Enel Chile SA · BCS:ENELCHILE

Enel Chile SA — Endesa Chile — Investor Day (December 2009)

32 slides from Enel Chile SA's investor day presentation, Dec 11, 2009

  1. Slide 1: Endesa Chile: Business platform and solid prospects

    Friday, December 11th 2009 Endesa Chile Business platform and solid prospects 1

  2. Slide 2: Contents

    Business platform and solid prospects Contents  Endesa Chile’s macroeconomic environment  Endesa Chile has consolidated a unique business platform in Latin America  Our business offers solid prospects, with stable and visible cash flows  Going forward, we will capture the best profitable and sus

  3. Slide 3: Contents

    Business platform and solid prospects Contents  Endesa Chile’s macroeconomic environment  Endesa Chile has consolidated a unique business platform in Latin America  Our business offers solid prospects, with stable and visible cash flows  Going forward, we will capture the best profitable and sus

  4. Slide 4: Chile's macroeconomic environment: FDI flows

    Endesa Chile’s macroeconomic environment The increase in FDI flows into the region reflect confidence among international investors Gross FDI stock (in million USD) 350,000 +99% 300,000 250,000  Economic and business growth 200,000  Reduction in public debt  Development of internal credit market

  5. Slide 5: Sound fundamentals allow faster recovery

    Endesa Chile’s macroeconomic environment Sound fundamentals mean that Latin American economies are able to recover more rapidly GDP growth rates Latin-American economies have GDP growth estimates responded well to the crisis… Countries where Endesa GDP growth in Latin operates are showing higher GDP

  6. Slide 6: Electricity demand has great growth potential

    Endesa Chile’s macroeconomic environment Electricity demand has a great growth potential Electricity demand growth (1990-2009) Per capita power consumption Consumption: kWh 2007 Colombia 940 Perú 982 Brazil 2,154 TWh +169% +107% +208% +90% +150% Argentina 2,658 200 Chile 3,326 150 Italy 5,718 100 UK

  7. Slide 7: Latin America will provide scope for organic growth

    Endesa Chile’s macroeconomic environment Latin America will provide scope for organic growth of our business System Capacity (GW) System Demand (TWh) CAGR 2008-17: + 4.6% CAGR 2008-17: + 4.7% 242 961 11 19 56 76 161 22 81 635 5 29 14 54 13 53 155 599 103 393 26 35 106 149 2008 2017 2008 2017 Argenti

  8. Slide 8: Structural positive evolution of Latin American countries

    Structural positive evolution of Latin American countries Lower country risk as a consequence of political and economic stability Credit risk Country risk (EMBI bp) Government debt Moody’s S&P Chile A1 A+ Brazil Baa3 BBB- Peru Ba1 BBB- Colombia Ba1 BB+ Argentina B3 B- Investment grade Non-investment

  9. Slide 9: Contents

    Business platform and solid prospects Contents  Endesa Chile’s macroeconomic environment  Endesa Chile has consolidated a unique business platform in Latin America  Our business offers solid prospects, with stable and visible cash flows  Going forward, we will capture the best profitable and sus

  10. Slide 10: Endesa is leader in four of five countries

    Endesa Chile has consolidated a unique business platform in Latin America Endesa is leader in four of the five Latin American countries where it has operations Colombia #1 Brazil: 2,895 MW 987 MW 21% market share 1% market share in generation Output 9M09: 9,922 GWh Output 9M09: 2,445 GWh 5.4 million

  11. Slide 11: Geographical diversification reduces risk

    Endesa Chile has consolidated a unique business platform in Latin America Our geographical diversification allows to reduce the risk of exposure to an individual market % of installed capacity in LatAm by country Weight of largest country operation on portfolio  Together with AES, Endesa Chile has

  12. Slide 12: Corporate structure: Enersis, holding vehicle for Latin America

    Endesa Chile has consolidated a unique business platform in Latin America Corporate structure: Enersis, holding vehicle for Latin America ENDESA 100,00% ENDESA LATINOAMÉRICA 60,62% ENERSIS 59,98% 99,08% 28,48% 22,06% ENDESA Endesa CHILE EndesaChile Chile Endesa Chilectra CHILECTRA Chilectra 36,27% B

  13. Slide 13: Endesa has developed a unique asset portfolio

    Endesa Chile has consolidated a unique business platform in Latin America Endesa has developed a unique asset portfolio in the region Generation installed capacity 9M09 Generation sales 9M09 14,734 MW 49,786 GWh Peru Argentina Fuel-Gas Wind 18 12% 19% 2.478 Brazil 10% Colombia 26% CCGT Hydro 3.050 C

  14. Slide 14: Recurrent growth of Endesa Chile's financials

    Endesa has consolidated a unique business platform in Latin America Recurrent growth of Endesa Chile’s financials EBITDA (US$ m) Net income (US$ m) CAGR 05’-08’: + 18% CAGR 05’-08’: + 48% (*) Data as of September 2009 14

  15. Slide 15: Strong financial position

    Endesa has consolidated a unique business platform in Latin America Strong financial position 5,000 Debt by Type Net Debt Evolution Others 3,833 6% 4,000 3,719 3,612 Banks 3,239 3,168 29% 3,000 US$ m Local 2,000 Bonds 44% 1,000 Yankee Bonds - 21% 2005 2006 2007 2008 Sep-09 Consolidated figures in US

  16. Slide 16: Comfortable debt maturity profile

    Endesa has consolidated a unique business platform in Latin America 1400 Comfortable debt maturity profile 1200 US$ m 1000 US$ m 1,400 800 Colombia: US$ 1,078 m Chile: US$ 2,483 m 1,246 1,200 600 482 1,000 400 164 123 156 800 200 82 72 0 600 0 415 354 ce 09 10 11 12 13 14 400 an 20 20 20 20 20 20 21

  17. Slide 17: Solid financial ratios

    Endesa has consolidated a unique business platform in Latin America Solid financial ratios… Net debt/EBITDA 3 2.5 2.8x 2.5x 2 1.5 1.8x Endesa Chile‘s 1 1.4x investment grade 0.5 status restored 0 2006 2007 2008 30/09/2009 EBITDA/Net financial expenses 9 8.3x 8 6.9x 7 6 5.0x 5 4 3 4.3x Endesa Chile’s

  18. Slide 18: Attractive shareholder remuneration

    Endesa has consolidated a unique business platform in Latin America Attractive shareholder remuneration, cash flow received by Endesa Chile Endesa Chile: cash flows via dividends and capital reductions US$ m Dividends Equity reductions 416 74 5 130 74 167 130 5 411 162 45 45 2006 2007 2008 30-Sep-09

  19. Slide 19: Good share price performance by listed subsidiaries

    Endesa has consolidated a unique business platform in Latin America Good share price performance by listed subsidiaries Endesa Chile share price performance 250 200 150 NYSE ADR Endesa Chile: +68% 100 S&P Utilities -3% S&P500 -11% 50 0 30/12/05 30/06/06 30/12/06 30/06/07 30/12/07 30/06/08 30/12/08 3

  20. Slide 20: Summary of consolidated results

    Endesa has consolidated a unique business platform in Latin America Summary of consolidated results FY Jan-Sept Jan-Sept Jan-Sept Ch$ Millions % Var. 2008 (a) 2008 (b) 2009 (b) US$ m Revenues 2,492 1,818 1,879 5% 3,414 Operating income 893 576 829 44% 1,506 Operating margin 36% 32% 44% - 44% Ebitda

  21. Slide 21: A key role in Endesa

    Endesa has consolidated a unique business platform in Latin America A key role in Endesa 14.7 37% Installed capacity (GW) Assets (US$ m) 11,839 14% Generation output (TWh) 41.4 39% EBITDA (US$ m) 1,772 21% Net income (US$ m) 925 21% Figures at 9M09. Installed capacity includes 50% of Gas Atacaman an

  22. Slide 22: Contents

    Business platform and solid prospects Contents  Endesa Chile’s macroeconomic environment  Endesa Chile has consolidated a unique business platform in Latin America  Our business offers solid prospects, with stable and visible cash flows  Going forward, we will capture the best profitable and sus

  23. Slide 23: Stable regulatory frameworks in generation

    Our business offers solid prospects, with stable and visible cash flows Stable regulatory frameworks in generation with long-term signals for investment 1 Regulated market 2 Free market Long-term tenders that Supply of specific needs of promote expansion industrial customers • Prices indexed to infl

  24. Slide 24: Regulatory changes guarantee security of supply

    Our business offers solid prospects, with stable and visible cash flows In short, important regulatory changes have been undertaken by governments to guarantee security of supply and expansion Catalysts Main Changes (2003-2008) Highly dependent on hydro energy sources (2006) “Reliability charge” bas

  25. Slide 25: Maintain leadership through organic growth

    Our business offers solid prospects, with stable and visible cash flows Maintain leadership through organic growth New 1,578 MW in the last four years Annual capex in generation (US$ m) Chile: Perú: TG Quintero +257 MW Ventanilla +457 MW Perú: Colombia: Santa Rosa +193 MW Cartagena +142 MW 14,734 +4

  26. Slide 26: Careful commercial policy to reduce margin volatility

    Our business offers solid prospects, with stable and visible cash flows Careful commercial policy to reduce volatility of margins Risk variables affecting margins Target output and sales in 2009 (TWh)  Hydrology 53.0  Demand growth Extreme Spot  Fuel prices hydro volatility  Exchange rates  Inf

  27. Slide 27: Contents

    Business platform and solid prospects Contents  Endesa Chile’s macroeconomic environment  Endesa Chile has consolidated a unique business platform in Latin America  Our business offers solid prospects, with stable and visible cash flows  Going forward, we will capture the best profitable and sus

  28. Slide 28: Main action lines

    Going forward, we will capture the best profitable and sustainable growth opportunities Main action lines Maintain our leadership position in Chile, Colombia and Peru Achieve efficiencies and set best practice standards Implementation of regulatory agreements in Argentina

  29. Slide 29: Maintain our leadership position in Chile, Colombia and Peru

    Going forward, we will capture the best profitable and sustainable growth opportunities Maintain our leadership position in Chile, Colombia and Peru  Peru: Santa Rosa open-cycle gas plant (193 MW) Start-up  Chile: Quintero open-cycle gas plant (257 MW) 9M 09  Chile: Quintero regasification plant:

  30. Slide 30: Achieve efficiencies and set best practice standards

    Going forward, we will capture the best profitable and sustainable growth opportunities Achieve efficiencies and set best practice standards Generation O&M optimization plan Fuel procurement Fixed cost reduction plan • Power plant availability improvement • LNG purchases optimization • Function cent

  31. Slide 31: Implementation of regulatory agreements in Argentina

    Going forward, we will capture the best profitable and sustainable growth opportunities Implementation of regulatory agreements in Argentina We have high quality assets Argentina's contribution to Endesa Chile business in 9M09  3,652 MW installed capacity  1,328 MW hydro  2,324 MW thermal 25% Ris

  32. Slide 32: Conclusions

    Endesa Chile’s business platform and solid prospects Conclusions Excellent and unique business platform  Strong presence in the region  Optimal country and business diversification  Solid and rooted presence  Proven ability to manage the business  Sound financial position Profitable growth pote

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