Endesa Chile IR presentation. As of June 2012

Transcription

1 Endesa Chile IR presentation As of June 2012

2 Our company Multinational electricity generation company based in Chile Vast experience, with over 69 years of history Efficient and diversified investment portfolio of generation assets Conservative commercial policy leading to revenue and margin stability Part of an important worldwide electricity group (Enel, Endesa, Enersis) Among the most actively traded companies in Chilean stock markets 2

3 Ownership Structure 92% 4% 17% 4% 61% 15% 60% 60% ENERSIS Chilean Pension Funds ADR Holders Other Inst Shareholders Minority Shareholders PEHUENCHE 93% CELTA 100% SAN ISIDRO 96% ENDESA ECO 100% CANELA 75% EMGESA 27% EDEGEL 62% COSTANERA 70% EL CHOCON 65% ENDESA BRASIL 39% AMPLA COELCE FORTALEZA CDSA CIEN 3

4 A unique portfolio in LATAM s Generation business Colombia No. 2 2,914 MW inst. capacity 20% market share Brazil 987 MW inst. capacity 1% market share in generation Peru No. 1 1,668 MW inst. capacity 26% market share Chile No. 1 5,612 MW inst. capacity 32% market share Argentina No. 1 3,652 MW inst. capacity 12% market share Market shares based on installed capacity Figures as of June 2012 Consolidated installed capacity: Capacity including Brazil: Consolidated energy sales 2011: Consolidated energy sales 1H2012: 13,845 MW 14,832 MW 58,012 GWh 28,998 GWh 4

5 Results affected by the drought in Chile and high fuel costs Million Ch$ 1H H 2011 Change MM US$ * 1H 2012 Revenues 1,155,422 1,176,178 (2%) 2,345 Gross margin 469, ,733 (7%) 952 EBITDA 363, ,597 (6%) 739 EBIT 270, ,621 (11%) 550 Net financial expense (65,700) (62,080) (6%) (133) Net income 174, ,772 (18%) 354 Net attibutable income 101, ,726 (37%) 206 Higher physical sales in Colombia, Chile and Peru. Costs increased as a consequence of higher fuel costs in Chile, Colombia and Peru, and higher transportation costs in Chile. Non-recurrence of a one-time effect of the equity tax reform in Colombia which implied booking a total amount of US$87 million* during the first half of Non-recurrence of a one-time effect on payroll expenses recorded in June 2011 in Peru, which implied booking a one-time benefit on payroll expenses of US$27 million*. Related company results decreased by 6.8% due to lower results in Endesa Brasil, mainly related to higher net financial expenses. *Amounts are expressed in US$, using the average exchange rate for each period. 5

6 EBITDA Generation Total Installed Capacity: 13,845 MW Total Generation (TTM): 53,564 GWh Argentina 26% Peru 12% Colombia 21% Chile 41% EBITDA 1H2012 TTM: US$ million Peru 17% Argentina 20% Colombia 24% Chile 39% Argentina 3% Peru 15% Chile 45% Endesa Brasil Endesa Chile s ownership: 40% (38.9% direct) Net Attributable Income (TTM): US$ 224 million Colombia 37% 6

7 Conservative Commercial Policy Physical Sales as of June 2012 Endesa Chile IR presentation 1H 2012 Chile Colombia Peru Argentina 3% 6% 17% 30% 27% 67% 19% 54% 29% 65% 83% Regulated Unregulated Spot Physical Sales as of June % Chile Colombia Peru Argentina 1% 9% 17% 30% 66% 50% 26% 65% 83% 20% Regulated Unregulated Spot 7

8 Strong Financial Position Million Ch$ 1H H 2011 Chg. Chg % MM US$ 1H2012 Gross Debt 1,974,825 2,142,355 (167,530) (8%) 3,935 Cash & Equivalents 165, ,581 (64,381) (28%) 329 Net Debt 1,809,625 1,912,774 (103,149) (5%) 3,606 Leverage (0.01) (1%) 0.93 Financial Expenses Coverage (1.63) (30%) 4.5 Debt by Country Debt by Type Debt by Currency Peru, 9% Others, 17% UF, 13% Local Currency, 35% Colombia, 30% Chile, 53% Bank Debt, 16% Argentina, 7% Bonds, 68% US$, 52% Amounts expressed in US$, using the exchange rate as of June 30,

9 Free Cash Flow 2,248 2,098 2,014 1,929 1,070 1, (305) (235)(251)(260) (564) (499)(549) (477) (308)(353) (435)(416) (394) (523) (462) EBITDA Net Financial Result CAPEX Income Tax FCF Dividends H2012 TTM 1 Amounts are expressed in US$, using the average exchange rate for each period. 1 Over Trail Twelve Months 9

10 Total Sales in GWh (% growth) Endesa Chile IR presentation 1H 2012 Electricity demand Evolution in LATAM Historic electricity demand growth (CAGR, last ten years) 180% 170% 160% 150% 140% 5.4% 5.3% 4.4% 3.6% 130% 120% 2.4% 110% 100% 90% 80% Years * *: Estimated growth using 1H2012 CHILE COLOMBIA PERU ARGENTINA BRAZIL 10

11 Electricity consumption, per cápita (Kwh per year) Endesa Chile IR presentation 1H 2012 Direct relation between GDP and electricity demand FINLAND CANADA UNITED STATES AUSTRALIA INDIA BOLIVIA CHINA PERU COLOMBIA RUSSIA CHILE ARGENTINA BRAZIL MEXICO SPAIN ITALY GREECE JAPAN FRANCE GERMANY UNITED KINGDOM Internal elaboration. Data source: International Energy Agency (EIA) and The World Bank. Income per person (Fixed PPP $) IRELAND AUSTRIA 11

12 Competitive tariffs Final tariff to customers 1 as of December Ceará Río de Janeiro Bogotá Santiago Lima Buenos Aires Latam Average Dx Gx & Tx 1 US$/MWh. Reference values. Taxes not included. 12

13 Río Magdalena Projects Under Construction BOCAMINA II Location: Next to the existing coal-fired plant Bocamina, in Bío-Bío region. Installed capacity: 350 MW, coal fired. Estimated investment: US$ 841 million 1H 2012, Test on boiler burners and blowing steam pipe finished. Commercial start-up in 2H EL QUIMBO Vertedero Location: Huila Department, upstream of Emgesa s Betania plant. Installed capacity: 400 MW, hydro. Estimated investment: US$ 837 million In 2009 the environmental license and building permissions were granted River detour completed in March 2012 Estimated start-up: December 2014 Casa de máquinas 400 MW Presa h = 151 m Embalse 720 msnm Conducción Bocatoma Túnel de desviación Dique 13

14 Projects Under Study Los Cóndores, hydro power plant Installed capacity: 150 MW Neltume, hydro run-of-the-river plant Installed capacity: 490 MW Punta Alcalde, coal-steam power plant Installed capacity: 740 MW 1 Curibamba, hydro power plant Installed capacity: 188 MW Hydroaysén, hydro power plant Installed capacity: 2,750 MW 1 EIA rejected. On appeal to the Ministers Committee. 14

15 HidroAysén Endesa Chile IR presentation 1H 2012 Installed capacity: 2,750 MW. One of the most efficient hydroelectric projects in the world. Renewable resources Endesa Chile owns 51% and Colbún 49%. CO 2 emissions: Reduction of 16.2 million tons/year Average load factor: 77% May 9, 2011: EIA was approved for the Generation Plants. June 2011: Pto Montt Court of Appeals issued an injunction, leaving the resolution in state of abeyance. April 2012: The Supreme Court of Justice rescinded seven protection requirements presented to stop the construction of the project. GWh / year-km Energy / Flooded Surface The Chilean Government should present the Electric Highway project in 2H

16 Water Flow [ m³/s] Endesa Chile IR presentation 1H 2012 Seasonal Streaming from Hidroaysen and SIC rivers 1,400 1,200 1,000 1,400 1,200 1, Apr-10 may jun jul ago sep oct nov dec Jan-11 feb mar Timeline MAIPO RIVER IN CABIMBAO BIOBIO RIVER IN RUCALHUE MAULE IN ARMERILLO (R.N.) CENTRAL BAKER 2 CENTRAL PASCUA Seasonal Variability Annual Variability SIC : 23% SIC : 21% SIC + Hidroaysen : 9% SIC + Hidroaysen : 12% 16

17 Hidroaysen Technical information Endesa Chile IR presentation 1H km Power Plants Zone HVDC Land Line HVDC Submarine Line 160 km 640 km 17

18 Market Value and Dividends 1 EBITDA (US$ Million) Dividends (Ch$ per Share) 3 Dividend Yield: 3.2% H 2012 TTM Market Value (US$ Million) H 2012 Source: Intern using Bloomberg 1 Amounts expressed in US$, using the average exchange rate for each period. 2 Amounts expressed in US$, using the last exchange rate for each period. 3 As of June 30,

19 Endesa Chile s Investor Relations Team Susana Rey Investor Relations Director (56-2) susana.rey@endesa.cl Catalina Gonzalez Head of Investor Relations (56-2) cbgs@endesa.cl Juan Pablo Vicuña Investor Relations Executive (56-2) jpvp@endesa.cl Guillermo Berguecio Investor Relations Executive (56-2) gabb@endesa.cl Contact us at: ir@endesa.cl 19

20 EXHIBITS 20

21 Highlights in 1H 2012 Growth of 6% in electricity demand in the region Growth of 3.1% in consolidated generation due to 13% more hydro generation in Colombia and Chile Growth of 1.9% in physical sales on a consolidated basis Increase of 2.2% in operating costs, primarily as a consequence of higher fuel costs in Chile, Colombia and Peru, and higher transportation costs in Chile Good results in Colombia, mainly related to higher hydro generation in the period. Non-recurring accounting effects in Colombia and Peru in the first half

22 Analysis by country - Colombia Installed Capacity: 2,914 MW Market Share: 20% Total Generation: 6,396 Gwh EMGESA Guavio: 1,213 MW Betania: 541 MW Río Bogotá: 716 MW 85% Hydro 2,471 MW Cartagena Cartagena: 208 MW Termozipa: 236 MW 15% Thermal 444 MW Bogotá Million US$ 1H H 2011 Change Revenues % EBITDA % EBITDA Margin 65.3% 50.0% 31% Physical Sales (Gwh) 7,719 7,224 7% 22

23 Analysis by country - Chile Installed Capacity: 5,611 MW Market Share: 32% Total Generation: 9,554 Gwh ENDESA CHILE Tarapaca Los Molles: 18 MW D. Almagro Taltal Rapel-Sauzal: 466 MW Maule: 884 MW Laja: 940 MW Ralco-Pangue: 1,157 MW Tarapaca-G.Atacama: 572 MW D. Almagro Taltal: 269 MW Huasco: 64 MW San Isidro 1 and 2: 778 MW 62% Hydro 3,465 MW 37% Thermal 2,068 MW Huasco San Isidro Bocamina Los Molles Santiago Cachapoal Maule Laja Bio Bio Bocamina: 128 MW TG Quintero: 257 MW Canela: Canela II: 18 MW 60 MW 1% Wind 78 MW Million US$ 1H H 2011 Change Revenues 1,136 1,269 (10%) EBITDA (40%) EBITDA Margin 18.1% 27.3% (33%) Physical Sales (Gwh) 10,409 10,169 2% 23

24 Analysis by country - Peru Installed Capacity: 1,668 MW Market Share: 26% Total Generation: 4,463 Gwh EDEGEL Cuenca Río Rímac: 552 MW Yanango: 43 MW Chimay: 151 MW 45% Hydro 747 MW Ventanilla: 493 MW Santa Rosa: 429 MW 55% Thermal 922 MW Million US$ 1H H 2011 Change Revenues % Lima: Edegel (Gx) EBITDA (4%) EBITDA Margin 50.7% 65.0% (22%) Physical Sales (Gwh) 4,835 4,746 2% 24

25 Analysis by country - Argentina Installed Capacity: 3,652 MW Market Share: 12% Total Generation: 5,758 Gwh El Chocon: 1,328 MW EL CHOCON Hydro 1,328 MW Million US$ 1H H 2011 Change Revenues % EBITDA % EBITDA Margin 56.0% 53.2% 5% Physical Sales (Gwh) 1,498 1,395 7% CIEN Line (2x1.050 MW) Interconnection with Brazil Costanera: 2,324 MW COSTANERA Thermal 2,324 MW El Chocon Costanera Million US$ 1H H 2011 Change Revenues (13%) EBITDA (2) 29 (105%) EBITDA Margin (0%) 7.9% (106%) Physical Sales (Gwh) 4,537 4,919 (8%) 25

26 Analysis by country - Brazil Installed Capacity: 987 MW Market Share: 1% Total Generation: 2,371 Gwh CACHOEIRA Cachoeira: 665 MW Hydro 665 MW Fortaleza Million US$ 1H H 2011 Change Revenues % EBITDA % EBITDA Margin 69.4% 73.7% (6%) Cachoeira Rio de Janeiro Physical Sales (Gwh) 2,145 1,792 20% Fortaleza: 322 MW FORTALEZA Thermal 322 MW CIEN 1 : Transmission Brazil-Argentina Interconnection Two 500 Km lines Total interconnection capacity: 2,100 MW Million US$ 1H H 2011 Change Revenues % EBITDA (1%) EBITDA Margin 41.9% 46% (8%) Million US$ 1H H 2011 Change Revenues % EBITDA % EBITDA Margin 69.2% 64.1% 8% Physical Sales (Gwh) 1,399 1,334 5% 1 Includes CIEN, CTM and TESA 26

27 Customers Installed Capacity, Output MW as of 1H 2012 Chile Brazil Peru Colombia Argentina Total Total 5, ,668 2,914 3,652 14,832 Hydro 3, ,471 1,328 8,666 Installed Capacity Nuclear Coal Oil-Gas 1, ,324 5,559 CHP / Renewables GWh as of 1H 2012 chg. Vs. 1H 2011 Chile Brazil Peru Colombia Argentina Total Total 9, % 2, % 4, % 6, % 5, % 28, % Output Hydro 5, % 1, % 2, % 6, % 1, % 17, % Nuclear Coal % % % Oil-Gas 3, % % 1, % % 4, % 10, % CHP / Renewables % % 27

28 Healthy Debt Profile Financial Debt US$ Million Balance TOTAL Chile ,094 Argentina Perú Colombia ,192 TOTAL ,965 3,935 Credit Risk Ratings Since: Jan Apr Feb BBB+ Baa2 BBB+ Affirmed: Jan 2012 Jun 2012 May

29 Principal Financial Ratios Net debt/ebitda 1 EBITDA/Net financial expenses H H 2012 Endesa Chile 1H H 2011 Financial Expense Coverage ROE (%) 15.7% 21.0% ROA (%) 8.6% 10.0% 1 EBITDA and Net Financial Expenses are over Trail Twelve Months 2 EBITDA / (Financial expenses + Income (Loss) for indexed assets and liabilities + Foreign currency exchange differences, net) 29

30 Relative Frequency Endesa Chile IR presentation 1H 2012 Integrated risk management capability Risk variables affecting margins Output and sales targets for future years Rainfall Growth in demand Fuel prices Exchange rates Inflation Extreme hydro volatility 100% Spot Hydro Risk limit Real margin 0.9x expected margin Thermal 75% Regulated and unregulated contracts Our goal is to ensure a 95% reliability with a margin of at least 90% of budget even in the following scenarios: Lower rainfall than historical levels Increases in fuel prices Higher growth in demand Target output Results MaR 95% Target sales 5% MMUS$ 30

31 Generación, TWh Generación, TWh Endesa Chile IR presentation 1H 2012 Operational Costo Operacional Cost, US$/MWh, US$/MWh Operational Costo operacional Cost, US$/MWh, Generation, TWh Generation, TWh WET WET Low generation costs at any Hydro Scenario in Chile (SIC) Mini Hydro Generación Generation SIC abr/12-mar/13 SIC Pasada Embalse Damn Carbón Coal Gas Diesel Otros Others Falla Fails Embalse+Pasada Total Hydro Cost. Op. Oper. Cost Generación Generation Endesa Endesa abr/12-mar/13 Chile DRY DRY Mini Hydro Pasada Embalse Damn Carbón Coal Gas Diesel Otros Others Falla Embalse+Pasada Cost. Oper. Gas Fails Total Hydro Op. Cost 31

32 Contribution Margin (MMUS$) Endesa Chile IR presentation 1H 2012 Effective Commercial Policy in the long term Correlation between Hydrology and Contribution Margin Q Q10 2Q12 1Q12 2Q Q Q Q12 1Q12 2Q % WET 40% 50% 60% 70% 80% 90% DRY 100% Exceedance Probability Contribution Margin (MMUSD) Endesa Chile; Consolidated Lineal (Contribution Margin (MMUSD) Endesa Chile; Consolidated) Contribution Margin (MMUSD) Endesa Chile; Chile Lineal (Contribution Margin (MMUSD) Endesa Chile; Chile) 32

33 Relevant Stock Presence USA Stock Market NYSE (US$) Price 1H 2012 TTM (Avg) 49.3 Max 1H 2012 TTM 57.6 Min 1H 2012 TTM 40.6 Daily Avg Trans Vol (million ADR) 0.14 Avg Daily Trans (US$ millions traded) 6.65 Spain Stock Market LATIBEX ( ) Price 1H 2012 TTM (Avg) 1.2 Max 1H 2012 TTM 1.4 Min 1H 2012 TTM 1.0 Daily Avg Trans Vol (million shares) 0.01 Avg Daily Trans ( millions traded) 0.02 Chilean Stock Market BOLSA DE SANTIAGO (CLP) Price 1H2012 TTM (Avg) Max 1H Min 1H Daily Avg Trans Vol (million shares) 5.15 Avg Daily Trans (CLP millions traded) 4,142.3 Source: Intern, using Bloomberg 33

34 Corporate Governance Excellence LATIN AMERICA S INVESTOR RELATIONS AWARDS LIRA 2011 Best Communication of Corporate Governance: 1st Place Best Communication of Financial Results: 1st Place Best Investor Relations Officer: 3rd Place Best Investor Relations Department: 3rd Place 34

35 Disclaimer 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 Endesa Chile and its management with respect to, among other things: (1) Endesa Chile business plans; (2) Endesa Chile costreduction plans; (3) trends affecting Endesa Chile 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 Endesa Chile or its subsidiaries. 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 Endesa Chile Annual Report on Form 20-F. Readers are cautioned not to place undue reliance on those forward-looking statements, which state only as of their dates. Endesa while undertakes no obligation to release publicly the result of any revisions to these forwardlooking statements. 35

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