endesachileirpresentation AS OF SEPTEMBER 30, 2009 Index Who is - - PowerPoint PPT Presentation

endesachileirpresentation

AS OF SEPTEMBER 30, 2009

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Index

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Who is Endesa Chile? Operational aspects Financial aspects Where are we heading? Conclusions

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whoisendesachile?

General highlights

 Multinational electricity generator, 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 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)

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Ownership structure

whoisendesachile?

Enersis Chilean Pension Funds ADR Holders Other Inst. Shareholders Minority Shareholders

ENDESA CHILE

Ultimate controllers: Enel owns 92% of Endesa Spain, which in turn owns 61% of Enersis. 60% 19% 5% 12% 4%

Pehuenche 92,65% Endesa Eco 100,00% El Chocón 65,37% Costanera 69,76% Edegel 62,46% Emgesa 26,87% Canela 75,00% San Isidro 100,00% Pangue 94,99% Celta 100,00%

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Installed Cap.: 5,540 MW Endesa Chile: 3,043 MW San Isidro I&II: 732 MW Pehuenche: 699 MW Pangue: 467 MW GasAtacama: 390 MW (50% 781 MW) Celta: 182 MW Endesa Eco: 27 MW Hydro Cap.: 62% 38% market share 28 power plants

Chile

Installed Cap.: 2,895 MW Hydro Cap.: 85% 21% market share 11 power plants

Emgesa, Colombia Edegel, Peru

Cachoeira (Gx): 665 MW Fortaleza (Gx): 322 MW Ampla (Dx): 2.5 mill. clients Coelce (Dx): 2.9 mill. clients Cien (Tx): 2,100 MW

Endesa Brasil (Affiliate) Argentina Total Consolidated: 13,748 MW Number of power plants: 53 Hydro: 58.1% Thermal: 41.8% Wind: 0.1% Total incl. Brazil: 14,735 MW

Installed Cap.: 1,661 MW Hydro Cap.: 45% 27% market share 9 power plants Installed Cap.: 3,652 MW Costanera: 2,324 MW El Chocón: 1,328 MW Hydro Cap.: 36% 14% market share 5 power plants

whoisendesachile?

Important presence in 5 countries

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

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• perationalaspects

Conservative commercial policy

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

Minimize margin variation

Chile Argentina Colombia Peru

Physical sales as of Sept. 2009

» Evolution of fuel prices » Exchange rate risk

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56% 16% 28% 83% 17% 55% 31% 14% 44% 6% 50% Regulated Spot Unregulated

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Summary of consolidated results

61%

• 35%

44% 5%

% Var. Revenues

Operating income Operating margin Ebitda Net income (c)

Ch$ Millions

44% 975 5%

829

Physical sales (GWh) 44,688 509 44% 1,772

• 3,414

1,506 925 1,879

Jan-Sept US$ m

32% 721

576

42,442 316 1,818

Jan-Sept 2008 (b)

36% 1,146

893

55,735 443 2,492

FY 2008 (a) Jan-Sept 2009 (b)

a) 2008 figures under Chilean accounting rules b) Jan – Sept 2009/2008 under IFRS (International Financial Reporting Standards) c) Attributable to stockholders of the parent company (Endesa Chile)

Main effects: better production mix, lower generation costs, and higher sales in the spot market

• perationalaspects

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Ebitda by country

Colombia 23% Argentina 5% Peru 9% Chile 63%

EBITDA by Country Generation Business

As of Sept 2009

• perationalaspects

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Sep-08 Sep-09 Sep-09 Var.% Ch$ bn Ch$ bn US$ m YoY Chile 445 604 1,098 36% Argentina 40 49 89 23% Colombia 179 226 411 27% Peru 56 88 159 57% Total 720 967 1,758 34%

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Operations in Chile and Colombia

• Gen. Mix as of Sept 2009

Hydro 64% Thermal 36%

• perationalaspects

Hydro 95% Thermal 5%

• Gen. Mix as of Sept 2009

Sep-08 Sep-09

• Var. %

Sep-09 Ebitda Ch$ 179 bn Ch$ 226 bn 27% US$ 411 m Ebitda Margin 62% 60%

• Ph. Sales

12,362 GWh 12,790 GWh 4%

• Chile

Colombia

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Sep-08 Sep-09

• Var. %

Sep-09 Ebitda Ch$ 445 bn Ch$ 604 bn 36% US$ 1,098 m Ebitda Margin 39% 57%

• Ph. Sales

15,882 GWh 16,071 GWh 1%

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Operations in Peru and Argentina

Hydro 28% Thermal 72%

• Gen. Mix as of Sept 2009

Sep-08 Sep-09

• Var. %

Sep-09 Ebitda Ch$ 40 bn Ch$ 49 bn 23% US$ 89 m Ebitda Margin 18% 20%

• Ph. Sales

7,898 GWh 9,648 GWh 22%

• perationalaspects

Thermal 43% Hydro 57%

• Gen. Mix as of Sept 2009

Sep-08 Sep-09

• Var. %

Sep-09 Ebitda Ch$ 56 bn Ch$ 87 bn 57% US$ 159 m Ebitda Margin 40% 55%

• Ph. Sales

6,300 GWh 6,179 GWh

• 2%
• Peru

Argentina

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

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financialaspects

Strong financial position

 As of Sept 2009, total liquidity position in Chile reached nearly US$ 1 billion, including cash and cash equivalents and committed credit lines.  Liquidity position enhanced with successful 20-year US$ 340 million local bond issuance in Dec-08, reflecting the confidence in the company by the local market.  At this moment, Endesa Chile has ring-fenced its Yankee Bonds’ cross default clauses only related to Endesa Chile and its Chilean subsidiaries.

Consolidated figures in US$ million as of Sept 2009 and in historical dollars.

Debt by Type Debt by Currency

Banks 29% Yankee Bonds 21% Others 6% Local Bonds 44% 5,950 4,920 4,702 4,426 4,087 4,124 3,859 3,904 4,076 4,343 4,321

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 1 9 9 9 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 S e p

• 9

US$ m UF-Ch$ 17% Local currency 29% US$ 54%

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Consolidated Debt Evolution

3 354 215 35 415 215 1,246 200 400 600 800 1,000 1,200 1,400 2009 2010 2011 2012 2013 2014 Balance

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Comfortable debt maturity

Peru 10% Colombia 24% Chile 59% Argentina 7%

Financial Debt by Country

19 62 58 127 47 44 107 200 400 600 800 2 9 2 1 2 1 1 2 1 2 2 1 3 2 1 4 B a l a n c e 61 92 83 24 25 14 200 400 600 800 2009 2010 2011 2012 2013 2014 Balance

Colombia: US$ 1,078 m Peru: US$ 463 m Argentina US$ 298 m Chile: US$ 2,483 m

US$ m US$ m US$ m US$ m Figures as of Sept. 2009. 164 123 156 82 72 482 200 400 600 800 2009 2010 2011 2012 2013 2014 Balance

financialaspects

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Solid financial ratios

Times

875 1,105 1,279 1,540 2,217 346 349 322 1,800 971 323 335 305 355 6.87 2.18 2.37 2.63 3.51 4.29 4.90 2.98 3.97 3.17 2.81 2.61 4.34 5.90

400 800 1,200 1,600 2,000 2,400 2003 2004 2005 2006 2007 2008 2009 MMUS$ 1 2 3 4 5 6 7 8 9 10

Ebitda Interest Expenses Debt/Ebitda Ebitda/IE

EBITDA growth  16% over the past 5 years

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Sep-09 TTM

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Risk agencies recognition

AA- AA- A+ A+

Date: Aug 2009 Date: Sep 2008

Chilean Market

Date: July 2009 Date: Sep 2008 Date: Dec. 2008

BBB

Ba1

Baa3

BBB-

BBB

International Market

BBB- Ratings based upon:

• Well diversified and efficient assets and leadership in the four countries where

the company operates

• Transparent and favorable regulatory framework in Chile
• Solid financials, good cash flow generation and prudent financial management
• Conservative commercial policy

financialaspects

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Important transactions recently occurred

financialaspects

Chile

 On July 24, 2009, Endesa Chile successfully completed the consent solicitation process and the receipt of the requisite consents with respect to the amendments of the Yankee bonds indentures dated January 1, 1997. The amendment refers to the cross default clause so that it now applies only to Endesa Chile and its subsidiaries in Chile.

Colombia Perú

 Our Peruvian subsidiary Edegel issued four domestic bonds this year for a total of US$ 34.6 million, at terms between 6 and 10 years, and rates between 5.2% and 6.4% equivalent in dollars.  On October 9th, Endesa Chile purchased an additional 29.4% of Edegel from Endesa Latinoamericana at a total cost of US$ 375 million. Our direct and indirect interest in Edegel increased from 33.06% to 62.46%. This acquisition was financed with the liquidity of the company, thus not needing any additional financing.  Emgesa issued six domestic bonds in 2009 for a total amount of Cop$ 664,000 million (approximately US$ 310 million), at terms between 5 and 15 years, and rates between 4.3% and 5.8% equivalent in dollars.

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21.3 13.8 13.4 5.8 5 10 15 20 25 2005 2006 2007 2008

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Attractive return to shareholders

Source: Bloomberg Ch$/share

50% 60% 40%

+54% Dividend Policy and Payout Share Price Evolution

20.0 40.0 60.0 80.0 100.0 120.0 140.0 28/09/2007 28/11/2007 28/01/2008 28/03/2008 28/05/2008 28/07/2008 28/09/2008 28/11/2008 28/01/2009 28/03/2009 28/05/2009 28/07/2009 28/09/2009

Endesa IPSA Dow Jones

financialaspects

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50%

Return YTD (Jan09-Sep09): 18,7%, including dividends

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whereareweheading? Who is Endesa Chile? Operational aspects Financial aspects Where are we heading? Conclusions

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Assuring supply of long-term demand

» Peru: 6.8% » Chile: 5.2% » Argentina: 4.2% » Brazil: 2.9% » Colombia: 3.1%

1998: base 100%

Electricity Demand (CAGR)

Percentage (%) 80.0 110.0 140.0 170.0 200.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sep/09

Peru Chile Argentina Brazil Colombia

whereareweheading?

 Endesa Chile is a long-term player in every market 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. Considerations

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75 100 125 150 175 200 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 SIC SING

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Electricity demand growth in Chile: 2009-2019 *

Diesel 4% Coal 38% LNG 8% Hydro 33% Others 6% Wind 11%  9,400 MW of new capacity during next 10 years.  3,300 MW are already under construction. CAGR SIC: 5.5% CAGR SING: 5.1%

* Source: Oct09 Node Price Report of Chilean National Energy Commission (CNE) SIC: Central Interconnected System; SING: Northern Interconnected System

whereareweheading?

 Prices awarded from previous bidding processes will apply for distribution companies.  New prices are indexed to inflation and fuel prices. They will mark long-term energy prices.  Locking a price for blocks of energy through long-term contracts, between 10-15 years. Starting in 2010 …

1998: base 100%

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Investment opportunities

Our Investment Plan World economic scenario Profile of electricity demand

 Energy generation uses the maximum renewable resources to promote its development and energy independence  Growth and excellence of labor, environmental and productive standards  Leadership in the region is based on the construction and evaluation of projects in Chile and Peru

whereareweheading?

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Contributing with new generation capacity

Bocamina II, Coal-steam power plant, Chile » Installed capacity: 370 MW » Estimated investment: US$ 750 million » Estimated start-up date: 2nd half of 2010 Wind Farm Canela II, Chile » Installed capacity: 60 MW » Estimated investment: US$ 150 million » Start-up date: 4th quarter of 2009 Liquefied Natural Gas Project, Chile » British Gas supplies the LNG » Endesa Chile has 20% interest » Start up was in Sept 2009 (Fast Track) Quintero Thermal power plant, Chile » 257 MW on open cycle with diesel (dual) » Estimated investment: US$ 140 million » Start-up was in Sept 2009 Santa Rosa, NG Combined Cycle, Peru » Installed capacity: 193 MW » Estimated investment: US$ 90 million » Start-up was in Sept 2009

whereareweheading?

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

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conclusions

Attractive margins during first nine months of 2009 Prepared to face upcoming challenges with efficient assets

Asset Base » Large and Efficient portfolio of assets » Excellence in operations » Strongly committed to sustainability Conservative Policies » Commercial policy » Solid financial position and healthy balance sheet » Liquidity Know-how » Ability to develop our own projects » Know-how and vast experience » Demand and regulation

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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 of 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.

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Endesa Chile’s Investor Relations Team Contact us at:

ir@endesa.cl

Irene Aguiló Investor Relations Executive (56-2) 630 96 04 iaguilo@endesa.cl Jacqueline Michael Investor Relations Executive (56-2) 630 95 85 jmc@endesa.cl Juan Pablo Reitze Head of Investor Relations (56-2) 630 96 03 jprv@endesa.cl

• M. Teresa Fuentealba

Investor Relations Executive (56-2) 630 95 06 mtfd@endesa.cl

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