Enel Chile Sa · BCS:ENELCHILE

Enel Chile Sa — Endesa Chile — Investor Presentation (June 2015)

34 slides from Enel Chile Sa's investor presentation, June 2015

  1. Slide 1: Endesa Chile IR Presentation 1H 2015

    Endesa Chile IR Presentation 1H 2015

  2. Slide 2: Organization structure

    Organization structure ITALY Committed Shareholders 61% Enersis S.A. CHILE Chilean Pension 60% 14% Funds 7% 3% ADRs (Citibank 60% N.A.) 16% Retail CHILE Institutional Investors  PEHUENCHE, 93%  CELTA, 96%  GASATACAMA, 98% COLOMBIA PERU ARGENTINA BRAZIL1 CHILE1 • ENEL BRASIL, 37% •GNL Quintero, 20

  3. Slide 3: A unique portfolio in LatAm's generation business

    A unique portfolio in LatAm’s generation business BRAZIL No. 2 COLOMBIA 987 MW inst. Capacity 3,059 MW inst. capacity Hydro: 665 MW Hydro: 2,615 MW Thermal : 322 MW Thermal : 444 MW 1% market share1 20% market share1 PERU No. 1 1,673MW inst. capacity No. 2 ARGENTINA Hydro: 776 MW Thermal : 896 MW 3,

  4. Slide 4: Well diversified generation assets throughout the region

    Well diversified generation assets throughout the region Coal: 872 MW Hydro: 8,840 MW Installed Capacity: 15,722 MW Colombia: 2,615 MW Colombia: Brazil1: 236 MW 665 MW 87 Peru: 776 MW Chile: Chile: HYDRO 636 MW 3,456 MW Argentina: 5,923 1,328 MW COAL 8,840 OIL-GAS Oil-Gas: 5,923 MW NCRE NCRE2: 87 MW

  5. Slide 5: Diversified source of EBITDA

    Diversified source of EBITDA Total Installed Capacity1: Total Generation: 14,735 MW 25,259 GWh Argentina Argentina 23% 25% Chile 35% Chile 43% Peru Peru 16% 11% EBITDA 1H15 Colombia Colombia 26% 21% US$ 744 million Argentina 5% Peru Chile 20% 31% Enel Brasil • Endesa Chile’s ownership: 37.1%. • Net

  6. Slide 6: Balanced commercial policy

    Balanced commercial policy Physical Sales as of June 2015: 29,795 GWh Chile Colombia Peru Argentina 6% 10% 5% 18% 29% 50% 52% 38% 76% 21% 95% Distribution Unregulated Spot Companies Customers Physical Sales as of June 2015 Gwh / Change1 CHILE COLOMBIA PERU ARGENTINA TOTAL REGULATED 8,592 10% 4,025 1

  7. Slide 7: Consolidated financial highlights

    Consolidated financial highlights US$ Mn2 Ch$ million1 1H15 1H14 Change 1H15 Revenues 1,296,577 1,137,127 14% 2.087 Costs (698,801) (602,407) 16% (1.125) Contribution Margin 597,776 534,720 12% 962 EBITDA 462,624 422,582 9% 744 EBIT 350,423 325,354 8% 564 Net Financial Expenses (83,575) (81,459) 3%

  8. 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) Contrated energy Chile (TWh) Contrated energy Colombia (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 202

  9. Slide 9: Healthy debt maturity profile

    Healthy debt maturity profile • Debt reduction: Financial Debt Maturity1 as of June 2015 US$ 850 MM Total Debt: US$ 3,555 MM • Cash: 2.500 1.964 US$ 95 MM 2.000 • Committed Credit Lines: 1.500 US$ 344 MM 1.000 553 261 • Non-Committed Credit Lines: 500 208 94 79 180 104 18 51 22 21 US$ 282 MM 0 < 1 y

  10. Slide 10: Consolidated Cash Flow Generation (US$ million)

    Consolidated Cash Flow Generation (US$ million)1 1.200 1.000 800 513 (503) 600 42 (0) (67) 400 542 (514) 200 81 3 95 0 Cash and Funds from Capex Funds from Other Loan Dividend Other Exchange Cash and equivalents operations assets investments payments payment financing rate effects equivalents Dec-14

  11. Slide 11: Increasing electricity demand in LatAm

    Increasing electricity demand in LatAm Historic electricity demand growth 210% (CAGR, last ten years) 7.3% 190% Total 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 includes 201

  12. Slide 12: Markets with high potential for growth

    Markets with high potential for growth Direct relation between GDP and electricity demand 18,000 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

  13. Slide 13: Historical evolution of Endesa Chile's installed capacity (MW)

    Historical evolution of Endesa Chile’s installed capacity (MW) 4% increase in installed capacity through projects under construction 14,735 15,284 1% GasAtacama 1% 13,845 1% 781 MW*** 12,347 11,726 44% 42% 32% 42% 33% El Quimbo Salaco 400 MW 145 MW*** Los Cóndores 150 MW 6,002 33% 68% 67% 57% 55% 57

  14. 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

  15. Slide 15: Market value and dividends

    Market value and dividends EBITDA (US$ Million1) Market Value (US$ Million1) 1,877 1,920 1,660 1,716 12,606 13,250 105 1,417 80 11,015 11,188 11,248 190 81 98 324 248 44 276 523 245 510 704 866 659 1.059 821 468 639 649 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 CHILE COLOMBIA PERU ARGENTINA

  16. Slide 16: 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: Jun. 2015 Dec. 2014 Nov. 2014 Jun. 2015 Jul. 2015 International market Chilean market RATINGS BASED UPON: • Well diversified and efficient assets • Leading market share in th

  17. Slide 17: Corporate Reorganization

    Corporate Reorganization Summary Significant Event: July 27, 2015 The Board of Directors resolved that, if approved, the transaction should be executed as follows: • EXECUTION STRUCTURE Each of the current companies known as Chilectra, Endesa Chile and Enersis would carry out spin-offs, in order to

  18. Slide 18: 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@enel.com catalina.gonzalez@enel.com Guillermo Berguecio Francisco Basauri Investor Relations Analyst Investor Relations Analyst

  19. Slide 19: Exhibits

    EXHIBITS Endesa Chile Investor Presentation 1H15 USE: Public, Investor Relations 19

  20. Slide 20: Endesa Chile's corporate history

    Endesa Chile’s corporate history •September 2004, Ralco •As of December 2014, Endesa Chile and • July 1994, Endesa Chile’s hydroelectric plant started its subsidiaries 184 electricity units with an stock begins to trade on the operations adding 690 MW of installed capacity of 14,715 MW New York Stoc

  21. Slide 21: Installed capacity added in 2014

    Installed capacity added in 2014 Purchase of additional 50% stake of GasAtacama Attractive investment • Thermal power plant, Gas – CCGT (6 units) • Endesa Chile became the controller of GasAtacama (98%). • 780 MW of installed capacity. • Enhanced the role of the Company by reaching 20% market share

  22. Slide 22: Installed capacity added in 2014

    Installed capacity added in 2014 Colombia Salaco Chain (optimization) • Upgraded 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 c

  23. Slide 23: Highlights

    Highlights Consolidated generation rose by 8% Consolidated EBITDA increased by 9% Significant improvement in Chile Bocamina II restarted its operations El Quimbo started to fill its reservoir Redefined portfolio, 36 projects amounting to 6,300 MW Endesa Chile Investor Presentation 1H15 USE: Public,

  24. Slide 24: Argentina

    Argentina Installed Capacity: 3,652 MW Thermal Costanera: 2,324 MW Market Share*: 12% 2,324 MW Total Generation: 5,783 GWh Hydro El Chocón: 1,328 MW COSTANERA 1,328 MW Million US$ 1H 2015 1H 2014 Change Revenues 71 59 20% EBITDA 28 28 2% EBITDA Margin 40.0% 47.2% (15%) Physical Sales (GWh) 4,495 3,4

  25. Slide 25: Chile

    Chile Tarapaca Installed Capacity: 6,351 MW ENDESA CHILE GasAtacama Market Share*: 32% D. Almagro– Los Molles: 18 MW Taltal Total Generation: 8,691 GWh Rapel-Sauzal: 466 MW Huasco Maule: 875 MW 54% Hydro Million US$ 1H 2015 1H 2014 Change 3,456 MW Los Molles Laja: 940 MW San Isidro Revenues 1,186 89

  26. Slide 26: Colombia

    Colombia Installed Capacity: 3,059 MW EMGESA Market Share*: 20% Guavio: 1,213 MW Total Generation: 6,642 GWh Betania: 541 MW 85% Hydro Río Bogotá: 861 MW 2,615 MW Million US$ 1H 2015 1H 2014 Change Cartagena: 208 MW 15% Thermal Revenues 529 580 (9%) Termozipa: 236 MW 444 MW EBITDA 329 383 (14%) EBIT

  27. Slide 27: Peru

    Peru Installed Capacity: 1,673 MW EDEGEL Market Share*: 19% Total Generation: 4,143 GWh Cuenca Río Rímac: 582 MW 46% Hydro Yanango: 43 MW 776 MW Chimay: 152 MW Million US$ 1H 2015 1H 2014 Change Revenues 278 271 3% Ventanilla: 484 MW 54% Thermal Santa Rosa: 413 MW 896 MW EBITDA 145 140 4% EBITDA Mar

  28. Slide 28: Brazil

    Brazil Installed Capacity: 987 MW Market Share*: 1% Thermal Fortaleza: 322 MW Total Generation: 2,056 GWh 322 MW CACHOEIRA Cachoeira: 665 MW Hydro 665 MW Million US$ 1H 2015 1H 2014 Change Revenues 85 169 (50%) EBITDA 70 106 (33%) EBITDA Margin 82.8% 62.6% 32% Physical Sales (GWh) 1,574 2,171 (27%)

  29. Slide 29: Summary

    Summary Higher consolidated energy sales due to increasing electric demand Consolidated EBITDA increased by 9%, mainly explained by Chile Solid financial position Bocamina II restarted its operations LNG potential increase offtake El Quimbo started to fill its reservoir Corporate reorganization proc

  30. 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 8,176 Installed COAL 636 236 0 0 872 Capacity (MW) OIL-GAS 2,173 208 896 2,324 5,601 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

  31. Slide 31: Strong financial position

    Strong financial position US$ Mn1 Ch$ Million 1H15 1H14 Change % Change 1H15 Gross Debt 2,125,598 2,116,462 9,136 0% 3,326 Cash 60,911 336,629 (275,718) (453%) 95 Net Debt 2,064,687 1,779,833 284,854 14% 3,231 Leverage 1.04 1.05 (0.01) (1%) Financial Coverage 4.95 4.74 0.21 4% 1Amounts translated in

  32. Slide 32: Healthy debt maturity profile in each country

    Healthy debt maturity profile in each country Financial Debt Maturity1, as of June 2015 US$ million 2015 2016 2017 2018 2019 Balance TOTAL Chile 506 11 11 11 49 1,202 1,789 Argentina 23 40 8 2 2 34 110 Peru 31 75 27 37 16 28 214 Colombia 130 8 82 100 156 966 1,441 TOTAL2 690 134 128 151 223 2,229 3,

  33. Slide 33: Strong performance paired with a conservative financial policy

    Strong performance paired with a conservative financial policy 5.000 20,0 4.126 4.000 3.535 15,9 3.336 3.116 3.106 15,0 2.994 1.977 2.933 3.000 2.097 2.014 2.031 2.248 8,9 8,0 7,1 10,0 7,4 5,4 1.920 2.000 1.661 5,6 1.000 5,0 2,0 1,5 1,5 1,5 2,1 1,5 1,5 - - 2008 2009 2010 2011 2012 2013 2014 Net Debt

  34. Slide 34: Forward-looking statements

    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

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