Enel Chile Sa · BCS:ENELCHILE

Enel Chile Sa — Endesa Chile — 1H 2008 Earnings Presentation

21 slides from Enel Chile Sa's earnings presentation, June 2008

  1. Slide 1: Results as of June 2008

    Results as of June 2008 Dow Jones. r ( Sustainability Indexes Member 2007/08

  2. Slide 2: Endesa Chile – one of the largest electricity generators in Latin America

    Endesa Chile – one of the largest electricity generators in Latin America Our Shareholders Other Inst. Investors; 10.7% Enel Acciona Retail; 4.5% ADRs; 4.9% 67.1% 25.0% Endesa Spain Chilean 60.6% Pension Funds; Enersis; 60.0% Enersis 20.0% 60.0% Endesa Chile As of June 2008 2

  3. Slide 3: Attractive Cash Return to Shareholders

    Attractive Cash Return to Shareholders Price CAGR: 19.9% Div. Yield CAGR: 30.4% Ch$ Ch$ % 900 857.32 16 3.00% 800 757.75 14 2.50% 700 13.41 13.76 12 600 1.82% 2.00% 10 1.56% 500 484 478.5 8 1.22% 1.50% 400 6 0.88% 300 262 0.85% 1.00% 4 5.82 200 4.13 0.50% 100 2 2.3 0 0 0.00% Jun‐04 Jun‐05 Jun‐06 Jun

  4. Slide 4: Important Presence in 5 countries

    Important Presence in 5 countries Emgesa ▪ Installed cap. : 2,895 MW Endesa Brasil ▪ Hydro Cap.: 85% Affiliate ▪ 21% market share ▪ 11 power plants ▪ Cachoeira (Gx): 665 MW ▪ Fortaleza (Gx): 322 MW ▪ Ampla (Dx): 2.4 m clientes ▪ Coelce (Dx): 2.7 m clientes Edegel ▪ Cien (Tx): 2,100 MW ▪ Installed ca

  5. Slide 5: Investment Opportunities … room to grow

    Investment Opportunities … room to grow Opportunities: Improvement in Latam regulations contribute to meet strong growing electricity demand. 200.0 Electricity Demand P erú 1H08 vs. 1H07 170.0 Chile Argentina » Peru: 10.1% 140.0 Brazil 3 ,4 % » Chile: ‐1.1% 110.0 Colombia » Argentina: 3.1% 80.0 » Br

  6. Slide 6: Coming forth against challenging energy environment

    Coming forth against challenging energy environment • Higher thermal generation in Chile, using (US$ m) FY07 1H07 1H08 ∆% diesel instead of natural gas. • US$ 317 m increase of fuel costs in Chile à fuel costs represent 63% of total Revenues 3,476 1,634 2,043 25.0% operating costs in Chile as of Jun

  7. Slide 7: Well diversified EBITDA throughout the Region

    Well diversified EBITDA throughout the Region EBITDA June 2008 EBITDA per Country (US$ million ) Peru 10.0% Jun­07 Jun­08 Var. % Chile 398 407 2.3% Argentina 72 66 ­8.1% Colombia 198 245 23.7% Peru 103 80 ­22.5% Colombia Chile Total 770 798 3.5% 30.7% 51.0% Figures expressed in US$ as of June 2008.

  8. Slide 8: Solid Financial Ratios

    Solid Financial Ratios US$ m Veces Times 2,000 10 9 1,631 1,600 1,540 8 1,279 7 1,200 1,105 6 4.9 971 875 4.3 4.7 5 4.3 4.0 800 3.5 4 2.6 2.8 2.7 3.2 3.0 2.6 3 335 346 349 322 355 350 400 2 1 0 0 2003 2004 2005 2006 2007 Jun‐08 TTM Ebitda Interest Expense Debt/Ebitda Ebitda/Int. Exp. EBITDA growth à

  9. Slide 9: Recognition of strong financial position

    Recognition of strong financial position 7,000 Financial Debt Evolution Financial Debt by Currency 5,950 6,000 23% 4,920 5,000 4,702 4,426 4,327 4,087 4,124 4,076 3,859 3,904 4,000 US$ m 3,000 11% 2,000 66% 1,000 US$ UF­Ch$ Lo cal Cur r en cies ­ 06 99 00 01 02 03 04 05 07 08 n­ 19 20 20 20 20 20 20

  10. Slide 10: Comfortable debt maturity profile

    Comfortable debt maturity profile Chile US$ m Chile: US$ 2.8 bn US$ m Colombia: US$ 754 m 700 631 600 552 300 208 500 166 159 407 416 200 130 400 88 100 3 300 215 0 202 214 200 ce 09 10 11 13 15 16 17 08 12 14 100 20 20 20 20 20 20 20 20 20 20 an 100 al 19 13 15 B 0 US$ m Argentina US$ 316 m ce 08 0

  11. Slide 11: Conservative commercial policy

    Conservative commercial policy » Hydrology risk » Exchange rate risk Minimize variation of » Electricity demand growth margin » Portfolio of generation assets » Evolution of fuel prices Chile Argentina Colombia Peru 21% 15% 27% 54% 32% 42% 10% 79% 53% 63% 4% Regulated Unregulated Spot Physical sales

  12. Slide 12: Chile: largest electricity generator

    Chile: largest electricity generator 1H07 1H08 ∆% (US$ m) Gen. Mix as of June 2008 Revenues 856 1,164 35.9% Oper. Costs 531 835 57.1% Oper. Result 306 311 1.7% 43% Hydro Sales (GWh) 9,702 9,227 (4.9%) 57% Thermal R. Price (US$/MWh) 73 118 61.6% S. Price (US$/MWh) 151 266 76.2% Figures expressed in r

  13. Slide 13: Argentina: leading privately-owned electricity generator

    Argentina: leading privately‐owned electricity generator (US$ m) 1H07 1H08 ∆% Gen. Mix as of June 2008 13% Revenues 265 313 18.4% Oper. Costs 225 285 26.3% Oper. Result 36 25 (31.4%) Hydro Sales (GWh) 6,334 5,706 (9.9%) Thermal R. Price (A$/MWh) 50 55 10% S. Price (A$/MWh) 73 92 26% 87% Figures expr

  14. Slide 14: Colombia: leading privately-owned electricity generator

    Colombia: leading privately‐owned electricity generator (US$ m) 1H07 1H08 ∆% Gen. Mix as of June 2008 5% Revenues 333 395 18.5% Oper. Costs 164 177 7.8% Oper. Result 164 212 29.5% Hydro Sales (GWh) 7,226 7,891 9.2% 95% Thermal M. Price (Col$/kWh) 79 92 16.5% S. Price (Col$/kWh) 90 93 3.3% Figures ex

  15. Slide 15: Peru: largest privately-owned electricity generator

    Peru: largest privately‐owned electricity generator (US$ m) 1H07 1H08 ∆% Gen. Mix as of June 2008 Revenues 180 171 (5.1%) Oper. Costs 100 115 14.8% Oper. Result 68 47 (31.8%) 42% Hydro Sales (GWh) 3,957 4,194 6.0% 58% Thermal R. Price (US$/MWh) 37 39 5.4% S. Price (US$/MWh) 38 45 18.3% Figures expre

  16. Slide 16: Strengths and opportunities to invest

    Strengths and opportunities to invest Region à growing Endesa Chile à in good shape Ø Economic stability Ø Attractive portfolio of Gx assets Ø Growing demand Ø Diversified energy resources (water, gas, coal, diesel, wind) Ø Positive changes in regulation Ø Flexible commercial policy Ø Financial capa

  17. Slide 17: Our future … based on growth

    Our future … based on growth 16,000 14,000 ü Near 2,000 MW of new capacity in MW 12,000 the next 5 years 10,000 ü Almost half of new capacity is already 8,000 under construction 6,000 4,000 ü Total Investment of approximately US$ 3.5 billion in the next 5 years 2,000 Projected ­ 2004 2005 2006 2007

  18. Slide 18: Contributing with more generation capacity

    Contributing with more generation capacity Start‐up during 2007 San Isidro II Palmucho Canela 248 MW 32 MW 18 MW Chile Chile Chile 2008 ‐ 2009 2010, onwards San Isidro II Taltal Quintero Santa Rosa Bocamina II El Quimbo Choshuenco 105 MW 120 MW 240 MW 188 MW 350 MW 400 MW 128 MW Chile Chile Chile Pe

  19. Slide 19: Aware of our environment and corporate social responsibility

    Aware of our environment and corporate social responsibility Aw ards and Certifications » ISO 14001 standards: as of March 2008, 95.9% of installed capacity certified » OHSAS 18001 standards: as of December 2007, 96.1% of installed capacity certified » Important prizes: » 2007: 1st place in Chile of

  20. Slide 20: Conclusions

    Conclusions üMultinational private electricity generator with leading market positions in most countries where we operate. üEfficient assets distributed within South America üPortfolio of projects add value to Endesa Chile üExcellent reputation and high level of technical standards. üThrough its vas

  21. Slide 21: Endesa Chile’s Investor Relations Team

    Endesa Chile’s Investor Relations Team Jaime Montero Juan Pablo Reitze Investor Relations Director Head of Investor Relations (56­2) 634­2329 (56­2) 630 96 03 jfmv@endesa.cl jprv@endesa.cl Irene Aguiló Jacqueline Michael M. Teresa Fuentealba Investor Relations Executive Investor Relations Executive

Endesa Chile — 1H 2008 Earnings Presentation on 6ix