Endesa Chile IR Presentation. As of December 2011

Transcription

1 Endesa Chile IR Presentation As of December 2011

2 Our company Multinational electricity generation company based in Chile Vast experience, with over 68 years of history Leading position in most of the countries where it operates 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 S.A, Enersis) Among the most actively traded companies in Chilean stock markets 2

3 Ownership Structure 4% 92% 17% 4% 61% 60% 15% 60% ENERSIS ADR Holders Minority Shareholders Chilean Pension Funds Other Inst Shareholders PEHUENCHE, 93% PANGUE, 95% CELTA, 100% SAN ISIDRO, 100% 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 5,611 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 December 2011 Consolidated installed capacity: Capacity including Brazil: Consolidated energy sales 2010: Consolidated energy sales 2011: 13,845 MW 14,832 MW 56,641 GWh 58,012 GWh 4

5 Results from recent years US$ Millions Change Revenues 4,326 4,773 4,972 4% Gross margin 2,580 2,438 2,455 1% EBITDA 2,248 2,098 2,014 (4%) EBIT 1,819 1,746 1,629 (7%) Net finance expenses (305) (235) (251) 7% Net income 1,381 1,342 1,202 (10%) Net attibutable income 1,121 1, (12%) Amounts are expressed in US$, using the average exchange rate for each period Results 2011: Higher physical sales in Colombia and Peru Higher costs primarily as a consequence of the drought in Chile and higher fuel cost in Argentina One time effect of Colombian equity tax (US$ 83 million) 5

6 EBITDA Generation Total Installed Capacity: 13,845 MW Total Generation: 52,766 GWh Argentina 26% Chile 41% Argentina 21% Chile 39% Peru 12% Peru 17% Colombia 21% EBITDA 2011: US$ 2,014 millions Colombia 23% Argentina 5% Peru 14% Chile 51% Affiliate Company: Endesa Brasil Endesa Chile ownership: 39% Net Attributable Income: US$ million Colombia 30% 6

7 Conservative Commercial Policy 30% Physical Sales as of December 2010 Chile Colombia Peru Argentina 7% 12% 19% 26% 63% 56% 64% 24% 18% 81% Regulated Unregulated Spot Physical Sales as of December 2011 Chile Colombia Peru Argentina 8% 9% 19% 31% 61% 30% 51% 27% 64% 81% 19% Regulated Unregulated Spot 7

8 Strong Financial Position US$ Millions Chg. Chg % Gross Debt 4,172 3,775 3,769 (5) (0.1%) Cash % Net Debt 3,291 3,062 2,958 (104) (3.4%) Leverage (0.03) (3.2%) Financial Expenses Coverage (1.73) (21.0%) Peru, 10% Argentina, 8% Debt by Country Debt by Type Others, 8% Bank Debt, 17% Debt by Currency UF-Ch, 11% Local Currency, 34% Chile, 53% Colombia, 29% Bonds, 75% US$, 55% Amounts are expressed in US$, using the average exchange rate for each period 8

9 Free Cash Flow Free Cash Flow by year ( ) (305) (235) (251) (564) (499) (549) (308) (353) (435) EBITDA Net Financial Result CAPEX Income Tax FCF Amounts are expressed in US$, using the average exchange rate for each period

10 Historic electricity demand growth 170% 160% 162% 161% 150% 146% Total Sales in GWh (%) 140% 130% 120% 110% 133% 118% 100% 90% Year CHILE COLOMBIA PERU BRAZIL ARGENTINA 10

11 Direct relation between GDP and electricity demand CANADA Electricity consumption, per cápita (Kwh) UNITED STATES AUSTRALIA JAPAN FRANCE AUSTRIA SPAIN GERMANY ITALY UNITED KINGDOM CHILE ARGENTINA MEXICO INDIA COLOMBIA PERU Income per person (Fixed PPP $) Data Source: World Energy Outlook 2010, IEA 11

12 US$/MWh Competitive tariffs Final tariff to customers as of December Latam Average Distribution (average VAD) Generation, Transmission & others Taxes not included

13 Projects Under Construction BOCAMINA II Location: Next to the existing coal-fired plant Bocamina I in Bío-Bío Region Installed capacity: 370 MW, coal fired Estimated Investment: US$ 841 millions * Estimated start-up: June, 2012 EL QUIMBO Location: Huila Department, upstream of Emgesa s Betania plant Installed capacity: 400 MW, hydro Estimated investment: US$ 837 millions * In 2009 the environmental license and building permissions were granted Estimated start-up: December 2014 Casa de máquinas 400 MW Presa h = 151 m Río Magdalena Vertedero Conducción Bocatoma Túnel de desviación Dique * US$ 1 equals Ch$ corresponding to the average exchange rate for the period Embalse 720 msnm 13

14 Portfolio Projects in Chile Los Cóndores, hydro power plant 150 MW Neltume, hydro Run-of-the-river plant 490 MW Piruquina, mini-hydro runof-the-river plant 7.6 MW Punta Alcalde, coal-steam power plant 740 MW Hydro Hydroaysen, hydro power plant 2,750 MW Thermal N.C.E.S. 14

15 Portfolio Projects in Peru & Colombia Peru Colombia Curibamba, hydro power plant 188 MW Hydro Thermal N.C.E.S. 15

16 HidroAysén One of the most efficient hydroelectric projects in the world. Renewable resources Installed capacity: 2,750 MW. Endesa Chile s 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. Energy / Flooded Surface June 2011: Puerto Montt Court of Appeals issued an injunction, leaving the resolution in state of abeyance. October 2011: The Court ruled in favor of HidroAysén, rejecting all seven protection requirements presented on June. GWh / year-km The Commission is preparing the Environmental Impact Study of the Aysén Transmission System, expected to be filed by the first half

17 Seasonal Streaming from Hidroaysen and SIC rivers 1,400 1,200 1,000 1,400 1,200 1,000 Water Flow [ m³/s] 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% 17

18 Hidroaysen Technical information km Power Plants Zone HVDC Land Line HVDC Submarine Line 160 km 640 km 18

19 Market Value and Dividends Operating Income (US$ Millions) EBITDA (US$ Millions) Market Value (US$ Millions) Dividends (Ch$xShare) * Intern Definitive Amounts are expressed in US$, using the average exchange rate for each period *Year 2011, includes only the intern dividend paid on January

20 Endesa Chile s Investor Relations Team Susana Rey Investor Relations Director (56-2) susana.rey@endesa.cl Catalina González 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 20

21 EXHIBITS 21

22 Highlights in 2011 Growth of 3% in electricity demand in the region Growth of 2% in physical sales, primarily in Peru and Colombia Growth of 4% in physical energy purchases primarily in Chile, due lower water availability Growth of 11% in fuel costs primarily in Chile and Argentina One-off net worth tax in Colombia US$83 millions* Better margins in generation in Peru and Colombia Growth of 34% in related companies results primarily due Endesa Brasil and GNL Quintero * US$ 1 equals Ch$ corresponding to the average exchange rate for the period 22

23 Analysis by country Argentina Installed Capacity: 3,652 MW Market Share: 12% El Chocón: 1,328 MW EL CHOCON 36% Hydro 1,328 MW US$ Millions Change Revenues (15.3%) EBITDA (23.6%) EBITDA Margin 60.8% 54.9% (9.6%) Physical Sales 3,361 2,888 (14.1%) CIEN Line (2x1.050 MW) Interconnection with Brazil Costanera: 2,324 MW COSTANERA 64% Thermal 2,324 MW El Chocon Costanera US$ Millions Change Revenues % EBITDA (21.7%) EBITDA Margin 8.5% 5.8% (32.3%) Physical Sales 8,018 8, % 23

24 Analysis by country Colombia Installed Capacity: 2,914 MW Market Share: 20% Guavio: MW Betania: 541 MW Río Bogotá: 716 MW Cartagena: 208 MW Termozipa: 236 MW EMGESA 85% Hydro 2,471 MW 15% Thermal 444 MW Cartagena Bogota US$ Millions Change Revenues 1,050 1,031 (1.8%) EBITDA (2.4%) EBITDA Margin 58.7% 58.3% (0.7%) Physical Sales 14,817 15,112 2% 24

25 Analysis by country Peru Installed Capacity: 1,668 MW Market Share: 26% 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 US$ Millions Change Revenues % Lima: Edegel (Gx) EBITDA % EBITDA Margin 51.4% 58.9% 14.7% Physical Sales 8,598 9, % 25

26 Analysis by country Chile Installed Capacity: 5,611 MW Market Share: 32% ENDESA CHILE Tarapacá Los Molles: 18 MW Rapel-Sauzal: Maule: Laja: 466 MW 884 MW 940 MW 61% Hydro 3,465 MW D. Almagro Taltal Huasco Ralco-Pangue: 1,157 MW Los Molles Tarapacá-G.Atacama: 572 MW D. Almagro Taltal: 269 MW Huasco: 64 MW San Isidro 1 and 2: 778 MW 37% Thermal 2,068 MW San Isidro Santiago Cachapoal Bocamina: TG Quintero: Canela: Canela II: 128 MW 257 MW 18 MW 60 MW 1% Wind 78 MW Bocamina Maule Laja Bio Bio US$ Millions Change Revenues 2,782 2,601 (6.5%) EBITDA 1,235 1,007 (18.5%) EBITDA Margin 44.4% 38.7% (12.8%) Physical Sales 21,847 22, % 26

27 Analysis by country - Brazil Installed Capacity: 987 MW Market Share: 1% Cachoeira: 665 MW CACHOEIRA 67% Hydro 665 MW US$ Millions Change Revenues % EBITDA % Fortaleza Cachoeira Rio de Janeiro EBITDA Margin 72.0% 74.0% 2.8% Physical Sales 3,833 3, % FORTALEZA CIEN: Transmission Brazil-Argentina Interconnection Fortaleza: 322 MW 33% Thermal 322 MW Two 500 Km lines Total interconnection capacity: 2,100 MW US$ Millions Change Revenues (13.9%) EBITDA (14.7%) EBITDA Margin 44.7% 44.3% (0.9%) US$ Millions Change Revenues (39.5%) EBITDA % EBITDA Margin 81.7% 141.6% 73.3% Physical Sales 2,957 2,842 (3.9%) 27

28 Customers Installed Capacity, Output Installed Capacity MW as of FY2011 Chile Colombia Brasil Perú Argentina Total Total 5,611 2, ,668 3,652 14,832 Hydro 3,456 2, ,328 8,666 Nuclear Coal Oil-Gas 1, ,324 5,557 CHP / Renewables Output GWh as of FY 2011 chg. Vs. FY2010 Chile Colombia Brasil Peru Argentina Total Total 20,722 (0.9%) 12, % 4,155(18.5%) 9, % 10,801 (1.3%) 56, % Hydro 11,874 (5.6%) 11, % 3,121 (9.0%) 4, % 2,404 (19.2%) 33,635 0% Nuclear - 0% - 0% - 0% - 0% - 0% - 0% Coal 1, % 264 (66.7%) - 0% - 0% - 0% 2, % Oil-Gas 6,854 (1.5%) 206 (3.7%) 1,033(37.9%) 4, % 8, % 21, % CHP / Renewables 173 (10%) - 0% - 0% - 0% - 0% 173 (0.0%) 28

29 Healthy Debt Profile Financial Debt US$ Millions Balance TOTAL Chile ,042 1,995 Argentina Perú Colombia ,095 TOTAL ,773 3,769 Since: Credit Risk Ratings Recognition Jan Apr Feb BBB+ Baa2 BBB+ BBB Baa3 BBB Affirmed: Jan 2012 Nov

30 Principal Financial Ratios Net debt/ebitda EBITDA/Net financial expenses 2,0 1,5 1,5 1,5 5,6 7,4 8,9 8, Endesa Chile Net Debt/ EBITDA P/U EPS* ROE (%) 24% 18.1% ROA (%) 11.2% 9.2% *Net attributable income /Total shares 30

31 Integrated risk management capability Risk variables affecting margins Target output and sales in 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 aim 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 Relative Frequency Target output 5% Results MaR 95% Target sales MMUS$ 31

32 32 Stable Results, Long Play Company Consolidated EBITDA (Quarterly) vs. Chilean SIC Hydrology 2, US$ Mllions 2,0 1,5 1,0 0, Q EBITDA 2Q EBITDA 3Q EBITDA 4Q EBITDA SIC Hydrology (GWh) Amounts are expressed in US$, using the average exchange rate for each period

33 Relevant Stock Presence USA Stock Market NYSE (US$) Price 2011 (Avg) 51.0 Max Min Daily Avg Trans Vol (million shares) Avg Daily Trans (US$ millions traded) 6.08 Spain Stock Market LATIBEX ( ) Price 2011 (Avg) 1.2 Max Min Daily Avg Trans Vol (million shares) 17.9 Avg Daily Trans ( millions traded) 0.02 Chilean Stock Market BOLSA DE SANTIAGO (CLP) Price 2011 (Avg) Max Min Daily Avg Trans Vol (million shares) 5.6 Avg Daily Trans (CLP millions traded) 4,

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