endesachileirpresentation AS OF SEPTEMBER 30th, 2010
whoisendesachile? A unique portfolio in Latam’s Generation business Colombia N°1 Brazil 2,914 MW inst. capacity 987 MW inst. capacity 21% market share 1% market share in generation N°1 Peru 1,668 MW inst. capacity 26% market share Argentina N°1 N°1 Chile 3,652 MW inst. capacity 13% market share 5,611 MW inst. capacity 36% market share Consolidated installed capacity: 13,846 MW Capacity including Brazil: 14,833 MW Consolidated energy sales 2009: 59,859 GWh Market shares based on installed capacity Consolidated energy sales 9M10: 42,156 GWh 2 Figures as of September 2010
whoisendesachile? Positive evolution of institutional and regulatory frameworks 10 High 8 8 7 Medium/High 6 4 3 2 Electricity � Employers � Controversy Global regulation Independent � Associations settlement Valuation Constitution Contracts Foreign � (judges) and � Public � Services regulatory � compliance investment � body legislation 3 Source: Internal, supported by external consultancy
whoisendesachile? A unique portfolio in Latam’s Generation business The biggest thermal plant in Latin America and interconnection Argentina - Brazil Cien Costanera ( I nterconnection Argentina - Brazil) 1 ,0 0 0 Km 2 ,3 2 4 MW 2 ,1 0 0 MW Buenos Aires Rio Grande do Sul - Argentina Argentina 4
whoisendesachile? A unique portfolio in Latam’s Generation business The largest hydro plants in Argentina and Colombia El Chocón Guavio Ralco 1 ,3 2 8 MW 6 9 0 MW 1 ,2 1 3 MW installed capacity installed capacity installed capacity Neuquén and VI I I Region of Cundinam arca Río Negro Bío-Bio Colom bia Chile Argentina 5
whoisendesachile? A unique portfolio in Latam’s Generation business The first wind farm in Chile and the first regasification plant in the Pacific Area GNL Quintero Canela w ind farm Regasification capacity: Canela I and I I 9 .5 Mm 3 / d ( 3 .4 8 bcm / y) 1 8 + 6 0 MW 2 storage tanks 1 6 0 ,0 0 0 m 3 installed capacity V Region I V Region Chile Chile 6
whoisendesachile? whoisendesachile? We are part of Enel Group Ownership structure 92% 61% Chilean Pension Other Inst. Minority ADR Holders Funds Shareholders Shareholders 60% 16% 4% 16% 4% Pehuenche San Isidro Emgesa Edegel Costanera Endesa Brasil 92% 100% 27% 62% 70% 39% Endesa Eco Pangue El Chocón Ampla 100% 95% 65% Coelce Fortaleza Canela Celta CDSA 75% 100% CIEN Figures as of September 2010 7 7 endesachileirpresentation
whoisendesachile? We are part of Enel Group Installed Capacity (GW) Installed Capacity (GW) Installed Capacity (GW) Net Generation (TWh) Net Generation (TWh) Net Generation (TWh) Sales to Final Consumers (TWh) Sales to Final Consumers (TWh) Sales to Final Consumers (TWh) North America North America 0.7 GW 0.7 GW 0.7 GW Russia Russia 1.9 TWh 1.9 TWh 1.9 TWh 8.2 GW 8.2 GW 8.2 GW 40.7 TWh 40.7 TWh 40.7 TWh 17.4 TWh 17.4 TWh 17.4 TWh Central America Central America 0.6 GW 0.6 GW 0.6 GW 2.5 TWh 2.5 TWh 2.5 TWh Colombia Colombia 2.9 GW 2.9 GW 2.9 GW Brazil Brazil Slovakia Slovakia France France 12.9 TWh 12.9 TWh 12.9 TWh 1.1 GW 1.1 GW 1.1 GW Romania Romania 5.7 GW 5.7 GW 5.7 GW 1.0 TWh 1.0 TWh 1.0 TWh 7.3 TWh 7.3 TWh 7.3 TWh 3.9 TWh 3.9 TWh 3.9 TWh 22.5 TWh 22.5 TWh 22.5 TWh 9.9 TWh 9.9 TWh 9.9 TWh 14.5 TWh 14.5 TWh 14.5 TWh Peru Peru Iberia Iberia 1.6 GW 1.6 GW 1.6 GW 22.5 GW 22.5 GW 22.5 GW 8.8 TWh 8.8 TWh 8.8 TWh Bulgaria Bulgaria 85.5 TWh 85.5 TWh 85.5 TWh 5.2 TWh 5.2 TWh 5.2 TWh 0.6 GW 0.6 GW 0.6 GW 109 TWh 109 TWh 109 TWh Argentina Argentina Italy Italy Chile Chile 3.7 TWh 3.7 TWh 3.7 TWh 4.5 GW 4.5 GW 4.5 GW 40.3 GW 40.3 GW 40.3 GW 5.4 GW 5.4 GW 5.4 GW 14.4 TWh 14.4 TWh 14.4 TWh Greece Greece 96.3 TWh 96.3 TWh 96.3 TWh 21.6 TWh 21.6 TWh 21.6 TWh 13.4 TWh 13.4 TWh 13.4 TWh 0.1 GW 0.1 GW 0.1 GW 137.2 TWh 137.2 TWh 137.2 TWh 6.5 TWh 6.5 TWh 6.5 TWh Morocco Morocco 0.2 TWh 0.2 TWh 0.2 TWh 0.1 GW 0.1 GW 0.1 GW 0.9 TWh 0.9 TWh 0.9 TWh 95 GW Installed Capacity Presence in 23 countries 8 62 Million Clients 82,000 employees
operationalaspects Figures by country as of September 2010 Total Installed Capacity: 13,846 MW Total Generation: 38,484 GWh Peru Peru 12% 16% Chile Chile Colombia 41% 40% 21% Colombia 22% Total Ebitda 12M: US$ 2,057 million Argentina 26% Argentina 22% Peru 11% Colombia 28% Chile 55% Affiliate Company: Endesa Brasil Endesa Chile ownership: 38.9% Argentina Equity Gains (Dec. 2009): MMUS$ 872 6% Endesa Chile’s stake: MMUS$ 495 9
operationalaspects Greater predictability and stability in prices Range of Range of US$/MWh US$/MWh Demand Demand Supply Supply Peak Turbine Peak Turbine Marginal hourly cost Marginal hourly cost 160-180 US$/MWh 160-180 US$/MWh Diesel-Fuel Diesel-Fuel 100-130 US$/MWh 100-130 US$/MWh LNG Combined Cycle LNG Combined Cycle 70-80 US$/MWh 70-80 US$/MWh Biomass Biomass 60 US$/MWh 60 US$/MWh Coal Coal 30-40 US$/MWh 30-40 US$/MWh Wind Power Wind Power Hydro Hydro MW MW 8 US$/MWh 8 US$/MWh Hydro, Wind Hydro, Wind Coal, LNG Coal, LNG Diesel-Fuel Diesel-Fuel 5,500 MW 5,500 MW 4,500 MW 4,500 MW 4,500 MW 4,500 MW The regulator audits all the fuel contracts The regulator measures the efficiency of the plants The companies report their technical availability 10 10
operationalaspects Integrated risk management capability Target output and sales in future years Risk variables affecting margins � Rainfall 100% � Growth in demand Extreme � Fuel prices hydro Spot volatility � Exchange rates � Inflation Hydro 75% Regulated Risk limit and free contracts Real margin � 0.9x expected margin Thermal Target Target sales Our aim is to ensure with a 95% of reliability a output margin at least 90% of budget even in the following scenarios: Results Relative Frequency MaR 95% � Lower rainfall than historical levels � Increases in fuel prices � Lower growth in demand… MMUS$ 5% 11 11
operationalaspects Summary of consolidated results Var. % 9M10/9M09 US$ Million FY09 9M09 9M10 586.72 (a) 4,322 Revenues 3,281 3,555 8.4% 1,447 Operating income 1,817 1,223 (15.5%) 42% 44% 34% (22.0) Operating margin 2,246 1,703 1,514 (11.1%) Ebitda (24.0%) 1,120 Net income (b) 676 889 44,688 59,859 (5.7%) 42,156 Physical sales (GWh) Main drivers: higher costs of energy purchases and lower energy sales price in Chile and higher fuel costs in Argentina a) Throughout this presentation, variations may not coincide due to figures rounding b) Attributable to Endesa Chile’s shareholders c) Figures are translated into US dollars using the average exchange rate for the nine months period of each year, 12 12 corresponding to Ch$572.74 / dollar for January-September 2009 Ch$520.16 / dollar for January-September 2010.
financialaspects Comfortable debt maturity Financial Debt (US$ million) 2010 2011 2012 2013 2014 2015 Balance TOTAL Chile 35 79 44 421 179 221 1,136 2,116 Argentina 51 120 38 25 42 14 0 290 Peru 32 59 70 50 48 32 158 449 Colombia 89 133 169 0 79 139 385 993 Total 207 392 322 495 348 406 1,679 3,848 Financial Debt by Country Colombia 26% Chile 54% Peru 12% Argentina 8% 13 13 Figures as of September 2010
financialaspects Credit Risk Agencies recognition + Revision Date: Jan. 2010 Date: Feb. 2010 Date: Mar. 2010 Date: Jan. 2010 Date: Dec. 2006 AA AA BBB+ BBB+ Baa3 AA- BBB BBB Ba1 AA- Chilean market International market Ratings based upon: � Well diversified and efficient assets � Leading market share in the four countries where we operate � Transparent and favorable regulatory framework in Chile � Solid financials, good cash flow generation and prudent financial management � Conservative commercial policy 14 14
financialaspects Dividends: sustained growth to shareholders CAGR = 46% Dividends 434 1,235 (US$ m) 274 227 207 93 2005 2006 2007 2008 2009 Total Payout ratio 50% 50% 60% 40% 35.11% Market Cap CAGR = 12% 14,842 (US$ m) (1) 13,954 10,072 10,393 8,322 9,428 2005 2006 2007 2008 2009 Sep-10 Values calculated in dollars at the end of each period. (1) Source: Bloomberg 15 15
whereareweheadingto? Direct relation between GDP and electricity demand Real GDP vs. Electricity Demand Per capita 18 Finland 16 Sweden 14 Electricity � demand � per � capita � (Gwh) 12 United � States 10 Spain 8 France Germany Russia Slovakia Italy Denmark 6 United � Kingdom Portugal Greece 4 Chile Argentina 2 Mexico Brazil Peru Colombia 0 0 5 10 15 20 25 30 35 40 45 50 GDP � per � capita � (Thousand � US$) 16
whereareweheadingto? Impact of the earthquake BOCAMINA II BOCAMINA I CHIMNEY ADMINISTRATION BUILDING PUMPING ROOM 17 17
whereareweheadingto? Projects under study Neltume, hydroelectric Los Condores, hydro power plant run-of-the-river plant � Installed capacity: � Installed capacity: 150 MW 490 MW Piruquina, mini-hydro Choshuenco, hydro run-of-the-river plant power plant � Installed capacity: � Installed capacity: 7,6 MW 128 MW Punta Alcalde, coal- steam power plant � Installed capacity: 740 MW 18 18
thankyou
whereareweheadingto? Exhibits 20 20
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