endesachileirpresentation AS OF MARCH 31, 2011 whoisendesachile? - - PowerPoint PPT Presentation
endesachileirpresentation AS OF MARCH 31, 2011 whoisendesachile? whoisendesachile? We are part of Enel Group Ownership structure 92% 61% Chilean Pension Other Inst. Minority ADR Holders Funds Shareholders Shareholders 60% 16% 4%
AS OF MARCH 31, 2011
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We are part of Enel Group 2 Ownership structure
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%
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Ampla Coelce Fortaleza CDSA CIEN Endesa Brasil 39% 61% 92%
Figures as of March 2011
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A unique portfolio in Latam’s Generation business
Colombia
2,914 MW inst. capacity 22% market share
N 1
5,611 MW inst. capacity 35% 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 March 2011
Consolidated installed capacity: 13,846 MW Capacity including Brazil: 14,832 MW Consolidated energy sales 2010: 56,641 GWh
14,173 GWh
3,652 MW inst. capacity 13% market share
Argentina N 1 N 1 N 1
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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 30-60 US$/ MWh Biomass 60 US$/MWh Diesel-Fuel 130-230 US$/ MWh Peak Turbine 230-290 US$/ MWh LNG Combined Cycle 80- US$/MWh 6,000 MW 4,300 MW
Hydro, Coal, LNG
US$/MWh
MW
Diesel-Fuel
Range of Demand Supply
Marginal hourly cost
Wind Power 8 US$/MWh Hydro Coal
Biomass 60 US$/MWh Diesel-Fuel MWh Peak Turbine
LNG Combined Cycle
1,900 MW endesachileirpresentation
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Integrated risk management capability 100%
Risk variables affecting margins
Our aim is to ensure a 95% reliability with a margin of at least 90% of budget even in the following scenarios:
Risk limit Real margin ≥ 0.9x expected margin
Spot
Extreme hydro volatility
Thermal
Target
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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Conservative management » Hydrology risk » Electricity demand growth » Portfolio of generation assets
Minimize margin variation
Chile Argentina Colombia Peru
Physical sales as of March 2011 » Evolution of fuel prices » Exchange rate risk
Regulated Spot Unregulated 66% 32% 2% 18% 82% 48% 19% 33% 66% 25% 9%
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Chile 58% Argentina 8% Colombia 18% Peru 16%
7 Figures by country as of March 2011
Total Installed Capacity: 13,846 MW Ebitda March 2011: US$ 417,935 million Total Generation: 12,791 GWh
Affiliate Company: Endesa Brasil Endesa Chile ownership: 38.9% Equity Gains (Mar. 2011): US$ 52 million
Chile 41% Argentina 26% Colombia 21% Peru 12%
Chile 38% Argentina 22% Colombia 22% Peru 18%
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8 Summary of consolidated results
3.3%
(9.6%) 5.1%
1Q11/1Q10 (a) Revenues
Operating income Contribution margin Ebitda Net income (b)
US$ million
8.3% Physical sales (GWh) 50%
329
12,791 201 1,191
1Q11
51% 468
364
12,174 195 1,100
1Q10
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FY10
51% 2,222
1,849
56,641 1,107 5,055
Main drivers: higher energy purchases, high use of fuel for thermal generation due to lower hydrology mainly in Chile and transitory equity tax in Colombia.
a) Throughout this presentation, variations may not coincide due to rounding b) Attributable to Endesa Chile’s shareholders c) Figures are translated into US dollars using the average exchange rate of Ch$ 481.81 per dollar in March 2011.
418
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Strong financial position
Net Debt Evolution As of March 2011: US$ 779 million of cash and cash
equivalents on a consolidated basis Liquidity position enhanced with US$ 700 million of consolidated committed Revolving Credit Lines, both locally and abroad and US$215 million of uncommitted credit lines in the Chilean capital market Endesa Chile ring-fenced its Yankee Bonds’ and Local Bonds’ cross default clauses, with no possibility of a default arising from non- Chilean subsidiaries
Gross Debt byType (million US$) Debt by Currency
Total gross debt: US$4,093 million
Figures as of March 2011
3,612 3,833 3,239 3,292 3,065 3,306
1000 2000 3000 4000 5000 2006 2007 2008 2009 2010 Mar-11
US$ millon
US$ 53% UF-Ch$ 11% Local currency 36%
Banks, 697 Yankee Bonds, 1,310 Local Bonds, 1,706 Others, 380
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10 10 Comfortable debt maturity
Financial Debt by Country
Figures as of March 2011
Financial Debt BBB
Date: Feb. 2010 Date: Jan. 2010 Date: Apr. 2011 BBB+
Ba1
Baa2 BBB+
BBB Credit Risk Ratings Recognition
Chile 51% Argentina 7% Peru 10% Colombia 32% endesachileirpresentation
(US$ million) 2011 2012 2013 2014 2015 Balance Total Chile 24 83 421 222 170 1,153 2,073 Argentina 106 73 44 44 30 298 Peru 44 60 50 50 34 186 423 Colombia 165 163 76 133 762 1,299 Total 339 379 516 391 367 2,101 4,093
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Strong financial ratios
2.5x 1.6x 1.5x 1.5x 1.5x
0.5 1 1.5 2 2.5 3
2007 2008 2009 Dec-10 Mar-11
Net debt/EBITDA EBITDA/Net financial expenses
5.0x 6.5x 7.7 8.3 8.2
1 2 3 4 5 6 7 8 9
2007 2008 2009 Dec-10 Mar-11
Endesa Chile‘s investment grade status restored Endesa Chile’s investment grade status restored
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CAGR = 25% CAGR = 11% Market Value and Dividends
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10,072 10,393 9,428 13,954 15,365
2006 2007 2008 2009 2010
13.4 13.8 21.3 26.8 32.5
2006 2007 2008 2009 2010
Direct relation between GDP and electricity demand 13
Real GDP vs. Electricity Demand per Capita
Chile
Peru Colombia Mexico Argentina Brazil Finland Russia Sweden Slovakia Portugal Spain Italy France Germany United States Greece United Kingdom Denmark
2 4 6 8 10 12 14 16 18 5 10 15 20 25 30 35 40 45 50
Electricity demand per capita (Gwh) GDP per capita (Thousand US$) endesachileirpresentation
14 14 Projects under construction
Bocamina II, coal-steam, Chile Location: next to the existing Bocamina I coal-fired plant Installed capacity: 370 MW Fuel type: imported coal Estimated start-up: December 2011 El Quimbo, hydro power plant, Colombia Installed capacity: 400 MW Investment: US$ 837 million Location: Magdalena River Reliability payment: up to 1,650 GWh/ year for 20 years. Estimated start-up: December 2014
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15 15 Projects under study
Neltume, hydro run-of-the-river plant Installed capacity: 490 MW Los Cóndores, 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
Curibamba, hydro power plant Installed capacity: 188 MW
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16 16 Projects under study
Aysen Hydroelectric Project, Chile
Installed capacity: 2,750 MW Endesa Chile’s owns 51% and Colbún 49% 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 Environmental Impact Study (EIA) was completed January 2010: additional observations were received October 28, 2010: Answers to the second set of questions of the EIA were submitted November 25, 2010: Third set of questions April 11, 2011: the answers to the third set of questions were submitted
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17 17 Projects under study
Aysen Hydroelectric Project, Chile
Power plants will be the most efficient in electricity generation worldwide Average load factor 77% Transmission line direct current (HVDC) of 1,912 kilometers, from Cochrane to Santiago.
1.0 1.5 2.0 2.5 3.0 3.5
Rapel Itaipú Karáhnjukar Hidroaysen GWh per year / hectare
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General highlights
Vast experience, with over 66 years of history Multinational electricity generation company based in Chile Leading market position in most of the countries where it operates Large and efficient investment portfolio of generation assets within South America Excellent reputation and high level of technical standards Committed with regulatory authorities, the environment and corporate governance best practices Part of an important worldwide electricity group (Enel, Endesa, S.A., Enersis)
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19 19 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
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.
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20 20 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
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
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21 Endesa Chile’s Investor Relations Team