endesachileirpresentation AS OF DECEMBER 31st, 2009 Index Who is - - PowerPoint PPT Presentation

endesachileirpresentation

AS OF DECEMBER 31st, 2009

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Index

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

60% 18% 5% 13% 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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Ampla Coelce Fortaleza CDSA CIEN Endesa Brasil 38.88% Enel Endesa Spain 61% 92%

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whoisendesachile?

Important presence in 5 countries

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Colombia

2,895 MW 21% market share Output 2009: 12,674 GWh

#1

5,650 MW 37% market share Output 2009: 22,239 GWh

Peru

1,667 MW 29% market share Output 2009: 8,163 GWh

Chile

#1

Brazil:

987 MW 1% market share in generation Output 2009: 3,319 GWh 5.5 million customers 5% market share in distribution

Argentina

#1

Data as of December 2009 Market shares based on installed capacity

Consolidated installed capacity: 13,864 MW (including Brazil): 14,851 MW Consolidated energy sales: 59,859 GWh

Total Generation

#1

3,652 MW 14% market share Output 2009: 11,955 GWh

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Index Who is Endesa Chile? Operational aspects Financial aspects Where are we heading to? 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 Dec. 2009

» Evolution of fuel prices » Exchange rate risk

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Regulated Spot Unregulated 53% 19% 28% 56% 29% 15% 83% 17% 49% 9% 42%

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Summary of consolidated results

44.8%

• 18.5%

16.3% 4.2%

% Var. Revenues

Operating income Operating margin Ebitda Net income (b)

Ch$ Million

• 4.6%

Physical sales (GWh)

• 2,246
• 4,322

1,817 1,120

FY 2009 US$ m

42% 1,257

1,017

59,859 627 2,419

FY 2009 (a)

34% 1,061

874

57,458 433 2,536

FY 2008 (a)

a) 2008 and 2009 figures under IFRS (International Financial Reporting Standards) b) Attributable to stockholders of the parent company (Endesa Chile)

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

• perationalaspects

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Ebitda by country

EBITDA by Country Generation Business

As of Dec. 2009

• perationalaspects

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Dec-08 Dec-09 Dec-09 Var.% Ch$ bn Ch$ bn US$ m YoY Chile 664 780 1,394 18% Argentina 58 66 117 13% Colombia 247 287 513 16% Peru 88 114 204 30% Total 1,057 1,247 2,229 18%

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

This Ebitda differs from consolidated Ebitda as it only considers the generation business.

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Operations in Chile and Colombia

• Gen. mix 2009 vs. 2008
• perationalaspects

Chile Colombia

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Ebitda

Ebitda margin Physical sales (GWh)

Ch$ Million

22,327

57%

780

Dec. 2009

21,532

41%

664

Dec. 2008

• 1,394
• Dec. 2009

US$ m

3.7%

• 17.6%

Var. % Ch$ Million

16,806

57%

287

Dec. 2009

16,368

62%

247

Dec. 2008

• 513
• Dec. 2009

US$ m

2.7%

• 16.1%

Var. % Ebitda

Ebitda margin Physical sales (GWh)

11,700 12,403 974 503 2008 2009

Hydro Thermal

• Gen. mix 2009 vs. 2008

14,826 7,453 7,319 13,765 49 94 2008 2009

Hydro Thermal NCRE

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Operations in Peru and Argentina

• perationalaspects

Peru Argentina

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Ch$ Million

12,405

22%

66

Dec. 2009

11,098

20%

58

Dec. 2008

• 117
• Dec. 2009

US$ m

11.8%

• 13.2%

Var. % Ebitda

Ebitda margin Physical sales (GWh)

Ch$ Million

8,321

53%

114

Dec. 2009

8,461

42%

88

Dec. 2008

• 204
• Dec. 2009

US$ m

• 1.7%
• 29.8%

Var. % Ebitda

Ebitda margin Physical sales (GWh)

4,564 3,913 3,599 4,189 2008 2009

Hydro Thermal

3,783 8,540 8,172 1,940 2008 2009

Hydro Thermal

• Gen. mix 2009 vs. 2008
• Gen. mix 2009 vs. 2008

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

endesachileirpresentation

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

• 1,000

2,000 3,000 4,000 5,000 2005 2006 2007 2008 2009 US$ m

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financialaspects

Strong financial position

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Net Debt Evolution  As of Dec. 2009, total liquidity position in Chile reached nearly US$ 700 million, 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 and the subscription of a US$ 100 million local revolving facility in Dec-09.  Endesa Chile has ring-fenced its Yankee Bonds’ and Local Bonds’; cross default clauses only referenced to Endesa Chile and its Chilean subsidiaries. Debt by Type Debt by Currency

Banks, 1,073 Yankee Bonds, 917 Others, 453 Local Bonds, 1,729 Total gross debt: US$4.2 billion UF-Ch$ 23% Local currency 26% US$ 51%

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Comfortable debt maturity

Financial Debt by Country

Figures as of Dec. 2009.

financialaspects

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Peru 11% Chile 61% Colombia 21% Argentina 7%

(US$ million) 2010 2011 2012 2013 2014 Balance TOTAL Chile 351 216 38 416 216 1,303 2,539 Argentina 102 102 39 25 28 295 Perú 72 58 130 48 45 109 462 Colombia 78 117 149 69 461 876 TOTAL 603 493 355 488 358 1,874 4,172

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financialaspects

Recurrent growth of Endesa Chile’s financials

endesachileirpresentation 216 389 329 834 1,120 2005 2006 2007 2008 2009

1,105 1,279 1,540 2,042 2,246 2005 2006 2007 2008 2009

CAGR 05’-09’: + 19% CAGR 05’-09’: + 51%

EBITDA (US$ m) Net income (US$ m)

(*) Data as of December 2009

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financialaspects

Strong financial ratios

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2.8x 2.5x 1.6x 1.5x

0.5 1 1.5 2 2.5 3

2006 2007 2008 2009

Net debt/EBITDA EBITDA/Net financial expenses

4.3x 5.0x 6.5x 7.7x

1 2 3 4 5 6 7 8 9

2006 2007 2008 2009

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

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Credit Risk Agencies recognition

AA- AA AA- A+

Date: Jul. 2007 Date: Jan. 2010

Chilean Market

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

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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Attractive return to shareholders

financialaspects

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4,944 8,322 10,072 10,393 9,428 13,954 2004 2005 2006 2007 2008 2009 61 93 207 227 274 862 2004 2005 2006 2007 2008 Total

Dividends (MMUS$) Market Cap(1) (MMUS$)

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

CAGR = 23% +21%

Payout ratio 50% 50% 50% 60% 40%

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

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Assuring supply of long-term demand

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

1998: base 100%

Electricity Demand (CAGR past 10 years)

Percentage (%)

whereareweheading?

 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. Considerations

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80.0 110.0 140.0 170.0 200.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Peru Chile Argentina Brazil Colombia

Electricity Demand Growth

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Assuring supply of long-term demand

whereareweheading?

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100% 105% 110% 115% 120% 125% 2006 2010 2015 2020 2025 2030

In terms of population(1) In terms of consumption(2)

181 177 161 162 56 179 335 79 51 78 30 22 72 France Germany Spain United Kingdom China Japan United States Argentina Brazil Chile Colombia Peru World T

• tal

Central & South América Europe Asia North America

(1)Source: Energy Information Administration 2009; (2)Energy Information Administration, MM BTU p/p

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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Electricity Demand Projections

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

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Important contribution to growing demand

whereareweheading?

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Colombia: Termocartagena +142 MW Perú: 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 Cartagena: +66 MW

1.8 GW of new installed capacity added in the last 5 years

Amounts are in MW.

Chile: San Isidro II +46 MW Quintero +9 MW Canela II: +60 MW Peru: Santa Rosa +200 MW

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Recent contribution of 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 was in Dec. 2009 Liquefied Natural Gas Project, Chile » British Gas supplies the LNG » Endesa Chile has 20% interest » Start-up was in Sep. 2009 (Fast Track) Quintero Thermal power plant, Chile » 257 MW on open cycle with diesel (dual) » Estimated investment: US$ 140 million » Start-up completed in Sep. 2009 Santa Rosa, NG Combined Cycle, Peru » Installed capacity: 193 MW » Estimated investment: US$ 90 million » Start-up was in Sep. 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

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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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