Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Endesa Chile — Investor Presentation (December 2014)
34 slides from Enel Chile Sa's investor presentation, December 2014
Slide 1: Endesa Chile IR Presentation
Endesa Chile IR Presentation As of December 31, 2014
Slide 2: Organization structure
Organization structure ITALY Committed Shareholders 61% CHILE Enersis S.A. 60% 18% Chilean Pension Funds 3% ADRs (Citibank 3% N.A.) 15% 60% Retail Institutional CHILE Investors PEHUENCHE, 93% CELTA, 96% GASATACAMA, 98% COLOMBIA PERU ARGENTINA BRAZIL1 CHILE1 • ENEL BRASIL, 37% •GNL Quintero, 20
Slide 3: A unique portfolio in LatAm's generation business
A unique portfolio in LatAm’s generation business No. 2 COLOMBIA 3,059 MW inst. capacity BRAZIL Hydro: 2,615 MW 987 MW inst. capacity Thermal : 444 MW Hydro: 665 MW 18% market share2 Thermal : 322 MW No. 1 1% market share2 PERU 1,652 MW inst. capacity Hydro: 755 MW Thermal : 898 MW No. 2 ARGENTINA 1
Slide 4: Well diversified generation assets throughout the region
Well diversified generation assets throughout the region Hydro: 8,818 MW Coal: 872 MV Colombia: Installed Capacity 2,615 MW Brazil1: Colombia: 665 MW 236 MW Peru: 87 755 MW Chile: Chile: 636 MW 3,456 MW HYDRO Argentina: 1,328 MW 5,925 COAL 8,818 OIL-GAS Oil-Gas: 5,925 MW NCRE NCRE2: 87 MW 872 Colomb
Slide 5: Diversified source of EBITDA
Diversified source of EBITDA Total Installed Capacity1: Total Generation1: 14,715 MW 49,835 GWh Argentina 25% Argentina 19% Chile 36% Chile 43% Peru Peru 18% 11% Colombia Colombia 27% 21% EBITDA 2014 US$ 1,920 million Argentina 4% Peru 17% Chile 34% Enel Brasil • Endesa Chile’s ownership: 37.1%. • N
Slide 6: Balanced commercial policy
Balanced commercial policy Physical Sales as of December 2014 Chile Colombia Peru Argentina 6% 6% 8% 19% 30% 49% 39% 55% 75% 21% 92% Distribution Companies Free Customers Spot Gwh / Change1 CHILE COLOMBIA PERU ARGENTINA TOTAL HYDRO 11,512 17% 12,627 7% 4,439 (1%) 2,632 14% 31,210 10% COAL 1,298 (64%
Slide 7: Revenue stability through long term contracts
Revenue stability through long term contracts Energy contracts with established prices Chile– Contracted energy (GWh) Colombia – Contracted energy (GWh) Peru – Contracted energy (GWh) Brazil– Contracted energy (GWh) Peru – Hired energy 7
Slide 8: Consolidated financial highlights
Consolidated financial highlights 1 MM US$2 Ch$ million 2014 2013 Change 2014 Revenues 2,446,534 2,027,432 21% 4,289 Costs (1,119,457) (830,873) 35% (1,963) Contribution Margin 1,327,077 1,196,559 11% 2,327 EBITDA 1,094,981 978,994 12% 1,920 EBIT 875,321 782,839 12% 1,535 Net Financial Expenses (68,
Slide 9: Healthy debt maturity profile
Healthy debt maturity profile Financial Debt Maturity1 as of December 2014 • Cash: 2,500 2,186 US$ million US$ 552 MM; Total Debt: US$ 3,505 MM 2,000 (US$ 584 MM including >90 days cash investments) 1,500 • Committed Credit Lines: 1,000 US$ 481 MM 500 319 • Non-Committed Credit Lines: 179 218 126 28
Slide 10: Consistent consolidated cash flow generation
Consistent consolidated cash flow generation (US$ million)1 1,920 1,770 1,461 643 624 399 (121) (266) (248) (331) (370) (465) (528) (418) (739) EBITDA Net Financial Expenses Payments for Additions of Fixed Income Tax Free Cash Flow Assets 2012 2013 2014 1Amounts translated into US$ at the average ex
Slide 11: Increasing electricity demand in LatAm
Increasing electricity demand in LatAm Historic electricity demand growth (CAGR, last ten years) 210% 7.3% 190% Total Sales in GWh (%) 170% 4.3% 150% 3.5% 3.1% 130% 2.8% 110% 90% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Years CHILE COLOMBIA PERU BRAZIL ARGENTINA • Colombia includes 201
Slide 12: Markets with high potential for growth
Markets with high potential for growth 18,000 Direct relation between GDP and electricity demand CANADA Electricity consumption, per capita (Kwh per year) 16,000 FINLAND 14,000 UNITED STATES 12,000 AUSTRALIA 10,000 8,000 JAPAN AUSTRIA FRANCE GERMANY RUSSIA 6,000 SPAIN ITALY UNITED KINGDOM GREECE 4,0
Slide 13: Expected evolution for Endesa Chile's installed capacity
Expected evolution for Endesa Chile´s installed capacity 17% increase in installed capacity through new projects Hydro plant Thermal plant 678 MW Curibamba - 188 MW 670 MW Punta Alcalde - 740 MW Curibamba - 188 MW 925 MW Taltal - 120 MW Neltume - 490 MW Los Cóndores - 150 MW Neltume - 490 MW Salaco-
Slide 14: Installed capacity added in 2014
Installed capacity added in 2014 Colombia Salaco Chain (optimization) • Upgraded the minor plants to reach 221 MW capacity. • Located in the Bogotá River system, Colombia. • Total CAPEX of US$ 44 million. • Optimization works started in January 2013 and were completed in December 2014. • 145 MW of c
Slide 15: Installed capacity added in 2014
Installed capacity added in 2014 Purchase of additional 50% stake of Attractive investment GasAtacama • Endesa Chile became the controller of GasAtacama • Thermal power plant, Gas – CCGT (6 units) (98%). • 780 MW of installed capacity. • Enhanced the role of the Company by reaching • Located in Meji
Slide 16: Projects under construction
Projects under construction Colombia El Quimbo • Hydro power plant, located in the Huila Department, Colombia • Utilizes the flow coming from the Magdalena River. • 400 MW of installed capacity with an estimated load factor of 60%. • 86% completion as of Dec 31, 2014 . • Beginning the work to prepar
Slide 17: Projects under construction
Projects under construction Chile Los Los Cóndores Cóndores • Hydro power plant, run of the river. • Located in San Clemente, in Maule region, Chile. • 150 MW of installed capacity. • Estimated generation of 600 GWh/year. • Estimated load factor: 46%. • Total CAPEX of US$ 662 million. • 9% progress
Slide 18: Projects under study
Projects under study Chile Taltal (Conversion) • Closure to upgrade the existing LNG power plant, to a Combined Cycle Gas Turbine Power Plant. • Located in the Antofagasta region (SIC), Chile. • 120 MW will be added to the current 245 MW capacity. • EIS2 submitted for approval in Dec 2013. Chile Nel
Slide 19: Projects under study
Projects under study Perú Curibamba • Hydro power plant, run of the river. • Located in the Junín Department, utilizes the flow coming from the Comas and Uchubamba Rivers. • 188 MW of installed capacity. • EIS1 approved. • Load Factor: 63% with an estimated generation of 1,060 GWh/Year. 1 Environmen
Slide 20: Market value and dividends
Market value and dividends EBITDA Market Value (US$ Million1) (US$ Million1) 12,606 13,250 11,015 11,188 11,248 1,877 1,920 105 1,660 1,716 80 190 81 1,417 98 324 248 44 276 523 245 510 704 866 659 1,059 821 639 649 468 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 CHILE COLOMBIA PERU ARGENTINA
Slide 21: Credit Risk Agencies recognition
Credit Risk Agencies recognition Since: Jan. 2010 Apr. 2011 Feb. 2010 Jan. 2010 Apr. 2010 BBB+ Baa2 BBB+ AA (cl) AA Affirmed: Aug. 2014 Dec. 2014 Nov. 2014 Aug. 2014 Jul. 2014 International market Chilean market RATINGS BASED UPON: • Well diversified and efficient assets • Leading market share in th
Slide 22: Key investment considerations
Key investment considerations One of the largest electricity generation companies in Chile -Proven track record with more than 70 years of experience Unique and well diversified portfolio of assets Balanced commercial policy, leading to revenue and margin stability Markets with stable regulatory env
Slide 23: Endesa Chile's Investor Relations Team
Endesa Chile´s Investor Relations Team Susana Rey Catalina Gonzalez Head of Investor Relations Investor Relations Senior Analyst (56) 22630 9606 (56) 22630 9603 susana.rey@endesa.cl cbgs@endesa.cl Guillermo Berguecio Francisco Basauri Investor Relations Analyst Investor Relations Analyst (56) 22630
Slide 24: EXHIBITS
EXHIBITS 24
Slide 25: Endesa Chile's corporate history
Endesa Chile’s corporate history •September 2004, Ralco • July 1994, Endesa hydroelectric plant started •As of December 2014, Endesa Chile’s stock begins to Chile operates directly or through operations adding 690 MW trade on the New York subsidiaries 184 electricity units of installed capacity to S
Slide 26: Highlights
Highlights Operating revenues increased 21%, mainly due to higher energy sales, as a consequence of higher sale price of electricity in Chile, Colombia and Peru, along with the full consolidation of GasAtacama Hydro generation increased 10% due to better water availability in Chile, Colombia and Arg
Slide 27: Argentina
Argentina Installed Capacity: 3,652 MW Market Share*: 12% Total Generation: 9,604 GWh EL CHOCON Hydro El Chocón: 1,328 MW 1,328 MW Million US$ 2014 2013 Change Revenues 53 64 (18% ) EBITDA 28 29 (2% ) EBITDA Margin 53.3% 44.8% 19% Physical Sales (GWh) 3,391 3,392 (0% ) Buenos Aires Costanera COSTANE
Slide 28: Chile
Chile Installed Capacity: 6,351 MW Market Share*: 32% Total Generation: 18,063 GWh Tarapacá ENDESA CHILE GasAtacama Los Molles: 18 MW D. Almagro– Rapel-Sauzal: 466 MW Maule: 875 MW 54% Hydro Taltal Laja: 940 MW 3,456 MW Huasco Ralco-Pangue: 1,157 MW Los Molles San Isidro GasAtacama 780 MW Santiago T
Slide 29: Colombia
Colombia Installed Capacity: 3,059 MW Market Share*: 20% Total Generation: 13,559 GWh Cartagena EMGESA Guavio: 1,213 MW Betania: 541 MW 85% Hydro 2,615 MW Termozipa Río Bogotá: 861 MW Bogotá Guavio Cartagena: 208 MW 15% Thermal Betania Termozipa: 236 MW 444 MW Río Bogotá Million US$ 2014 2013 Change
Slide 30: Peru
Peru Installed Capacity: 1,652 MW Market Share*: 19% Total Generation: 8,609 GWh EDEGEL Cuenca Río Rímac: 561 MW 46% Hydro Yanango: 43 MW 755 MW Chimay: 151 MW Ventanilla: 485 MW 54% Thermal Ventanilla 898 MW Santa Rosa: 413 MW Lima Río Rimac Yanango Sta Rosa Chimay Million US$ 2014 2013 Change Reve
Slide 31: Brazil
Brazil Installed Capacity: 987 MW Market Share*: 1% Total Generation: 5,225 GWh CACHOEIRA Fortaleza Cachoeira: 665 MW Hydro 665 MW Million US$ 2014 2013 Change Revenues 279 206 35% Cachoeira EBITDA 138 155 (11% ) Rio de Janeiro EBITDA Margin 49.5% 75.2% (34% ) Physical Sales (GWh) 3,903 3,564 9% CIE
Slide 32: Healthy debt maturity profile in each country
Healthy debt maturity profile in each country Financial Debt Maturity1, as of December 2014 US$ 2015 2016 2017 2018 2019 Balance TOTAL million Chile 313 11 11 11 53 1,200 1,600 Argentina 43 26 4 1 1 39 115 Peru 38 98 51 37 17 28 269 Colombia 104 8 88 108 168 1,044 1,521 TOTAL2 498 143 155 157 240 2,
Slide 33: Strong performance paired with a conservative financial policy
Strong performance paired with a conservative financial policy 4,500 18.0 4,126 15.9 4,000 16.0 3,535 3,500 3,336 14.0 3,116 3,106 2,994 2,933 3,000 12.0 2,500 2,248 8.9 8.0 7.1 10.0 2,031 2,097 2,014 5.4 1,977 1,920 7.4 2,000 1,661 8.0 1,500 5.6 6.0 1,000 4.0 2.0 1.5 2.1 1.5 500 1.5 1.5 1.5 2.0 - -
Slide 34: Forward-looking statements disclaimer
This presentation contains statements that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this announcement and include statements regarding the intent, belief or current expecta