Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Endesa Chile — 9M 2015 Earnings Presentation
35 slides from Enel Chile Sa's earnings presentation, September 2015
Slide 1: Endesa Chile IR Presentation 9M 2015
Endesa Chile IR Presentation 9M 2015
Slide 2: Organization structure
Organization structure ITALY Committed Shareholders 61% CHILE Enersis S.A. 60% 15% Chilean Pension Funds 6% 4% ADRs (Citibank N.A.) 15% 60% Retail Institutional Investors CHILE 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 BRAZIL No. 2 COLOMBIA 987 MW inst. Capacity 3,459 MW inst. Capacity 2 Hydro: 665 MW Hydro: 3,015 MW Thermal : 322 MW Thermal : 444 MW 1% market share1 22% market share1 PERU No. 1 1,680MW inst. capacity No. 2 ARGENTINA Hydro: 783 MW Thermal : 896 MW
Slide 4: Well diversified generation assets throughout the region
Well diversified generation assets throughout the region Coal: 872 MW Hydro: 9,247 MW Installed Capacity: 16,129 MW Colombia: 3,015 MW 1 Colombia: Brazil1: 236 MW 665 MW 87 Peru: 783 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
Slide 5: Diversified source of EBITDA
Diversified source of EBITDA Total Installed Capacity1: Total Generation: 15,142 MW 39,002 GWh EBITDA 9M15 US$ 1,306 million Enel Brasil • Endesa Chile’s ownership: 37.1%. • Net Attributable Income2: US$ 44 million. 1 Excludes the proportional assets of Enel Brasil (987 MW). 2 Considers the total co
Slide 6: Balanced commercial policy
Balanced commercial policy Physical Sales as of September 2015: 45,769 GWh Chile Colombia Peru Argentina Distribution Unregulated Spot Companies Customers Physical Sales as of September 2015 Gwh / Change1 CHILE COLOMBIA PERU ARGENTINA TOTAL REGULATED 13,053 11% 6,672 18% 3,394 (11%) - - 23,119 9% Ph
Slide 7: Consolidated financial highlights
Consolidated financial highlights US$ Mn2 Ch$ million1 9M15 9M14 Chg % 9M15 Revenues 2,037,316 1,809,886 13% 3,181 Costs (996,696) (863,812) 15% (1,556) Contribution Margin 1,040,620 946,074 10% 1,625 EBITDA 836,580 771,186 8% 1,306 EBIT 666,661 621,913 7% 1,041 Net Financial Expenses (138,592) (130
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
Slide 9: Healthy debt maturity profile
Healthy debt maturity profile • Debt reduction: Financial Debt Maturity1 as of September 2015 US$ 905 MM Total Debt: US$ 3,307 MM • Cash: 2,000 1,785 US$ 261 MM 1,500 • Committed Credit Lines: 1,000 747 US$ 344 MM, 500 191 • Non-Committed Credit Lines: 62 70 87 47 159 93 28 19 19 US$ 259 MM 0 < 1 ye
Slide 10: Consolidated Cash Flow Generation (US$ million)
Consolidated Cash Flow Generation (US$ million)1 1,600 1,400 1,200 (659) 1,000 892 40 800 (12) 600 (508) 400 (6) 526 200 284 0 Cash and Funds from Capex Funds from Financing Dividend Exchange rate Cash and equivalents operations assets activities payment effects equivalents Dec-14 disposal Sept-15 1
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
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
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 14,715 15,292 1% 1% 13,845 GasAtacama 12,347 1% 781 MW*** 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
Slide 14: El Quimbo (400 MW)
El Quimbo (400 MW) El Quimbo • Hydro power plant, located in the Huila Department, Colombia • Utilizes the flow coming from the Magdalena River. • 97% progress as of September, 2015 . • Estimated: generation of 2,093 GWh/year, Load factor: 60% • Total CAPEX of US$ 1,231 million*. Started its testing
Slide 15: Projects under construction
Projects under construction Los Cóndores • Hydro power plant, run of the river. • Located in San Clemente, in Maule region, Chile. • 150 MW of installed capacity. • Estimated generation of 600 GWh/year. • Estimated load factor: 46%. • Total CAPEX of US$ 662 million. • 20% progress as of September, 2
Slide 16: Market value and dividends
Market value and dividends 1,877 EBITDA (US$ Million1) 1,920 Market Value (US$ Million1) 1,660 1,716 105 1,417 80 81 12,606 13,250 190 98 324 44 11,015 11,188 11,248 248 276 523 245 510 704 866 659 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: 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
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
Slide 19: EXHIBITS
EXHIBITS Endesa Chile Investor Presentation 9M15 USE: Public, Investor Relations 19
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
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
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
Slide 23: Highlights 3Q15
Highlights 3Q15 Chilean EBITDA amounted to US$MM 280 in 3Q15, increasing 33%. Resumption of Bocamina I & II. Consolidated energy sales rose by 5% in 3Q15. Consolidated EBITDA increased by 7% in 3Q15, reaching US$MM 584. Net Income attributable to shareholders of Endesa Chile grew by 9% in
Slide 24: 3Q15 Results
3Q15 Results Million US$ 3Q15 3Q14 Chg % CONSOLIDATED Million US$ 3Q15 3Q14 Chg % Revenues 163 140 16% PERU Revenues 1,157 1,051 10% EBITDA 584 544 7% EBITDA 76 71 7% EBITDA Margin 50% 52% (4%) EBITDA Margin 47% 51% (8%) Physical Sales (GWh) 15,975 15,254 5% Physical Sales (GWh) 2,168 2,311 (6%) Mil
Slide 25: Argentina
Argentina COSTANERA Thermal Installed Capacity: 3,652 MW 2,324 MW Million US$ 9M15 9M14 Chg % Market Share*: 12% Hydro Total Generation: 8,680 GWh 1,328 MW Revenues 113 83 36% EBITDA 47 34 36% EBITDA Margin 41.5% 41.5% 0% Physical Sales (GWh) 6,225 5,301 17% EL CHOCON Costanera Million US$ 9M15 9M14
Slide 26: Chile
Chile Installed Capacity: 6,351 MW Market Share*: 32% Total Generation: 13,382 GWh Tarapaca GasAtacama Los Molles: 18 MW D. Almagro– ENDESA CHILE Rapel-Sauzal: 466 MW Taltal Maule: 875 MW 54% Hydro Huasco Laja: 940 MW 3,456 MW Los Molles Million US$ 9M15 9M14 Chg % Ralco-Pangue: 1,157 MW San Isidro
Slide 27: Colombia
Colombia Installed Capacity: 3,459 MW1 Market Share*: 22%1 Total Generation: 10,750 GWh Guavio: 1,213 MW Betania: 541 MW EMGESA Río Bogotá: 861 MW 87% Hydro 3,015 MW El Quimbo: 400 MW Million US$ 9M15 9M14 Chg % Cartagena: 208 MW 13% Thermal Revenues 820 919 (11%) Termozipa: 236 MW 444 MW EBITDA 510
Slide 28: Peru
Peru Installed Capacity: 1,680 MW Market Share*: 19% Total Generation: 6,190 GWh Cuenca Río Rímac: 588 MW 47% Hydro EDEGEL Yanango: 43 MW 783 MW Chimay: 152 MW Million US$ 9M15 9M14 Chg % Ventanilla: 484 MW 53% Thermal Santa Rosa: 413 MW 896 MW Revenues 432 403 7% EBITDA 217 207 5% EBITDA Margin 50.
Slide 29: Brazil
Brazil Installed Capacity: 987 MW Market Share*: 1% Total Generation: 3,037 GWh Million US$ 9M15 9M14 Chg % Thermal BRASIL Fortaleza: 322 MW ENEL Revenues 2,439 2,444 (0%) 322 MW EBITDA 433 556 (22%) Hydro Cachoeira: 665 MW 665 MW EBITDA Margin 17.8% 22.7% (22%) Million US$ 9M15 9M14 Chg % CACHOEIRA
Slide 30: Summary
Summary Higher energy sales of 9% due to increasing electric demand Consolidated generation grew by 4% Consolidated EBITDA increased by 8% El Quimbo is currently in testing period Bocamina I and II resumed operations Endesa Chile 9M15 Results USE: Public, Investor Relations 30
Slide 31: Installed capacity and energy generation
Installed capacity and energy generation MW CHILE COLOMBIA 2 PERU ARGENTINA TOTAL HYDRO 3,456 3,015 783 1,328 8,582 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 3,459 1,680 3,652 15,142 Gwh / Change1 CHILE COLOMBIA PERU ARGENTINA TOTAL H
Slide 32: Strong financial position
Strong financial position US$ Mn1 Ch$ Million 9M15 9M14 Change % Change 9M15 Gross Debt 2,084,968 2,116,462 (31,494) (2%) 2,984 Cash 182,095 336,629 (154,534) (85%) 261 Net Debt 1,902,873 1,779,833 123,040 7% 2,723 Leverage* 1.05 1.05 - 0% Financial Coverage 5.47 5.42 0.05 1% 1Amounts translated int
Slide 33: Healthy debt maturity profile in each country
Healthy debt maturity profile in each country Financial Debt Maturity1, as of September 2015 US$ million 2015 2016 2017 2018 2019 Balance TOTAL Chile 442 10 10 10 110 1,134 1,718 Argentina 13 47 11 3 2 34 110 Peru 5 75 27 37 16 28 188 Colombia 87 125 68 83 129 800 1,291 TOTAL2 547 257 116 133 258 1,
Slide 34: Strong performance paired with a conservative financial policy
Strong performance paired with a conservative financial policy Endesa Chile 2014 2013 Financial Expense Coverage1 6.7 6.3 ROE (%) 12.5% 13.6% ROA (%) 8.8% 7.5% 1 EBITDA / (Financial expenses + Income (Loss) for indexed assets and liabilities + Foreign currency exchange differences, net) Endesa Chile
Slide 35: 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