endesachileirpresentation AS OF SEPTEMBER 30, 2009
Index Who is Endesa Chile? Operational aspects Financial aspects Where are we heading? Conclusions 01 endesachileirpresentation
whoisendesachile? General highlights Multinational electricity generator, based in Chile, with leading market positions in most of the 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) 02 endesachileirpresentation
whoisendesachile? Ownership structure Chilean Other Inst. Minority Enersis ADR Holders Pension Funds Shareholders Shareholders 60% 19% 5% 12% 4% ENDESA CHILE Pehuenche San Isidro Emgesa Edegel Costanera 100,00% 26,87% 62,46% 69,76% 92,65% Pangue Endesa Eco El Chocón 94,99% 100,00% 65,37% Celta Canela 100,00% 75,00% Ultimate controllers: Enel owns 92% of Endesa Spain, which in turn owns 61% of Enersis. 03 endesachileirpresentation
whoisendesachile? Important presence in 5 countries Endesa Brasil Emgesa, Colombia (Affiliate) Installed Cap.: 2,895 MW Hydro Cap.: 85% Cachoeira (Gx): 665 MW 21% market share Fortaleza (Gx): 322 MW 11 power plants Ampla (Dx): 2.5 mill. clients Coelce (Dx): 2.9 mill. clients Cien (Tx): 2,100 MW Edegel, Peru Installed Cap.: 1,661 MW Hydro Cap.: 45% Argentina 27% market share Installed Cap.: 3,652 MW 9 power plants Costanera: 2,324 MW El Chocón: 1,328 MW Chile Installed Cap.: 5,540 MW Hydro Cap.: 36% Endesa Chile: 3,043 MW 14% market share San Isidro I&II: 732 MW 5 power plants Pehuenche: 699 MW Pangue: 467 MW GasAtacama: 390 MW (50% 781 MW) Celta: 182 MW Total Consolidated: 13,748 MW Endesa Eco: 27 MW Number of power plants: 53 Hydro Cap.: 62% Hydro: 58.1% 38% market share Thermal: 41.8% 28 power plants Wind: 0.1% Total incl. Brazil: 14,735 MW 04 endesachileirpresentation
Index Who is Endesa Chile? Operational aspects Financial aspects Where are we heading? Conclusions 05 endesachileirpresentation
operationalaspects Conservative commercial policy » » Hydrology risk Evolution of fuel prices Minimize margin » » Exchange rate risk Electricity demand growth variation » Portfolio of generation assets Physical sales as of Sept. 2009 Argentina Chile Colombia Peru 14% 17% 28% 44% 56% 55% 31% 50% 83% 16% 6% Regulated Unregulated Spot 06 endesachileirpresentation
operationalaspects Summary of consolidated results FY Jan-Sept Jan-Sept Jan-Sept Ch$ Millions % Var. 2008 (a) US$ m 2008 (b) 2009 (b) 5% 2,492 1,818 1,879 Revenues 3,414 Operating income 893 576 829 44% 1,506 Operating margin 36% 32% 44% - 44% 35% 1,146 721 975 1,772 Ebitda 61% Net income (c) 443 316 509 925 5% - 55,735 42,442 44,688 Physical sales (GWh) Main effects: better production mix, lower generation costs, and higher sales in the spot market a) 2008 figures under Chilean accounting rules Jan – Sept 2009/2008 under IFRS (International Financial Reporting Standards ) b) c) Attributable to stockholders of the parent company (Endesa Chile) 07 endesachileirpresentation
operationalaspects Ebitda by country As of Sept 2009 EBITDA by Country Peru 9% Generation Business Sep-08 Sep-09 Sep-09 Var.% Ch$ bn Ch$ bn US$ m YoY Chile 445 604 1,098 36% Colombia Argentina 40 49 89 23% 23% Chile Colombia 179 226 411 27% 63% Peru 56 88 159 57% Total 720 967 1,758 34% Argentina 5% 08 endesachileirpresentation
operationalaspects Operations in Chile and Colombia Gen. Mix as of Sept 2009 Chile Sep-08 Sep-09 Var. % Sep-09 Thermal 36% Ebitda Ch$ 445 bn Ch$ 604 bn 36% US$ 1,098 m Ebitda Margin 39% 57% - - Hydro 64% Ph. Sales 15,882 GWh 16,071 GWh 1% - Gen. Mix as of Sept 2009 Colombia Thermal Sep-08 Sep-09 Var. % Sep-09 5% Ebitda Ch$ 179 bn Ch$ 226 bn 27% US$ 411 m Ebitda Margin 62% 60% - - Hydro Ph. Sales 12,362 GWh 12,790 GWh 4% - 95% 09 endesachileirpresentation
operationalaspects Operations in Peru and Argentina Gen. Mix as of Sept 2009 Peru Sep-08 Sep-09 Var. % Sep-09 Hydro Ebitda Ch$ 56 bn Ch$ 87 bn 57% US$ 159 m 57% Thermal Ebitda Margin 40% 55% 43% Ph. Sales 6,300 GWh 6,179 GWh -2% - Gen. Mix as of Sept 2009 Argentina Sep-08 Sep-09 Var. % Sep-09 Hydro 28% Ebitda Ch$ 40 bn Ch$ 49 bn 23% US$ 89 m Thermal 72% Ebitda Margin 18% 20% - - Ph. Sales 7,898 GWh 9,648 GWh 22% - 10 endesachileirpresentation
Index Who is Endesa Chile? Operational aspects Financial aspects Where are we heading? Conclusions 11 endesachileirpresentation
financialaspects Strong financial position Debt by Type 7,000 Consolidated Debt Evolution 5,950 Others 6,000 6% 4,920 Banks 4,702 5,000 4,426 4,343 29% 4,321 4,124 4,087 4,076 3,904 3,859 4,000 US$ m Local 3,000 Bonds 44% 2,000 1,000 Yankee Bonds - 21% 9 0 1 2 3 4 5 6 7 8 9 9 0 0 0 0 0 0 0 0 0 0 9 0 0 0 0 0 0 0 0 0 - p 1 2 2 2 2 2 2 2 2 2 e S Consolidated figures in US$ million as of Sept 2009 and in historical dollars. Debt by Currency As of Sept 2009, total liquidity position in Chile reached nearly US$ 1 Local currency billion, including cash and cash equivalents and committed credit lines. 29% Liquidity position enhanced with successful 20-year US$ 340 million local US$ 54% bond issuance in Dec-08, reflecting the confidence in the company by the local market. At this moment, Endesa Chile has ring- fenced its Yankee Bonds’ cross default clauses only related to Endesa Chile and its Chilean subsidiaries. UF-Ch$ 17% 12 endesachileirpresentation
financialaspects Comfortable debt maturity US$ m US$ m Colombia: US$ 1,078 m 1,400 Chile: US$ 2,483 m 1,246 800 1,200 600 482 1,000 400 800 164 156 123 200 82 72 0 600 415 0 354 400 2009 2010 2011 2012 2013 2014 Balance 215 215 200 35 3 0 Peru: US$ 463 m Balance 2009 2010 2011 2012 2013 2014 US$ m 800 600 Financial Debt by Country 400 127 107 Argentina 200 62 58 47 44 19 7% Peru 0 10% 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 l a B US$ m Argentina US$ 298 m Chile Colombia 59% 24% 800 600 400 92 83 200 61 25 24 14 0 Figures as of Sept. 2009. 2009 2010 2011 2012 2013 2014 Balance 13 endesachileirpresentation
financialaspects Solid financial ratios 2,400 10 2,217 9 2,000 8 1,800 7 6.87 1,540 1,600 5.90 6 1,279 Times MMUS$ 4.90 4.34 971 1,105 1,200 5 3.97 4.29 875 4 3.51 2.81 800 2.98 2.61 2.63 3.17 3 2.37 2.18 2 346 349 355 322 400 335 305 323 1 0 0 2003 2004 2005 2006 2007 2008 2009 Sep-09 TTM Ebitda Interest Expenses Debt/Ebitda Ebitda/IE EBITDA growth 16% over the past 5 years 14 endesachileirpresentation
financialaspects Risk agencies recognition Date: Aug 2009 Date: Sep 2008 Date: Sep 2008 Date: Dec. 2008 Date: July 2009 AA- AA- Baa3 BBB BBB BBB- A+ A+ Ba1 BBB- International Market Chilean Market Ratings based upon: • Well diversified and efficient assets and leadership in the four countries where the company operates • Transparent and favorable regulatory framework in Chile • Solid financials, good cash flow generation and prudent financial management • Conservative commercial policy 15 endesachileirpresentation
financialaspects Important transactions recently occurred Chile On July 24, 2009, Endesa Chile successfully completed the consent solicitation process and the receipt of the requisite consents with respect to the amendments of the Yankee bonds indentures dated January 1, 1997. The amendment refers to the cross default clause so that it now applies only to Endesa Chile and its subsidiaries in Chile. Perú Our Peruvian subsidiary Edegel issued four domestic bonds this year for a total of US$ 34.6 million, at terms between 6 and 10 years, and rates between 5.2% and 6.4% equivalent in dollars. On October 9th, Endesa Chile purchased an additional 29.4% of Edegel from Endesa Latinoamericana at a total cost of US$ 375 million. Our direct and indirect interest in Edegel increased from 33.06% to 62.46%. This acquisition was financed with the liquidity of the company, thus not needing any additional financing. Colombia Emgesa issued six domestic bonds in 2009 for a total amount of Cop$ 664,000 million (approximately US$ 310 million), at terms between 5 and 15 years, and rates between 4.3% and 5.8% equivalent in dollars. 16 endesachileirpresentation
financialaspects Attractive return to shareholders Dividend Policy and Payout Share Price Evolution Ch$/share 25 140.0 21.3 20 120.0 13.8 100.0 15 13.4 +54% 80.0 10 60.0 5.8 5 40.0 60% 40% 50% 50% 20.0 0 28/09/2007 28/11/2007 28/01/2008 28/03/2008 28/05/2008 28/07/2008 28/09/2008 28/11/2008 28/01/2009 28/03/2009 28/05/2009 28/07/2009 28/09/2009 2005 2006 2007 2008 Endesa IPSA Dow Jones Return YTD (Jan09-Sep09): 18,7%, including dividends Source: Bloomberg 17 endesachileirpresentation
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