Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Endesa Chile — 9M 2012 Earnings Presentation
32 slides from Enel Chile Sa's earnings presentation, September 2012
Slide 1: Endesa Chile IR presentation
Endesa Chile IR presentation As of September 2012
Slide 2: Our company
Endesa Chile IR presentation 9M 2012 Our company Multinational electricity generation company based in Chile Vast experience, with over 69 years of history Efficient and diversified investment portfolio of generation assets Conservative commercial policy leading to revenue and margin stability
Slide 3: Ownership Structure
Endesa Chile IR presentation 9M 2012 Ownership Structure ENERSIS 92% Chilean Pension Funds 11% 4% 5% Institutional 61% Shareholders 6% ADR Holders 60% 14% Minority Shareholders 60% Other Institutional Shareholders PEHUENCHE, 93% •ENDESA BRASIL, 39% CELTA, 100% AMPLA •COSTANERA, 70% SAN ISIDRO,
Slide 4: A unique portfolio in LATAM's Generation business
Endesa Chile IR presentation 9M 2012 A unique portfolio in LATAM’s Generation business COLOMBIA No. 2 2,914 MW inst. capacity BRAZIL Hydro: 2,470 MW 987 MW inst. capacity Thermal : 444 MW Hydro: 665 MW Thermal : 322 MW 20% market share 1% market share in generation PERU No. 1 1,657 MW inst. capacity
Slide 5: Results affected by the drought in Chile and high fuel costs
Endesa Chile IR presentation 9M 2012 Results affected by the drought in Chile and high fuel costs MM US$ 1 Million Ch$ 9M 2011 9M 2012 Change 9M 2012 Revenues 1,803,980 1,754,084 (3%) 3,583 Gross margin 826,203 764,873 (7%) 1,563 EBITDA 664,416 610,507 (8%) 1,247 EBIT 530,662 469,384 (12%) 959 Net f
Slide 6: EBITDA Generation
Endesa Chile IR presentation 9M 2012 EBITDA Generation Total Installed Capacity1: 13,837 MW Total Generation (TTM): 55,113 GWh Chile Argentina Chile Argentina 41% 20% 39% 26% Peru Peru 16% 12% Colombia Colombia 21% 25% EBITDA 9M2012 TTM: US$ 1,879 million Argentina 3% Chile Peru 41% 15% Endesa Brasi
Slide 7: Conservative Commercial Policy
Endesa Chile IR presentation 9M 2012 Conservative Commercial Policy Physical Sales as of September 2012 Chile Colombia Peru Argentina 5% 5% 17% 30% 29% 30% 53% 65% 65% 83% 18% Regulated Unregulated Spot Physical Sales as of September 2011 Chile Colombia Peru Argentina 4% 8% 17% 29% 32% 51% 64% 27% 6
Slide 8: Strong Financial Position
Endesa Chile IR presentation 9M 2012 Strong Financial Position MM US$ (Million Ch$) 9M 2011 9M 2012 Chg. Chg % 9M2012 Gross Debt 1,897,641 1,838,365 59,276 3.2% 3,880 Cash 281,464 147,299 134,165 91% 311 Net Debt 1,616,177 1,691,066 (74,888) (4%) 3,569 Leverage 0.93 0.87 (0.01) (1%) 0.87 Financial E
Slide 9: Free Cash Flow (US$ million)
Endesa Chile IR presentation 9M 2012 Free Cash Flow (US$ million) 2,248 2,098 2,014 1,879 1,070 1,012 779 717 305 235 251 263 308 353 435 402 394 564 499 549 497 523 462 EBITDA Net Financial Result CAPEX Income Tax FCF Dividends 2009 2010 2011 9M 2012 TTM Amounts are expressed in US$, using the aver
Slide 10: Electricity demand Evolution in LATAM
Endesa Chile IR presentation 9M 2012 Electricity demand Evolution in LATAM Historic electricity demand growth (CAGR, last ten years) 180% 170% 5.5% 5.3% 160% 4.4% Total Sales in GWh (% growth) 150% 140% 3.4% 130% 2.3% 120% 110% 100% 90% Years 80% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 201
Slide 11: Direct relation between GDP and electricity demand
Endesa Chile IR presentation 9M 2012 Direct relation between GDP and electricity demand 18000 16000 FINLAND Electricity consumption, per capita (Kwh per year) CANADA 14000 UNITED STATES 12000 AUSTRALIA 10000 8000 JAPAN FRANCE AUSTRIA SPAIN GERMANY IRELAND 6000 UNITED KINGDOM ITALY RUSSIA GREECE 4000
Slide 12: New Plant Start-Up Increasing Capacity
Endesa Chile IR presentation 9M 2012 New Plant Start-Up Increasing Capacity Bocamina II • Thermal, coal fired power plant • Located in Coronel, Biobío region • 350 MW of installed capacity • Estimated load factor: 65% • Capex: US$ 841 MM Investment • On October 29th, 2012, Bocamina II started its co
Slide 13: Projects Under Construction
Endesa Chile IR presentation 9M 2012 Projects Under Construction El Quimbo • Hydro power plant. • Located in Huila Department • Utilizes stream coming from Magdalena river • 400 MW of installed capacity • Estimated load factor: 60% • River detour in March 2012 • Capex: US$ 837 MM Investment • Estima
Slide 14: Projects Under Study
Endesa Chile IR presentation 9M 2012 Projects Under Study Neltume • Hydro power plant, run of the river • Located in Panguipulli, in Los Ríos region (SIC). • 490 MW of installed capacity. Los Cóndores • Hydro power plant • Located in San Clemente, in Maule region • 150 MW of installed capacity • EIS
Slide 15: Projects Under Study
Endesa Chile IR presentation 9M 2012 Projects Under Study Punta Alcalde • Thermal, Coal-steam power plant • Located in Huasco, in Atacama region (SIC) • 740 MW of installed capacity • EIS approved by the Ministers Committee on Dec 04th 2012 Taltal (optimization) • Closure engineering work to the exi
Slide 16: Projects Under Study
Endesa Chile IR presentation 9M 2012 Projects Under Study Curibamba • Hydro power plant • Located in Junín Department, utilizes streams coming from Comas and Uchubamba rivers • 188 MW of installed capacity • EIS approved. Renaico • Wind farm • Located in Araucanía region (SIC) • 88 MW of installed c
Slide 17: Projects Under Study: Hidroaysén
Endesa Chile IR presentation 9M 2012 Projects Under Study Hidroaysén • Hydro power plant located in Aysén region • 2,750 MW of installed capacity • EIS approved for the generation plants (5) • One of the most efficient hydroelectric projects in the world, using renewable resources • Average load fac
Slide 18: Market Value and Dividends
Endesa Chile IR presentation 9M 2012 Market Value and Dividends EBITDA 1 Dividends (US$ Million) (Ch$ per Share) 3 Dividend Yield: 3.5% 2.248 32.5 2.033 2.098 2.014 1.879 26.8 27.2 1.671 21.3 1.503 13.8 2006 2007 2008 2009 2010 2011 9M 2012 2007 2008 2009 2010 2011 TTM Market Value 2 (US$ Million) 1
Slide 19: Endesa Chile's Investor Relations Team
Endesa Chile IR presentation 9M 2012 Endesa Chile’s Investor Relations Team Susana Rey Catalina Gonzalez Investor Relations Director Head of Investor Relations (56-2) 2630 9606 (56-2) 2630 9603 susana.rey@endesa.cl cbgs@endesa.cl Juan Pablo Vicuña Guillermo Berguecio Investor Relations Executive Inv
Slide 20: Exhibits
Endesa Chile IR presentation 9M 2012 EXHIBITS 20
Slide 21: Highlights of 9M 2012
Endesa Chile IR presentation 9M 2012 Highlights of 9M 2012 Growth of 2.5% in electricity demand in the region Growth of 6.1% in consolidated generation due to 14.8% more hydro generation, mainly in Colombia, Chile and Argentina Growth of 4.1% in physical sales on a consolidated basis Increase of 1.2
Slide 22: Chile
Endesa Chile IR presentation 9M 2012 Chile Installed Capacity1: 5,611 MW Market Share: 32% Total Generation: 15,296 GWh Tarapaca ENDESA CHILE Los Molles: 18 MW Rapel-Sauzal: 466 MW D. Almagro–Taltal Maule: 875 MW 62% Hydro Huasco Laja: 940 MW 3,456 MW Ralco-Pangue: 1,157 MW Los Molles San Isidro Tar
Slide 23: Colombia
Endesa Chile IR presentation 9M 2012 Colombia Installed Capacity: 2,914 MW Market Share: 20% Total Generation: 10,249 GWh EMGESA Guavio: 1,213 MW Cartagena Betania: 541 MW 85% Hydro 2,470 MW Río Bogotá: 716 MW Cartagena: 208 MW 15% Thermal Bogotá Termozipa: 236 MW 444 MW Million US$ 9M 2011 9M 2012
Slide 24: Peru
Endesa Chile IR presentation 9M 2012 Peru Installed Capacity: 1,657 MW Market Share: 24% Total Generation: 6,572 GWh EDEGEL Cuenca Río Rímac: 552 MW 45% Hydro Yanango: 43 MW 746 MW Chimay: 151 MW Ventanilla: 485 MW 55% Thermal Santa Rosa: 426 MW 911 MW Lima: Million US$ 9M 2011 9M 2012 Change • Edeg
Slide 25: Argentina
Endesa Chile IR presentation 9M 2012 Argentina Installed Capacity: 3,652 MW Market Share: 12% Total Generation: 8,914 GWh EL CHOCÓN Hydro El Chocón: 1,328 MW 1,328 MW Million US$ 9M 2011 9M 2012 Change Revenues 71 83 16% CIEN Line EBITDA 38 50 30% (2x1,050 MW) Interconnection EBITDA Margin 53.7% 6
Slide 26: Brazil
Endesa Chile IR presentation 9M 2012 Brazil Installed Capacity: 987 MW Market Share: 1% Total Generation: 3,544 GWh CACHOEIRA Hydro Fortaleza Cachoeira: 665 MW 665 MW Million US$ 9M 2011 9M 2012 Change Revenues 185 221 20% Cachoeira EBITDA 136 156 14% Rio de Janeiro EBITDA Margin 73.8% 70.6% (4% ) P
Slide 27: Installed Capacity, and Energy Generation
Endesa Chile IR presentation 9M 2012 Installed Capacity, and Energy Generation MW 9M 2012 Chile1 Colombia Brazil Peru Argentina Total Total 5,611 2,914 987 1,657 3,652 14,823 Hydro 3,456 2,470 665 746 1,328 8,666 Installed Nuclear - - - - - - Capacity Coal 286 236 - - - 522 Oil-Gas 1,782 208 322 911
Slide 28: Healthy Debt Profile and Credit Risk Ratings
Endesa Chile IR presentation 9M 2012 Healthy Debt Profile and Credit Risk Ratings Financial Debt US$ Million 2012 2013 2014 2015 2016 Balance TOTAL Chile 305 434 140 220 16 942 2,055 Argentina 74 79 64 35 34 - 286 Peru 32 53 51 34 57 130 357 Colombia - - 79 161 23 918 1,181 TOTAL 411 566 334 450 130
Slide 29: Principal Financial Ratios
Endesa Chile IR presentation 9M 2012 Principal Financial Ratios Net debt/EBITDA1 EBITDA/Net financial expenses1 8.9 2.0 8.0 1.9 7.4 7.4 1.5 1.5 1.5 5.6 2008 2009 2010 2011 9M 2012 2008 2009 2010 2011 9M 2012 TTM TTM Endesa Chile 9M 2012 9M 2011 Financial Expense Coverage2 5.0 6.0 ROE (%) 13.6% 19.4%
Slide 30: Contribution Margin and Hydrology Correlation
Endesa Chile IR presentation 9M 2012 Effective Commercial Policy in the long term Correlation between Hydrology and Contribution Margin 800 700 3Q10 3Q12 Contribution Margin (MMUS$) 600 500 1Q10 1Q12 2Q12 2Q11 400 4Q11 300 1Q10 3Q12 200 1Q12 2Q11 2Q12 100 0 30% WET 40% 50% 60% 70% 80% 90% 100% DRY E
Slide 31: Relevant Stock Presence
Endesa Chile IR presentation 9M 2012 Relevant Stock Presence American Stock Market Chilean Stock Market Spanish Stock Market NYSE (US$) BOLSA DE SANTIAGO (CLP) LATIBEX (€) Price 9M2012 TTM (Avg) 49.1 Price 9M2012 TTM (Avg) 808.5 Price 9M2012 TTM (Avg) 1.3 Max 9M2012 TTM 55.4 Max 9M2012 894.0 Max 9M2
Slide 32: Endesa Chile IR presentation 9M 2012
Endesa Chile IR presentation 9M 2012 “This document is the property of ENDESA and therefore must not be disseminated or published without ENDESA's prior written consent. The content of this document is provided for information purposes only and therefore has no contractual substance and should not b