Slide 1: Endesa Chile IR presentation
Endesa Chile IR presentation As of March 2013
Slide 2: Our company
Endesa Chile IR presentation 1Q 2013 Our company Multinational electricity generation company based in Chile. Vast experience, with over 70 years of history. Efficient and diversified investment portfolio of generation assets. Conservative commercial policy leading to revenue and margin stabilit
Slide 3: Ownership Structure
Endesa Chile IR presentation 1Q 2013 Ownership Structure 92% ENERSIS Chilean Pension Funds 12% 4% 4% Institutional Shareholders 61% 6% ADR Holders 60% 14% Minority Shareholders Other Institutional 60% Shareholders PEHUENCHE, 93% •ENDESA BRASIL, 39% CELTA, 100% AMPLA •COSTANERA, 70% SAN ISIDRO,
Slide 4: A unique portfolio in LATAM's Generation business
Endesa Chile IR presentation 1Q 2013 A unique portfolio in LATAM’s Generation business COLOMBIA No. 2 2,914 MW inst. capacity BRAZIL Hydro: 2,470 MW 987 MW inst. capacity Thermal : 444 MW Hydro: 665 MW Thermal : 322 MW 20% market share 1% market share in generation PERU No. 1 1,657 MW inst. capacity
Slide 5: Results affected by the drought in Chile
Endesa Chile IR presentation 1Q 2013 Results affected by the drought in Chile 1Q 2012 1Q 2013 1Q 2013 Indicator Change MM ch$ MM ch$ MM US$1 Revenues 541,703 489,433 (10%) 1,036 Operational Expenses (308,108) (244,770) (21%) (518) Contribution margin 233,595 244,663 5% 518 EBITDA 182,422 195,975 7%
Slide 6: EBITDA by Country
Endesa Chile IR presentation 1Q 2013 EBITDA by Country Total Installed Capacity 1: 13,794 MW Total Generation 1 (TTM): 53,255 GWh Chile Argentina Chile Argentina 40% 21% 38% 27% Peru Peru 16% 12% Colombia Colombia 21% 25% EBITDA 1Q 2013 (TTM): US$ 1,791 million Argentina 3% Chile 35% Peru 17% Endesa
Slide 7: Prudent Commercial Policy
Endesa Chile IR presentation 1Q 2013 Prudent Commercial Policy Physical Sales as of March 2013 Chile Colombia Peru Argentina 1% 13% 18% 24% 32% 49% 53% 34% 75% 82% 19% Regulated Unregulated Spot Physical Sales as of March 2012 Chile Colombia Peru Argentina 1% 8% 26% 27% 31% 28% 53% 68% 64% 73% 20% 7
Slide 8: Strong Financial Position
Endesa Chile IR presentation 1Q 2013 Strong Financial Position 1Q 2012 1Q 2013 1Q 2013 Indicator Change % Change MM Ch$ MM Ch$ MM US$ Gross Debt 1,861,469 1,897,402 2% 35,933 4,020 Cash1 260,798 206,417 (72%) (149,569) 437 Net Debt 1,505,482 1,690,985 11% 185,502 3,582 Leverage 0.90 0.89 (1%) (0.01)
Slide 9: Free Cash Flow (US$ million)
Endesa Chile IR presentation 1Q 2013 Free Cash Flow (US$ million) 2,098 2,014 1,791 1,714 1,012 779 494 450 (235) (251) (248) (300) (295) (353) (435) (381) (499) (549) (424) (523) (462) (538) (622) EBITDA Net Financial Result CAPEX Income Tax FCF Dividends 2010 2011 2012 1Q 2013 TTM 1Amounts are exp
Slide 10: Electricity demand Evolution in LATAM
Endesa Chile IR presentation 1Q 2013 Electricity demand Evolution in LATAM Historic electricity demand growth (CAGR, last ten years) 180% 170% 5.5% 5.3% 160% 4.4% Total Sales in GWh (% growth) 150% 140% 3.3% 130% 2.2% 120% 110% 100% 90% Years 80% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 201
Slide 11: Direct relation between GDP and electricity demand
Endesa Chile IR presentation 1Q 2013 Direct relation between GDP and electricity demand 18000 16000 FINLAND Electricity consumption, per capita (Kwh per year) CANADA 14000 UNITED STATES 12000 AUSTRALIA 10000 8000 JAPAN FRANCE AUSTRIA SPAIN GERMANY IRELAND 6000 UNITED KINGDOM ITALY RUSSIA GREECE 4000
Slide 12: Projects Under Construction: El Quimbo
Endesa Chile IR presentation 1Q 2013 Projects Under Construction El Quimbo • Hydro power plant. • Located in the Huila Department • Utilizes stream coming from Magdalena River • 400 MW of installed capacity • Estimated load factor: 60% • River detour in March 2012. 12
Slide 13: Projects Under Construction: Salaco Chain
Endesa Chile IR presentation 1Q 2013 Projects Under Construction Salaco Chain (optimization) • Repowering the minor plants to reach 260 MW power. • Located in the Bogotá River system. • Optimization works started on January 2013. • 145 MW will be added to the capacity. 13
Slide 14: Projects Under Study: Renaico
Endesa Chile IR presentation 1Q 2013 Projects Under Study Renaico • Wind farm • Located in the Araucanía region (SIC) • 88 MW of installed capacity • EIA1 approved for the generation plants and the transmission line. 1 Environmental Impact Assessment. 14
Slide 15: Projects Under Study: Los Cóndores, Curibamba
Endesa Chile IR presentation 1Q 2013 Projects Under Study Los Cóndores • Hydro power plant • Located in San Clemente, in the Maule Region • 150 MW of installed capacity • EIA1 approved. Curibamba • Hydro power plant • Located in Junín Department, utilizes streams coming from Comas and Uchubamba Rive
Slide 16: Projects Under Study: Punta Alcalde, Neltume
Endesa Chile IR presentation 1Q 2013 Projects Under Study Punta Alcalde • Thermal, Coal-steam power plant • Located in Huasco, in the Atacama Region (SIC) • 740 MW of installed capacity • EIS1 approved by the Ministers´ Committee on Dec 3, 2012 Neltume • Hydro power plant, run of the river • Located
Slide 17: Projects Under Study: HidroAysén
Endesa Chile IR presentation 1Q 2013 Projects Under Study HidroAysén • Hydro power plants located in Aysén Region • 2,750 MW of installed capacity • EIS1 approved for the generation plants (5) • One of the most efficient hydroelectric projects in the world, using renewable resources • Average load f
Slide 18: Expected Evolution for Endesa Chile Installed Capacity
Endesa Chile IR presentation 1Q 2013 Expected Evolution for Endesa Chile Installed Capacity Increase percentage over installed capacity, year 2012 (13,794 MW) 18000 + 16% 17000 1,403 Installed Capacity (MW) 16000 490 740 15000 + 4% 188 150 145 88 14000 400 13000 13,794 12000 2012 Under Construction
Slide 19: Market Value and Dividends
Endesa Chile IR presentation 1Q 2013 Market Value and Dividends EBITDA 1 Dividends (US$ Million) (Ch$ per Share) 2,248 32.5 2,033 2,098 2,014 26.8 27.2 1,671 1,714 1,791 1,503 21.3 13.8 14.3 3.04 2006 2007 2008 2009 2010 2011 2012 1Q 2013 TTM 2007 2008 2009 2010 2011 2012 Market Value 2 (US$ Million
Slide 20: Endesa Chile's Investor Relations Team
Endesa Chile IR presentation 1Q 2013 Endesa Chile’s Investor Relations Team Susana Rey Catalina Gonzalez Investor Relations Director Head of Investor Relations (56-2) 2630 9606 (56-2) 2630 9603 susana.rey@endesa.cl cbgs@endesa.cl Guillermo Berguecio Investor Relations Executive (56-2) 2630 9506 gabb
Slide 21: Exhibits
Endesa Chile IR presentation 1Q 2013 EXHIBITS 21
Slide 22: Highlights of 1Q 2013
Endesa Chile IR presentation 1Q 2013 Highlights of 1Q 2013 Higher Revenues in Colombia, mainly explained by higher average sales price as a consequence of lower water availability. Lower generation costs, mainly explained by the commissioning of Bocamina II and lower LNG price. 7% increase in consol
Slide 23: Argentina
Endesa Chile IR presentation 1Q 2013 Argentina Installed Capacity: 3,652 MW Market Share*: 12% Total Generation: 2,628 GWh EL CHOCÓN Hydro El Chocón: 1,328 MW 1,328 MW Million US$ 1Q 2012 1Q 2013 Change Revenues 24 17 (27% ) EBITDA 13 8 (36% ) EBITDA Margin 53.4% 47.2% (12% ) Physical Sales (GWh) 67
Slide 24: Peru
Endesa Chile IR presentation 1Q 2013 Peru Installed Capacity: 1,657 MW Market Share*: 23% Total Generation: 2,180 GWh EDEGEL Cuenca Río Rímac: 552 MW 45% Hydro Yanango: 43 MW 746 MW Chimay: 151 MW Ventanilla: 485 MW 55% Thermal Santa Rosa: 426 MW 911 MW Lima: Million US$ 1Q 2012 1Q 2013 Change • Ede
Slide 25: Chile
Endesa Chile IR presentation 1Q 2013 Chile Installed Capacity1: 5,571 MW Market Share*: 30% Total Generation1: 4,894 GWh Tarapaca ENDESA CHILE Los Molles: 18 MW Rapel-Sauzal: 466 MW D. Almagro–Taltal Maule: 875 MW 62% Hydro Laja: 940 MW 3,456 MW Huasco Ralco-Pangue: 1,157 MW Los Molles Tarapaca 182
Slide 26: Colombia
Endesa Chile IR presentation 1Q 2013 Colombia Installed Capacity: 2,914 MW Market Share*: 20% Total Generation: 3,036 GWh EMGESA Guavio: 1,213 MW Cartagena Betania: 541 MW 85% Hydro 2,470 MW Río Bogotá: 716 MW Cartagena: 208 MW 15% Thermal Bogotá Termozipa: 236 MW 444 MW Million US$ 1Q 2012 1Q 2013
Slide 27: Brazil
Endesa Chile IR presentation 1Q 2013 Brazil Installed Capacity: 987 MW Market Share*: 1% Total Generation: 1,246 GWh CACHOEIRA Hydro Fortaleza Cachoeira: 665 MW 665 MW Million US$ 1Q 2012 1Q 2013 Change Revenues 71 68 (4% ) EBITDA 46 41 (10% ) Cachoeira Rio de Janeiro EBITDA Margin 64.7% 60.7% (6% )
Slide 28: Installed Capacity and Energy Generation
Endesa Chile IR presentation 1Q 2013 Installed Capacity and Energy Generation Chile Colombia Brazil Peru Argentina Total Total 5,571 2,914 987 1,657 3,652 15,766 Hydro 3,456 2,471 665 746 1,328 8,666 Installed Nuclear 0 0 0 0 0 0 Capacity (MW) Coal 636 236 0 0 0 872 Oil-Gas 1,392 208 322 911 2,324 6
Slide 29: Healthy Debt Profile and Credit Risk Ratings
Endesa Chile IR presentation 1Q 2013 Healthy Debt Profile and Credit Risk Ratings Financial Debt Maturity US$ Million 2013 2014 2015 2016 2017 Balance TOTAL Chile 685 132 220 16 13 939 2,005 Argentina 216 39 7 - - - 262 Peru 37 54 36 60 50 83 319 Colombia - 77 159 22 115 1,061 1,434 TOTAL 939 302 42
Slide 30: Principal Financial Ratios
Endesa Chile IR presentation 1Q 2013 Principal Financial Ratios Net debt/EBITDA EBITDA/Net financial expenses 8.9 8.0 2.0 1.9 2.0 7.4 7.4 6.1 1.5 1.5 1.5 5.6 2008 2009 2010 2011 2012 1Q 2013 2008 2009 2010 2011 2012 1Q 2013 TTM TTM Endesa Chile 1Q 2012 1Q 2013 Financial Expense Coverage1 3.92 5.15 R
Slide 31: Relevant Stock Presence
Endesa Chile IR presentation 1Q 2013 Relevant Stock Presence American Stock Market Chilean Stock Market Spanish Stock Market NYSE (US$)1 BOLSA DE SANTIAGO (CLP) LATIBEX (€) Price 1Q 2013 TTM (Avg) 808.2 Price 1Q 2013 TTM (Avg) 49.7 Price 1Q 2013 TTM (Avg) 1.3 Max 1Q 2013 TTM 894.0 Max 1Q 2013 TTM 55
Slide 32: Endesa Chile IR presentation 1Q 2013
Endesa Chile IR presentation 1Q 2013 “This document is the property of ENDESA and therefore must not be disseminated or published without ENDESA's prior written consent. The content of this document is provided for information purposes only and therefore has no contractual substance and should not b