Slide 1: 1Q13 Results
1Q13 RESULTS 1
Slide 2: Agenda
AGENDA • HIGHLIGHTS • INDUSTRY AND COMPANY • PROJECTS • FINANCIAL RESULTS 2
Slide 3: Highlights
HIGHLIGHTS Dividends equivalent to 100% of 2012’s net income, for an amount of USD 56,178,411,82, or USD 0,0533351281 per share, will be paid on May 16. For the second straight year, E.CL was included as part of the IPSA index, which comprises the top 40 companies listed at the Santiago Stock Ex
Slide 4: Substantial improvement over key figures of 4Q12
HIGHLIGHTS Financial Highlights (US$ million) 4Q12 1Q13 Var. % Operating Revenues (US$ million) 303.9 285.8 -6% EBITDA (US$ million) 40.0 66.8 67% EBITDA margin (%) 13% 23% 78% Net income (US$ million) 12.6 16.6 32% Net debt (US$ million) 602.6 573.9 -5% Energy sales (GWh) 2,481 2,406 -3% Net genera
Slide 5: Agenda: Industry and Company
AGENDA • HIGHLIGHTS • INDUSTRY AND COMPANY • PROJECTS • FINANCIAL RESULTS 5
Slide 6: Chilean electricity industry – 1Q13
Chilean electricity industry – 1Q13 INDUSTRY Growth Generation Main players Market Clients (2013-2023)¹ (1Q13) (% installed capacity) Regulated Diesel Endesa Gas 11% 25% capacity 6.3% 12% 7% 24% E.CL 54% 3,955 MW SING 26% demand AES Gener Unregulated Coal 81% 21% 88% Regulated Diesel 1% Colbún 20% O
Slide 7: Characteristics of the SING
Characteristics of the SING INDUSTRY Nearly 100% of installed capacity based on coal, natural gas (LNG) and diesel No exposure to hydrologic risk Long-term contracts with unregulated clients (mining companies) account for 90% of demand Flexibility to negotiate prices and supply terms Curre
Slide 8: Announced investments in mining projects
INDUSTRY Announced investments in mining projects Estimated Estimated Possible International investment copper production Rating Project Sponsor (US$ mm) production start date (Moody’s/S&P) Spence (expansion) $3,000 130 Th TPA BHP Billiton A1/A+ Anglo American Collahuasi (Phase III) $6,500 540 Th TP
Slide 9: Ownership structure (as of end-March 2013)
COMPANY Ownership structure (as of end-March 2013) GDF Suez Local Pension Funds Foreign Other 52.77% Institutionals 12.79% 25.00% Institutionals 8.63% 0.81% Inv. Punta de E.CL S.A. Rieles Ltda. 40% Inversiones Central Gasoducto Edelnor Distrinor S.A. Hornitos S.A. Termoeléctrica Norandino S.A. Trans
Slide 10: Installed capacity – SING & E.CL
COMPANY Installed capacity – SING & E.CL SING - Gross installed capacity by technology - 2012 (MW) E.CL - Growth in installed capacity in recent years 2,135 MW 2,500 2,135 MW 2,500 10 10 10 1,665 MW 2,000 317 2,000 317 317 10 13 13 317 317 1,500 1,500 176 688 688 688 962 MW 822 MW 688 688 688 1,000
Slide 11: Installed Capacity E.CL's Assets
COMPANY Installed Capacity E.CL’s Assets Technology Coal Diesel/FO Hydro 1% Natural gas Chapiquiña (10MW) Hydro Diesel 15% Coal 52% Diesel Arica (14MW) Diesel Iquique (43MW) TE Tocopilla (1,004MW) Collahuasi Tocopilla puerto El Abra Gas/diesel Chuquicamata 32% C. Tamaya (104MW) Gaby Gas transportati
Slide 12: Evolution of PPA portfolio balance
COMPANY Evolution of PPA portfolio balance Average realized monomic Average estimated consumption (MWh/h) tariff (USD/MWh) 4Q12 1Q13 2013 2014 2015 2016 2017 A) “Contractable” efficient capacity 1,240 1,240 1,240 1,240 1,240 Regulated client (EMEL) 88 93 205 215 226 237 249 Unregulated clientes (min
Slide 13: PPA portfolio indexation
COMPANY PPA portfolio indexation Indexation of the EMEL PPA Overall indexation applicable for 2013 Timetable of tariff adjustments: May and November of each year Marginal Other: CPI, Diesel PPI, node 0.1% Cost price Capacity: node price evolution 2.2% 7.1% Fuel Oil Energy: 40% US CPI, 60% Henr
Slide 14: Agenda: Projects
AGENDA • HIGHLIGHTS • INDUSTRY AND COMPANY • PROJECTS • FINANCIAL RESULTS 14
Slide 15: Infraestructura Energética Mejillones (IEM)
PROJECTS Infraestructura Energética Mejillones (IEM) Characteristics Gross capacity (IEM1 & IEM2) 2 x 375 MW Net capacity 2 x 320 MW Availability (plant factor) 90% Location Mejillones Mechanized port Associated infrastructure (Capesize carriers) New 170-km, 220kV, 350 MVA Transmission line IEM1 T.L
Slide 16: Eléctrica Monte Redondo (EMR)
PROJECTS Eléctrica Monte Redondo (EMR) EMR operates in the SIC, is owned by GDF Suez, and comprises a 48MW wind farm in operations and the 34MW Laja Hydro plant under construction (estimated COD 3Q13). GDF Suez has stated that E.CL will be its investment vehicle for the electricity generation bu
Slide 17: El Águila I and II
PROJECTS El Águila I and II E.CL has the operational and commercial skills to be a leading player in solar-based electricity generation in the SING. El Águila I (2MW) has been developed as a pilot project and shall start operations in July 2013. El Águila II (40MW) is under development: • Expe
Slide 18: SIC-SING interconnection
PROJECTS SIC-SING interconnection E.CL is well positioned to supply power to the ongoing sizeable mining development in the northern area of the SIC (“Norte Chico”). GDF Suez and E.CL are leading a private initiative to build the transmission line required to connect both grids. It is currently
Slide 19: Environmental CAPEX
PROJECTS Environmental CAPEX Stricter particle-matter and gas (NOx and SOx) emission requirements were approved by Chilean authorities in 2011. E.CL is investing to comply with the new emission requirements well before the due dates. The estimated CAPEX will amount to approximately US$170 mill
Slide 20: Innovation and sustainability
PROJECTS Innovation and sustainability Cobia Solar Microalgae Wind Biomass Steam-solar E.CL is committed to continuous social and environmental improvement. 20
Slide 21: Approved CAPEX program
PROJECTS Approved CAPEX program CAPEX (US$ million) 2013 2014 2015 2016 2017 2018 Generation: maintenance 69 29 61 25 18 59 Generation: current environmental project 52 29 - - - - Transmission 30 15 7 7 7 7 Development 22 8 8 8 8 8 Other 15 1 2 3 1 2 TOTAL 188 82 78 43 34 76 Notes: 1. “Development”
Slide 22: Agenda: Financial Results
AGENDA • HIGHLIGHTS • INDUSTRY AND COMPANY • PROJECTS • FINANCIAL RESULTS 22
Slide 23: Electricity sales, generation and monomic prices
FINANCIAL RESULTS Electricity sales (GWh) Gross electricity generation (GWh) 3,000 Total 2,481 Total 2,407 Total 2,298 Total 2,260 2,500 58 42 87 2,500 33 2,000 434 442 444 451 2,000 1,500 1,500 1,000 1,795 1,000 1,997 1,710 1,930 500 500 0 0 4Q12 1Q13 4Q12 1Q13 Unregulated Regulated Spot Coal LNG D
Slide 24: Significant recovery in EBITDA and net results
FINANCIAL RESULTS Income Statement (US$ millions) 4Q12 1Q13 Var. % Operating revenues 303.9 285.1 -6% Operating income (EBIT) -1.0 31.0 n.a. EBITDA 40.0 66.8 +67% Non-recurrent income – net 2.2 0.0 -92% EBITDA w/o non-recurring items 37.8 66.8 +77% Net income 12.6 16.6 32% Average realized monomic t
Slide 25: EBITDA comparison – 1Q13 vs. 4Q12
FINANCIAL RESULTS Effect of CTA & EBITDA comparison – 1Q13 vs. 4Q12 CTH outage In millions of US$ 80 +3 -2 -10 +4 16 +8 70 +23 60 50 40 50% 50% 100% 67 30 40 20 10 EBITDA 4Q12 Margin effect Other net SG&A expenses YPF provision Volume effect Insurance EBITDA 1Q13 operating costs 4Q12 compensations 4
Slide 26: Net income comparison – 1Q13 vs. 4Q12
FINANCIAL RESULTS Net income comparison – 1Q13 vs. 4Q12 In millions of US$ 50 45 +4 -1 -3 40 +8 -20 35 +18 30 25 Minority interest = 1.2 20 Minority 50% 50% 100% interest = -0.2 15 10 13 17 5 0 Net income Margin effect Other net FX difference Volume effect Provisions & Non-recurring Net income 1Q13
Slide 27: Financial ratios remain strong…
FINANCIAL RESULTS Available Cash (millions of US$) Gross Debt / LTM1 EBITDA 250 4.0 200 3.0 150 192.1 216.5 3.4 2.0 3.1 100 50 1.0 12/31/12 03/31/2013 12/31/12 03/31/13 Available cash Gross Debt / LTM EBITDA Net Debt / LTM1 EBITDA LTM1 EBITDA / LTM1 Gross interest Expense 3.0 6.0 2.5 5.0 2.0 4.0 2.4
Slide 28: E.CL's Debt breakdown as of March 31, 2013
FINANCIAL RESULTS E.CL’s Debt breakdown as of March 31, 2013 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 5.625%, 144-A/Reg-S bond for US$400MM maturing January
Slide 29: Net debt evolution
FINANCIAL RESULTS In millions of US$ Net debt evolution 680 +15 +0 -30 660 +11 640 +29 -50 620 600 580 560 50% 50% 100% 603 540 574 520 500 Net debt as of CAPEX Interest Tax payments Accrued interest, Cash from T.Line Operating cash Net debt as of 12/31/12 payments MTM swap sale flow 03/31/13 var.+O
Slide 30: 100% of 2012 net income to be paid as dividends in May 2013
FINANCIAL RESULTS Net income per share and dividends per share (US$) 0.25 0.243 0.20 0.189 0.170 0.15 Payable on 0.095 0.085 May 16, 2013 0.10 0.075 0.053 0.053 0.05 30% 50% 50% 100% 0.00 2009 2010 2011 2012 Net income per share Dividend per share E.CL’s Board of Directors agreed to propose divide
Slide 31: Confirmed investment grade category
FINANCIAL RESULTS International ratings Solvency Perspective Date Standard & Poors BBB- Stable November 2012 50% 50% 100% Fitch Ratings BBB- Positive August 2012 National ratings Solvency Perspective Shares Date Feller Rate A+ Stable 1st Class Level 2 December 2012 Fitch Ratings A Positive August 20
Slide 32: Forward-looking statements disclaimer
This presentation may contain certain forward-looking statements and information relating to E.CL S.A. (“E.CL” or the “Company”) that reflect the current views and/or expectations of the Company and its management with respect to its business plan. Forward-looking statements include, without limitat