Presentation to Investors As of Dec. 2010 Grupo CGE One of the most - - PowerPoint PPT Presentation

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Presentation to Investors As of Dec. 2010 Grupo CGE One of the most - - PowerPoint PPT Presentation

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Presentation to Investors As of Dec. 2010 Grupo CGE One of the most important energy groups in Chile More than 105 years of history Development of long-term businesses, in key sectors Corporate Governance with a business view prevailing

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Presentation to Investors

As of Dec. 2010

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Grupo CGE One of the most important energy groups in Chile

  • More than 105 years of history
  • Development of long-term businesses, in key sectors
  • Corporate Governance with a business view prevailing the strategic

development of its companies.

  • Consolidated Group has grown strongly in the past 10 years
  • Group aware of its environment and new challenges

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Grupo CGE

  • Annual Revenues for US$ 4.3 billion and Ebitda of US$ 619 million consolidated
  • Main electricity distributor in Chile (2.4 million clients)
  • Relevant player in Chile in liquefied and natural gas distribution
  • Our electricity and gas services reach more than half of total homes in Chile
  • Since June 2009, present in electricity generation in the SIC
  • Presence in Argentina in the electricity and natural gas distribution
  • Recently participating in the distribution of liquefied gas in Colombia

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In process of adaptation to changes in the environment and size

One of the most important energy groups in Chile

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Grupo CGE

Major shareholder committed to the growth and development of its subsidiaries

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3.503 accionistas Indiver 11,1% Grupo Familia Marín 22,3% Grupo Almería 20,7% Grupo Familia Pérez Cruz 10,8%

  • Soc. del Canal del

Maipo 7,6%

  • Inv. Inst. y AFP

4,9% Otros 22,6%

Ownership Structure - CGE Group (Dec. 2010)

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Electricity Distribution in Chile Electricity Transmission Electricity Generation Services Liquefied Gas & Natural Gas Electricity and Gas Distribution in Argentina Liquefied Gas Distribution in Colombia

Grupo CGE

A Group with Focused and Strategic Business Units

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500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Patrimonio Neto Pasivos

Grupo CGE

Taking opportunities for strategic growth

  • More than US$ 3.6 billion invested during the past 10 years.
  • CGE Groups invests around US$ 300 million a year for vegetative growth (capex).
  • Ebitda has grown consistently.

Evolution of Consolidated Assets ($ billion)

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Evolución of Consolidated Ebitda ($ billion)

50 100 150 200 250 300 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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Ebitda Consolidated Dec-10 MM$ 289.671 (US$ 619 million) Ebitda Electricity Sector Dec-10 MM$ 159.882 (US$ 342 million)

Grupo CGE

Ebitda (1) of Electricity Sector

(1) Operating Result + Depreciation + Amortization (2) Figures for transmission only considers Transnet S.A.

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43% 55%

2%

Electricity Gas Others

Distribution 63% Transmission 29% Generation 8%

(2)

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  • In terms of physical sales, CGE Group is the second player, distributing over 11,300 GWh per year in Chile.
  • CGE Group is the leading player in terms of number of clients.
  • In these same terms, CGE Group supplies to a significant portion of Chile’s population.

Grupo CGE 40,2%

Grupo CGE

Electricity Distribution – Market position

7 Source: Empresas Eléctricas A.G.

Physical sales

CGE Distribución 23,1% Otras Emp. Grupo CGE 17,0% Chilquinta 7,8% Enersis 40,7% Otros 2,2% Saesa 9,1%

Grupo CGE 43,8%

CGE Distribución 24,4% Otras Emp. Grupo CGE 19,4% Chilquinta 9,9% Enersis 30,2% Otros 3,2% Saesa 12,9%

Number of Customers

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  • Generates an Ebitda of US$ 216 million per year, 63% of CGE’s Ebitda in the electricity sector.
  • CGE Group’s subsidiaries supply more than 2.3 million clients in Chile, with physical sales reaching

11,304 GWh as of December 2010.

  • Group with most coverage nationwide.
  • In Argentina it supplies close to 781 thousand clients, with physical sales of 3,476 GWh as of

December 2010.

Grupo CGE

332 thsd clients 1.404 GWh 1.301 thsd clients 6.447 GWh 53 thsd clients 245 GWh 64 thsd clients 235 GWh 84 thsd clients 444 GWh 152 thsd clients 745 GWh 87 thsd clients 681 GWh 11 thsd clients 43 GWh 232 thsd clients 976 GWh 25 thsd clients 84 GWh

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Figures as of Dec. 2010

Electricity Distribution

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Grupo CGE

Key figures of electricity distribution business in Chile

* Operating Result + Depreciation + Amortization

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419 478 711 1.175 1.189 1.126 200 400 600 800 1.000 1.200 1.400 2005 2006 2007 2008 2009 2010 Grupo Emel Edelmag Conafe CGE D

Evolution No. of Clients (thsd) Evolution of Physical Sales (GWh) Operating Revenues ($ bn) Ebitda * ($ bn)

7.148 7.297 11.031 11.041 11.047 11.304 2.000 4.000 6.000 8.000 10.000 12.000 14.000 2005 2006 2007 2008 2009 2010 Grupo Emel Edelmag Conafe CGE D 1.478 1.526 2.163 2.238 2.300 2.342

  • 500

1.000 1.500 2.000 2.500 2005 2006 2007 2008 2009 2010 Grupo Emel Edelmag Conafe CGE D 76 83 100 140 119 95 20 40 60 80 100 120 140 160 2005 2006 2007 2008 2009 2010 Grupo Emel Edelmag Conafe CGE D

With the acquisition of Emel, CGE advanced its customer growth by 12 years.

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Source: World Bank; data at 2007

Grupo CGE

Great potential of growth of electricity sector in Chile, moved by economic development

kWh per capita GDP per capita in US$

Correlation between electricity consumption and GDP

Argentina Australia Brasil Canadá

Chile

Colombia Dinamarca Francia Alemania Italia Japón Corea México Nueva Zelandia Perú Portugal Singapur España Reino Unido EEUU 2.000 4.000 6.000 8.000 10.000 12.000 14.000 16.000 18.000 5.000 10.000 15.000 20.000 25.000 30.000 35.000 40.000 45.000 50.000 55.000 60.000 10

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We are recovering from stable growth of electricity demand

  • 2008 – 2009 economic crisis (-)
  • 2010 earthquake (-)

2009 effects of VAD tariff setting and of services non-related to electricity supply (-) 2010 effects of tariff setting for Related Services (-), earthquake (-), IT plataform 2011 we expect important growth of energy consumption

  • GDP between 6% and 7% (+)
  • Consumption growth (+)
  • Low unemployment (+)

Correlation between electricity consumption and GDP – We expect sustained growth of electricity consumption Our infrastructure is prepared to move along with future growth (+) Growth perspectives in Argentina with fixed tarifs for the coming five years (+) 1Q11 – Physical sales of electricity distribution in Chile +9,1% as a reference

Grupo CGE

Electricity Distribution – Perspectives & Conclusions

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  • CGE Group is the 2nd player in Chile, with 3.485 kms of sub-transmission lines extended throughout

great part of the country.

  • This activity generates an Ebitda of US$ 120 million a year, becoming one of the most important

businesses of the CGE Group.

  • Main subsidiary in the sector Transnet, which total assets reach nearly US$ 890 million.

Grupo CGE

Electricity Transmission

  • Strategic support for

electricity distribution

75 km lines 2.604 km lines 8.749 GWh energy withdrawn (*) 4 km lines 128 km lines 209 km lines 457 km lines 9 km lines Empresas EMEL 873 km lines (*) Corresponds to energy withdrawn from the subtransmission system. Figures as of Dec. 2010

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Grupo CGE

Transnet S.A. is the main subsidiary of CGE Group in this activity

Energy Withdrawn (GWh)

(*) Operating Result + Depreciation + Amortization

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7.497 8.347 8.817 8.803 8.780 8.749 1.500 3.000 4.500 6.000 7.500 9.000 10.500 12.000 2005 2006 2007 2008 2009 2010

Operating Revenues ($ million)

34.086 40.149 46.984 55.316 59.805 62.516 10.000 20.000 30.000 40.000 50.000 60.000 70.000 80.000 2005 2006 2007 2008 2009 2010

Ebitda ($ million) *

24.857 29.286 34.332 40.428 43.565 46.769 10.000 20.000 30.000 40.000 50.000 60.000 2005 2006 2007 2008 2009 2010

Total Assets ($ million)

PCGA IFRS 153.993 179.685 201.042 234.456 359.796 415.923 50.000 100.000 150.000 200.000 250.000 300.000 350.000 400.000 450.000 2005 2006 2007 2008 2009 2010

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Stable business, highly specialized and strategic for CGE. Growth of this sector is correlated to the growth of the country. There is room to keep growing, beyond vegatative growth. Our infrastructured is prepared to face the future demand growth of electricity. 1Q11 – Withdrawal of energy + 20 %

Grupo CGE

Electricity Transmission – Perspectives & Conclusions

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Grupo CGE

Electricity Generation Potential growth through acquisitions and own portfolio of proyects

  • ENERPLUS (ex CGE GENERACIÓN) acquired from Iberdrola

100% of IBENER in June 2009.

  • Total investment of US$ 294 million
  • Two hydroelectric run-of-the-river power plants: Peuchén and

Mampil, with 84 MW and 49 MW of installed capacity.

  • Repowering capacity to 140 MW
  • Average generation of approximately 440 GWh/year.
  • During 2010 Ebitda reached US$ 25 million.

IBENER

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Grupo CGE

Own projects of electricity generation

  • CGE Group has 500 MW in own water rights.

All projects are run-of-the-river power plants

  • Most advanced project Central Ñuble

136 MW of installed capacity Estimated average generation of 667 GWh/year Estimated investment of US$ 260 million. Construction to begin by late 2011 Start-up: 2014 Projects

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One of the business units with most perspectives of growth for CGE Group

  • Through own portfolio of projects we have water rights (scarce resourse).
  • A portfolio of projects is currently under studty.
  • Sector growth algo through acquisitions.
  • Chile needs more generation capacity, due to future demand growth and economic development.

Grupo CGE

Electricity Generation – Perspectives & Conclusions

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Consolidated Ebitda as of Dec-10 MM$ 289.671 (US$ 619 million) Ebitda Gas Sector as of Dec-10 MM$ 124.223 (US$ 265 million)

Grupo CGE

Ebitda (1) of Gas Sector

(1) Operating Result + Depreciation + Amortization (2) Corresponds to the Ebitda of Gasmar

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43% 55%

2%

Electricity Gas Others

Natural Gas 61% Liquefied Gas 26% Storage Liquefied Gas 13%

(2)

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  • In this sector, CGE Group is one of the main players in Chile.
  • Annual Ebitda generation in Chile of US$ 265 million, representing 43% of consolidated Ebitda.
  • In Chile, we supply natural gas to more than 544 thousand customers.
  • In Argentina, we distribute natural gas in the provinces of Salta, Jujuy, Tucumán and Santiago del

Estero 420 thousand customers.

  • GASCO entered the Colombian market of liquefied gas distribution business through the brands

VIDAGAS and UNIGAS.

Grupo CGE

Distribution of natural and liquefied gas

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Grupo CGE

Key figures of our gas business

Number of clients NG Chile (thsd) Physical sales LPG (thsd Tons) * Physical sales NG Chile (Million m3) Consolidated Ebitda Gasco ($ million) **

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421 452 487 520 537 544 100 200 300 400 500 600 700 2005 2006 2007 2008 2009 2010 1.031 1.016 776 651 774 1.036 200 400 600 800 1.000 1.200 1.400 2005 2006 2007 2008 2009 2010 274 275 344 314 362 385 50 100 150 200 250 300 350 400 450 500 2005 2006 2007 2008 2009 2010 98.524 95.765 87.769 59.608 84.440 124.223 20.000 40.000 60.000 80.000 100.000 120.000 140.000 2005 2006 2007 2008 2009 2010 * Since 2010, we include physical sales in Colombia from Inversiones GLP, which reached 78,870 tons. ** Operating Result + Depreciation + Amortization

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Natural Gas

  • Today we have certainty of supply LNG terminal.
  • Recovery of customers during the gas crisis especially industrial customers.
  • Electricity generators have consumed NG from the LNG Terminal in Quintero.
  • We notice an important demand growth.
  • Liquefied Gas
  • Mature business with gradual growth expectations.
  • Potential growth and expansion to other regions and countries.
  • Important market share.
  • Clean fuel
  • GASCO promoting the use of gas as fuel for public and private transportation.

Grupo CGE

Sector Gas – Perspectivas y Conclusiones

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Grupo CGE

Service activities

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(*) Operating Result + Depreciation + Amortization

Activity Ebitda * $ million (4.626) 7.464 3.437 2.618 1.428 1.716 Business focused on retail, call center and satellite television Company under development Activities focused on IT and telecom Supply and logistics services Manufacturer of transformers and electric equipment Electricity services for distributors of electricity Management of CGE Group's real estate

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65 75 94 107 113 60 20 40 60 80 100 120 2005 2006 2007 2008 2009 2010

Grupo CGE

Evolution of CGE Group’s Results

Ebitda ($ bn)* Operating Revenues ($ bn)

PCGA IFRS

Net Income ($ bn)

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852 942 1.286 1.825 1.812 2.012 500 1.000 1.500 2.000 2.500 2005 2006 2007 2008 2009 2010 212 219 236 262 271 290 50 100 150 200 250 300 350 2005 2006 2007 2008 2009 2010

Total Assets ($ bn)

PCGA IFRS 1.702 1.802 2.578 3.014 3.411 3.762 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 2005 2006 2007 2008 2009 2010

(*) Operating Result + Depreciation + Amortization

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Grupo CGE

A Group with diversified businesses

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Ebitda CGE Group (*) ($ bn)

  • The diversification of our businesses has allowed us to maintain a sustained and increasing

trend of consolidated Ebitda throughout the years.

212 219 236 262 271 290 50 100 150 200 250 300 350 2005 2006 2007 2008 2009 2010 Ebitda otras invers. y Holding Ebitda Electricidad Ebitda Gas Ebitda consolidado

(*) Operating Result + Depreciation + Amortization

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Grupo CGE

Financial Summary

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CGE Consolidated Dec. Dec.

  • Dec. 2009 Dec. 2010

($ billion) 2009 2010 MMUS$ MMUS$ Total Assets 3.411 3.762 6.726 8.038 Liabilities 2.092 2.299 4.125 4.913 Equity 1.319 1.463 2.601 3.125 Operating Revenues 1.812 2.012 3.573 4.298 Operating Result 186 197 367 421 Ebitda 271 290 535 619 Ebitda Margin 15,0% 14,4% 15,0% 14,4% Net Income 113 60 223 128

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Tenor Debt by Currency Debt by Interest Rate

Grupo CGE

Financial Debt Structure as of Dec. 2010 (*)

Debt by Type

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* Financial Debt as of December 2010 reached $ 1.763 billion (~ USD 3.8 billion)

Long- term 80% Short- term 20% UF/$ 94% Foreign 6% Fixed 66% Floating 34% Banks 44% Com. Papers 4% Bonds 52%

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Grupo CGE

Ratios financieros

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Debt Coverage (1) Interest Coverage (2) Leverage (3) (1) Financial Debt / Ebitda (2) Ebitda / Net Interest Expenses (3) Total Debt / Total Equity

5,76 5,46 5,35 4,33 4,60 0,00 1,00 2,00 3,00 4,00 5,00 6,00 7,00 2006 2007 2008 2009 2010 1,50 1,70 1,73 1,59 1,57 1,35 1,40 1,45 1,50 1,55 1,60 1,65 1,70 1,75 1,80 2006 2007 2008 2009 2010 3,7 5,2 5,5 5,7 6,0 0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 2006 2007 2008 2009 2010

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Main fundamentals:

Grupo CGE

An Investment Grade Company

  • Low risk and stable cash flows
  • Geographic diversification of the Group’s businesses
  • Main business operates under a consolidated regulatory framework
  • Recovery and natural gas business due to the start-up of GNL Quintero
  • Good access to the financial market

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Local Rating Shares Bonds Commercial Papers Feller-Rate Nivel 2 AA- AA-/Nivel 1+ Fitch Ratings Nivel 2 A+ A+/F1+ International Rating Debt Local Currency Debt Foreign Currency Standard & Poor's BBB- BBB- Fitch Ratings BBB BBB

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Grupo CGE Main Conclusions and Challenges

  • Consolidated Group and has grown strong over the past 10 years
  • Strategic view with a long-term perspective to continue responding to the

energy needs of the country.

  • In a stage to achieve return on our investments
  • Adapting to changes – organizing business units for higher efficiency and

synergies

  • Investment plan for US$ 330 million for maintenance and US$ 250 million for

special projects

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We have the energy for Chile’s development