Enel Chile Sa · BCS:ENELCHILE
Enel Chile Sa — Endesa Chile — Q1 2008 Earnings Presentation
21 slides from Enel Chile Sa's earnings presentation, March 2008
Slide 1: Results as of March 2008
endesaciiic wa Results as of March 2008
Slide 2: Endesa Chile – one of the largest electricity generators in Latin America
Endesa Chile – one of the largest electricity generators in Latin America Our Shareholders Other Inst. Investor 11.0% Retail 4.6% Enel Acciona ADRs 4.7% 67.1% Endesa 25.0% Spain Pension Funds Enersis 60.0% 60% 19.7% Enersis As of March 2008 * Equity investment, responsible for operations. 2
Slide 3: Attractive Cash Return to Shareholders
Attractive Cash Return to Shareholders Ch$ CAGR: 28.28% Ch$ Div. Yield CAGR: 21.91% 800 16 2.50% 2.18% 700 653.75 2.05% 631 14 600 13.76 2.00% 519.5 12 500 13.41 10 1.50% 400 1.23% 1.12% 334.99 8 0.99% 300 6 1.00% 233 200 4 5.82 0.50% 100 2 4.13 2.3 0 0 0.00% 2003 2004 2005 2006 2007 2003 2004 2005
Slide 4: Important Presence in 5 countries
Important Presence in 5 countries Emgesa ▪ Installed cap. : 2.829 MW Endesa Brasil ▪ Hydro cap.: 87% Affiliate ▪ 21% market share ▪ 11 power plants ▪ Cachoeira (Gx): 665 MW ▪ Fortaleza (Gx): 322 MW ▪ Ampla (Dx): 2.4 m clientes ▪ Coelce (Dx): 2.7 m clientes Edegel ▪ Cien (Tx): 2,100 MW ▪ Installed ca
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 1Q08 vs. 1Q07 Perú Chile 170.0 » Peru: 9.4% Argentina 140.0 Brasil » Chile: 0.9% » Argentina: 3.8% 110.0 Colombia » Brazil: 3.4% » Co
Slide 6: Consolidated results … coming forth against adverse energy environment
Consolidated results … coming forth against adverse energy environment • Higher thermal generation in Chile, using diesel instead of natural gas. (US$ m) FY07 1Q07 1Q08 ∆% • US$ 234 m increase of fuel costs in Chile Æ fuel costs represent 81% of total operating costs in Chile. Revenues 3,476 974 1,0
Slide 7: Well diversified EBITDA throughout the Region
Well diversified EBITDA throughout the Region EBITDA March 2008 Peru 10.1% EBITDA per Country (US$ million) Mar-07 Mar-08 Var. % Chile 310 261 -15.8% Argentina 43 43 -3.2% Colombia Colombia 115 114 -0.9% 24.5% Peru 71 47 -35.0% Chile Total 540 464 -14.1% 56.3% Figures expressed in US$ as of March 20
Slide 8: Solid Financial Ratios
Solid Financial Ratios US$ m Veces Times 2.000 10 9 1,598 1.600 1,540 8 1,279 7 1.200 1,105 6 4,9 971 875 4,3 5 4,3 4,0 4,4 800 3,5 4 2,6 2,8 2,5 3,2 3,0 2,6 3 400 335 346 349 322 355 361 2 1 0 0 2003 2004 2005 2006 2007 Mar-08 (12m) Ebitda Interest Expense Debt/Ebitda Ebitda/Int. Exp. EBITDA growth
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 4,920 25% 5,000 4,702 4,426 4,348 4,087 4,124 4,076 3,859 3,904 4,000 US$ m 3,000 14% 2,000 61% 1,000 - US$ UF-Ch$ Local Currencies 99 00 01 02 03 04 05 06 07 8 -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$ 825 m 700 631 603 600 300 220 175 167 500 450 200 417 115 93 400 100 33 22 0 0 0 0 300 0 204 216 200 ce 08 09 10 11 12 13 14 15 16 17 101 an 20 20 20 20 20 20 20 20 20 20 100 al 24 17 15 18 B 0 US$ m Argentina US$ 31
Slide 11: Conservative commercial policy
Conservative commercial policy » Hydrology risk » Exchange rate risk Minimize variation of » Electricity demand growth margin » Portfolio of generation assets » Fuel prices Chile Argentina Colombia Peru 20% 16% 50% 26% 10% 44% 65% 80% 30% 54% 6% Physical sales as of March 2008 Regulated Unregulated
Slide 12: Chile: leading electricity generator
Chile: leading electricity generator As of March 2008 1Q07 1Q08 ∆% (US$ m) 29% Revenues 536 698 30.2% 45% Oper. Costs 270 483 79.0% 55% Oper. Result 253 205 (19.2%) 71% Sales (GWh) 5,226 4,755 (9.0%) R. Price (US$/MWh) 67 104 55.2% Capacity Mix Gen. Mix S. Price (US$/MWh) 107 290 171.0% Hydro Therma
Slide 13: Argentina: leading privately-owned electricity generator
Argentina: leading privately-owned electricity generator As of March 2008 (US$ m) 1Q07 1Q08 ∆% 15% Revenues 131 128 (2.3%) 36% Oper. Costs 108 105 (2.7%) Oper. Result 22 21 (0.9%) 64% Sales (GWh) 3,267 3,176 (2.8%) 85% R. Price (A$/MWh) 50 55 10% Capacity Mix Gen. Mix S. Price (A$/MWh) 73 98 34% Hyd
Slide 14: Colombia: leading privately-owned electricity generator
Colombia: leading privately-owned electricity generator As of March 2008 (US$ m) 1Q07 1Q08 ∆% 13% 5% Revenues 196 184 (6.3%) Oper. Costs 99 84 (15.5%) 87% 95% Oper. Result 94 97 3.8% Sales (GWh) 3,448 3,760 9.1% M. Price (Col$/kWh) 78 93 19.2% Capacity Mix Gen. Mix S. Price (Col$/kWh) 98 95 (3.1%) H
Slide 15: Peru: largest privately-owned electricity generator
Peru: largest privately-owned electricity generator As of March 2008 (US$ m) 1Q07 1Q08 ∆% Revenues 110 88 (20.5%) 35% Oper. Costs 51 53 2.6% 49% 51% Oper. Result 52 30 (42.0%) 65% Sales (GWh) 1,951 2,063 5.7% R. Price (US$/MWh) 37 39 5.4% Capacity Mix Gen. Mix S. Price (US$/MWh) 38 18 (45.5%) Hydro
Slide 16: Strengths and opportunities to invest
Strengths and opportunities to invest Region Æ growing Endesa Chile Æ in good shape ¾ Attractive portfolio of Gx assets and well diversified ¾ Economic stability ¾ Diversified energy resources (water, gas, LNG, coal, diesel) ¾ Growing demand ¾ Flexible commercial policy ¾ Positive changes in regulat
Slide 17: Our future … based on growth
Our future … based on growth 16,000 14,000 9 Near 2,000 MW of new capacity in the next 5 years MW 12,000 10,000 Æ 911 MW under development 8,000 Æ 1,087 MW under study 6,000 4,000 9 Total Investment of 2,000 approximately US$ 3.5 billion in Projected the next 5 years - 2004 2005 2006 2007 2008-2012
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 Quimbo Choshuenco 105 MW 120 MW 240 MW 187 MW 350 MW 400 MW 128 MW Chile Chile Chile Peru
Slide 19: Aware of our environment and corporate social responsibility
Aware of our environment and corporate social responsibility Showing transparency » 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 compa
Slide 20: Conclusions
Conclusions 9Multinational private electricity generator with leading market positions in most countries where we operate. 9Efficient assets distributed within South America 9Portfolio of projects add value to Endesa Chile 9Excellent reputation and high level of technical standards. 9Through its vas
Slide 21: Endesa Chile's Investor Relations Team
Endesa Chile’s Investor Relations Team Jaime Montero Irene Aguiló Investor Relations Director Investor Relations Executive Endesa Chile (56-2) 630 96 04 (56-2) 634-2329 iaguilo@endesa.cl jfmv@endesa.cl Juan Pablo Reitze Jacqueline Michael Head of Investor Relations Investor Relations Executive (56-2