Slide 1: Endesa Chile IR Presentation
endesachileirpresentation AS OF MARCH 31, 2011
Slide 2: Who is Endesa Chile? Ownership structure
whoisendesachile? We are Ownership part of Enel structure Group 92% 61% Chilean Pension Other Inst. Minority ADR Holders Funds Shareholders Shareholders 60% 16% 4% 16% 4% Pehuenche San Isidro Emgesa Edegel Costanera Endesa Brasil 92% 100% 27% 62% 70% 39% Pangue Endesa Eco El Chocón Ampla 95% 100% 65
Slide 3: A unique portfolio in Latam's Generation business
whoisendesachile? A unique portfolio in Latam’s Generation business Colombia N 1 2,914 MW inst. capacity Brazil 987 MW inst. capacity 22% market share 1% market share in generation Peru N 1 1,668 MW inst. capacity 26% market share Argentina N 1 Chile N 1 3,652 MW inst. capacity 5,611 MW inst. capaci
Slide 4: Operational aspects in the SIC
Operationalaspects in the SIC Greater predictability and stability in prices Range of US$/MWh Demand Supply Peak Turbine Marginal hourly cost 230-290 - US$/MWh MWh Diesel-Fuel 130-230 US$/MWh MWh LNG Combined Cycle 80--130 US$/MWh Biomass 60 US$/MWh Coal 30-60 - US$/MWh MWh Wind Power Hydro MW 8 US$
Slide 5: Operational aspects: integrated risk management
operationalaspects Integrated risk management capability Target output and sales in Risk variables affecting margins future years Rainfall 100% Growth in demand Extreme Fuel prices hydro volatility Spot Exchange rates Inflation Hydro 75% Regulated Risk limit and free Real margin ≥ 0.9x exp
Slide 6: Commercial policy
Commercialpolicy Conservative management » Hydrology risk » Evolution of fuel » Electricity demand growth Minimize margin prices » Portfolio of generation variation » Exchange rate risk assets Physical sales as of March 2011 Chile Colombia Peru Argentina 2% 9% 18% 32% 33% 48% 25% 82% 66% 66% 19% Reg
Slide 7: Operational aspects: figures by country
operationalaspects Figures by country as of March 2011 Total Installed Capacity: 13,846 MW Total Generation: 12,791 GWh Peru Peru 12% 18% Chile 41% Chile Colombia 38% 21% Colombia 22% Argentina Ebitda March 2011: US$ 417,935 million Argentina 26% 22% Peru 16% Colombia 18% Chile 58% Argentina 8% Affi
Slide 8: Summary of consolidated results
operationalaspects Summary of consolidated results Var. % US$ million FY10 1Q11/1Q10 1Q10 1Q11 (a) Revenues 5,055 1,100 1,191 8.3% Operating income 1,849 364 329 (9.6%) Contribution margin 51% 51% 50% - Ebitda 2,222 468 418 (10.8%) Net income (b) 1,107 195 201 3.3% Physical sales (GWh) 56,641 12,174
Slide 9: Financial aspects: strong financial position
financialaspects Strong financial position Gross Debt byType (million US$) Net Debt Evolution 5000 Others, 380 Banks, 3,833 697 4000 3,612 3,239 3,292 3,306 3,065 3000 US$ millon Local Bonds, Yankee 2000 1,706 Bonds, 1,310 1000 0 Total gross debt: US$4,093 million 2006 2007 2008 2009 2010 Mar-11 Deb
Slide 10: Comfortable debt maturity
financialaspects Comfortable debt maturity Financial Debt (US$ million) 2011 2012 2013 2014 2015 Balance Total Chile 24 83 421 222 170 1,153 2,073 Argentina 106 73 44 44 30 0 298 Peru 44 60 50 50 34 186 423 Colombia 165 163 0 76 133 762 1,299 Total 339 379 516 391 367 2,101 4,093 Financial Debt by C
Slide 11: Strong financial ratios
financialaspects Strong financial ratios Net debt/EBITDA 3 2.5 2 2.5x 1.5 1.6x 1.5x 1.5x 1.5x 1 Endesa Chile‘s investment grade 0.5 status restored 0 2007 2008 2009 Dec-10 Mar-11 EBITDA/Net financial expenses 9 7.7 8.3 8.2 8 6.5x 7 6 5 4 5.0x Endesa Chile’s 3 2 investment grade 1 status restored 0 2
Slide 12: Market Value and Dividends
consolidatedresults Market Value and Dividends CAGR = 11% 15,365 13,954 (US$ m) Market Value 10,072 10,393 9,428 2006 2007 2008 2009 2010 (Ch$ x share) CAGR = 25% 32.5 Dividends 26.8 21.3 13.4 13.8 2006 2007 2008 2009 2010 endesachileirpresentation 12
Slide 13: Direct relation between GDP and electricity demand
whereareweheadingto? Direct relation between GDP and electricity demand Real GDP vs. Electricity Demand per Capita 18 Finland 16 Sweden 14 Electricity demand per capita (Gwh) 12 United States 10 8 France Spain Russia Germany Slovakia Italy 6 Denmark Portugal United Kingdom 4 Greece Chile Argentina 2
Slide 14: Projects under construction
whereareweheadingto? Projects under construction Bocamina II, coal-steam, Chile Location: next to the existing Bocamina I coal-fired plant Installed capacity: 370 MW Fuel type: imported coal Estimated start-up: December 2011 El Quimbo, hydro power plant, Colombia Installed capacity: 400 MW
Slide 15: Projects under study
whereareweheadingto? Projects under study Los Cóndores, hydro Neltume, hydro power plant run-of-the-river plant Installed capacity: Installed capacity: 150 MW 490 MW Piruquina, mini-hydro Choshuenco, hydro run-of-the-river plant power plant Installed capacity: Installed capacity: 7.6 MW 128
Slide 16: Aysen Hydroelectric Project, Chile
whereareweheadingto? Projects under study Aysen Hydroelectric Project, Chile Installed capacity: 2,750 MW Endesa Chile’s owns 51% and Colbún 49% Takes advantage of water: natural resource, renewable and clean CO2 emissions: Reduction of 16.2 million tons/year 1st half 2009: first set of an
Slide 17: Aysen Hydroelectric Project: most efficient plants worldwide
whereareweheadingto? Projects under study Aysen Hydroelectric Project, Chile Power plants will be the most efficient in electricity generation worldwide Average load factor 77% Transmission line direct current (HVDC) of 1,912 kilometers, from Cochrane to Santiago. Energy vs. floaded surface 3.5 G
Slide 18: General highlights
whoisendesachile? General highlights Vast experience, with over 66 years of history Multinational electricity generation company based in Chile Leading market position in most of the countries where it operates Large and efficient investment portfolio of generation assets within South Americ
Slide 19: Disclaimer
Disclaimer This presentation contains statements that constitute or may constitute statements about the future, as established in the United States Private Securities Litigation Reform Act of 1995. Such statements appear frequently in this presentation with statements referring to our intentions, be
Slide 20: Endesa Chile's Investor Relations Team
Endesa Chile’s Investor Relations Team Susana Rey Investor Relations Director (56-2) 630 96 06 susana.rey@endesa.cl Denisse Labarca Irene Aguilo M. Teresa Fuentealba Head of Investor Relations Investor Relations Executive Investor Relations Executive (56-2) 630 96 03 (56-2) 630 96 04 (56-2) 630 95 0
Slide 21: Endesa Chile's Investor Relations Team
Endesa Chile’s Investor Relations Team 21