Slide 1: 1H13 Results
1H13 RESULTS 1
Slide 2: Agenda
AGENDA • HIGHLIGHTS • INDUSTRY AND COMPANY • PROJECTS • FINANCIAL RESULTS 2
Slide 3: Highlights
HIGHLIGHTS Dividends equivalent to 100% of 2012’s net income, for an amount of USD 56,178,411,82, or USD 0.0533351281 per share, were paid on May 16. In April 2013, E.CL completed the first stage of its US$170 million, 2011-2015 environmental investment, which consisted of the installation of si
Slide 4: Highlights: Financial Highlights
HIGHLIGHTS Financial Highlights (US$ million) 1H12 1H13 Var. % Operating Revenues (US$ million) 602.2 592.4 -3% EBITDA (US$ million) 145.2 117.9 -19% EBITDA margin (%) 24% 20% -17% Net income (US$ million) 46.6 8.1 -83% Net debt (US$ million) 602.6 609.9 1% Energy sales (GWh) 4,674 4,805 3% Net gene
Slide 5: Agenda: Industry and Company
AGENDA • HIGHLIGHTS • INDUSTRY AND COMPANY • PROJECTS • FINANCIAL RESULTS 5
Slide 6: Chilean electricity industry – 1H13
Chilean electricity industry – 1H13 INDUSTRY Growth Generation GWh Main players Market Clients (2013-2023)¹ (1H13) (% installed capacity) Regulated Diesel Gas 9% Endesa 8% 25% capacity 6.7% 12% 24% E.CL 54% 3,956 MW SING 26% demand AES Gener Unregulated Coal 82% 21% 88% Diesel 8% Colbún 20% Regulate
Slide 7: Characteristics of the SING
Characteristics of the SING INDUSTRY Nearly 100% of installed capacity based on coal, natural gas (LNG) and diesel No exposure to hydrologic risk Long-term contracts with unregulated clients (mining companies) account for 90% of demand Flexibility to negotiate prices and supply terms Curre
Slide 8: Mining sector in Chile: Announced investments in new projects
INDUSTRY Mining sector in Chile: Announced investments in new projects Estimated Estimated Possible International investment copper production Rating Mining Project Sponsor (US$ mm) production start date (Moody’s/S&P) Spence (expansion) $3,000 130 Th TPA BHP Billiton A1/A+ Anglo American Collahuasi
Slide 9: Ownership structure (as of end-June 2013)
COMPANY Ownership structure (as of end-June 2013) GDF SUEZ Local Foreign Other Pension Funds Institutions Institutions 52.77% 12.88% 24.26% 8.84% 0.95% Inv. Punta de E.CL S.A. Rieles Ltda. 40% Inversiones Central Gasoducto Edelnor Distrinor S.A. Hornitos S.A. Termoeléctrica Norandino S.A. Transmisió
Slide 10: Installed capacity – SING & E.CL
COMPANY Installed capacity – SING & E.CL SING - Gross installed capacity – June 2013 (MW) E.CL - Growth in installed capacity in recent years 2,135 MW 2,500 2,135 MW 2,500 10 10 10 1,665 MW 2,000 317 2,000 317 317 10 13 13 317 317 1,500 1,500 176 688 688 688 962 MW 688 688 688 1,000 822 MW 1,000 24
Slide 11: E.CL's Assets
COMPANY Installed Capacity (June 13) E.CL’s Assets Technology Coal Diesel/FO Hydro 1% Natural gas Chapiquiña (10MW) Hydro Diesel 15% Coal 52% Diesel Arica (14MW) Diesel Iquique (43MW) TE Tocopilla (1,004MW) Collahuasi Tocopilla puerto El Abra Gas/diesel Chuquicamata 32% C. Tamaya (104MW) Gaby Gas tr
Slide 12: Evolution of PPA portfolio balance
COMPANY Evolution of PPA portfolio balance Average realized monomic Average estimated consumption (MWh/h) tariff (USD/MWh) 1H12 1H13 2H13 2014 2015 2016 2017 A) “Contractable” efficient capacity 1,165 1,165 1,165 1,165 1,165 Regulated client (EMEL) 105 94 205 215 226 237 249 Unregulated clientes (mi
Slide 13: PPA portfolio indexation
COMPANY PPA portfolio indexation Indexation of the EMEL PPA Overall indexation applicable for 2013 Timetable of tariff adjustments: May and November of each year Marginal Other: CPI, Diesel PPI, node 0.1% Cost price Capacity: node price evolution 2.2% 7.1% Fuel Oil Energy: 40% US CPI, 60% Henr
Slide 14: Agenda: Projects
AGENDA • HIGHLIGHTS • INDUSTRY AND COMPANY • PROJECTS • FINANCIAL RESULTS 14
Slide 15: Infraestructura Energética Mejillones (IEM)
PROJECTS Infraestructura Energética Mejillones (IEM) Characteristics Gross capacity (IEM1 & IEM2) 2 x 375 MW Net capacity 2 x 320 MW Availability (plant factor) 90% Location Mejillones Mechanized port Associated infrastructure (Capesize carriers) New 170-km, 220kV, 350 MVA Transmission line IEM1 T.L
Slide 16: Eléctrica Monte Redondo (EMR)
PROJECTS Eléctrica Monte Redondo (EMR) EMR operates in the SIC, is owned by GDF SUEZ, and comprises a 48MW wind farm in operations and the 34MW Laja Hydro plant under construction (estimated COD 2H13). GDF SUEZ has stated that E.CL will be its investment vehicle for the electricity generation bu
Slide 17: El Águila I and II
PROJECTS El Águila I and II E.CL has the operational and commercial skills to be a leading player in solar-based electricity generation in the SING. El Águila I (2MW) has been developed as a pilot project and was inaugurated in July 2013. El Águila II (40MW) is under development: • Expected CA
Slide 18: SIC-SING interconnection
PROJECTS SIC-SING interconnection E.CL is well positioned to supply power to the ongoing sizeable mining development in the northern area of the SIC (“Norte Chico”). GDF SUEZ and E.CL are leading a private initiative to build the transmission line required to connect both grids. It is currently
Slide 19: Environmental CAPEX
PROJECTS Environmental CAPEX Stricter particle-matter and gas (NOx and SOx) emission requirements were approved by Chilean authorities in 2011. E.CL is investing to comply with the new emission requirements well before the due dates. The estimated CAPEX will amount to approximately US$170 mill
Slide 20: Innovation and sustainability
E.CL S.A. PROJECTS Innovation and sustainability Cobia Solar Microalgae Wind Biomass Steam-solar E.CL is committed to continuous social and environmental improvement. 20
Slide 21: Approved CAPEX program
E.CL S.A. PROJECTS Approved CAPEX program CAPEX (US$ million) 1H13 2H13 2014 2015 2016 2017 2018 Generation: (Major maintenance) 47 22 29 61 25 18 59 Generation: (Environmental project) 14 38 29 - - - - Transmission 2 28 15 7 7 7 7 Development 4 18 8 8 8 8 8 Other 4 11 1 2 3 1 2 TOTAL 71 117 82 78 4
Slide 22: Agenda: Financial Results
AGENDA • HIGHLIGHTS • INDUSTRY AND COMPANY • PROJECTS • FINANCIAL RESULTS 22
Slide 23: Electricity sales and generation (GWh)
FINANCIAL RESULTS Electricity sales (GWh) Gross electricity generation (GWh) 6,000 6,000 Total 4,903 Total 4,555 Total 4,674 Total 4,805 5,000 112 5,000 133 193 187 898 4,000 805 4,000 829 747 3,000 3,000 2,000 3,658 3,795 2,000 3,938 3,594 1,000 1,000 0 0 1H12 1H13 1H12 1H13 Unregulated Regulated S
Slide 24: Income Statement
FINANCIAL RESULTS Income Statement (US$ millions) 1H12 1H13 Var. % Operating revenues 602.0 592.4 -3% Operating income (EBIT) 79.1 45.8 -42% EBITDA 145.2 117.9 -19% Non-recurring items 1.1 4.7 327% EBITDA w/o non-recurring items 144.1 113,2 -21% Net income 46.6 8.1 -83% Average realized monomic tari
Slide 25: EBITDA Comparison - 1H13 vs. 1H12
FINANCIAL RESULTS En millions of US$ EBITDA Comparison - 1H13 vs. 1H12 170 +12 -25 Effect of CTA/ +7 CTH outage 150 -5 -5 -8 130 -3 16 110 145 90 118 70 50 EBITDA 1H12 Volume effect Insurance Higher cost of Sales of gas to LNG terminal Repair costs - Other net EBITDA 1H13 compensations fuel & energy
Slide 26: Net Income comparison 1H13 vs. 1H12
FINANCIAL RESULTS In millions of US$ Net Income comparison 1H13 vs. 1H12 70 +9 -22 Minority 60 interest +5 50 4 -6 40 -4 -6 30 -4 47 -10 Minority interest 20 10 5 8 0 Net income Volume effect Insurance Margin effect FX difference Sales of gas to Repair costs Depreciation Other incl. Net income 1H12
Slide 27: Financial ratios remain strong…
FINANCIAL RESULTS Available Cash (millions of US$) Gross Debt / LTM1 EBITDA 250 4.0 200 3.0 150 2.0 3.1 3.4 192.1 100 163.7 1.0 50 0.0 12/31/2012 06/30/2013 12/31/2012 06/30/2013 Available cash Gross Debt / LTM EBITDA Net Debt / LTM1 EBITDA LTM1 EBITDA / LTM1 Gross interest Expense 3.0 6.0 2.5 5.0 2
Slide 28: E.CL's Debt breakdown as of June 30, 2013
FINANCIAL RESULTS E.CL’s Debt breakdown as of June 30, 2013 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 5.625%, 144-A/Reg-S bond for US$400MM maturing January 1
Slide 29: Net debt evolution 1H13
FINANCIAL RESULTS In millions of US$ Net debt evolution 1H13 800 +56 +1 -16 750 -30 +31 -106 700 +71 650 600 550 610 500 603 450 400 Net debt as of CAPEX Income tax Dividend Acc.Int./Amort Change in MTM Cash from Operating cash Net debt as of 12/31/12 payments payments fin.exp Swap T.Line sale flow
Slide 30: 100% of 2012 net income paid as dividends
FINANCIAL RESULTS Net income per share and dividends per share (US$) 0.25 0.243 0.20 0.189 0.170 0.15 Paid on May 0.095 0.085 16, 2013 0.10 0.075 0.053 0.053 0.05 30% 50% 50% 100% 0.00 2009 2010 2011 2012 Net income per share Dividend per share E.CL’s Board of Directors agreed to propose dividend
Slide 31: Confirmed investment grade category
FINANCIAL RESULTS International ratings Solvency Perspective Date Standard & Poors BBB- Stable November 2012 50% 50% 100% Fitch Ratings BBB- Positive August 2012 National ratings Solvency Perspective Shares Date Feller Rate A+ Stable 1st Class Level 2 December 2012 Fitch Ratings A Positive August 20
Slide 32: Forward-looking statements disclaimer
This presentation may contain certain forward-looking statements and information relating to E.CL S.A. (“E.CL” or the “Company”) that reflect the current views and/or expectations of the Company and its management with respect to its business plan. Forward-looking statements include, without limitat