Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Endesa Chile — Q1 2015 Earnings Presentation
33 slides from Enel Chile Sa's earnings presentation, Mar 31, 2015
Slide 1: Endesa Chile IR Presentation
Endesa Chile IR Presentation As of March 31, 2015
Slide 2: Organization structure
Organization structure ITALY Committed Shareholders 61% CHILE Enersis S.A. 60% 14% Chilean Pension Funds 7% 3% ADRs (Citibank N.A.) 16% 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. 3,059 inst capacity BRAZIL Hydro: 2,615 MW 987 MW inst. Capacity Thermal : 444 MW Hydro: 665 MW 20% market share1 Thermal : 322 MW No. 1 1% market h 1 k t share PERU 1,652 MW inst. capacity Hydro: 776 MW Th Thermal l : 8
Slide 4: Well diversified generation assets throughout the region
Well diversified generation assets throughout the region H d Hydro: 8 840 MW 8,840 C l 872 MW Coal: Colombia: Installed Capacity: 15,722 MW 2,615 MW Brazil1: Colombia: 665 MW 236 MW Peru: 87 776 MW Chile: Chile: 636 MW 3,456 MW HYDRO Argentina: 1,328 MW 5,923 COAL 8,840 , OIL-GAS Oil-Gas: 5,923 MW N
Slide 5: Diversified source of EBITDA
Diversified source of EBITDA Total Installed Capacity1: Total Generation : 14,735 MW 12,403 GWh Argentina A ti Argentina 25% 23% Chile Chile 34% 43% Peru 11% Peru 17% Colombia Colombia 21% EBITDA 1Q15 26% US$ 360 million Argentina 6% Peru Chile 20% 31% Enel Brasil • Endesa Chile’s ownership: 37.1%.
Slide 6: Balanced commercial policy
Balanced commercial policy Physical Sales as of March 2015: 14,554 GWh Chile Colombia Peru Argentina 5% 13% 6% 19% 31% 47% 52% 35% 76% 22% 94% Distribution Free Companies Customers Spot Physical Sales as of March 2015 Gwh / Change1 CHILE COLOMBIA PERU ARGENTINA TOTAL REGULATED 4,360 11% 1,733 1% 1,1
Slide 7: Consolidated financial highlights 1Q15
Consolidated financial highlights 1 MM US$2 Ch$ million 1Q15 1Q14 Change 1Q15 Q Revenues 639,772 520,726 23% 1,024 Costs (345,018) (282,571) 22% (552) Contribution Margin 294,754 238,155 24% 472 EBITDA 224,940 183,643 22% 360 EBIT 168,008 136,012 24% 269 Net Financial Expenses (41,789) (48,707) (14%
Slide 8: Revenue stability through long term contracts
Revenue stability through long term contracts Energy contracts with established prices Chile– Contracted energy (TWh) Colombia – Contracted energy (TWh) 24 12,0 20 10,0 16 8,0 12 6,0 8 4,0 4 2,0 0 0,0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Slide 9: Healthy debt maturity profile
Healthy debt maturity profile Financial Debt Maturity1 as of March 2015 • Debt reduction: 2.500 US$ 660 MM US$ million 2 084 2,084 T t l Debt: Total D bt US$ 3,185 3 185 MM 2.000 • Cash: 1.500 US$ 217 MM 1.000 • Committed Credit Lines: 500 US$ 326 MM 208 122 163 167 174 94 94 18 51 6 4 0 • Non-Commi
Slide 10: Consolidated cash flow generation
Consolidated cash flow generation ((US$ million))1 900 800 (190) (16) 700 293 72 600 ((243)) 500 400 (152) 300 539 (85) 2 200 100 219 0 Cash and Funds from Capex Funds from Other Loan Dividend Other Exchange Cash and equivalents operations assets investments payments payment financing rate effects e
Slide 11: Increasing electricity demand in LatAm
Increasing electricity demand in LatAm Historic electricity demand growth (CAGR last ten years) (CAGR, 210% 7.3% 190% h (%) Tottal 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 inc
Slide 12: Markets with high potential for growth
Markets with high potential for growth Direct relation between GDP and electricity demand 18,000 CANADA a (Kwh per yearr) 16,000 FINLAND 14,000 UNITED STATES 12,000 ption, per capita AUSTRALIA 10,000 8,000 JAPAN AUSTRIA FRANCE GERMANY ctricity consump RUSSIA 6,000 SPAIN ITALY UNITED KINGDOM GREECE 4
Slide 13: Historical evolution for Endesa Chile's installed capacity (MW)
Historical evolution for Endesa Chile´s installed capacity (MW) 4% increase in installed capacity through projects under construction 15,284 14,735 13,845 1% 1% GasAtacama 1% 781 MW 12,347 11,726 44% 42% 42% 32% 33% El Quimbo 400 MW Salaco Los Cóndores 145 MW 150 MW 6,002 33% 68% 67% 57% 55% 57% 67%
Slide 14: Projects under construction
Projects under construction El Quimbo Los Cóndores • Hydro power plant, located in the Huila Department, Colombia • Hydro power plant, run of the river. • Utilizes the flow coming from the Magdalena River. • Located in San Clemente, in Maule region, Chile. • 400 MW of installed capacity with an esti
Slide 15: Projects under study
Projects under study Taltal (Conversion) Neltume Curibamba • Closed to upgrade the existing • Hydro power plant, run of the river. • Hydro power plant, run of the river. LNG power plant, to a Combined • Located in Panguipulli, in the Los Ríos • Located in the Junín Department, will Cycle Gas Turbine
Slide 16: 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 17: 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 f and efficient ff assets • Leading market share
Slide 18: 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 Solid liquidity and financial position LNG Competitive position in Chile Growth potential with GasAtac
Slide 19: 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 20: EXHIBITS
EXHIBITS endesa chile
Slide 21: Endesa Chile's corporate history
Endesa Chile’s corporate history •September 2004, Ralco • July 1994, Endesa Chile’s hydroelectric plant started •As of December 2014, Endesa Chile stock begins to trade on the operates directly or through subsidiaries operations adding 690 MW of New York Stock Exchange 184 electricity units with an
Slide 22: Installed capacity added in 2014: GasAtacama
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 23: Installed capacity added in 2014: Salaco Chain
Installed capacity added in 2014 Colombia Salaco Chain (optimization) • Upgreaded 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
Slide 24: 1Q 2015 Highlights
1Q 2015 Highlights Higher energy demand in all the countries where we operate +4.1% in Chile; +3.3% in Colombia; +5.3% in Peru; and +7.2% in Argentina Better performance in Chile due to GasAtacama and higher energy sales Higher performance in Colombia due to greater margin offset by wealth tax Conso
Slide 25: Argentina
Argentina Installed Capacity: 3,652 MW Market Share*: 11% Total Generation: 2,792 GWh EL CHOCON Hydro El Chocón: 1,328 MW 1,328 MW Million US$ 1Q 2015 1Q 2014 Change Revenues 11 10 11% EBITDA 6 5 23% EBITDA Margin 54.1% 49.1% 10% Physical Sales (GWh) 727 735 (1%) Buenos Aires Costanera COSTANERA Cos
Slide 26: Chile
Chile Installed Capacity: 6,351 MW Market Share*: 32% Total Generation: 4,272 GWh Tarapaca ENDESA CHILE GasAtacama Los Molles: 18 MW Rapel-Sauzal: 466 MW D. Almagro–Taltal Maule: 875 MW 54% Hydro Laja: 940 MW 3,456 MW Huasco Ralco-Pangue: 1,157 MW L Molles Los M ll GasAtacama 780 MW San Isidro Santi
Slide 27: Colombia
Colombia Installed Capacity: 3,059 MW Market Share*: 20% Total Generation: 3,196 GWh Cartagena EMGESA Guavio: 1,213 , MW Betania: 541 MW 85% Hydro 2,615 MW Termozipa Río Bogotá: 861 MW Bogota Guavio C t Cartagena: 208 MW 15% Thermal Betania Termozipa: 236 MW 444 MW Río Bogota Million US$ 1Q 2015 1Q
Slide 28: Peru
Peru Installed Capacity: 1,673 MW Market Share*: 19% Total Generation: 2,143 GWh EDEGEL Cuenca Río Rímac: 582 MW 46% Hydro Yanango: 43 MW 776 MW Chimay: 152 MW Ventanilla: 484 MW 54% Thermal Ventanilla Santa Rosa: 413 MW 896 MW Lima Río Rimac Yanango Sta Rosa Chimay Million US$ 1Q 2015 1Q 2014 Chang
Slide 29: Brazil
Brazil Installed Capacity: 987 MW Market Share*: 1% Total Generation: 1,207 GWh CACHOEIRA Cachoeira: 665 MW Hydro 665 MW Million US$ 1Q 2015 1Q 2014 Change Revenues 42 98 (57%) Fortaleza EBITDA 34 72 (52%) EBITDA Margin 81.7% 73.2% 12% Physical Sales (GWh) 797 1 189 1,189 (33%) Cachoeira FORTALEZA F
Slide 30: Installed capacity and energy generation
Installed capacity and energy generation MW CHILE COLOMBIA PERU ARGENTINA TOTAL HYDRO 3,456 2,615 776 1,328 8,175 Installed COAL 660 236 0 0 896 Capacity (MW) OIL-GAS 2,149 208 896 2,324 5,577 NCRE 87 0 0 0 87 Total 6,351 3,059 1,673 3,652 14,735 Gwh / Change1 CHILE COLOMBIA PERU ARGENTINA TOTAL HYD
Slide 31: Healthy debt maturity profile in each country
Healthy debt maturity profile in each country Fi Financial i l Debt i 1, as off March D b Maturity M M h 2015 201 US$ million 2015 2016 2017 2018 2019 Balance TOTAL Chile 218 11 11 11 65 1,185 1,501 Argentina 32 34 6 1 1 39 113 Peru 24 98 51 37 17 28 255 Colombia 0 0 66 85 141 1,025 1,316 TOTAL2 274
Slide 32: Strong performance paired with a conservative financial policy
Strong performance paired with a conservative financial policy p y 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 2.014 1 920 1.920 74 7,4 54 5,4 1 977 1.977 2.000 1.661 8,0 1.500 5,6 6,0 1.000 4,0 2,0 1,5 2,1
Slide 33: 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