Endesa Chile IR Presentation As of June 30, 2014 Organization - PowerPoint PPT Presentation

Endesa Chile IR Presentation As of June 30, 2014

Organization structure ITALY Committed Shareholders 92% SPAIN 61% Enersis S.A. CHILE Chilean Pension 18% Funds 3% ADRs (Citibank 60% 4% N.A.) 60% 15% Retail Institutional Investors CHILE  PEHUENCHE, 93%  CELTA, 96%  GASATACAMA, 98% ARGENTINA BRAZIL 1 PERU COLOMBIA • ENDESA BRASIL, 37% • COSTANERA, 76% AMPLA, 17% • EMGESA, 27% • EDEGEL, 62% COELCE, 22% • EL CHOCÓN, 65% FORTALEZA, 37% CDSA, 37% CIEN, 37% 1 Brazil assets are recognized as equity method investments. 2

A unique portfolio in LatAm’s generation business No. 2 COLOMBIA 3,041 MW inst. capacity BRAZIL Hydro: 2,597 MW 987 MW inst. capacity Thermal : 444 MW Hydro: 665 MW 21% market share 2 Thermal : 322 MW 1% market share 2 No. 1 PERU 1,524 MW inst. capacity Hydro: 751 MW Thermal : 773 MW ARGENTINA No. 2 19% market share 2 3,652 MW inst. capacity Hydro: 1,328 MW No. 1 CHILE Thermal: 2,324 MW 12% market share 2 6,351 MW inst. capacity 1 Hydro: 3,456 MW Thermal : 2,808 MW Consolidated installed capacity : 14,568 MW NCRE: 87 MW Capacity including Brazil : 15,555 MW 32% market share 2 Consolidated energy sales 1H13 : 27,237 GWh Consolidated energy sales 1H14 : 26,877 GWh 1 From May 1, 2014, GasAtacama is included in Chilean capacity (+780 MW) 3 2 Calculated based on installed capacity

Well diversified generation assets throughout the region Coal: 896 MV Hydro: 8,797 MW Installed Capacity Colombia: 2,597 MW Brazil 1 : Colombia: 665 MW 236 MW 87 Peru: 751 MW Chile: Chile: 660 MW 3,456 MW HYDRO Argentina: 5,775 1,328 MW COAL 8,797 OIL-GAS NCRE Oil-Gas: 5,775 MW NCRE 2 : 87 MW 896 Colombia: Brazil 1 : 208 MW 322 MW Peru: 57% of Endesa Chile´s installed capacity 773 MW corresponds to Hydro resources Chile: Chile: 87 MW 2,148 MW Argentina: 2,324 MW 1 Brazil assets are recognized as equity method investments. 2 Non Conventional Renewable Energy. 4

Consolidated financial highlights MM US$ 2 Ch$ million 1 1H14 1H13 Change 1H14 Revenues 12% 2,056 1,137,127 1,015,797 Costs 13% (1,089) (602,407) (532,591) Contribution Margin 11% 967 534,720 483,206 EBITDA 11% 764 422,582 382,396 EBIT 13% 588 325,354 288,578 Net Financial Expenses 24% (147) (81,459) (65,557) Related Company Results (42%) 63 34,819 59,655 Taxes (8%) (150) (82,887) (90,240) Net Income 11% 394 218,154 195,768 Attributable to shareholders of Endesa (7%) 168 92,737 100,115 Chile 1 Under IFRS, Endesa Chile has adopted the Chilean Peso as functional currency, comparisons between periods have been only made under Ch$. 5 2 Referential average exchange rate was 553.12 Ch$/US$ as of June 30, 2014.

Diversified source of EBITDA Total Generation 1 (TTM): Total Installed Capacity 1 : 50,719 GWh 14,568 MW Argentina 22% Argentina 25% Chile 36% Chile 44% Peru Peru 10% 17% Colombia Colombia EBITDA 1H14 (TTM): 21% 25% US$ 1,843 million Argentina 7% Chile Peru 33% 17% Endesa Brasil • Endesa Chile’s ownership: 37.1%. • Net Attributable Income (TTM) 2 : US$ 131 million. Colombia 43% 1 Excludes the proportional assets from Endesa Brasil (987 MW). 6 2 Considers the total contributions of Endesa Brasil recognized by Endesa Chile as an equity method investment.

Balanced commercial policy Physical Sales as of June 2014 Chile Peru Argentina Colombia 8% 10% 1% 18% 29% 49% 37% 55% 81% 22% 90% Distribution Companies Free Customers Spot Physical Sales as of June 2013 Argentina Chile Peru Colombia 2% 10% 19% 22% 31% 50% 54% 36% 76% 81% 19% 7 Distribution Companies Free Customers Spot

Revenue stability through long term contracts Energy contracts with established prices Colombia – Contracted energy (GWh) Chile – Contracted energy (GWh) Peru – Contracted energy (GWh) Brazil – Contracted energy (GWh) Peru – Hired energy 8

Healthy debt maturity profile Financial Debt Maturity 1 as of June 2014 • Cash: US$ 441 MM; US$ million Total Debt: US$ 4,405 MM (US$ 581 MM including >90 days cash investments) 3,000 2,606 • Committed Credit Lines: 2,500 US$ 495 MM 2,000 1,500 • Non-Committed Credit Lines: 1,000 665 US$ 344 MM 500 209 238 175 119 127 75 83 61 26 19 • Average life of debt: 0 < 1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years and 7.4 years beyond Bonds Banks and Other Debt by Country (MM US$) 1 Debt by Type 1 Debt by Currency 1 UF + CLP Peru Others 6% 6% 16% Bank Debt Other Chile 7% Local 44% Currency 46% Colombia US$ 45% 48% Bonds Argentina 77% 5% 9 1 Includes arrangements and other consolidation adjustments.

Consistent consolidated cash flow generation (US$ million) 1 1,977 1,843 1,714 697 566 494 (277) (277) (300) (381) (414) (357) (538) (590) (643) EBITDA Net Financial Expenses Payments for Additions of Fixed Income Tax Free Cash Flow Assets 2012 2013 1H 2014 TTM *Attributable to each period 1 Amounts translated into US$ at the average exchange rate for each period. 10 * For year 2012, jointly controlled companies are included

Increasing electricity demand in LatAm Historic electricity demand growth (CAGR, last ten years) 180% 5.6% 170% 160% 4.9% 150% Total Sales in GWh (%) 4.0% 140% 3.1% 130% 2.7% 120% 110% 100% 90% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Years CHILE COLOMBIA PERU BRAZIL ARGENTINA 11

Markets with high potential for growth Direct relation between GDP and electricity demand 18,000 CANADA Electricity consumption, per capita (Kwh per year) 16,000 FINLAND 14,000 UNITED STATES 12,000 AUSTRALIA 10,000 AUSTRIA JAPAN 8,000 FRANCE GERMANY RUSSIA 6,000 SPAIN UNITED KINGDOM ITALY GREECE 4,000 CHILE CHINA ARGENTINA BRAZIL MEXICO 2,000 PERU IRELAND INDIA COLOMBIA BOLIVIA 0 0 10,000 20,000 30,000 40,000 50,000 60,000 GDP per capita (current PPP, US$) Data source: The World Bank. • Chile aims to be in the group of developed countries. • There is no development without energy. 12

Projects under construction Colombia El Quimbo • Hydro power plant, located in the Huila Department, Colombia • Utilizes the flow coming from the Magdalena River. • 400 MW of installed capacity with an estimated load factor of 60%. • Physical execution of 72% as of June 30, 2014 with an accumulated investment of US$ 702 million 1 • Beginning the work to prepare the bottom of the reservoir and build the Tesalia Substation. 13 1 Constant USD of year 2010.

Projects under construction Colombia Salaco Chain (optimization) • Upgrading the minor plants to reach 221 MW capacity. • Located in the Bogotá River system, Colombia. • Total CAPEX of US$ 44 million. • Optimization works started in January 2013. • 145 MW will be added to the capacity. • As of June 30, 4 units had come into service, adding a net total of 128 MW. 14

Investments recently approved Chile Los Cóndores • Hydro power plant, run of the river. • Located in San Clemente, in Maule region, Chile. • 150 MW of installed capacity. • Estimated load factor: 46% • FID 1 approved on March 31, 2014. • Total CAPEX of US$ 662 million. Chile Gas Atacama • Thermal power plant, Gas - CCGT • Located in Mejillones, in Atacama region, Chile. • 780 MW of installed capacity. • Estimated load factor: 46% • As of May, 2014 Endesa Chile became the 98% owner of GasAtacama. 15 1 Final Investment Decision.

Expected evolution for Endesa Chile´s installed capacity 22% increase in installed capacity through new projects Hydro plant Thermal plant 815 MW Curibamba - 188 MW Punta Alcalde - 740 MW Neltume - 490 MW Salaco- 145 MW Taltal - 120 MW Los Cóndores - 150 MW El Quimbo- 400 MW GasAtacama- 780 MW 13,717 13,717 13,717 13,717 March - 2014 Acquisition of Non- Under Construction In basic enginering Under study Controlling Interest May - 2014 • Since May, 2014 GasAtacama has been fully consolidated by Endesa Chile. • Los Cóndores construction started during the first half of 2014. 16

Projects under study Chile Punta Alcalde • Thermal, coal-steam power plant. • Located in Huasco, in the Atacama region (SIC), Chile. • 740 MW of installed capacity. • Estimated load factor: 83% • On January 17, 2014, the Supreme Court of Chile reaffirmed the approval of the EIS 1 , in line with the ruling of the Ministers Committee on Dec 3, 2012. Chile Taltal (Conversion) • Closure to upgrade the existing LNG power plant, to a Combined Cycle Gas Turbine Power Plant. • Located in the Antofagasta region (SIC), Chile. • 120 MW will be added to the current 245 MW capacity. • EIS 2 submitted for approval in Dec 2013 1 Environmental Impact Study. 17 2 Environmental Impact Statement.

Projects under study Chile Neltume • Hydro power plant, run of the river. • Located in Panguipulli, in the Los Ríos Region (SIC). • 490 MW of installed capacity. • EIS 1 under review. Perú Curibamba • Hydro power plant, run of the river. • Located in the Junín Department, utilizes the flow coming from the Comas and Uchubamba Rivers. • 188 MW of installed capacity. • EIS 1 approved. 18 1 Environmental Impact Study.