Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Endesa Chile — Q3 2008 Earnings Presentation
21 slides from Enel Chile Sa's earnings presentation, September 2008
Slide 1: Endesa Chile September 2008
endesaciiic my September 2008
Slide 2: Disclaimer
Disclaimer This presentation contains declarations that constitute or may constitute declarations about the future, as established in the United States Private Securities Litigation Reform Act of 1995. Such declarations appear frequently in this presentation with declarations referring to our intent
Slide 3: One of the largest electricity generators in Latin America
Endesa Chile – one of the largest electricity generators in Latin America Our Shareholders Other Inst. Investors; 13.5% Retail; Enel Acciona 1.5% ADRs; 67.1% 25.0% 4.6% Endesa Spain Chilean Pension 60.6% Funds; 20.4% Enersis; Enersis 60.0% 60.0% Endesa Chile As of September 2008 3
Slide 4: Important Presence in 5 countries
Important Presence in 5 countries Emgesa ▪ Installed Cap. : 2,895 MW Endesa Brasil ▪ Hydro Cap.: 85% Affiliate ▪ 22% market share ▪ 11 power plants ▪ Cachoeira (Gx): 665 MW ▪ Fortaleza (Gx): 322 MW ▪ Ampla (Dx): 2.4 m clients ▪ Coelce (Dx): 2.8 m clients Edegel ▪ Cien (Tx): 2,100 MW ▪ Installed Cap.
Slide 5: Investment Opportunities … room to grow
Investment Opportunities … room to grow Opportunities: Improvement in Latam regulations contribute to meet strong growing electricity demand. Electricity Demand 200.0 Peru Jan-Sep08 vs. Jan-Sep07 170.0 Chile Argentina » Peru: 10.4% 140.0 Brazil Colombia » Chile: ‐0.7% 110.0 » Argentina: 2.7% 80.0 »
Slide 6: Coming forth against challenging energy environment
Coming forth against challenging energy environment •Higher thermal generation mostly in Chile (US$ m) FY07 3Q07 * 3Q08 * ∆% and Peru, using diesel instead of natural gas. Revenues 3,476 2,485 3,138 26.3% •US$ 262 m and US$28 m increase of fuel costs in Chile and Peru, respectively as of Oper. Costs
Slide 7: Well diversified EBITDA throughout the Region
Well diversified EBITDA throughout the Region EBITDA - As of Sept 2008 EBITDA by Country (US$ million) Peru 7.7% Sep-07 Sep-08 Var.% Chile 539 812 51% Argentina 97 83 -14% Colom bia Chile Colombia 284 372 31% 27.1% 59.2% Peru 124 106 -15% Total 1,043 1,372 31% Figures expressed in US$ as of Sep 2008
Slide 8: Solid Financial Ratios
Solid Financial Ratios US$ m Veces Times 2,000 10 1,882 9 1,600 1,540 8 1,279 7 1,200 1,105 5.6 6 4.9 971 875 4.3 5 4.3 4.0 800 3.5 4 2.6 2.8 3.2 3.0 2.6 3 2.1 335 346 349 322 355 334 400 2 1 0 0 2003 2004 2005 2006 2007 Sep‐08 TTM Ebitda Interest Expense Debt/Ebitda Ebitda/Int. Exp. As of September
Slide 9: Recognition of strong financial position
Recognition of strong financial position Financial Debt Evolution Financial Debt by Currency 7,000 5,950 6,000 22% 4,920 5,000 4,702 4,426 4,087 4,124 4,076 4,017 3,859 3,904 4,000 US$ m 3,000 9% 2,000 69% 1,000 - US$ UF-Ch$ Local Currencie s 8 99 00 01 02 03 04 05 06 07 -0 19 20 20 20 20 20 20 20 2
Slide 10: Comfortable debt maturity profile
Comfortable debt maturity profile Chile US$ m Chile: US$ 2.6 bn US$ m Colombia: US$ 665 m 700 631 600 550 300 500 184 415 200 147 140 115 400 78 100 265 1 300 215 0 214 214 200 ce 08 09 10 11 12 13 14 15 16 17 an 20 20 20 20 20 20 20 20 20 20 100 20 13 15 al 2 B 0 US$ m Argentina US$ 310 m ce 08 09
Slide 11: Conservative commercial policy
Conservative commercial policy » Hydrology risk » Exchange rate risk Minimize variation of » Electricity demand growth margin » Portfolio of generation assets » Evolution of fuel prices Chile Argentina Colombia Peru 15% 26% 23% 55% 42% 52% 59% 33% 15% 77% 3% Regulated Unregulated Spot Physical sales
Slide 12: Chile: largest electricity generator
Chile: largest electricity generator 3Q07 3Q08 ∆% (US$ m) Gen. Mix as of September 2008 Revenues 1,304 1,799 37.9% Oper. Costs 875 1,105 26.3% 33% Oper. Result 402 666 65.7% Hydro Sales (GWh) 14,286 14,605 2.2% Thermal Reg. P. (US$/MWh) 73 115 57.5% Spot P. (US$/MWh) 208 229 10.1% 67% Figures expres
Slide 13: Argentina: leading privately-owned electricity generator
Argentina: leading privately‐owned electricity generator (US$ m) 3Q07 3Q08 ∆% Gen. Mix as of September 2008 15% Revenues 439 456 4.0% Oper. Costs 391 428 9.6% Oper. Result 42 21 (49.6%) Hydro Sales (GWh) 9,264 7,898 (14.7%) Thermal Reg. P. (A$/MWh) 50 55 10% Spot P. (A$/MWh) 75 87 16% Figures expres
Slide 14: Colombia: leading privately-owned electricity generator
Colombia: leading privately‐owned electricity generator (US$ m) 3Q07 3Q08 ∆% Gen. Mix as of September 2008 5% Revenues 486 602 23.9% Oper. Costs 245 271 10.7% Oper. Result 234 322 38.1% Hydro Sales (GWh) 11,676 12,362 5.9% Thermal 95% Dist. P. (Col$/kWh) 79 92 16.5% Spot P. (Col$/MWh) 86 85 (1.2%) F
Slide 15: Peru: largest privately-owned electricity generator
Peru: largest privately‐owned electricity generator (US$ m) 3Q07 3Q08 ∆% Gen. Mix as of September 2008 Revenues 255 281 9.9% 47% Oper. Costs 165 213 29.0% Oper. Result 75 55 (27.0%) Hydro Sales (GWh) 5,937 6,300 6.0% Thermal Reg. P. (US$/MWh) 37 41 10.8% Spot P. (US$/MWh) 37 98 164.9% 53% Figures ex
Slide 16: Strengths and opportunities to invest
Strengths and opportunities to invest Region Electric IndustryÆ growing Endesa Chile Æ in good shape ¾ Stable cash flows ¾ Attractive portfolio of Gx assets ¾ Growing demand ¾ Diversified energy resources (water, gas, coal, diesel, wind) ¾ Positive changes in regulation ¾ Flexible commercial policy
Slide 17: Our future … based on growth
Our future … based on growth MW 16,000 9 Near 2,000 MW of new capacity in 14,000 the next 5 years 12,000 10,000 9 Almost half of new capacity is already 8,000 under construction 6,000 9 Total Investment of approximately 4,000 US$ 3.5 billion in the next 5 years 2,000 Projected - 2004 2005 2006 2007
Slide 18: Contributing with more generation capacity
Contributing with more generation capacity Start‐up during 2007 San Isidro II Palmucho Canela 248 MW 32 MW 18 MW Chile Chile Chile 2008 ‐ 2009 2010, onwards San Isidro II Taltal Quintero Santa Rosa Bocamina II El Quimbo Choshuenco 105 MW 120 MW 250 MW 188 MW 370 MW 400 MW 128 MW Chile Chile Chile Pe
Slide 19: Aware of our environment and corporate social responsibility
Aware of our environment and corporate social responsibility Awards and Certifications » ISO 14001 standards: as of March 2008, 95.9% of installed capacity certified » OHSAS 18001 standards: as of December 2007, 96.1% of installed capacity certified » Important prizes: » 2007: 1st place in Chile of
Slide 20: Conclusions
Conclusions 9Multinational private electricity generator with leading market positions in most countries where we operate. 9Efficient assets distributed within South America 9Project portfolio adds value to Endesa Chile 9Excellent reputation and high level of technical standards 9Through its vast ex
Slide 21: Endesa Chile's Investor Relations Team
Endesa Chile’s Investor Relations Team Jaime Montero Juan Pablo Reitze Investor Relations Director Head of Investor Relations (56-2) 634-2329 (56-2) 630 96 03 jfmv@endesa.cl jprv@endesa.cl Irene Aguiló Jacqueline Michael M. Teresa Fuentealba Investor Relations Executive Investor Relations Executive