Presentation to Investors May, 2006

Transcription

1 Presentation to Investors May, 26 Business Structure Distribution (Dx) US$ 1.5 billion assets 48% of total EBITDA* > 11.3 million clients 61 % Generation (Gx) US$ 9.5 billion assets 51% of total EBITDA* > 12,882 MW Inst. Capacity 6 % Interconnections & Related Business (Ox) * Calculated on a TTM basis as of March 26 2

2 Simplified Corporate Structure 3 Our core business: We deliver electricity to over 11 million clients Assets strategically located in cities with high growth demand Strong demand provides cash flow stability Vast experience in regulated markets About 3% of sustained annual growth in new clients 4

3 Our core business: We generated more than 13, GWh in 1Q6 High level operating standards Proper mix of hydro and thermal facilities Flexible and prudent commercial policy High growth in demand reduce risk investments 5 Asset Diversification Enersis Total Assets: US$2 billion Gx business Chile 42% Colombia 26% Peru 13% Argentina 12% Brazil 7% Brazil Chile Colombia Argentina Peru Dx business 48% 18% 16% 12% 6% Total 1% Total 1% Chile 29% Argentina 12% Peru 1% Enersis assets by country Colombia 2% Brasil 29% 6

4 Our unique portfolio PERU Sales in Dx: 1,29 GWh 22% Market Share in Dx Increase in demand (Dx): 9.7% Installed Capacity: 969 MW 25% of Peru sales in Gx LATIN AMERICA Sales 1Q 26 (GWh): 14,363 Average increase in demand: 6.5% Total Clients Dx: >11 million Installed Capacity: 12,882 MW Number of Plants: 46 BRAZIL Sales in Dx: 3,94 GWh 5% of Market Share in Dx Increase in demand (Dx): 7.5% Installed Capacity: 977 MW 1% of Brazil sales in Gx COLOMBIA Sales in Dx: 2,545 GWh 14% Market share in Dx Increase in demand (Dx): 6.7% Installed Capacity: 2,837 MW 21% of Colombia sales in Gx CHILE Sales in Dx: 3,5 GWh 44% Market share in Dx Increase in demand (Dx): 6.4 % Installed Capacity: 4,477 MW 38% of Chile sales in Gx ARGENTINA Sales in Dx: 3,664 GWh 17% of Market Share in Dx Increase in demand (Dx): 4.2% Installed Capacity: 3,623 MW 14% of Argentina sales in Gx All figures as of March 26 Source: Enersis 7 Main issues in Chile Distribution (Chilectra, Santiago) 6.4% demand growth Very efficient: energy losses level at 5% No debt with third parties Energy auctions for long term contracts started Generation (Endesa Chile) Higher and more realistic prices Energy demand increased 6.6% in SIC during 1Q6 Ideal hydrology level for 26 due to good rainfall conditions in 25 8

5 Main issues in Brazil Distribution (Ampla, Rio de Janeiro & Coelce, Ceara) Tariff increased, Ampla by 2.9% (March-6) and for Coelce by 1.1% (Apr-6) Physical sales grew by 1.7% in Ampla and 3.3% in Coelce Successful development of DAT program in both companies to control energy losses Client base grew 4.8% in Ampla and 4.2% in Coelce Generation & Transmission (Cachoeira Dourada, Endesa Fortaleza, CIEN) 8.2% increase Cachoeira Dourada in operating income in Good hydrological conditions in 26 9 Endesa Brasil 61,5%* Endesa Internacional(1) 6,6% Enersis 62,5%* 59,9% 33,6%* 23,7% 98,2% 23,5% Endesa Chile 19,2%* Chilectra Endesa Brasil 1,% 1,% 99,6% 2,3% 63,6% 91,9% Investluz 36,4% * Direct and indirect participation 56,6% (1) Subsidiary of Endesa Spain 1

6 Main issues in Argentina Distribution (Edesur, Buenos Aires) 69.6% increase in operating income Up to 28% increase in VAD 4.2% physical sales growth Tariff Revision process in August 26 Generation (Endesa Costanera, El Chocón) 7.% reduction in operating costs in Costanera El Chocón is at its high-water level and is a net seller in the spot market Agreement with authorities to build two 8 MW combined cycle plants (FONINVEMEM) 11 Main issues in Colombia Distribution (Codensa, Bogota) 6.7% physical sales growth Energy losses below 1% High cash flow generation Stable growth in demand Generation (Emgesa and Betania) Energy demand increase of 4.3% during 1Q6 Announced merger between Emgesa and Betania On March 2 nd, Emgesa began to operate Termocartagena Thermal Plant 12

7 Main issues in Peru Distribution (Edelnor, Lima) 9.7% physical sales increase Sustained energy losses control (8.5%) Tariffs remain stable Generation (Edegel) Energy demand increase 8.2% during 1Q6 Future merger between Edegel and Etevensa allows to maintain 33% of the market Energy purchases decrease by 3% due to an adequate commercial policy and improved hydrology 13 Regulatory Framework in Distribution Chile Argentina Colombia Peru Brazil Return 1% ROA % WACC 12% ROA 17% WACC Tariff period 4 years years 4 years 4-5 years Coelce-Ampla Last setting Nov % Nov % VAD Aug % Nov. 5 unchanged Apr. & Dec % % Indexed Monthly by CPI, Copper, US$, IPM Monthly by CPI Monthly by CPI, Copper, US$, Al. *Yearlyby CPI, CVA Reg. Entities CNE, SEC ENRE CREG OSINERG ANEEL Presid. Elections January 26 April 27 May 26 April 26 October 26 * Last annual revision: Coelce +1.1% (april 26) & Ampla +2.9% (march 26) 14

8 Upcoming Tariff Revisions (Nov.) (Apr.) (Aug.) (Nov.) (Aug.) (Dec.) 15 Financial View 16

9 Operating Results (US$ Million)* Op. Revenues Op. Costs (416) (598) Op. Margin (%) 34% 1Q2 1Q3 1Q4 1Q5 1,97 (769) 328 1,361 (945) % 3% 3% 31% 1Q6 1,76 (1,151) 69 34% Op. Income US$ Million CAGR 22,7% (22 1Q6) CAGR 24,7% (22 1Q6) - 1Q2 1Q3 1Q4 1Q5 1Q6 (*) According to consolidated financial statements, in historic US$ as of each period 17 Solid and balanced EBITDA Structure 12M* Generation Distribution Other TOTAL Argentina Brazil Chile Colombia Peru Total EBITDA 1,211 1, ,37 3M Generation Distribution Other TOTAL Argentina Brazil Chile Colombia Peru Total EBITDA Note: Figures in US$ Million; (*) Data calculated on TTM basis as of March, 26 18

10 Important growth in our cash position Million US$* 1Q 5 1Q 6 8% Increase in FCF** (146) (111) (113) (98) (212) EBITDA Net Int. Expense Capex Taxes Free Cash Flow (*) Exchange rate as of March 26; (**) Free Cash Flow 19 Sound and responsible use of our FCF Free Cash Flow Available Resources Investments Debt Reduction Dividends 2

11 Forecasted Investments* (26 21) US$ Million Generation Distribution Others Total Chile Peru Argentina Brazil 8 1, ,396 Colombia Total 51 2, ,274 Source: Enersis (*) Maintainance Capex 21 Debt Structure (Third Parties) Enersis Parent Company Debt Other Gx Enersis * Banks 65 Yankee Bonds 1.83 Local Bonds 67 Total (US$ Million) Other Dx * Parent Company Endesa Chile * Endesa Chile Parent Company Debt Banks 312 Yankee Bonds Local Bonds 548 Total (US$ Million) Financial debt by currency Mar.26 Enersis Financial Debt Maturity (with third parties) Total Enersis Cons.: US$ 6,894 million 29% 48% 23% US$ UF - Ch$ Other US$ Millions 3, 2, 1, 2,718 1, , Balance All figures as of March 26 22

12 Important Debt Reduction US Million$ (*) Q6 Forecast 21 * In historic US$ of each year 23 Improved Financial Ratios (*) Times 7, 6, 6,39 Million. of Ch$ , 4, 3, 2, 3,99 3,91 3,56 3,34 2,83 2,27 2,23 2,87 2, Q Fin. Debt/EBITDA EBITDA/Interest Expenses Fin. Debt (*) Figures calculated on a TTM basis 24

13 Outperforming Stock 8 15, N of ADR's (Th.) , 11, 9, 7, 5, Price Strong liquidity of our stock 2 3, Ene-4 Mar-4 May-4 Jul-4 Sep-4 Nov-4 Ene-5 Mar-5 May-5 Jul-5 Sep-5 Nov-5 Ene-6 Mar-6 Daily Average Volume Adr Price (US$) 94% increase in Market Cap. during the last 2 years Ene-4 Feb-4 Mar-4 Abr-4 May-4 Jun-4 Jul-4 Ago-4 Sep-4 Oct-4 Nov-4 Dic-4 Ene-5 Feb-5 Mar-5 Abr-5 May-5 Jun-5 Jul-5 Ago-5 Sep-5 Oct-5 Nov-5 Dic-5 Ene-6 Feb-6 Mar-6 25 Enersis, looking ahead 26

14 Ample room for sustained growth Average Consumption in our countries of operation 1,68 KWh per capita Average Consumption in developed countries 9,9 KWh per capita Source: CIA World Factbook, December Strong demand in our countries of operation Distribution Generation 6.5% 13,493 GWh ,363 GWh % 14,459* GWh 14,319 GWh Q5 1Q6 1Q5 1Q6 (*) Includes 1Q6 sales of Endesa Fortaleza (663 GWh) due to its consolidation since October 25 28

15 Strong and sustained natural growth Industrial (Th.) Commercial Mar-6 Number of clients in Dx Residential 29 What s Ahead... CHILE San Isidro II Plant : 377 MW of installed capacity (LNG). Estimated investment: US$2 million. Palmucho: 32 MW of installed capacity (Pass-through plant). Estimated investment: US$32 million. Aysen: 2,4 MW of installed capacity (4 Hydro plants). Estimated investment: US$2, million. Energy auctions in Chilectra for L/T contracts BRAZIL Endesa Brasil: Energy auctions, New investments, IPO. 3

16 Investor Relations Team of Enersis Susana Rey Head of Investor Relations 56 (2) Cristian Palacios Investor Relations Representative 56 (2) Marcela Muñoz Investor Relations Representative 56 (2) Ignacio Gonzalez Investor Relations Representative 56 (2) Carmen Poblete Investor Relations Representative 56 (2) Mariluz Muñoz Investor Relations Assistant 56 (2) This presentation contains statements that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of These statements appear in a number of places in this announcement and include statements regarding the intent, belief or current expectations of Enersis and its management with respect to, among other things: (1) Enersis business plans; (2) Enersis cost-reduction plans; (3) trends affecting Enersis financial condition or results of operations, including market trends in the electricity sector in Chile or elsewhere; (4) supervision and regulation of the electricity sector in Chile or elsewhere; and (5) the future effect of any changes in the laws and regulations applicable to Enersis or its affiliates. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of various factors. These factors include a decline in the equity capital markets of the United States or Chile, an increase in the market rates of interest in the United States or elsewhere, adverse decisions by government regulators in Chile or elsewhere and other factors described in Enersis Annual Report on Form 2-F. Readers are cautioned not to place undue reliance on those forward-looking statements, which state only as of their dates. Enersis undertakes no obligation to release publicly the result of any revisions to these forward-looking statements.