Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Endesa Chile — Investor Presentation (June 2014)
36 slides from Enel Chile Sa's investor presentation, Jun 30, 2014
Slide 1: Endesa Chile IR Presentation
Endesa Chile IR Presentation As of June 30, 2014
Slide 2: Organization structure
Organization structure ITALY 92% Committed Shareholders SPAIN 61% Enersis S.A. CHILE 18% Chilean Pension Funds 3% ADRs (Citibank 60% 4% N.A.) 60% 15% Retail Institutional Investors CHILE PEHUENCHE, 93% CELTA, 96% GASATACAMA, 98% COLOMBIA PERU ARGENTINA BRAZIL1 •ENDESA BRASIL, 37% •COSTANERA, 7
Slide 3: A unique portfolio in LatAm's generation business
A unique portfolio in LatAm’s generation business No. 2 COLOMBIA 3,041 MW inst. capacity BRAZIL Hydro: 2,597 MW 987 MW inst. capacity Thermal : 444 MW Hydro: 665 MW 21% market share2 Thermal : 322 MW No. 1 1% market share2 PERU 1,524 MW inst. capacity Hydro: 751 MW Thermal : 773 MW No. 2 ARGENTINA 1
Slide 4: Well diversified generation assets throughout the region
Well diversified generation assets throughout the region Hydro: 8,797 MW Coal: 896 MV Colombia: Installed Capacity 2,597 MW Brazil1: Colombia: 665 MW 236 MW Peru: 87 751 MW Chile: Chile: 660 MW 3,456 MW HYDRO Argentina: 1,328 MW 5,775 COAL 8,797 OIL-GAS Oil-Gas: 5,775 MW NCRE NCRE2: 87 MW 896 Colomb
Slide 5: Consolidated financial highlights
Consolidated financial highlights 1 MM US$2 Ch$ million 1H14 1H13 Change 1H14 Revenues 1,137,127 1,015,797 12% 2,056 Costs (602,407) (532,591) 13% (1,089) Contribution Margin 534,720 483,206 11% 967 EBITDA 422,582 382,396 11% 764 EBIT 325,354 288,578 13% 588 Net Financial Expenses (81,459) (65,557)
Slide 6: Diversified source of EBITDA
Diversified source of EBITDA Total Installed Capacity 1: Total Generation 1 (TTM): 14,568 MW 50,719 GWh Argentina Argentina 22% 25% Chile Chile 36% 44% Peru Peru 10% 17% Colombia EBITDA 1H14 (TTM): Colombia 21% 25% US$ 1,843 million Argentina 7% Peru Chile 17% 33% Endesa Brasil • Endesa Chile’s owne
Slide 7: Balanced commercial policy
Balanced commercial policy Physical Sales as of June 2014 Chile Colombia Peru Argentina 1% 8% 10% 18% 29% 49% 37% 55% 81% 22% 90% Distribution Companies Free Customers Spot Physical Sales as of June 2013 Chile Colombia Peru Argentina 2% 10% 19% 22% 31% 50% 36% 54% 76% 19% 81% Distribution Companies
Slide 8: 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 8
Slide 9: Healthy debt maturity profile
Healthy debt maturity profile Financial Debt Maturity1 as of June 2014 • Cash: US$ million US$ 441 MM; Total Debt: US$ 4,405 MM (US$ 581 MM including >90 days cash investments) 3,000 2,606 2,500 • Committed Credit Lines: 2,000 US$ 495 MM 1,500 • Non-Committed Credit Lines: 1,000 665 500 175 209 238
Slide 10: Consistent consolidated cash flow generation
Consistent consolidated cash flow generation (US$ million)1 1,977 1,843 1,714 697 566 494 (300) (277) (277) (381) (414) (357) (538) (590) (643) EBITDA Net Financial Expenses Payments for Additions of Fixed Income Tax Free Cash Flow Assets 2012 2013 1H 2014 TTM *Attributable to each period 1Amounts t
Slide 11: Increasing electricity demand in LatAm
Increasing electricity demand in LatAm Historic electricity demand growth (CAGR, last ten years) 180% 5.6% 170% 160% 4.9% 150% 4.0% Total Sales in GWh (%) 140% 3.1% 130% 2.7% 120% 110% 100% 90% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Years CHILE COLOMBIA PERU BRAZIL ARGENTINA 11
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: Projects under construction: El Quimbo
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%. • Physical execution of 72% as of June 30, 2014 with an accumulated
Slide 14: Projects under construction: Salaco Chain
Projects under construction Colombia Salaco Chain (optimization) • Upgrading 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. • 145 MW will be added to the capacity. • As of June
Slide 15: Investments recently approved
Investments recently approved Chile Los Cóndores • Hydro power plant, run of the river. • Located in San Clemente, in Maule region, Chile. • 150 MW of installed capacity. • Estimated load factor: 46% • FID1 approved on March 31, 2014. • Total CAPEX of US$ 662 million. Chile Gas Atacama • Thermal pow
Slide 16: Expected evolution for Endesa Chile's installed capacity
Expected evolution for Endesa Chile´s installed capacity 22% increase in installed capacity through new projects Hydro plant Thermal plant 815 MW Curibamba - 188 MW Punta Alcalde - 740 MW Neltume - 490 MW Salaco- 145 MW Taltal - 120 MW Los Cóndores - 150 MW El Quimbo- 400 MW GasAtacama- 780 MW 13,71
Slide 17: Projects under study: Punta Alcalde, Taltal
Projects under study Chile Punta Alcalde • Thermal, coal-steam power plant. • Located in Huasco, in the Atacama region (SIC), Chile. • 740 MW of installed capacity. • Estimated load factor: 83% • On January 17, 2014, the Supreme Court of Chile reaffirmed the approval of the EIS1, in line with the ru
Slide 18: Projects under study: Neltume, Curibamba
Projects under study Chile Neltume • Hydro power plant, run of the river. • Located in Panguipulli, in the Los Ríos Region (SIC). • 490 MW of installed capacity. • EIS1 under review. Perú Curibamba • Hydro power plant, run of the river. • Located in the Junín Department, utilizes the flow coming fro
Slide 19: Projects under study: HidroAysén
Projects under study Chile HidroAysén • Hydro power plants located in Aysén Region. • Endesa Chile owns 51% and Colbún 49%. • 2,750 MW of installed capacity • Estimated average load factor: 77%. • On June 10th 2014 the Ministers Committee revoked the EIS previously approved for the five generation p
Slide 20: Market value and dividends
Market value and dividends EBITDA1 Market Value2 (US$ Million) (US$ Million) 2,248 2,098 2,014 1,977 15,364 117 13,963 13,297 204 117 212 96 1,661 113 12,102 12,230 292 318 514 52 584 287 601 811 773 1,413 1,184 1,025 549 736 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 CHILE COLOMBIA PERU ARGE
Slide 21: Prepared to face challenges
Prepared to face challenges Increasing installed capacity in countries with more attractive economic outlooks with an ever-increasing commitment to sustainability Know-how and vast experience to develop new projects in less favorable conditions Ensure energy supply to all customers with efficiency,
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 envi
Slide 23: Endesa Chile's corporate history
Endesa Chile’s corporate history •September 2004, Ralco • July 1994, Endesa hydroelectric plant started •As of December 2013, Endesa Chile’s stock begins to operations adding 690 MW Chile operates directly or through trade on the New York of installed capacity to subsidiaries 178 electricity units S
Slide 24: Endesa Chile's Investor Relations Team
Endesa Chile´s Investor Relations Team Susana Rey Catalina Gonzalez Investor Relations Head of Investor Relations Director (56-2) 2630 9603 (56-2) 2630 9606 cbgs@endesa.cl susana.rey@endesa.cl Guillermo Berguecio Francisco Basauri Investor Relations Investor Relations Executive Executive (56-2) 2630
Slide 25: Exhibits
EXHIBITS 25
Slide 26: 1H14 Highlights
1H14 Highlights 12% growth in Operating Revenues due to a higher average electricity sales price expressed in Chilean pesos, along with the full consolidation of GasAtacama’s operating revenue. 7% increase in hydro generation because of better water availability in the period. 11% increase in consol
Slide 27: Argentina
Argentina Installed Capacity: 3,652 MW Market Share*: 12% Total Generation: 4,676 GWh EL CHOCON Hydro El Chocón: 1,328 MW 1,328 MW Million US$ 1H 2014 1H 2013 Change Revenues 28 30 (9% ) EBITDA 15 12 31% EBITDA Margin 54.9% 38.0% 45% Physical Sales (GWh) 1,704 1,386 23% Buenos Aires Costanera COSTAN
Slide 28: Chile
Chile Installed Capacity: 6,351 MW Market Share*: 32% Total Generation: 8,166 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 Ta
Slide 29: Colombia
Colombia Installed Capacity: 3,041 MW Market Share*: 21% Total Generation: 6,113 GWh Cartagena EMGESA Guavio: 1,213 MW Betania: 541 MW 85% Hydro 2,597 MW Termozipa Río Bogotá: 843 MW Bogotá Guavio Cartagena: 208 MW 15% Thermal Betania Termozipa: 236 MW 444 MW Río Bogotá Million US$ 1H 2014 1H 2013 C
Slide 30: Peru
Peru Installed Capacity: 1,524 MW Market Share*: 19% Total Generation: 4,397 GWh EDEGEL Cuenca Río Rímac: 556 MW 45% Hydro Yanango: 43 MW 751 MW Chimay: 151 MW Ventanilla: 485 MW 55% Thermal Ventanilla 773 MW Santa Rosa: 288 MW Lima Río Rimac Yanango Sta Rosa Chimay Million US$ 1H 2014 1H 2013 Chang
Slide 31: Brazil
Brazil Installed Capacity: 987 MW Market Share*: 1% Total Generation: 2,473 GWh CACHOEIRA Fortaleza Cachoeira: 665 MW Hydro 665 MW Million US$ 1H 2014 1H 2013 Change Revenues 190 112 69% Cachoeira EBITDA 119 78 52% Rio de Janeiro EBITDA Margin 62.6% 69.5% (10% ) CIEN Physical Sales (GWh) 2,171 1,814
Slide 32: Installed capacity and energy generation
Installed capacity and energy generation MW CHILE COLOMBIA PERU ARGENTINA TOTAL HYDRO 3,456 2,597 751 1,328 8,131 Installed COAL 660 236 0 0 896 Capacity (MW) OIL-GAS 2,149 208 773 2,324 5,454 NCRE 87 0 0 0 87 Total 6,351 3,041 1,524 3,652 14,568 Gwh / Change1 CHILE COLOMBIA PERU ARGENTINA TOTAL HYD
Slide 33: 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. 2013 Sept. 2013 Apr. 2014 Aug. 2013 Jul. 2014 International market Chilean market RATINGS BASED UPON: • Well diversified and efficient assets • Leading market share in t
Slide 34: Healthy debt maturity profile in each country
Healthy debt maturity profile in each country Financial Debt Maturity1, as of June 2014 US$ 2014 2015 2016 2017 2018 Balance TOTAL million Chile 74 575 15 12 12 1,265 1,953 Argentina 157 31 18 1 - - 207 Peru 27 38 62 51 37 46 261 Colombia 49 133 - 112 138 1,553 1,984 TOTAL2 308 777 94 176 186 2,864
Slide 35: Strong performance paired with a conservative financial policy
Strong performance paired with a conservative financial policy 4,500 10.0 4,126 8.9 4,000 9.0 3,535 3,643 3,500 3,336 7.4 8.0 8.0 7.1 3,116 3,106 2,994 6.7 7.0 3,000 5.6 5.4 6.0 2,500 2,248 2,031 2,097 2,014 1,977 5.0 2,000 1,843 1,661 4.0 1,500 3.0 2.0 2.1 1,000 1.5 2.0 1.5 1.5 1.5 2.0 500 1.0 - -
Slide 36: 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