endesachileirpresentation AS OF DECEMBER 31st, 2009
Index Who is Endesa Chile? Operational aspects Financial aspects Where are we heading to? 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 Enel 92% Endesa Spain 61% Chilean Pension Other Inst. Minority Enersis ADR Holders Funds Shareholders Shareholders 60% 18% 5% 13% 4% ENDESA CHILE Pehuenche San Isidro Emgesa Edegel Costanera Endesa Brasil 92.65% 100.00% 26.87% 62.46% 69.76% 38.88% Pangue Endesa Eco El Chocón Ampla 94.99% 100.00% 65.37% Coelce Fortaleza Celta Canela CDSA 100.00% 75.00% CIEN 03 endesachileirpresentation
whoisendesachile? Important presence in 5 countries Colombia Brazil : #1 2,895 MW 987 MW 21% market share 1% market share in generation Output 2009: 12,674 GWh Output 2009: 3,319 GWh 5.5 million customers 5% market share in distribution Peru #1 1,667 MW Argentina 29% market share Output 2009: 8,163 GWh #1 3,652 MW 14% market share Chile Output 2009: 11,955 GWh #1 5,650 MW 37% market share Output 2009: 22,239 GWh Total Generation Consolidated installed capacity: 13,864 MW (including Brazil): 14,851 MW Data as of December 2009 Market shares based on installed capacity Consolidated energy sales: 59,859 GWh 04 endesachileirpresentation
Index Who is Endesa Chile? Operational aspects Financial aspects Where are we heading to? 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 Dec. 2009 Argentina Chile Colombia Peru 15% 17% 28% 42% 53% 29% 49% 56% 83% 19% 9% Regulated Unregulated Spot 06 endesachileirpresentation
operationalaspects Summary of consolidated results FY FY 2009 FY Ch$ Million % Var. 2008 (a) US$ m 2009 (a) -4.6% 2,536 2,419 Revenues 4,322 Operating income 874 1,017 16.3% 1,817 Operating margin 34% 42% - - 18.5% 1,061 1,257 2,246 Ebitda 44.8% Net income (b) 433 627 1,120 4.2% - 57,458 59,859 Physical sales (GWh) Main drivers: better production mix, lower generation costs and higher sales in the spot market a) 2008 and 2009 figures under IFRS (International Financial Reporting Standards ) b) Attributable to stockholders of the parent company (Endesa Chile) 07 endesachileirpresentation
operationalaspects Ebitda by country As of Dec. 2009 EBITDA by Country Peru Generation Business 9% Dec-08 Dec-09 Dec-09 Var.% Ch$ bn Ch$ bn US$ m YoY Chile 664 780 1,394 18% Colombia 23% Chile Argentina 58 66 117 13% 63% Colombia 247 287 513 16% Peru 88 114 204 30% Total 1,057 1,247 2,229 18% Argentina This Ebitda differs from consolidated Ebitda as it only considers the 5% generation business. 08 endesachileirpresentation
operationalaspects Operations in Chile and Colombia Chile Gen. mix 2009 vs. 2008 Dec. Var. Dec. 2009 Dec. Ch$ Million 2009 % US$ m 2008 94 49 7,453 7,319 Ebitda 664 780 17.6% 1,394 14,826 13,765 Ebitda margin 41% 57% - - 2008 2009 Physical sales 21,532 22,327 3.7% - (GWh) Hydro Thermal NCRE Colombia Gen. mix 2009 vs. 2008 Dec. Var. Dec. 2009 Dec. Ch$ Million 2009 % US$ m 2008 503 974 Ebitda 247 287 16.1% 513 12,403 11,700 Ebitda margin 62% 57% - - 2008 2009 Physical sales 16,368 16,806 2.7% - Hydro Thermal (GWh) 09 endesachileirpresentation
operationalaspects Operations in Peru and Argentina Peru Gen. mix 2009 vs. 2008 Dec. Var. Dec. 2009 Dec. Ch$ Million 2009 % US$ m 2008 3,599 3,913 Ebitda 88 114 29.8% 204 4,564 4,189 Ebitda margin 42% 53% - - 2008 2009 Physical sales 8,461 8,321 -1.7% - Hydro Thermal (GWh) Argentina Gen. mix 2009 vs. 2008 Dec. Var. Dec. 2009 Dec. Ch$ Million 2009 % US$ m 2008 8,172 Ebitda 58 66 13.2% 117 8,540 3,783 1,940 Ebitda margin 20% 22% - - 2008 2009 Physical sales Hydro Thermal 11,098 12,405 11.8% - (GWh) 10 endesachileirpresentation
Index Who is Endesa Chile? Operational aspects Financial aspects Where are we heading to? Conclusions 11 endesachileirpresentation
financialaspects Strong financial position Debt by Type Net Debt Evolution Others, 5,000 453 Banks, 1,073 3,833 4,000 3,719 3,612 3,292 3,239 3,000 US$ m Local Bonds, 2,000 1,729 Yankee Bonds, 917 1,000 Total gross debt: US$4.2 billion - Debt by Currency 2005 2006 2007 2008 2009 Local As of Dec. 2009, total liquidity position in Chile reached nearly US$ 700 currency 26% million, including cash and cash equivalents and committed credit lines. US$ 51% Liquidity position enhanced with successful 20-year US$ 340 million local bond issuance in Dec-08 and the subscription of a US$ 100 million local revolving facility in Dec-09. Endesa Chile has ring- fenced its Yankee Bonds’ and Local Bonds’; cross UF-Ch$ default clauses only referenced to Endesa Chile and its Chilean 23% subsidiaries. 12 endesachileirpresentation
financialaspects Comfortable debt maturity (US$ million) 2010 2011 2012 2013 2014 Balance TOTAL Chile 351 216 38 416 216 1,303 2,539 Argentina 102 102 39 25 28 295 Perú 72 58 130 48 45 109 462 Colombia 78 117 149 69 461 876 TOTAL 603 493 355 488 358 1,874 4,172 Financial Debt by Country Argentina 7% Peru 11% Chile Colombia 61% 21% Figures as of Dec. 2009. 13 endesachileirpresentation
financialaspects Recurrent growth of Endesa Chile’s financials EBITDA (US$ m) Net income (US$ m) CAGR 05’ - 09’: + 19% CAGR 05’ - 09’: + 51% 1,120 834 2,246 2,042 1,540 1,279 389 1,105 329 216 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 (*) Data as of December 2009 14 endesachileirpresentation
financialaspects Strong financial ratios Net debt/EBITDA 3 2.5 2.8x 2.5x 2 1.5 1.6x Endesa Chile‘s 1.5x 1 investment grade status restored 0.5 0 2006 2007 2008 2009 EBITDA/Net financial expenses 9 7.7x 8 6.5x 7 5.0x 6 5 4 4.3x Endesa Chile’s 3 investment grade 2 status restored 1 0 2006 2007 2008 2009 15 endesachileirpresentation
financialaspects Credit Risk Agencies recognition Date: Jul. 2007 Date: Jan. 2010 Date: Jan. 2010 Date: Dec. 2006 Date: Feb. 2010 AA AA- Baa3 BBB+ BBB+ BBB AA- 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 16 endesachileirpresentation
financialaspects Attractive return to shareholders 274 862 +21% Dividends (MMUS$) 227 207 93 61 2004 2005 2006 2007 2008 Total Payout ratio 50% 50% 50% 60% 40% Market Cap (1) 13,954 CAGR = 23% (MMUS$) 10,393 10,072 9,428 8,322 4,944 2004 2005 2006 2007 2008 2009 Values calculated in dollars at the end of each period. (1) Source: Bloomberg 17 endesachileirpresentation
whereareweheading? Who is Endesa Chile? Operational aspects Financial aspects Where are we heading to? Conclusions 18 endesachileirpresentation
whereareweheading? Assuring supply of long-term demand Percentage (%) Electricity Demand 200.0 (CAGR past 10 years) Electricity Demand Growth Peru Chile » Peru: 6.8% 170.0 Argentina » Chile: 5.2% Brazil 140.0 » Argentina: Colombia 4.2% » Brazil: 110.0 3.1% » Colombia: 3.1% 80.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1998: base 100% Considerations Endesa Chile is a long-term player in every market where it participates. There is still room for growth in the region. The electricity industry has to be ready to face the recovery of electricity demand. Regulations incentive investments to meet long-term electricity demand. 19 endesachileirpresentation
whereareweheading? Assuring supply of long-term demand In terms of population (1) In terms of consumption (2) Central & South América 72 World T otal 125% 22 Peru North America 30 Colombia 120% Asia 78 Chile 51 Brazil 115% 79 Argentina 335 United States 110% 179 Japan 56 China 105% Europe 162 United Kingdom 161 100% Spain 177 Germany 2006 2010 2015 2020 2025 2030 181 France (1) Source: Energy Information Administration 2009; (2) Energy Information Administration, MM BTU p/p 20 endesachileirpresentation
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