endesachileirpresentation AS OF DECEMBER 31st, 2010 - - PowerPoint PPT Presentation
endesachileirpresentation AS OF DECEMBER 31st, 2010 whoisendesachile? whoisendesachile? We are part of Enel Group Ownership structure 92% 61% Chilean Pension Other Inst. Minority ADR Holders Funds Shareholders Shareholders 60% 16%
AS OF DECEMBER 31st, 2010
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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%
endesachileirpresentation
Ampla Coelce Fortaleza CDSA CIEN Endesa Brasil 39% 61% 92%
Figures as of December 2010
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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 December 2010
Consolidated installed capacity: 13,846 MW Capacity including Brazil: 14,832 MW Consolidated energy sales 2009: 59,859 GWh Consolidated energy sales 2010: 56,641 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
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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 December 2010 » Evolution of fuel prices » Exchange rate risk
Regulated Spot Unregulated 56% 18% 26% 64% 24% 12% 19% 81%
63% 30% 7%
Chile 41% Argentina 21% Colombia 22% Peru 16%
7 Figures by country as of December 2010
Total Installed Capacity: 13,846 MW Total Ebitda 2010: US$ 2,098 million Total Generation: 51,603 GWh
Affiliate Company: Endesa Brasil Endesa Chile ownership: 38.9% Equity Gains (Dec. 2010): US$ 178 million
Chile 41% Argentina 26% Colombia 21% Peru 12% Chile 56% Argentina 6% Colombia 28% Peru 10%
8 8 Summary of consolidated results
(6.6%) (12.9) (6.6%) (3.9%) (5.4%)
Revenues
Operating income Operating margin Ebitda Net income (b)
US$ Million
10.4% Physical sales (GWh)
4,773
FY10
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 for each year, or Ch$559.15 / dollar for 2009 YE and Ch$510.22 / dollar for 2010 YE.
Main drivers: higher costs of energy purchases and greater use of fuel for thermal generation due to lower hydrology mainly in Chile
FY09
42% 2,246
1,817
59,859 1,120 4,322 1,746 37% 2,098 56,641 1,046
2010/2009 (a)
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Strong financial position
Net Debt Evolution As of December 2010: US$ 710 million of cash and cash
equivalents on a consolidated basis Liquidity position enhanced with US$ 509 million of committed Revolving Credit Lines, both locally and abroad and US$ 220 million
Endesa Chile ring-fenced its Yankee Bonds’ and Local Bonds’ cross default clauses do not refer to non-Chilean subsidiaries
Debt by Type (Million US$) Debt by Currency
Total gross debt: US$3,775 million
Figures as of December 2010
Banks, 694 Yankee Bonds, 917 Local Bonds, 1,708 Others, 455
US$ 57% UF-Ch$ 12% Local currency 31%
3,719 3,612 3,833 3,239 3,292 3,065
1000 2000 3000 4000 5000 2005 2006 2007 2008 2009 2010
US$ millon
Chile 55% Argentina 8% Peru 12% Colombia 25%
10 10 Comfortable debt maturity
Financial Debt by Country
Figures as of December 2010
Financial Debt
(US$ million) 2011 2012 2013 2014 2015 Balance TOTAL Chile 61 47 422 159 222 1,172 2,084 Argentina 148 60 31 31 27 298 Peru 80 70 49 48 32 158 438 Colombia 231 159 74 131 360 954 Total 520 336 503 313 413 1,691 3,775
BBB
Date: Feb. 2010 Date: Jan. 2010 Date: Dec. 2006 BBB+
Ba1
Baa3 BBB+
BBB Credit Risk Ratings Recognition
11 11
Strong financial ratios
Net debt/EBITDA EBITDA/Net financial expenses
Endesa Chile‘s investment grade status restored Endesa Chile’s investment grade status restored
12 12 Dividends: sustained growth to shareholders
Values calculated in dollars at the end of each period.
(1) Source: Bloomberg
Payout ratio 50% 50% 60% 40%
CAGR = 47%
35.11%
CAGR = 13%
93 207 227 274 434 1,235 2005 2006 2007 2008 2009 Total 8,322 10,072 10,393 9,428 13,954 15,365 2005 2006 2007 2008 2009 Dec-10
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2010 Recurrent Operations
Santiago Stock Exchange
IPSA* Leaders
Year 2010 Index breakdown
(*) IPSA: Selected Shares Price Index (Chile) (**) Takes into account the three Stock Exchange markets where we are listed: Chilean stock exchanges, NYSE and Latibex.
Average Yearly Float Rotation: 0.8 (**) US$ 10 million trading time NYSE: 2 days Santiago: 1 day
Traded volume Million US$ 1 SQM 17,464 2 LAN 16,732 3 CENCOSUD 15,138 4 ENDESA 11,203 5 FALABELLA 11,073 Company
One of the most liquid shares in the local stock exchange
Index Added Weigth Weigth 1 COPEC 10.95% 11.0% 2 CENCOSUD 6.89% 17.8% 3 ENDESA 6.88% 24.7% 4 LAN 6.84% 31.6% 5 ENERSIS 6.68% 38.2% Company
Direct relation between GDP and electricity demand 14
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$)
15 15 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
16 16 Projects under construction
Bocamina II, coal-steam, Chile Location: next to the existing coal-fired plant Bocamina I 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 Investment: US$837 million Location: Magdalena River Reliability payment: up to 1,650 GWh/ year for 20 years. Estimated start-up: December 2014
17 17 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
18 18 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 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 . The period to answer was extended to April 15, 2011
19 19 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)
21 21 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.
endesachileirpresentation
22 22 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
23 Endesa Chile’s Investor Relations Team