Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Endesa Chile — Investor Presentation (June 2013)
30 slides from Enel Chile Sa's investor presentation, June 2013
Slide 1: Endesa Chile IR presentation
Endesa Chile IR presentation As of June 2013
Slide 2: Ownership Structure
Endesa Chile IR presentation 1H 2013 Ownership Structure ENERSIS 92% Chilean Pension Funds 12% 3% 4% Institutional Shareholders 61% 6% ADR Holders 60% 14% Minority Shareholders Other Institutional 60% Shareholders CHILE COLOMBIA PERU ARGENTINA BRAZIL PEHUENCHE, 93% •ENDESA BRASIL, 39% CELTA, 100
Slide 3: A unique portfolio in LATAM's Generation business
Endesa Chile IR presentation 1H 2013 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 4: Results affected by the drought in Chile
Endesa Chile IR presentation 1H 2013 Results affected by the drought in Chile 1H 2013 1H 2012 1H 2013 Indicator Change MM ch$ MM ch$ MM US$1 Revenues 1,015,797 1,127,497 (10%) 2,122 Operational Expenses (22%) (532,591) (679,683) (1,113) Contribution margin 483,206 447,814 8% 1,009 EBITDA 382,396 349
Slide 5: EBITDA by Country
Endesa Chile IR presentation 1H 2013 EBITDA by Country Total Installed Capacity 1: 13,794 MW Total Generation 1 (TTM): 57,286 GWh Chile Argentina Chile Argentina 40% 19% 39% 27% Peru Peru 16% 12% Colombia Colombia 21% 26% EBITDA 1H 2013 (TTM): US$ 1,812 million Argentina 3% Chile 35% Peru 16% Endesa
Slide 6: Prudent Commercial Policy
Endesa Chile IR presentation 1H 2013 Prudent Commercial Policy Physical Sales as of June 2013 Chile Colombia Peru Argentina 2% 10% 19% 22% 31% 50% 36% 54% 76% 81% 19% Regulated Unregulated Spot Physical Sales as of June 2012 Chile Colombia Peru Argentina 3% 6% 27% 17% 29% 29% 54% 68% 65% 83% 19% Reg
Slide 7: Strong Financial Position
Endesa Chile IR presentation 1H 2013 Strong Financial Position 1H 2013 2012 1H 2013 Indicator Change % Change MM Ch$ MM Ch$ MM US$ Gross Debt 2,006,465 2,069,034 (3%) (62,569) 3,956 Cash1 172,777 260,798 (51%) (88,021) 341 Net Debt 1,833,688 1,808,236 1% 25,451 3,616 Leverage 0.89 0.88 1% 0.01 - Fin
Slide 8: Free Cash Flow (US$ million)
Endesa Chile IR presentation 1H 2013 Free Cash Flow (US$ million) 2,098 2,014 1,812 1,714 1,012 779 625 494 (235) (251) (245) (300) (298) (353) (435) (381) (413) (462) (499) (549) (538) (477) (523) EBITDA Net Financial Result CAPEX Income Tax FCF Dividends 2010 2011 2012 1H 2013 TTM 1Amounts are exp
Slide 9: Electricity demand Evolution in LATAM
Endesa Chile IR presentation 1H 2013 Electricity demand Evolution in LATAM Historic electricity demand growth (CAGR, last ten years) 200% 5.6% 180% 4.6% Total Sales in GWh (% growth) 160% 4.0% 3.2% 140% 2.7% 120% 100% Years 80% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 CHILE COLOMBIA PE
Slide 10: Direct relation between GDP and electricity demand
Endesa Chile IR presentation 1H 2013 Direct relation between GDP and electricity demand 18,000 16,000 FINLAND Electricity consumption, per capita (Kwh per year) CANADA 14,000 UNITED STATES 12,000 AUSTRALIA 10,000 8,000 JAPAN FRANCE AUSTRIA SPAIN GERMANY IRELAND 6,000 UNITED KINGDOM ITALY RUSSIA GREE
Slide 11: Projects Under Construction: El Quimbo
Endesa Chile IR presentation 1H 2013 Projects Under Construction El Quimbo • Hydro power plant. • Located in the Huila Department. • Utilizes stream coming from Magdalena River. • 400 MW of installed capacity. • Estimated load factor: 60%. • River detour in March 2012. 11
Slide 12: Projects Under Construction: Salaco Chain
Endesa Chile IR presentation 1H 2013 Projects Under Construction Salaco Chain (optimization) • Repowering the minor plants to reach 221 MW power. • Located in the Bogotá River system. • Optimization works started on January 2013. • 145 MW will be added to the capacity. 12
Slide 13: Projects Under Study
Endesa Chile IR presentation 1H 2013 Projects Under Study Los Cóndores • Hydro power plant. • Located in San Clemente, in the Maule Region . • 150 MW of installed capacity. • EIS1 approved. Curibamba • Hydro power plant. • Located in Junín Department, utilizes streams coming from Comas and Uchubamba
Slide 14: Projects Under Study
Endesa Chile IR presentation 1H 2013 Projects Under Study Punta Alcalde • Thermal, Coal-steam power plant. • Located in Huasco, in the Atacama Region (SIC). • 740 MW of installed capacity. Taltal (Convertion) • Closure engineering work to the existing LNG power plant. Conversion to Combined Cycle. •
Slide 15: Projects Under Study
Endesa Chile IR presentation 1H 2013 Projects Under Study Neltume • Hydro power plant, run of the river. • Located in Panguipulli, in Los Ríos Region (SIC). • 490 MW of installed capacity. • EIS1 under review. HidroAysén • Hydro power plants located in Aysén Region. • Endesa Chile owns 51% and Colbú
Slide 16: Expected Evolution for Endesa Chile Installed Capacity
Endesa Chile IR presentation 1H 2013 Expected Evolution for Endesa Chile Installed Capacity Increase percentage over installed capacity, year 2012 (13,794 MW) 16% 740 188 150 120 490 4% 400 400 145 145 13,794 13,794 13,794 2012 Under Construction On Basic Engineering Year 2012 Salaco (145 MW) El Qui
Slide 17: Market Value and Dividends
Endesa Chile IR presentation 1H 2013 Market Value and Dividends EBITDA 1 Dividends (US$ Million) (Ch$ per Share) 32.5 2,248 2,033 2,098 2,014 26.8 27.2 1,714 1,812 1,671 21.3 1,503 13.8 14.3 2006 2007 2008 2009 2010 2011 2012 1H 2013 2007 2008 2009 2010 2011 2012 TTM Market Value 2 (US$ Million) 15,
Slide 18: Key factors
Endesa Chile IR presentation 1H 2013 Key factors Multinational electricity generation company based in Chile. Vast experience, with over 70 years of history. Efficient and diversified investment portfolio of generation assets. Balanced commercial policy leading to revenue and margin stability.
Slide 19: Endesa Chile's Investor Relations Team
Endesa Chile IR presentation 1H 2013 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 Guillermo Berguecio Investor Relations Executive (56-2) 2630 9506 gabb
Slide 20: EXHIBITS
Endesa Chile IR presentation 1H 2013 EXHIBITS 20
Slide 21: Highlights of 1H 2013
Endesa Chile IR presentation 1H 2013 Highlights of 1H 2013 Lower generation revenues, mainly explained by lower hydro generation in Chile as a consequence of lower water availability. Lower generation costs, mainly explained by the commissioning of Bocamina II and lower LNG prices. 10% increase in c
Slide 22: Argentina
Endesa Chile IR presentation 1H 2013 Argentina Installed Capacity: 3,652 MW Market Share*: 12% Total Generation: 4,481 GWh EL CHOCÓN Hydro El Chocón: 1,328 MW 1,328 MW Million US$ 1H 2013 1H 2012 Change Revenues 35 51 (31% ) EBITDA 13 29 (54% ) EBITDA Margin 38.0% 56.9% (33% ) Physical Sales (GWh) 1
Slide 23: Peru
Endesa Chile IR presentation 1H 2013 Peru Installed Capacity: 1,657 MW Market Share*: 23% Total Generation: 4,141 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 Million US$ 1H 2013 1H 2012 Change Lima: • Ede
Slide 24: Chile
Endesa Chile IR presentation 1H 2013 Chile Installed Capacity1: 5,571 MW Market Share*: 30% Total Generation1: 9,109 GWh Tarapaca ENDESA CHILE Los Molles: 18 MW Rapel-Sauzal: 466 MW D. Almagro–Taltal Maule: 875 MW 62% Hydro Laja: 940 MW 3,456 MW Huasco Ralco-Pangue: 1,157 MW Los Molles Tarapaca 182
Slide 25: Colombia
Endesa Chile IR presentation 1H 2013 Colombia Installed Capacity: 2,914 MW Market Share*: 20% Total Generation: 6,311 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$ 1H 2013 1H 2012
Slide 26: Brazil
Endesa Chile IR presentation 1H 2013 Brazil Installed Capacity: 987 MW Market Share*: 1% Total Generation: 2,216 GWh CACHOEIRA Hydro Fortaleza Cachoeira: 665 MW 665 MW Million US$ 1H 2013 1H 2012 Change Revenues 130 151 (14% ) EBITDA 90 105 (14% ) Cachoeira Rio de Janeiro EBITDA Margin 69.5% 69.4% 0
Slide 27: Healthy Debt Profile and Credit Risk Ratings
Endesa Chile IR presentation 1H 2013 Healthy Debt Profile and Credit Risk Ratings Financial Debt Maturity US$ Million 2013 2014 2015 2016 2017 Balance TOTAL Chile 742 165 219 15 12 897 2,050 Argentina 186 40 14 10 - - 251 Peru 15 52 36 60 50 81 294 Colombia - 73 151 21 109 1,007 1,362 TOTAL 943 331
Slide 28: Principal Financial Ratios
Endesa Chile IR presentation 1H 2013 Principal Financial Ratios Net debt/EBITDA EBITDA/Net financial expenses 8.9 8.0 2.0 2.0 2.0 7.4 6.1 1.5 1.5 1.5 5.6 5,7 2008 2009 2010 2011 2012 1H 2013 2008 2009 2010 2011 2012 1H 2013 TTM TTM Endesa Chile 1H 2013 1H 2012 Financial Expense Coverage1 5.36 4.34 R
Slide 29: Relevant Stock Presence
Endesa Chile IR presentation 1H 2013 Relevant Stock Presence American Stock Market Chilean Stock Market Spanish Stock Market NYSE (US$)1 BOLSA DE SANTIAGO (CLP)2 LATIBEX (€) Price 1H 2013 TTM (Avg) 49.2 Price 1H 2013 TTM (Avg) 800.3 Price 1H 2013 TTM (Avg) 1.3 Max 1H 2013 TTM 55.4 Max 1H 2013 TTM 89
Slide 30: Endesa Chile IR presentation 1H 2013
Endesa Chile IR presentation 1H 2013 “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