endesachileirpresentation AS OF MARCH 31, 2011 whoisendesachile? - PowerPoint PPT Presentation

endesachileirpresentation AS OF MARCH 31, 2011

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% San Isidro Emgesa Edegel Costanera Endesa Brasil Pehuenche 100% 27% 62% 70% 39% 92% Endesa Eco Pangue El Chocón Ampla 100% 95% 65% Coelce Fortaleza Celta Canela CDSA 100% 75% CIEN Figures as of March 2011 2 2 endesachileirpresentation

whoisendesachile? A unique portfolio in Latam’s Generation business Colombia N 1 Brazil 2,914 MW inst. capacity 987 MW inst. capacity 22% 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 35% market share Consolidated installed capacity: 13,846 MW Capacity including Brazil: 14,832 MW Consolidated energy sales 2010: 56,641 GWh Market shares based on installed capacity Figures as of March 2011 Cons. energy sales March 2011: 14,173 GWh 3 endesachileirpresentation

Operationalaspects in the SIC 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 230-290 US$/ - MWh MWh Diesel-Fuel Diesel-Fuel 130-230 US$/ MWh MWh LNG Combined Cycle LNG Combined Cycle 80- -130 US$/MWh Biomass Biomass 60 US$/MWh 60 US$/MWh Coal Coal 30-60 US$/ - MWh MWh Wind Power Wind Power Hydro Hydro MW MW 8 US$/MWh 8 US$/MWh Hydro, Wind Hydro, Coal, LNG Coal, LNG Diesel-Fuel Diesel-Fuel 6,000 MW 4,300 MW 1,900 MW The regulator audits all the fuel contracts The regulator measures the efficiency of the plants The companies report their technical availability 4 endesachileirpresentation

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  Exchange rates volatility  Inflation Hydro 75% Regulated Risk limit and free Real margin ≥ 0.9x expected margin contracts Thermal Target Target sales Our aim is to ensure a 95% reliability with a output margin of at least 90% of budget even in the following scenarios: Results Relative Frequency  Lower rainfall than historical levels  Increases in fuel prices MaR 95%  Lower growth in demand MMUS$ 5% 5 endesachileirpresentation

Commercialpolicy Conservative management » Hydrology risk » Evolution of fuel » Minimize margin Electricity demand growth prices variation » Portfolio of generation » Exchange rate risk assets Physical sales as of March 2011 Colombia Peru Chile Argentina 2% 18% 9% 33% 32% 48% 25% 82% 66% 66% 19% Regulated Unregulated Spot 6 endesachileirpresentation

operationalaspects Figures by country as of March 2011 Total Installed Capacity: 13,846 MW Total Generation: 12,791 GWh Peru Peru 12% 18% Chile 41% Chile Colombia 38% 21% Colombia 22% Ebitda March 2011: US$ 417,935 million Argentina Argentina 22% 26% Peru 16% Colombia 18% Chile 58% Argentina Affiliate Company: Endesa Brasil 8% Endesa Chile ownership: 38.9% Equity Gains (Mar. 2011): US$ 52 million 7 endesachileirpresentation

operationalaspects Summary of consolidated results Var. % 1Q11/1Q10 US$ million FY10 1Q10 1Q11 (a) 5,055 1,100 1,191 8.3% Revenues 1,849 Operating income 364 329 (9.6%) 51% Contribution margin 51% 50% - 2,222 418 (10.8%) 468 Ebitda 1,107 3.3% Net income (b) 195 201 56,641 5.1% 12,174 12,791 Physical sales (GWh) Main drivers: higher energy purchases, high use of fuel for thermal generation due to lower hydrology mainly in Chile and transitory equity tax in Colombia. a) Throughout this presentation, variations may not coincide due to rounding Attributable to Endesa Chile’s shareholders b) c) Figures are translated into US dollars using the average exchange rate of Ch$ 481.81 per dollar in March 2011. 8 endesachileirpresentation

financialaspects Strong financial position Gross Debt byType (million US$) Net Debt Evolution 5000 Others, Banks, 380 3,833 697 4000 3,612 3,306 3,292 3,239 3,065 3000 US$ millon Local Bonds, Yankee 1,706 2000 Bonds, 1,310 1000 Total gross debt: US$4,093 million 0 2006 2007 2008 2009 2010 Mar-11 Debt by Currency  As of March 2011: US$ 779 million of cash and cash equivalents on a consolidated basis Local currency  Liquidity position enhanced with US$ 700 million of consolidated US$ 36% 53% committed Revolving Credit Lines, both locally and abroad and US$215 million of uncommitted credit lines in the Chilean capital market UF-Ch$  Endesa Chile ring- fenced its Yankee Bonds’ and Local Bonds’ cross 11% default clauses, with no possibility of a default arising from non- Chilean subsidiaries Figures as of March 2011 9 endesachileirpresentation

financialaspects Comfortable debt maturity Financial Debt (US$ million) 2011 2012 2013 2014 2015 Balance Total Chile 24 83 421 222 170 1,153 2,073 Argentina 106 73 44 44 30 0 298 Peru 44 60 50 50 34 186 423 Colombia 165 163 0 76 133 762 1,299 Total 339 379 516 391 367 2,101 4,093 Financial Debt by Country Credit Risk Ratings Recognition Date: Jan. 2010 Date: Apr. 2011 Date: Feb. 2010 Colombia 32% Baa2 BBB+ BBB+ Chile 51% BBB BBB Ba1 Peru 10% Argentina 7% Figures as of March 2011 10 10 endesachileirpresentation

financialaspects Strong financial ratios Net debt/EBITDA 3 2.5 2.5x 2 1.5 1.6x 1.5x 1.5x 1.5x Endesa Chile‘s 1 investment grade 0.5 status restored 0 2007 2008 2009 Dec-10 Mar-11 EBITDA/Net financial expenses 8.3 8.2 7.7 9 8 6.5x 7 6 5 5.0x 4 Endesa Chile’s 3 investment grade 2 status restored 1 0 2007 2008 2009 Dec-10 Mar-11 endesachileirpresentation 11 11

consolidatedresults Market Value and Dividends CAGR = 11% 15,365 13,954 Market (US$ m) Value 10,393 10,072 9,428 2006 2007 2008 2009 2010 (Ch$ x share) 32.5 Dividends CAGR = 25% 26.8 21.3 13.8 13.4 2006 2007 2008 2009 2010 endesachileirpresentation 12

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 France 8 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$) endesachileirpresentation 13

whereareweheadingto? Projects under construction Bocamina II, coal-steam, Chile  Location: next to the existing Bocamina I coal-fired plant  Installed capacity: 370 MW  Fuel type: imported coal  Estimated start-up: December 2011 El Quimbo, hydro power plant, Colombia  Installed capacity: 400 MW  Investment: US$ 837 million  Location: Magdalena River  Reliability payment: up to 1,650 GWh/ year for 20 years.  Estimated start-up: December 2014 endesachileirpresentation 14 14

whereareweheadingto? Projects under study Neltume, hydro Los Cóndores, 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- Curibamba, hydro steam power plant power plant  Installed capacity:  Installed capacity: 740 MW 188 MW 15 15 endesachileirpresentation

whereareweheadingto? Projects under study Aysen Hydroelectric Project, Chile  Installed capacity: 2,750 MW  Endesa Chile’s owns 51% and Colbún 49%  Takes advantage of water: natural resource, renewable and clean  CO2 emissions: Reduction of 16.2 million tons/year  1st half 2009: first set of answers to Environmental Impact Study (EIA) was completed  January 2010: additional observations were received  October 28, 2010: Answers to the second set of questions of the EIA were submitted  November 25, 2010: Third set of questions  April 11, 2011: the answers to the third set of questions were submitted endesachileirpresentation 16 16

whereareweheadingto? Projects under study Aysen Hydroelectric Project, Chile  Power plants will be the most efficient in electricity generation worldwide  Average load factor 77%  Transmission line direct current (HVDC) of 1,912 kilometers, from Cochrane to Santiago. Energy vs. floaded surface 3.5 GWh per year / hectare 3.0 2.5 2.0 1.5 1.0 0.5 - Rapel Itaipú Karáhnjukar Hidroaysen 17 17 endesachileirpresentation

whoisendesachile? General highlights  Vast experience, with over 66 years of history  Multinational electricity generation company based in Chile  Leading market position in most of the countries where it operates  Large and efficient investment portfolio of generation assets within South America  Excellent reputation and high level of technical standards  Committed with regulatory authorities, the environment and corporate governance best practices  Part of an important worldwide electricity group (Enel, Endesa, S.A., Enersis) 18 18 endesachileirpresentation