Enel Chile Sa · BCS:ENELCHILE

Enel Chile Sa — Endesa Chile — Investor Presentation (December 2011)

34 slides from Enel Chile Sa's investor presentation, December 2011

  1. Slide 1: Endesa Chile IR Presentation

    Endesa Chile IR Presentation As of December 2011

  2. Slide 2: Our company

    Endesa Chile IR Presentation December 2011 Our company Multinational electricity generation company based in Chile Vast experience, with over 68 years of history Leading position in most of the countries where it operates Efficient and diversified investment portfolio of generation assets Conse

  3. Slide 3: Ownership Structure

    Endesa Chile IR Presentation December 2011 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% • PANGUE, 95% AMPLA •COSTANERA, 70% • CELTA, 100% •EMGESA, 27% •EDEGEL, 62% COELCE

  4. Slide 4: A unique portfolio in LATAM's Generation business

    Endesa Chile IR Presentation December 2011 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 ins

  5. Slide 5: Results from recent years

    Endesa Chile IR Presentation December 2011 Results from recent years US$ Millions 2009 2010 2011 Change Revenues 4,326 4,773 4,972 4% Gross margin 2,580 2,438 2,455 1% EBITDA 2,248 2,098 2,014 (4%) EBIT 1,819 1,746 1,629 (7%) Net finance (305) (235) (251) 7% expenses Net income 1,381 1,342 1,202 (10

  6. Slide 6: EBITDA Generation

    Endesa Chile IR Presentation December 2011 EBITDA Generation Total Installed Capacity: 13,845 MW Total Generation: 52,766 GWh Argentina Argentina 21% 26% Chile Chile 41% 39% Peru Peru 17% 12% Colombia EBITDA 2011: 21% US$ 2,014 millions Colombia 23% Argentina 5% Peru 14% Chile 51% Colombia 30% Affil

  7. Slide 7: Conservative Commercial Policy

    Endesa Chile IR Presentation December 2011 Conservative Commercial Policy Physical Sales as of December 2010 Chile Colombia Peru Argentina 7% 12% 19% 26% 30% 63% 56% 64% 24% 81% 18% Regulated Unregulated Spot Physical Sales as of December 2011 Chile Colombia Peru Argentina 9% 19% 8% 30% 31% 51% 27%

  8. Slide 8: Strong Financial Position

    Endesa Chile IR Presentation December 2011 Strong Financial Position US$ Millions 2009 2010 2011 Chg. Chg % Gross Debt 4,172 3,775 3,769 (5) (0.1%) Cash 880 712 811 99 13.9% Net Debt 3,291 3,062 2,958 (104) (3.4%) Leverage 1.09 0.94 0.91 (0.03) (3.2%) Financial Expenses Coverage 6.67 8.25 6.52 (1.73

  9. Slide 9: Free Cash Flow

    Endesa Chile IR Presentation December 2011 Free Cash Flow Free Cash Flow by year 2.248 2.098 (2009-2011) 2.014 1.070 1.012 779 (305) (235) (251) (308) (353) (435) (564) (499) (549) EBITDA Net Financial Result CAPEX Income Tax FCF 2009 2010 2011 Amounts are expressed in US$, using the average exchang

  10. Slide 10: Historic electricity demand growth

    Endesa Chile IR Presentation December 2011 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 10

  11. Slide 11: Direct relation between GDP and electricity demand

    Endesa Chile IR Presentation December 2011 Direct relation between GDP and electricity demand 18.000 16.000 CANADA 14.000 Electricity consumption, per cápita (Kwh) UNITED STATES 12.000 AUSTRALIA 10.000 8.000 JAPAN FRANCE AUSTRIA SPAIN GERMANY 6.000 UNITED KINGDOM ITALY 4.000 CHILE ARGENTINA 2.000 ME

  12. Slide 12: Competitive tariffs

    Endesa Chile IR Presentation December 2011 Competitive tariffs Final tariff to customers as of December 2010 US$/MWh Taxes not included 179 179 171 171 167 167 166 166 158 158 25 25 148 148 52 52 131 131 26 26 76 76 70 70 30 30 98 98 47 47 154 154 36 36 115 115 132 132 118 118 96 96 38 95 95 38 84 8

  13. Slide 13: Projects Under Construction

    Endesa Chile IR Presentation December 2011 Projects Under Construction BOCAMINA II  Location: Next to the existing coal-fired plant Bocamina I in Bío-Bío Region  Installed capacity: 370 MW, coal fired  Estimated Investment: US$ 841 millions*  Estimated start-up: June, 2012 EL QUIMBO Río Magdalen

  14. Slide 14: Portfolio Projects in Chile

    Endesa Chile IR Presentation December 2011 Portfolio Projects in Chile Los Cóndores, hydro power plant 150 MW Neltume, hydro Run-of-the-river plant 490 MW Piruquina, mini-hydro run- of-the-river plant 7.6 MW Punta Alcalde, coal-steam power plant 740 MW Hydroaysen, hydro power plant Hydro 2,750 MW Th

  15. Slide 15: Portfolio Projects in Peru & Colombia

    Endesa Chile IR Presentation December 2011 Portfolio Projects in Peru & Colombia Peru Colombia Curibamba, hydro power Hydro plant Thermal 188 MW N.C.E.S. 15

  16. Slide 16: HidroAysén

    Endesa Chile IR Presentation December 2011 HidroAysén Installed capacity: 2,750 MW.  One of the most efficient hydroelectric projects in the world. Endesa Chile’s owns 51% and Colbún 49%.  Renewable resources CO2 emissions: Reduction of 16.2 million tons/year  Average load factor 77% May 9, 2

  17. Slide 17: Seasonal Streaming from Hidroaysen and SIC rivers

    Endesa Chile IR Presentation December 2011 Seasonal Streaming from Hidroaysen and SIC rivers 1,400 1,400 1,200 1,200 1,000 1,000 Water Flow [ m³ /s] 800 800 600 600 400 400 200 200 - - Apr-10 may jun jul ago sep oct nov dec Jan-11 feb mar Tim eline MAIPO RIVER IN CABIMBAO BIOBIO RIVER IN RUCALHUE MA

  18. Slide 18: Hidroaysen Technical information

    Endesa Chile IR Presentation December 2011 Hidroaysen Technical information Power Plants Zone HVDC Land Line 1.112 km HVDC Submarine Line 160 km 640 km 18

  19. Slide 19: Market Value and Dividends

    Endesa Chile IR Presentation December 2011 Market Value and Dividends EBITDA Operating Income (US$ Millions) (US$ Millions) 2.248 1.819 2.031 2.098 2.014 1.674 1.746 1.629 1.671 1.503 1.189 1.022 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Market Value Dividends (US$ Millions) (Ch$xS

  20. Slide 20: Endesa Chile's Investor Relations Team

    Endesa Chile IR Presentation December 2011 Endesa Chile’s Investor Relations Team Susana Rey Investor Relations Director (56-2) 630 96 06 susana.rey@endesa.cl Catalina González Juan Pablo Vicuña Guillermo Berguecio Head of Investor Relations Investor Relations Executive Investor Relations Executive

  21. Slide 21: EXHIBITS

    Endesa Chile IR Presentation December 2011 EXHIBITS 21

  22. Slide 22: Highlights in 2011

    Endesa Chile IR Presentation December 2011 Highlights in 2011 Growth of 3% in electricity demand in the region Growth of 2% in physical sales, primarily in Peru and Colombia Growth of 4% in physical energy purchases primarily in Chile, due lower water availability Growth of 11% in fuel costs primari

  23. Slide 23: Analysis by country – Argentina

    Endesa Chile IR Presentation December 2011 Analysis by country – Argentina Installed Capacity: 3,652 MW Market Share: 12% EL CHOCON 36% Hydro El Chocón: 1,328 MW 1,328 MW US$ Millions 2010 2011 Change  Revenues 118 100 (15.3% ) CIEN Line EBITDA 72 55 (23.6% ) (2x1.050 MW) Interconnection EBITDA Mar

  24. Slide 24: Analysis by country – Colombia

    Endesa Chile IR Presentation December 2011 Analysis by country – Colombia Installed Capacity: 2,914 MW Market Share: 20% EMGESA Cartagena Guavio: 1.213 MW Betania: 541 MW 85% Hydro 2,471 MW Río Bogotá: 716 MW Cartagena: 208 MW Bogota 15% Thermal Termozipa: 236 MW 444 MW US$ Millions 2010 2011 Change

  25. Slide 25: Analysis by country – Peru

    Endesa Chile IR Presentation December 2011 Analysis by country – Peru Installed Capacity: 1,668 MW Market Share: 26% 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 US$ Millions 2010 2011 Change Lima: Revenues 13

  26. Slide 26: Analysis by country – Chile

    Endesa Chile IR Presentation December 2011 Analysis by country – Chile Installed Capacity: 5,611 MW Market Share: 32% ENDESA CHILE Tarapacá Los Molles: 18 MW Rapel-Sauzal: 466 MW 61% Hydro D. Almagro–Taltal Maule: 884 MW Laja: 940 MW 3,465 MW Huasco Ralco-Pangue: 1,157 MW Los Molles Tarapacá-G.Ataca

  27. Slide 27: Analysis by country - Brazil

    Endesa Chile IR Presentation December 2011 Analysis by country - Brazil Installed Capacity: 987 MW Market Share: 1% CACHOEIRA Fortaleza Cachoeira: 665 MW 67% Hydro 665 MW Cachoeira US$ Millions 2010 2011 Change Revenues 239 262 9.5% Rio de Janeiro EBITDA 172 194 12.6% EBITDA Margin 72.0% 74.0% 2.8%

  28. Slide 28: Installed Capacity, Output

    Endesa Chile IR Presentation December 2011 Customers Installed Capacity, Output MW as of FY2011 Chile Colombia Brasil Perú Argentina Total Total 5,611 2,914 987 1,668 3,652 14,832 Hydro 3,456 2,471 665 746 1,328 8,666 Installed Nuclear - - - - - - Capacity Coal 286 236 - - - 522 Oil-Gas 1,782 208 32

  29. Slide 29: Healthy Debt Profile

    Endesa Chile IR Presentation December 2011 Healthy Debt Profile Financial Debt US$ Millions 2012 2013 2014 2015 2016 2017 Balance TOTAL Chile 104 419 185 218 14 12 1,042 1,995 Argentina 129 63 53 35 17 - - 297 Perú 60 52 50 34 57 47 82 382 Colombia 157 - 73 129 - 88 649 1,095 TOTAL 450 534 362 416 8

  30. Slide 30: Principal Financial Ratios

    Endesa Chile IR Presentation December 2011 Principal Financial Ratios Net debt/EBITDA EBITDA/Net financial expenses 2,0 8,9 8,0 7,4 1,5 1,5 1,5 5,6 2008 2009 2010 2011 2008 2009 2010 2011 Endesa Chile 2010 2011 Net Debt/ EBITDA 1.5 1.5 P/U 13.5 14.1 EPS* 65.1 54.5 ROE (%) 24% 18.1% ROA (%) 11.2% 9.2

  31. Slide 31: Integrated risk management capability

    Endesa Chile IR Presentation December 2011 Integrated risk management capability Target output and sales in Risk variables affecting margins future years  Rainfall 100%  Growth in demand Extreme  Fuel prices hydro volatility Spot  Exchange rates  Inflation Hydro 75% Regulated Risk limit and Rea

  32. Slide 32: Stable Results, Long Play Company

    Endesa Chile IR Presentation December 2011 Stable Results, Long Play Company Consolidated EBITDA (Quarterly) 2001-2010 vs. Chilean SIC Hydrology 2,5 35.000 30.000 2,0 25.000 1,5 US$ Mllions 20.000 15.000 1,0 10.000 0,5 5.000 - - 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1Q EBITDA 2Q EBI

  33. Slide 33: Relevant Stock Presence

    Endesa Chile IR Presentation December 2011 Relevant Stock Presence USA Stock Market Spain Stock Market NYSE (US$) LATIBEX (€) Price 2011 (Avg) 51.0 Price 2011 (Avg) 1.2 Max 2011 57.6 Max 2011 1.4 Min 2011 40.6 Min 2011 1.0 Daily Avg Trans Vol (million shares) 120.7 Daily Avg Trans Vol (million share

  34. Slide 34: Endesa Chile IR Presentation December 2011

    Endesa Chile IR Presentation December 2011

Endesa Chile — Investor Presentation (December 2011) on 6ix