitda by country as of March 2010 Total Installed Capacity: 13,864 MW Total Generation: 12,174 GWh Peru Peru 16% 12% Chile Chile 43% Colombia 41% 21% Colombia 19% Argentina Argentina 22% 26% Total Ebitda: US$ 435 million Peru 13% Chile 54% Colombia 24% Argentina 9% endesachileirpresentation 9

operationalaspects Operations in Chile and Colombia Chile Gen. mix Var. % US$ Million 1Q09 1Q10 FY09 1Q10/1Q09 16 49 1,394 Ebitda 336 231 (31.3%) 2,087 2,433 3,054 2,987 Ebitda margin 57% 50% 42% - Mar-09 Mar-10 Physical sales 22,327 5,528 5,336 (3.5%) (GWh) Hydro Thermal NCRE Colombia Gen. mix Var. % US$ Million 1Q10 FY09 1Q09 1Q10/1Q09 148 499 Ebitda 513 121 104 (14.5%) 2,995 1,761 Ebitda margin 57% 62% 44% - Mar-09 Mar-10 Physical sales 16,806 3,955 3,333 (15.7%) (GWh) Hydro Thermal endesachileirpresentation 10 10

operationalaspects Operations in Peru and Argentina Peru Gen. mix Var. % US$ Million 1Q10 FY09 1Q09 1Q10/1Q09 Ebitda 204 61 56 (6.9%) Ebitda margin 53% 66% 53% - Physical sales 8,321 2,254 2,042 (9.4%) (GWh) Argentina Gen. mix Var. % US$ Million FY09 1Q10 1Q09 1Q10/1Q09 1,919 117 Ebitda 2,543 32 38 20.3% 819 563 Ebitda margin 22% 29% 32% - Mar-09 Mar-10 Physical sales 12,405 3,215 2,863 (10.9%) Hydro Thermal (GWh) endesachileirpresentation 11

Index Who is Endesa Chile? Operational aspects Financial aspects Where are we heading to? Conclusions endesachileirpresentation 12 12

financialaspects Strong financial position Debt by Type Net Debt Evolution 5,000 Others, Banks, 456 3,833 715 3,719 4,000 3,612 3,292 3,239 3,242 US$ millon 3,000 Yankee 2,000 Bonds, Local 917 Bonds, 1,732 1,000 Total gross debt: US$3.8 billion - 2005 2006 2007 2008 2009 Mar-10 Debt by Currency  As of March 2010: US$ 576 million of cash and cash equivalents on Local a consolidated basis currency 31% US$  Liquidity position enhanced with US$ 550 million of committed 52% Revolving Credit Lines with foreign banks and US$ 100 million of committed Revolving Credit Lines with local banks  Endesa Chile ring-fenced its Yankee Bonds’ and Local Bonds’; cross default clauses only referenced to Endesa Chile and its UF-Ch$ 17% Chilean subsidiaries Figures as of March 2010 endesachileirpresentation 13 13

financialaspects Comfortable debt maturity Financial Debt (US$ million) 2010 2011 2012 2013 2014 Balance Total Chile 14 206 37 415 206 1,266 2,145 Argentina 92 107 39 25 28 291 Perú 57 59 130 49 46 121 461 Colombia 83 124 157 73 358 924 Total 245 495 364 489 353 1,746 3,821 Financial Debt by Country Argentina 8% Peru 12% Chile 56% Colombia 24% Figures as of March 2010 endesachileirpresentation 14 14

financialaspects Recurrent growth of Endesa Chile’s financials EBITDA (US$ m) Net income (US$ m) CAGR 06’-1Q10’: + 14% CAGR 06’-1Q10’: + 28% 1,120 1,029 834 2,246 2,125 2,042 1,540 1,279 389 329 2006 2007 2008 2009 Mar-10 2006 2007 2008 2009 Mar-10 12M 12M (*) Data as of March 2010 with Last 12 Months endesachileirpresentation 15 15

financialaspects Strong financial ratios Net debt/EBITDA 3 2.5 2.8x 2.5x 2 1.5 1.6x 1.5x Endesa Chile‘s 1.5x 1 investment grade status restored 0.5 0 (12M) 2006 2007 2008 2009 Mar-10 EBITDA/Net financial expenses 9 7.7x 7.2x 8 6.5x 7 5.0x 6 5 4 4.3x Endesa Chile’s 3 investment grade 2 status restored 1 0 (12M) 2006 2007 2008 2009 Mar-10 endesachileirpresentation 16 16

financialaspects Credit Risk Agencies recognition Date: Jan. 2010 Date: Feb. 2010 Date: Mar. 2010 Date: Jan. 2010 Date: Dec. 2006 AA AA BBB+ Baa3 BBB+ AA- BBB BBB Ba1 AA- International market Chilean market Ratings based upon:  Well diversified and efficient assets and leadership in the four countries where the company operates  Leading market share in the countries where we operate  Transparent and favorable regulatory framework in Chile  Solid financials, good cash flow generation and prudent financial management  Conservative commercial policy endesachileirpresentation 17 17

financialaspects Dividends: sustained growth to shareholders 433 1,234 Dividends CAGR = 47% (US$ m) 274 227 207 93 2005 2006 2007 2008 2009 Total Payout ratio 50% 50% 60% 40% 35% Market Cap CAGR = 9% 13,954 (US$ m) (1) 12,831 10,072 10,393 9,428 8,322 2005 2006 2007 2008 2009 Mar-10 Values calculated in dollars at the end of each period. (1) Source: Bloomberg endesachileirpresentation 18 18

whereareweheadingto? Who is Endesa Chile? Operational aspects Financial aspects Where are we heading to? Conclusions endesachileirpresentation 19 19

whereareweheadingto? Direct relation between GDP and electricity demand Real GDP vs. Electricity Demand Per capita Demand endesachileirpresentation 20

whereareweheadingto? Assuring supply of long-term demand Electricity Demand Growth Percentage (%) Electricity Demand Electricity Demand 200.0 (CAGR past 10 years) (CAGR past 10 years) Peru Chile » Peru: 7.1% 170.0 Argentina » Chile: 5.2% 140.0 Brazil » Argentina: 4.3% Colombia 110.0 » Brazil: 3.3% » Colombia: 3.4% 80.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Mar-10 TTM 1998: base 100% Considerations  Endesa Chile is a long-term player in every market where it participates  There is still room for growth in the region  The electricity industry has to be ready to face the recovery of electricity demand  Regulations incentive investments to meet long-term electricity demand endesachileirpresentation 21 21