Company Presentation August 2009 Who is Endesa Chile? Multinational - PDF document

>> Company Presentation August 2009

Who is Endesa Chile? � Multinational private electricity generator, based in Chile, with leading market positions in most countries where it operates � Large portfolio of generation assets distributed within South America � Efficient investment portfolio adds value to Endesa Chile � Excellent reputation and high level of technical standards � Vast experience, with 65 years of history � Committed with regulatory authorities, the environment and Corporate Governance best practices � Part of an important worldwide electricity group (Enel, ENDESA, S.A., Enersis) 2

Endesa Chile’s Main Pillars What supports our business? » Large and efficient portfolio of assets Asset Base » Excellence in operations » High environmental standards » Commercial policy Conservative » Solid Balance Sheet Policies » Strong Liquidity Position » Ability to develop projects Know How » Vast experience » Demand and Regulation 3

Important Presence in 5 countries Endesa Brasil Em gesa ( Affiliate) I nstalled Cap.: 2 ,8 9 5 MW Hydro Cap.: 8 5 % Cachoeira ( Gx) : 6 6 5 MW 2 1 % m arket share Fortaleza ( Gx) : 3 2 2 MW 1 1 pow er plants Am pla ( Dx) : 2 .5 m ill. clients Coelce ( Dx) : 2 .9 m ill. clients Cien ( Tx) : 2 ,1 0 0 MW Edegel I nstalled Cap.: 1 ,4 6 7 MW Hydro Cap.: 5 1 % Argentina 2 8 % m arket share I nstalled Cap.: 3 ,6 5 2 MW 9 pow er plants Costanera: 2,324 MW El Chocón: 1,328 MW Chile Hydro Cap.: 3 6 % I nstalled Cap.: 5 ,2 8 4 MW 1 4 % m arket share Endesa Chile: 2,786 MW San Isidro I&II: 732 MW 5 pow er plants Pehuenche: 699 MW Pangue: 467 MW GasAtacama: 391 MW Total Consolidated: 1 3 ,2 9 8 MW (50% 781 MW) Num ber of pow er plants: 5 2 Celta: 182 MW Endesa Eco: 27 MW Hydro: 6 0 .0 % Hydro Cap.: 6 5 % Therm al: 3 9 .8 % 3 9 % m arket share W ind: 0 .1 % 2 7 pow er plants 4 As of June 2009

Aw ards and Certifications Awards and Certifications » ISO 14001 standards: as of June 2009, 99.7% of installed capacity was certified. » OHSAS 18001 standards: as of June 2009, 100% of installed capacity was certified. Important prizes: » “Notable” category was awarded by the United Nations Global Compact to the latest Communication on Progress reported through the Sustainability Report. » “Silver Class” distinction in the corporate sustainability evaluation made by SAM and PricewaterhouseCoopers. » First place in Chile, and sixth place in Latin America in the “Best Corporate Governance Companies” ranking by LatinFinance magazine. » March 2009: Public ‐ utility company with the Best Corporate Governance, according to IR Global Rankings (MZ Consult, Brazil). » June 2009: For the fourth consecutive year, Endesa Chile is among the outstanding companies in Chile in the Corporate Social Responsibility ranking of Fundación PROhumana and the Production and Commerce Association, ranking tenth this year. 5

Conservative commercial policy » Hydrology risk » Electricity demand growth Minimize margin » Portfolio of generation assets variation » Evolution of fuel prices » Exchange rate risk Physical sales as of June 2009 Peru Colombia Argentina Chile 14% 16% 48% 31% 45% 50% 55% 36% 14% 84% 7% Regulated Unregulated Spot 6

Summary of consolidated results 1H09 %Var. Billion Ch$ 1H08 (b) FY 2008 (a) 1H09 (b) 1H09 vs 1H08 US$ million Revenues 2,492 1,200 1,261 2,371 5% Operating Income 546 1,028 893 344 59% Operating Margin 29% 43% 43% 36% ‐ Net Income (c) 331 623 443 64% 202 Ebitda 48% 1,146 645 437 1,213 8% Physical Sales (GWh) 30,004 ‐ 55,735 28,850 1H2009 Income : lower costs, better production mix and sales in the spot market a) 2008 figures: under Chilean accounting rules b) 1H2009: under IFRS (International Financial Reporting Standards ) c) Attributable to stockholders of the parent company (Endesa Chile) 7

EBITDA by Country Peru 10% EBITDA by Country Generation Business Jun ‐ 08 Jun ‐ 09 Jun ‐ 09 Var.% Colombia Ch$ bn Ch$ bn US$ m YoY Chile Chile 227 391 735 72% 23% 61% Argentina 35 35 66 1% Colombia 128 147 276 15% Peru 41 67 126 62% Total 431 640 1,203 48% Argentina 6% 8

Chile: largest electricity generator Gen. Mix as of June 2009 Gen. Mix as of June 2009 1H08 1H09 Var. % 1H09 Ebitda Ch$ 227 bn Ch$ 391 bn 72% US$ 735 m Ebitda Margin 31% 53% 42% 1H08 1H09 Var. % 1H09 Ph. Sales 10,068 GWh 10,515 GWh 4% ‐ 58% 1H08 1H09 Var. % Av Price EOC US$ 157/MWh US$ 113/MWh ‐ 28% Hydro Thermal � Electricity demand grew 0.3% in 1H09 versus 1H08; ‐ 1.5% in the SIC and 5.8% in the SING. s � Positive hydrology conditions. Hydro generation grew by 12% in 1H09 versus 1H08. Better production mix. t h g � Lower generation costs due to declining commodity prices and better production mix in 1H09 versus 1H08. i l h � Average spot price in 1H09 was US$ 122/MWh in the SIC, down 54% YoY. g i H � Solid balance sheet and liquidity: consolidated cash and cash equivalents was US$ 784 million in June 2009. 9

Argentina: leading privately ‐ owned electricity generator Gen. Mix as of June 2009 Gen. Mix as of June 2009 1H08 1H09 Var. % 1H09 Ebitda Ch$ 35 bn Ch$ 35 bn 1% US$ 66 m 23% Ebitda Margin 21% 22% 1H08 1H09 Var. % 1H09 Ph. Sales 5,706 GWh 6,803 GWh 19% ‐ 1H08 1H09 Var. % 1H09 Av Price Arg Subs Ar$ 171/MWh Ar$ 147/MWh ‐ 14% US$ 40/MWh 77% Thermal Hydro � Electricity demand decreased by 1.6% in 1H09 versus 1H08. � Costanera increased physical sales by 9% in 1H09 versus 1H08, although its average prices decreased in the s t h period due to lower production with liquid fuel. g i l h � Better water levels in El Chocón, thus increasing the capability to dispatch energy. g i H � Foninvemem power plants operating in combined cycle during 2009. � Recovery of account receivable accrued (Resolution SE 724/08). 10

Colombia: leading privately ‐ owned electricity generator Gen. Mix as of June 2009 Gen. Mix as of June 2009 1H08 1H09 Var. % 1H09 5% Ebitda Ch$ 128 bn Ch$ 147 bn 15% US$ 276 m Ebitda Margin 62% 62% 1H08 1H09 Var. % 1H09 Ph. Sales 7,891 GWh 8,391 GWh 6% ‐ 95% 1H08 1H09 Var. % 1H09 Av Price Emgesa Col$ 93/KWh Col$ 113/KWh 21% US$ 47/MWh Hydro Thermal � Stable, transparent and market ‐ oriented regulatory framework. � Electricity demand grew by 0.6% in 1H09 versus 1H08. s t � Better hydrology conditions allowed Emgesa to increase generation by 11%. h g � Generation costs decreased by 10% in the 1H09 versus 1H08 due to lower commodity prices. i l h � Higher average sales price in 1H09 compared to 1H08. Average spot price grew 21% in Col$ reaching an g i H equivalent to US$47 /MWh. � El Quimbo project, a 400 MW hydroelectric power plant was awarded to Emgesa. 11

Peru: largest privately ‐ owned electricity generator Gen. Mix as of June 2009 Gen. Mix as of June 2009 1H08 1H09 Var. % 1H09 41% Ebitda Ch$ 41 bn Ch$ 67 bn 62% US$ 126 m Ebitda Margin 46% 61% 1H08 1H09 Var. % 1H09 Ph. Sales 4,194 GWh 4,295 GWh 2% ‐ 1H08 1H09 Var. % Av Price Edegel US$ 38/MWh US$ 38/MWh 0% 59% Thermal Hydro � Electricity demand grew by 0.5% in 1H09 compared to 1H08. � Better hydrology conditions during 1H09 versus 1H08. Better production mix. s t h � Hydro generation increased by 6% and thermal generation increased by 2%. g i l � Average spot price at US$33/MWh in June 2009, down 26% in 1H09 versus 1H08. h g i � Expansion of Santa Rosa plant (189 MW) will operate in the 2H09 with natural gas. H 12

Solid Financial Ratios Veces Times 2,400 10 2,149 9 2,000 8 1,800 7 6.87 1,540 1,600 5.90 6 1,279 MMUS$ 4.90 1,200 4.34 5 1,105 971 4.29 3.97 875 4 3.51 800 2.81 2.98 2.61 2.63 3 3.17 2.37 1.72 2 346 349 335 355 322 400 305 313 1 0 0 TTM 2003 2004 2005 2006 2007 2008 2009 Ebitda Gastos Financieros Deuda/Ebitda Ebitda/GF EBITDA growth � 20% over the past 5 years As of June 2009 and in historical dollars 13

Recognition of strong financial position Financial Consolidated Debt Financial Consolidated Debt Evolution by Currency 7,000 5,950 6,000 27% 4,920 4,702 5,000 4,426 4,343 4,130 4,087 4,124 4,076 3,904 3,859 4,000 US$ m 3,000 55% 2,000 18% 1,000 - US$ UF-Ch$ Local Currencies Jun-09 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Consolidated figures in US$ million as of June 2009 and in historical dollars Investment grade by rating agencies » S&P: BBB with Stable outlook » Fitch: BBB with Stable outlook » Moody’s: Baa3 with Stable outlook 14

Comfortable debt maturity profile US$ m US$ m Colombia : US$ 922 m Chile: US$ 2.454 m 800 1400 600 1,228 1200 315 400 193 1000 159 151 200 79 25 0 800 0 600 Balance 2009 2010 2011 2012 2013 2014 415 360 400 215 215 200 17 5 US$ m Argentina US$ 299 m 0 9 0 1 2 3 4 e c 0 1 1 1 1 1 800 0 0 0 0 0 0 n 2 2 2 2 2 2 a l a B 600 400 Financial Debt by Country 75 81 81 200 25 24 14 0 7% 2009 2010 2011 2012 2013 2014 Balance 11% US$ m Peru: US$ 454 m 800 600 22% 60% 400 105 200 85 77 54 44 46 43 0 Chile Colombia Peru Argentina 9 0 1 2 3 4 e c 0 1 1 1 1 1 0 0 0 0 0 0 n 2 2 2 2 2 2 a 15 Figures as of June 2009 l a B