Slide 1: Endesa Chile IR presentation
Endesa Chile IR presentation As of June 2012
Slide 2: Our company
Endesa Chile IR presentation 1H 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 1H 2012 Ownership Structure 4% 17% 92% 4% 61% 60% 15% 60% ENERSIS Chilean Pension Funds ADR Holders Other Inst Shareholders Minority Shareholders PEHUENCHE 93% •ENDESA BRASIL 39% CELTA 100% AMPLA •COSTANERA 70% COELCE SAN ISIDRO 96% •EMGESA 27% •EDEGEL 62% •EL CHOC
Slide 4: A unique portfolio in LATAM's Generation business
Endesa Chile IR presentation 1H 2012 A unique portfolio in LATAM’s Generation business Colombia No. 2 Brazil 2,914 MW inst. capacity 987 MW inst. capacity 20% market share 1% market share in generation Peru No. 1 1,668 MW inst. capacity 26% market share Argentina No. 1 Chile No. 1 3,652 MW inst. cap
Slide 5: Results affected by the drought in Chile and high fuel costs
Endesa Chile IR presentation 1H 2012 Results affected by the drought in Chile and high fuel costs MM US$ * Million Ch$ 1H 2012 1H 2011 Change 1H 2012 Revenues 1,155,422 1,176,178 (2%) 2,345 Gross margin 469,037 504,733 (7%) 952 EBITDA 363,981 387,597 (6%) 739 EBIT 270,825 302,621 (11%) 550 Net finan
Slide 6: EBITDA Generation
Endesa Chile IR presentation 1H 2012 EBITDA Generation Total Installed Capacity: 13,845 MW Total Generation (TTM): 53,564 GWh Argentina Chile Chile 20% 39% Argentina 41% 26% Peru 17% Peru 12% Colombia Colombia 24% 21% EBITDA 1H2012 TTM: US$ 1.929 million Argentina 3% Peru 15% Chile 45% Endesa Brasil
Slide 7: Conservative Commercial Policy
Endesa Chile IR presentation 1H 2012 Conservative Commercial Policy Physical Sales as of June 2012 Chile Colombia Peru Argentina 3% 6% 17% 30% 27% 54% 29% 67% 65% 83% 19% Regulated Unregulated Spot Physical Sales as of June 2011 Chile Colombia Peru Argentina 1% 9% 17% 33% 30% 50% 66% 26% 65% 83% 20%
Slide 8: Strong Financial Position
Endesa Chile IR presentation 1H 2012 Strong Financial Position Million Ch$ 1H 2012 1H 2011 Chg. Chg % MM US$ 1H2012 Gross Debt 1,974,825 2,142,355 (167,530) (8%) 3,935 Cash & Equivalents 165,200 229,581 (64,381) (28%) 329 Net Debt 1,809,625 1,912,774 (103,149) (5%) 3,606 Leverage 0.93 0.92 (0.01) (1
Slide 9: Free Cash Flow
Endesa Chile IR presentation 1H 2012 Free Cash Flow 2,248 2,098 2,014 1,929 1,070 1,012 779 775 (305) (235) (251) (260) (308) (353) (435) (416) (394) (564) (499) (549) (477) (523) (462) EBITDA Net Financial Result CAPEX Income Tax FCF Dividends 1 2009 2010 2011 1H2012 TTM Amounts are expressed in US
Slide 10: Electricity demand Evolution in LATAM
Endesa Chile IR presentation 1H 2012 Electricity demand Evolution in LATAM Historic electricity demand growth (CAGR, last ten years) 180% 170% 5.4% 5.3% 160% 4.4% 150% Total Sales in GWh (% growth) 3.6% 140% 130% 2.4% 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 1H 2012 Direct relation between GDP and electricity demand 18000 16000 FINLAND CANADA Electricity consumption, per cápita (Kwh per year) 14000 UNITED STATES 12000 AUSTRALIA 10000 8000 JAPAN FRANCE AUSTRIA SPAIN GERMANY IRELAND 6000 UNITED KINGDOM RUSSIA ITALY GREECE 4000
Slide 12: Competitive tariffs
Endesa Chile IR presentation 1H 2012 Competitive tariffs Final tariff to customers1 as of December 2011 203 200 177 162 158 128 24 Latam Average Ceará Río de Bogotá Lima Buenos Aires Santiago Janeiro Dx Gx & Tx 1 US$/MWh. Reference values. Taxes not included. 12
Slide 13: Projects Under Construction
Endesa Chile IR presentation 1H 2012 Projects Under Construction BOCAMINA II • Location: Next to the existing coal-fired plant Bocamina, in Bío-Bío region. • Installed capacity: 350 MW, coal fired. • Estimated investment: US$ 841 million • 1H 2012, Test on boiler burners and blowing steam pipe finis
Slide 14: Projects Under Study
Endesa Chile IR presentation 1H 2012 Projects Under Study Los Cóndores, hydro Neltume, hydro power plant run-of-the-river plant Installed capacity: Installed capacity: 150 MW 490 MW Punta Alcalde,1 coal-steam Curibamba, hydro power plant power plant Installed capacity: Installed capacity: 74
Slide 15: HidroAysén
Endesa Chile IR presentation 1H 2012 HidroAysén • Installed capacity: 2,750 MW. • One of the most efficient hydroelectric • Endesa Chile owns 51% and Colbún 49%. projects in the world. • CO2 emissions: Reduction of 16.2 million • Renewable resources tons/year • Average load factor: 77% • May 9, 2011
Slide 16: Seasonal Streaming from Hidroaysen and SIC rivers
Endesa Chile IR presentation 1H 2012 Seasonal Streaming from Hidroaysen and SIC rivers 1,400 1,400 1,200 1,200 1,000 1,000 800 800 Water Flow [ m³ /s] 600 600 400 400 200 200 - - Apr-10 may jun jul ago sep oct nov dec Jan-11 feb mar Tim eline MAIPO RIVER IN CABIMBAO BIOBIO RIVER IN RUCALHUE MAULE IN
Slide 17: Hidroaysen Technical information
Endesa Chile IR presentation 1H 2012 Hidroaysen Technical information Power Plants Zone HVDC Land Line 1.112 km HVDC Submarine Line 160 km 640 km 17
Slide 18: Market Value and Dividends
Endesa Chile IR presentation 1H 2012 Market Value and Dividends EBITDA 1 Dividends (US$ Million) (Ch$ per Share) 3 Dividend Yield: 3.2% 2.248 32.5 2.033 2.098 2.014 1.929 26.8 27.2 1.671 1.503 21.3 13.8 2006 2007 2008 2009 2010 2011 1H 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 1H 2012 Endesa Chile’s Investor Relations Team Susana Rey Catalina Gonzalez Investor Relations Director Head of Investor Relations (56-2) 630 96 06 (56-2) 630 96 03 susana.rey@endesa.cl cbgs@endesa.cl Juan Pablo Vicuña Guillermo Berguecio Investor Relations Executive Inv
Slide 20: Exhibits
Endesa Chile IR presentation 1H 2012 EXHIBITS 20
Slide 21: Highlights in 1H 2012
Endesa Chile IR presentation 1H 2012 Highlights in 1H 2012 Growth of 6% in electricity demand in the region Growth of 3.1% in consolidated generation due to 13% more hydro generation in Colombia and Chile Growth of 1.9% in physical sales on a consolidated basis Increase of 2.2% in operating costs, p
Slide 22: Analysis by country - Colombia
Endesa Chile IR presentation 1H 2012 Analysis by country - Colombia Installed Capacity: 2,914 MW Market Share: 20% Total Generation: 6,396 Gwh EMGESA Guavio: 1,213 MW Cartagena Betania: 541 MW 85% Hydro 2,471 MW Río Bogotá: 716 MW Cartagena: 208 MW 15% Thermal Bogotá Termozipa: 236 MW 444 MW Million
Slide 23: Analysis by country - Chile
Endesa Chile IR presentation 1H 2012 Analysis by country - Chile Installed Capacity: 5,611 MW Market Share: 32% Total Generation: 9,554 Gwh Tarapaca ENDESA CHILE Los Molles: 18 MW D. Almagro–Taltal Rapel-Sauzal: 466 MW 62% Hydro Huasco Maule: 884 MW Laja: 940 MW 3,465 MW Los Molles Ralco-Pangue: 1,1
Slide 24: Analysis by country - Peru
Endesa Chile IR presentation 1H 2012 Analysis by country - Peru Installed Capacity: 1,668 MW Market Share: 26% Total Generation: 4,463 Gwh EDEGEL Cuenca Río Rímac: 552 MW 45% Hydro Yanango: 43 MW 747 MW Chimay: 151 MW Ventanilla: 493 MW 55% Thermal Santa Rosa: 429 MW 922 MW Million US$ 1H 2012 1H 20
Slide 25: Analysis by country - Argentina
Endesa Chile IR presentation 1H 2012 Analysis by country - Argentina Installed Capacity: 3,652 MW Market Share: 12% Total Generation: 5,758 Gwh EL CHOCON Hydro El Chocon: 1,328 MW 1,328 MW Million US$ 1H 2012 1H 2011 Change Revenues 50 47 6% CIEN Line EBITDA 28 25 15% (2x1.050 MW) Interconnection
Slide 26: Analysis by country - Brazil
Endesa Chile IR presentation 1H 2012 Analysis by country - Brazil Installed Capacity: 987 MW Market Share: 1% Total Generation: 2,371 Gwh CACHOEIRA Hydro Fortaleza Cachoeira: 665 MW 665 MW Million US$ 1H 2012 1H 2011 Change Revenues 147 120 22% Cachoeira EBITDA 102 89 15% Rio de Janeiro EBITDA Margi
Slide 27: Installed Capacity, Output
Endesa Chile IR presentation 1H 2012 Customers Installed Capacity, Output MW as of 1H 2012 Chile Brazil Peru Colombia Argentina Total Total 5,611 987 1,668 2,914 3,652 14,832 Hydro 3,456 665 746 2,471 1,328 8,666 Installed Nuclear - - - - - - Capacity Coal 286 - - 236 - 522 Oil-Gas 1,783 322 922 208
Slide 28: Healthy Debt Profile
Endesa Chile IR presentation 1H 2012 Healthy Debt Profile Financial Debt US$ Million 2012 2013 2014 2015 2016 Balance TOTAL Chile 366 419 165 219 15 909 2,094 Argentina 89 69 59 35 34 - 287 Perú 40 52 50 34 57 129 363 Colombia - - 79 163 23 927 1,192 TOTAL 496 541 354 451 129 1,965 3,935 Credit Risk
Slide 29: Principal Financial Ratios
Endesa Chile IR presentation 1H 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 1H 2012 2008 2009 2010 2011 1H 2012 Endesa Chile 1H 2012 1H 2011 Financial Expense Coverage2 4.5 5.5 ROE (%) 15.7% 21.0% ROA (%)
Slide 30: Integrated risk management capability
Endesa Chile IR presentation 1H 2012 Integrated risk management capability Output and sales targets Risk variables affecting margins for future years • Rainfall 100% • Growth in demand Extreme • Fuel prices hydro volatility Spot • Exchange rates • Inflation Hydro 75% Regulated Risk limit and Thermal
Slide 31: Generation, TWh
Generation, TWh Generación, TWh Generation, TWh Generación, TWh 0 10 20 30 40 50 0 10 20 30 40 50 WET WET 1980 1980 1972 1972 1965 1965 1982 1982 Mini Mini Hydro Pasada Pasada Hydro 1986 1986 1993 1993 1992 1992 1997 1997 1966 1966 Damn Damn Embalse Embalse 1977 1977 1991 1991 2002 2002 1978 1978 Co
Slide 32: Effective Commercial Policy in the long term
Endesa Chile IR presentation 1H 2012 Effective Commercial Policy in the long term Correlation between Hydrology and Contribution Margin 800 700 3Q10 600 Contribution Margin (MMUS$) 1Q10 500 1Q12 2Q12 2Q11 400 4Q11 300 1Q10 200 1Q12 2Q11 2Q12 100 0 WET 30% 40% 50% 60% 70% 80% 90% 100% DRY Exceedance
Slide 33: Relevant Stock Presence
Endesa Chile IR presentation 1H 2012 Relevant Stock Presence USA Stock Market Spain Stock Market NYSE (US$) LATIBEX (€) Price 1H 2012 TTM (Avg) 49.3 Price 1H 2012 TTM (Avg) 1.2 Max 1H 2012 TTM 57.6 Max 1H 2012 TTM 1.4 Min 1H 2012 TTM Min 1H 2012 TTM 40.6 1.0 Daily Avg Trans Vol (million ADR) 0.14 Da
Slide 34: Corporate Governance Excellence
Endesa Chile IR presentation 1H 2012 Corporate Governance Excellence LATIN AMERICA´S INVESTOR RELATIONS AWARDS – LIRA 2011 •Best Communication of Corporate Governance: 1st Place •Best Communication of Financial Results: 1st Place •Best Investor Relations Officer: 3rd Place •Best Investor Relations D
Slide 35: Disclaimer
Endesa Chile IR presentation 1H 2012 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
Slide 36: Endesa Chile IR presentation 1H 2012
Endesa Chile IR presentation 1H 2012 36