[PPT] - endesachileirpresentation AS OF SEPTEMBER 30th, 2010 PowerPoint Presentation

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endesachileirpresentation

AS OF SEPTEMBER 30th, 2010

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whoisendesachile?

A unique portfolio in Latam’s Generation business

Colombia

2,914 MW inst. capacity 21% market share

N°1

5,611 MW inst. capacity 36% 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 September 2010

Consolidated installed capacity: 13,846 MW Capacity including Brazil: 14,833 MW Consolidated energy sales 2009: 59,859 GWh Consolidated energy sales 9M10: 42,156 GWh

3,652 MW inst. capacity 13% market share

Argentina N°1 N°1 N°1

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whoisendesachile?

Positive evolution of institutional and regulatory frameworks

Constitution andPublicServices Electricity regulation Independent regulatory body Employers Associations Contracts compliance Foreign investment legislation

Global Valuation

8 7 3

Controversy settlement (judges)

High Medium/High

2 4 6 8 10

Source: Internal, supported by external consultancy

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4

whoisendesachile?

A unique portfolio in Latam’s Generation business

The biggest thermal plant in Latin America and interconnection Argentina - Brazil

Cien

( I nterconnection Argentina - Brazil)

Costanera

1 ,0 0 0 Km 2 ,1 0 0 MW Rio Grande do Sul - Argentina 2 ,3 2 4 MW Buenos Aires Argentina

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5

whoisendesachile?

A unique portfolio in Latam’s Generation business

El Chocón Guavio

1 ,3 2 8 MW

installed capacity

Neuquén and Río Negro Argentina 1 ,2 1 3 MW

installed capacity

Cundinam arca Colom bia 6 9 0 MW

installed capacity

VI I I Region of Bío-Bio Chile

Ralco

The largest hydro plants in Argentina and Colombia

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6

whoisendesachile?

A unique portfolio in Latam’s Generation business

The first wind farm in Chile and the first regasification plant in the Pacific Area

Canela w ind farm GNL Quintero

Canela I and I I 1 8 + 6 0 MW installed capacity

I V Region Chile

Regasification capacity: 9 .5 Mm 3/ d ( 3 .4 8 bcm / y) 2 storage tanks 1 6 0 ,0 0 0 m 3

V Region Chile

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7

whoisendesachile?

We are part of Enel Group 7 Ownership structure

whoisendesachile?

Chilean Pension Funds ADR Holders Other Inst. Shareholders Minority Shareholders 60% 16% 4% 16% 4% Pehuenche 92% Endesa Eco 100% El Chocón 65% Costanera 70% Edegel 62% Emgesa 27% Canela 75% San Isidro 100% Pangue 95% Celta 100%

endesachileirpresentation

Ampla Coelce Fortaleza CDSA CIEN Endesa Brasil 39% 61% 92%

Figures as of September 2010

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8

whoisendesachile?

We are part of Enel Group Presence in 23 countries 82,000 employees 95 GW Installed Capacity 62 Million Clients

Central America North America Brazil Colombia Argentina Peru Chile

Installed Capacity (GW) Net Generation (TWh) Sales to Final Consumers (TWh) 0.6 GW 2.5 TWh 2.9 GW 12.9 TWh 7.3 TWh 0.7 GW 1.9 TWh 8.2 GW 40.7 TWh 17.4 TWh 1.6 GW 8.8 TWh 5.2 TWh 5.4 GW 21.6 TWh 6.5 TWh 4.5 GW 14.4 TWh 13.4 TWh

Russia

1.1 GW 3.9 TWh 14.5 TWh

Iberia Morocco

22.5 GW 85.5 TWh 109 TWh 0.1 GW 0.9 TWh

Italy

40.3 GW 96.3 TWh 137.2 TWh

France

1.0 TWh

Slovakia

5.7 GW 22.5 TWh

Romania

0.6 GW 3.7 TWh 9.9 TWh

Bulgaria Greece

0.1 GW 0.2 TWh

Central America North America Brazil Colombia Argentina Peru Chile

Installed Capacity (GW) Net Generation (TWh) Sales to Final Consumers (TWh) Installed Capacity (GW) Net Generation (TWh) Sales to Final Consumers (TWh) 0.6 GW 2.5 TWh 0.6 GW 2.5 TWh 2.9 GW 12.9 TWh 7.3 TWh 2.9 GW 12.9 TWh 7.3 TWh 0.7 GW 1.9 TWh 0.7 GW 1.9 TWh 8.2 GW 40.7 TWh 17.4 TWh 8.2 GW 40.7 TWh 17.4 TWh 1.6 GW 8.8 TWh 5.2 TWh 1.6 GW 8.8 TWh 5.2 TWh 5.4 GW 21.6 TWh 6.5 TWh 5.4 GW 21.6 TWh 6.5 TWh 4.5 GW 14.4 TWh 13.4 TWh 4.5 GW 14.4 TWh 13.4 TWh

Russia

1.1 GW 3.9 TWh 14.5 TWh 1.1 GW 3.9 TWh 14.5 TWh

Iberia Morocco

22.5 GW 85.5 TWh 109 TWh 22.5 GW 85.5 TWh 109 TWh 0.1 GW 0.9 TWh 0.1 GW 0.9 TWh

Italy

40.3 GW 96.3 TWh 137.2 TWh 40.3 GW 96.3 TWh 137.2 TWh

France

1.0 TWh 1.0 TWh

Slovakia

5.7 GW 22.5 TWh 5.7 GW 22.5 TWh

Romania

0.6 GW 3.7 TWh 0.6 GW 3.7 TWh 9.9 TWh 9.9 TWh

Bulgaria Greece

0.1 GW 0.2 TWh 0.1 GW 0.2 TWh

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9 Figures by country as of September 2010

perationalaspects

Total Installed Capacity: 13,846 MW Total Ebitda 12M: US$ 2,057 million Total Generation: 38,484 GWh

Affiliate Company: Endesa Brasil Endesa Chile ownership: 38.9% Equity Gains (Dec. 2009): MMUS$ 872 Endesa Chile’s stake: MMUS$ 495

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

Chile 40% Argentina 22% Colombia 22% Peru 16% Chile 55% Argentina 6% Peru 11% Colombia 28%

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10 10

perationalaspects

Greater predictability and stability in prices

The regulator audits all the fuel contracts The regulator measures the efficiency of the plants The companies report their technical availability

Hydro, Wind Coal, LNG

US$/MWh

MW

Diesel-Fuel

Range of Demand Supply

Marginal hourly cost

Wind Power 8 US$/MWh Hydro Coal 30-40 US$/MWh Biomass 60 US$/MWh Diesel-Fuel 100-130 US$/MWh Peak Turbine 160-180 US$/MWh LNG Combined Cycle 70-80 US$/MWh 5,500 MW 4,500 MW 4,500 MW

Hydro, Wind Coal, LNG

US$/MWh

MW

Diesel-Fuel

Range of Demand Supply

Marginal hourly cost

Wind Power 8 US$/MWh Hydro Coal 30-40 US$/MWh Biomass 60 US$/MWh Diesel-Fuel 100-130 US$/MWh Peak Turbine 160-180 US$/MWh LNG Combined Cycle 70-80 US$/MWh 5,500 MW 4,500 MW 4,500 MW

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11 11

perationalaspects

Integrated risk management capability 100% Rainfall Growth in demand Fuel prices Exchange rates Inflation

Risk variables affecting margins

Our aim is to ensure with a 95% of reliability a margin at least 90% of budget even in the following scenarios: Lower rainfall than historical levels Increases in fuel prices Lower 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 free contracts

75%

Relative Frequency

Results

MMUS$ 5%

MaR 95%

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12 12 Summary of consolidated results

(24.0%) (22.0) (11.1%) (15.5%) (5.7%)

Var. %

9M10/9M09 (a) Revenues

Operating income Operating margin Ebitda Net income (b)

US$ Million

8.4% Physical sales (GWh) 34% 1,514

1,223

42,156 676 3,555

9M10

586.72

9M09

a) Throughout this presentation, variations may not coincide due to figures rounding b) Attributable to Endesa Chile’s shareholders c) Figures are translated into US dollars using the average exchange rate for the nine months period of each year, corresponding to Ch$572.74 / dollar for January-September 2009 Ch$520.16 / dollar for January-September 2010.

Main drivers: higher costs of energy purchases and lower energy sales price in Chile and higher fuel costs in Argentina

perationalaspects

FY09

42% 2,246

1,817

59,859 1,120 4,322 3,281 1,447 44% 1,703 44,688 889

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13 13 Comfortable debt maturity

Financial Debt by Country

Figures as of September 2010

financialaspects

Financial Debt

(US$ million) 2010 2011 2012 2013 2014 2015 Balance TOTAL Chile 35 79 44 421 179 221 1,136 2,116 Argentina 51 120 38 25 42 14 290 Peru 32 59 70 50 48 32 158 449 Colombia 89 133 169 79 139 385 993 Total 207 392 322 495 348 406 1,679 3,848

Peru 12% Colombia 26% Argentina 8% Chile 54%

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14 14 Credit Risk Agencies recognition

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

financialaspects

BBB AA AA AA- AA-

Date: Mar. 2010 Date: Jan. 2010

Chilean market

Date: Feb. 2010 Date: Jan. 2010 Date: Dec. 2006 BBB+

Ba1

Baa3 BBB+

International market

BBB

+ Revision

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15 15 Dividends: sustained growth to shareholders

financialaspects

Values calculated in dollars at the end of each period. (1)Source: Bloomberg

Payout ratio 50% 50% 60% 40%

CAGR = 46%

35.11%

Dividends (US$ m) Market Cap (US$ m) (1)

CAGR = 12%

93 207 227 274 434 1,235 2005 2006 2007 2008 2009 Total

8,322 10,072 10,393 9,428 13,954 14,842 2005 2006 2007 2008 2009 Sep-10

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Direct relation between GDP and electricity demand 16

Real GDP vs. Electricity Demand Per capita

whereareweheadingto?

Chile

Peru Colombia Mexico Argentina Brazil Finland Russia Sweden Slovakia Portugal Spain Italy France Germany UnitedStates Greece UnitedKingdom Denmark

2 4 6 8 10 12 14 16 18 5 10 15 20 25 30 35 40 45 50

Electricitydemandpercapita(Gwh) GDPpercapita(ThousandUS$)

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17 17 Impact of the earthquake

whereareweheadingto?

BOCAMINA II BOCAMINA I

ADMINISTRATION BUILDING PUMPING ROOM CHIMNEY

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18 18 Projects under study

Neltume, hydroelectric run-of-the-river plant Installed capacity: 490 MW Los Condores, hydro power plant Installed capacity: 150 MW Piruquina, mini-hydro run-of-the-river plant Installed capacity: 7,6 MW Choshuenco, hydro power plant Installed capacity: 128 MW Punta Alcalde, coal- steam power plant Installed capacity: 740 MW

whereareweheadingto?

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thankyou

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whereareweheadingto? Exhibits

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Commercialpolicy

Conservative management » Hydrology risk » Electricity demand growth » Portfolio of generation assets

Minimize margin variation

Chile Argentina Colombia Peru

Physical sales as of September 2010 » Evolution of fuel prices » Exchange rate risk

Regulated Spot Unregulated 7% 33% 60% 27% 17% 56% 65% 12% 23% 81% 19%

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22 22 Important contribution to growing demand

Colombia: Cartagena +142 MW Peru: Ventanilla +457 MW Chile: San Isidro II (1st stage) +248 MW Palmucho +32 MW Canela I +18 MW Chile: San Isidro II (2nd stage) +105 MW Ojos de Agua +9 MW Colombia: Cartagena: +66 MW

Amounts are in MW.

Chile: San Isidro II +46 MW Quintero +257 MW Canela II: +60 MW Peru: Santa Rosa +200 MW

1.8 GW of new installed capacity in the past 5 years Close collaboration with authorities to develop new capacity Committed to Energy Efficiency policies and promotion of NCRE

whereareweheadingto?

1,797 567 186 399 594 51 2005 2006 2007 2008 2009 Total

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23 23 Projects completed in 2009

Canela II, wind farm, Chile

Installed capacity: 60 MW
40 wind generators
Start-up: Dec 2009

whereareweheadingto?

Quintero, thermal power plant, Chile

Installed capacity: 257 MW
2 gas turbines (dual) open cycle
Start-up: Sept. 2009

Santa Rosa, thermal power plant, Peru

Installed capacity: 200 MW
Gas turbine in open cycle
Start-up: Sept. 2009

GNL, regasification plant, Chile

Endesa Chile’s participation: 20%
LNG supplier and partner: BG Group
Start-up: Sept. 2009
Fast-track commercial operation: Oct. 2010
Total Capacity: 9.6 million m3/day

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24 24 Projects under construction

whereareweheadingto?

Bocamina II, coal-steam, Chile

Installed capacity: 370 MW
Fuel type: imported coal
Estimated start-up: by the end of 2011

El Quimbo, hydro power plant Installed capacity: 400 MW

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25 25 Projects under study

Aysen Hydroelectric Project, Chile

Installed capacity: 2,750 MW Endesa Chile’s participation: 51% Takes advantage of water: natural resource, renewable and clean CO2 emissions: Reduction of 16.2 million tons/year 1st half 2009: first set of answers to EIA was completed January 2010: additional observations were received October 28, 2010: Answers to the second set of questions of the EIA were submitted

whereareweheadingto?

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liquidityleaders The most liquid shares in local Stock Exchange…

2 0 0 9 Recurrent Operations

Santiago Stock Exchange

I PSA* Leaders

Year 2010 Index breakdown

(*) IPSA: Selected Shares Price Index (Chile) (**) Takes into account the three Stock Exchange markets where we are listed

Average Yearly Float Rotation: 0 .8 (**) US$ 1 0 m illion trading tim e NYSE: 2 days Santiago: 1 day

Company Traded Vol. Million US$ 1 D&S 4,481 2 Endesa Chile 2,334 3 Enersis 2,160 4 CAP 2,091 5 Cencosud 1,920 Company Index Weight 1 COPEC 11.6% 2 Enersis 7.4% 3 Endesa Chile 7.2% 4 Lan Airlines 6.9% 5 Cencosud 6.1%

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27 27

financialaspects

Strong financial position

Net Debt Evolution As of September 2010: US$ 210 million of cash and cash

equivalents on a consolidated basis Liquidity position enhanced with US$ 756 million of committed Revolving Credit Lines, both locally and abroad and US$ 231 million

f uncommitted short term credit lines in the Chilean capital market

Endesa Chile ring-fenced its Yankee Bonds’ and Local Bonds’; cross default clauses only referenced to Endesa Chile and its Chilean subsidiaries

Debt by Type (Million US$) Debt by Currency

Total gross debt: US$3,916 million

Figures as of September 2010

Others, 505 Local Bonds, 1,851 Yankee Bonds, 917 Banks, 643 UF-Ch$ 14% Local currency 31% US$ 55%

3,638 3,292 3,239 3,833 3,612 3,719

1000 2000 3000 4000 5000 2005 2006 2007 2008 2009 Sep-10

US$millon

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financialaspects

Recurrent growth of Endesa Chile’s financials CAGR 06’- 9M10’: + 13% CAGR 06’- 9M10’: + 24%

EBITDA (US$ million) Net Income (US$ million)

(*) Last 12 months data as of September 2010

12M 12M 1,279 1,540 2,042 2,246 2,057 2006 2007 2008 2009 Sep-10

389 329 834 1,120 907 2006 2007 2008 2009 Sep-10

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29 29

financialaspects

Strong financial ratios

2.8x 2.5x 1.6x 1.8x 1.5x

0,5 1 1,5 2 2,5 3

2006 2007 2008 2009 Sep-10

Net debt/EBITDA EBITDA/Net financial expenses

4.3x 5.0x 6.5x 7.3x 7.7x

1 2 3 4 5 6 7 8 9

2006 2007 2008 2009 Sep-10

Endesa Chile‘s investment grade status restored Endesa Chile’s investment grade status restored

(12M) (12M)

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whataboutbrazil?

Catalysts Main Changes

Highly dependent on hydro energy sources
Lack of investment in new capacity
Price volatility

(2003) “New Model” for the electricity sector, tenders up to 15 years (thermal) and 30 years (hydro)

MgC 62,9

20 40 60 80 100 120 140 100 200 300 400 500 600 700 800 900 1.000 1.100

E n e r g y C

s

t U S $ / M W h

Net Installed Capacity (MW)

Our Assets and Medium Term Forecast Marginal Cost Brazil

Hydraulic 665MW 3.285GWh Gas 322MW 2.158GWh

US$/MWh

MgC 62,9

20 40 60 80 100 120 140 100 200 300 400 500 600 700 800 900 1.000 1.100

E n e r g y C

s

t U S $ / M W h

Net Installed Capacity (MW)

Our Assets and Medium Term Forecast Marginal Cost Brazil MgC 62,9

20 40 60 80 100 120 140 100 200 300 400 500 600 700 800 900 1.000 1.100

E n e r g y C

s

t U S $ / M W h

Net Installed Capacity (MW)

Our Assets and Medium Term Forecast Marginal Cost Brazil

Hydraulic 665MW 3.285GWh Gas 322MW 2.158GWh

US$/MWh

Eager to grow: Attractive returns required Match with our Latam portfolio’s profitability 30

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31 31

whataboutbrazil?

ApprovalofLaw16/2009

Assetbase,regulatedrate,O&M,etc 200609:Regulatedremuneration accordingtouseandrequirements

AspectstodefinewithANEELin2010and2011

CIEN: From a commercial scheme to a regulatory solution… Willallowthecompanytorequestremuneration similartothatofBrazil'sbasicgrid Capacity2,100MW– 1,000km 200105:Commercialschemesubjectto Argentina'senergysituation

We are about to initiate regulatory negotiations to determine stable remuneration for the Argentina - Brazil interconnection (CIEN)

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32 32

whoisendesachile?

General highlights

Vast experience, with over 65 years of history

Vast experience, with over 65 years of history

Multinational electricity generation company, based in Chile

Multinational electricity generation company, based in Chile

Leading market position in most of the countries where it operat

Leading market position in most of the countries where it operates es

Large and efficient investment portfolio of generation assets wi

Large and efficient investment portfolio of generation assets within thin South America South America

Excellent reputation and high level of technical standards

Excellent reputation and high level of technical standards

Committed with regulatory authorities, the environment and

Committed with regulatory authorities, the environment and Corporate Governance best practices Corporate Governance best practices

Part of an important worldwide electricity group

Part of an important worldwide electricity group (Enel, (Enel, Endesa Endesa, S.A., , S.A., Enersis Enersis) )

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33 33 Disclaimer

This presentation contains statements that constitute or may constitute statements about the future, as established in the United States Private Securities Litigation Reform Act of 1995. Such statements appear frequently in this presentation with statements referring to our intentions, beliefs and expectations, which include, but are not limited to, any statement with respect to: (1) our investment program, (2) trends that affect our financial condition or operating income, and (3) the effects

f changes in the regulatory framework for the electricity industry in one or more of

the countries in which we operate. As such statements are subject to risks and inaccuracies, the effective results may differ significantly with respect to those expressed or implied in such statements with a view to the future. Such statements should not be unduly relied upon as they only refer to the position on the date on which they were prepared. We assume no obligation to publicly report on changes that might be applied to the statements with a view to the future.

endesachileirpresentation

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34 34 Endesa Chile’s Investor Relations Team Contact us at:

ir@endesa.cl

Irene Aguilo Investor Relations Executive (56-2) 630 96 04 iaguilo@endesa. cl Denisse Labarca Head of Investor Relations (56-2) 630 96 03 denisse.labarca@endesa.cl

M. Teresa Fuentealba

Investor Relations Executive (56-2) 630 95 06 mtfd@endesa.cl Susana Rey Investor Relations Director (56-2) 630 96 06 susana.rey@endesa.cl Gloria Mora Investor Relations Assistant (56-2) 630 95 87 gaml@endesa.cl