Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Endesa Chile — H1 2012 Earnings Presentation
32 slides from Enel Chile Sa's earnings presentation, Jul 26, 2012
Slide 1: Endesa Chile 1H 2012 results
26 | 07 | 2012 endesa chile 1H 2012 results
Slide 2: Highlights in 1H 2012
Endesa Chile consolidated results 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 cos
Slide 3: Results affected by the drought in Chile and high fuel costs
Endesa Chile consolidated results 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
Slide 4: EBITDA Generation
Endesa Chile consolidated results 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 B
Slide 5: Conservative Commercial Policy
Endesa Chile consolidated results 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
Slide 6: Effective Commercial Policy in the long term
Endesa Chile consolidated results 1H 2012 Effective Commercial Policy in the long term Correlation between Hydrology and Contribution Margin 800 700 3Q10 600 Contribution Margin (MMUS$) 10% -3MMUS$ 1Q10 500 2Q12 2Q11 400 4Q11 300 10% -13MMUS$ 1Q10 200 2Q11 2Q12 100 0 30% WET 40% 50% 60% 70% 80% 90%
Slide 7: Strong Financial Position
Endesa Chile consolidated results 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
Slide 8: Free Cash Flow
Endesa Chile consolidated results 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
Slide 9: Colombia
Endesa Chile consolidated results 1H 2012 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 US$ 1H 2012 1H 2
Slide 10: Chile
Endesa Chile consolidated results 1H 2012 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: 1,157 MW San Isidro
Slide 11: Peru
Endesa Chile consolidated results 1H 2012 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 2011 Change Lima: •
Slide 12: Argentina
Endesa Chile consolidated results 1H 2012 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 EBITDA Margin 56.
Slide 13: Brazil
Endesa Chile consolidated results 1H 2012 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 Margin 69.4% 73.7% (6%
Slide 14: Projects Under Construction
Endesa Chile consolidated results 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
Slide 15: Projects Under Study
Endesa Chile consolidated results 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 capacit
Slide 16: HidroAysén
Endesa Chile consolidated results 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,
Slide 17: Market Value and Dividends
Endesa Chile consolidated results 1H 2012 Market Value and Dividends Dividends 1 EBITDA (US$ Millions) (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$ Mill
Slide 18: Relevant Stock Presence
Endesa Chile consolidated results 1H 2012 Relevant Stock Presence USA Stock Market Spain Stock Market NYSE (US$) LATIBEX (€) Price 1H 2012 TTM (Avg) 49.3 Price 1H 2012 TTM (Avg) 1.2 Max 1H 2012 TTM 57.6 Max 1H 2012 TTM 1.4 Min 1H 2012 TTM Min 1H 2012 TTM 40.6 1.0 Daily Avg Trans Vol (million ADR) 0.
Slide 19: Conclusions
Endesa Chile consolidated results 1H 2012 Conclusions Non-recurrent accounting effect Difficult electric situation in Chile Revenues and Margin stability Diversified portfolio 19
Slide 20: Endesa Chile's Investor Relations Team
Endesa Chile consolidated results 1H 2012 Endesa Chile’s Investor Relations Team Susana Rey Catalina Gonzalez Investor Relations Director Head of Investor Relations (56-2) 630 96 06 (56-2) 630 96 03 susana.rey@endesa.cl cbgs@endesa.cl Juan Pablo Vicuña Guillermo Berguecio Investor Relations Executiv
Slide 21: Exhibits
Endesa Chile consolidated results 1H 2012 EXHIBITS 21
Slide 22: Ownership Structure
Endesa Chile consolidated results 1H 2012 Ownership Structure 4% 17% 92% 4% 61% 60% 15% 60% ENERSIS Chilean Pension Funds ADR Holders Other Inst Shareholders Minority Shareholders PEHUENCHE, 93% •ENDESA BRASIL, 39% CELTA, 100% AMPLA •COSTANERA, 70% COELCE SAN ISIDRO, 96% •EMGESA, 27% •EDEGEL,
Slide 23: A unique portfolio in LATAM's Generation business
Endesa Chile consolidated results 1H 2012 A unique portfolio in LATAM’s Generation business Colombia No. 2 Brazil 2,914 MW inst. capacity 987 MW inst. capacity 20% market share 1% market share in generation Peru No. 1 1,668 MW inst. capacity 26% market share Argentina No. 1 Chile No. 1 3,652 MW inst
Slide 24: Installed Capacity, Output
Endesa Chile consolidated results 1H 2012 Customers Installed Capacity, Output MW as of 1H 2012 Chile Brazil Peru Colombia Argentina Total Total 5,611 987 1,668 2,914 3,652 14,832 Hydro 3,456 665 746 2,471 1,328 8,666 Installed Nuclear - - - - - - Capacity Coal 286 - - 236 - 522 Oil-Gas 1,783 322 92
Slide 25: Healthy Debt Profile
Endesa Chile consolidated results 1H 2012 Healthy Debt Profile Financial Debt US$ 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
Slide 26: Principal Financial Ratios
Endesa Chile consolidated results 1H 2012 Principal Financial Ratios Net debt/EBITDA1 EBITDA/Net financial expenses1 8,9 Net Debt/ EBITDA 8,0 7,4 7,4 2,0 1,9 5,6 1,5 1,5 1,5 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 (
Slide 27: Integrated risk management capability
Endesa Chile consolidated results 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 Th
Slide 28: Electricity demand Evolution in LATAM
Endesa Chile consolidated results 1H 2012 Electricity demand Evolution in LATAM Historic electricity demand growth 170% 162% 161% 160% 150% 146% Total Sales in GWh (%) 140% 133% 130% 118% 120% 110% 100% 90% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year CHILE COLOMBIA PERU BRAZIL ARGENTINA *
Slide 29: Seasonal Streaming from Hidroaysen and SIC rivers
Endesa Chile consolidated results 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 MAU
Slide 30: Corporate Governance Excellence
Endesa Chile consolidated results 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 Relati
Slide 31: Disclaimer
Endesa Chile consolidated results 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 state
Slide 32: Endesa Chile consolidated results 1H 2012
Endesa Chile consolidated results 1H 2012 32