The best way to balance your investments in the growing electric sector in South America

Transcription

1 The best way to balance your investments in the growing electric sector in South America 0

2 AGENDA 1.- Introduction 2.- Fundamentals 3.- Financial Analysis 4.- Enersis future 1

3 2008: YEAR OF STOCK MARKET MELTDOWN Stock Markets performance YTD Source: Bloomberg All figures, as of December 29 th,2008 ENI 2 France Germany Spain United Kingdom China Japan United States Brazil Argentina Mexico Chile 5% -5% -15% -25% -35% -45% -55% -65%

4 2008: CREDIT CRISIS IMPACTS ECONOMIC GROWTH GDP 3Q08 growth: % change over same quarter of previous year 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% France Germany Spain United Kingdom China Japan United States Argentina Brazil Chile Colombia Peru -1% Source: Consensus Forecast, December

5 Colombia 2009: YEAR OF ECONOMIC SLOWDOWN GDP expected growth Source: Consensus Forecast, December France Germany Spain United Kingdom China Japan United States Argentina Brazil Chile Peru 8% 7% 6% 5% 4% 3% 2% 1% 0% -1% -2%

6 OUR OWNERSHIP STRUCTURE ENEL ACCIONA OTHER 67% 25% 8% ENDESA SPAIN Chilean Pension Funds ADR Holders Other Inst. Shareholders Minority Shareholders 60% 17% 11% 9% 3% ENERSIS Note: Enel & Acciona control Endesa Spain through an investment vehicle. All figures as of Dec-08 5

7 OUR BUSINESS STRUCTURE ENERSIS Distribution Generation 99 % 35 % 65 % 60 % 54 % * 42 % 39 % 54 % 70 % 22 % 34 % 54 % 53 % 16 % 20 % All figures as of Sept 08 *Transmission 6

8 GENERATION, a source of opportunities Colombia Capacity 2,895 MW Production 12,766 GWh Market Share* 21% Brazil Capacity 987 MW Production 3,772 GWh Market Share* 1% Peru Capacity 1,467 MW Production 7,975 GWh Market Share* 28% Argentina Capacity 3,644 MW Production 10,388 GWh Market Share* 14% Chile Capacity 4,893 MW Production 19,443 GWh *Installed Capacity All figures LTM, as of Sept 08 Market Share* 37% Total Capacity: 13,885 MW Total Sales: 65,884 GWh Total Assets: US$MM 10,934 7

9 DISTRIBUTION, the best provider of stability Colombia Brazil Customers 2.4 Million Sales 9,139 GWh Customers 2.2 Million Sales 11,779 GWh Peru Customers 2.8 Million Sales 7,460 GWh Argentina Customers 1 Million Sales 5,502 GWh Customers 2.2 Million Sales 16,010 GWh Chile Total Clients: 12.3 Million All figures LTM, as of Sept - 08 Customers 1.5 Million Sales 12,645 GWh Total Sales: 62,535 GWh Total Assets: US$ MM 11,993 8

10 AGENDA 1.- Introduction 2.- Fundamentals 3.- Financial Analysis 4.- Enersis future 9

11 INCREASING DEMAND World Total Primary Energy Consumption by Region, Reference Case, Quadrillion Btu OECD North America OECD Europe OECD Asia Non- OECD Europe and Eurasia Non- OECD Asia Middle East Africa Central and South America Source: Energy Information Administration 10

12 DEMAND PREDICTABILITY Chile Energy demand vs. Economic growth, Dec 2005-Sep % 150% 140% Energy Demand 130% 120% 110% 100% Economy Energy demand elasticity of 1,14. 90% Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Source: Chile Central Bank, CDEC - SIC 11

13 INCREASING CLIENTS BASE Enersis clients base per quarter, 1Q Q 2008 and projection 14,600,000 13,300,000 12,000,000 10,700,000 9,400,000 8,100,000 Source: Press Releases 12 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08e 1Q09e 2Q09e 3Q09e 4Q09e 1Q10e 2Q10e 3Q10e 4Q10e 1Q11e 2Q11e 3Q11e 4Q11e 1Q12e 2Q12e 3Q12e Number of clients 4Q12e

14 AMPLE ROOM FOR GROWTH World Per Capita Total Primary Energy Consumption, Million Btu France Germany Spain Unit ed Kingdom China Japan Unit ed States Argentina Brazil Chile Colombia Peru Source: Energy Information Administration 13

15 AGENDA 1.- Introduction 2.- Fundamentals 3.- Financial Analysis 4.- Enersis future 14

16 4. FINANCIAL ANALYSIS Adequate liquidity Easy access to capital markets Proper debt maturity Appropriate protection measures 15

17 OUR OPERATING RESULTS MM US$ Q08 LTM Operating Revenues 3,961 4,860 6,275 7,311 9,432 10,973 Operating Costs (2,782) (3,405) (4,264) (4,873) (6,367) (7,173) Gross Margin 894 1,138 1,571 2,006 2,527 3,225 Gross Margin (%) 30% 30% 32% 33% 32% 35% CAGR 46,2% 60,1% % % 27% 25% 23% 23% Q08 LTM Operating Revenues Gross Margin 30% 28% 26% 24% 22% 20% 16

18 OUR IMPROVED FINANCIALS Better Ratios: In line with investment grade companies 4,500 4,000 4, ,500 3, MM US$ 3,000 2,500 2,305 2, Times 2,000 1,500 1,576 1, , Q08 LTM EBITDA * EBITDA/Int. * / Expense Int. Expense 2.0 * EBITDA = Operating Income + Depreciation + Amortization 17

19 CONTRIBUTION OF EACH BUSINESS TO EBITDA * MM US$ Generation Distribution Other Total Argentina 113 3% 137 3% % Brasil % % (14) 1,122 27% Chile 1,135 28% 312 8% 31 1,478 36% Colombia % % % Perú 142 3% 136 3% % Ajustes Cons % Total EBITDA 2,294 56% 1,801 44% 17 4, % - All figures as of Sept - 08 * EBITDA = Operating Income + Depreciation + Amortization 18

20 ADEQUATE LIQUIDITY Cash & Cash Equivalent Versus Liquidity MM US$ 1,400 1,200 1, , , Times Q Cash and Cash Equivalent Liquidity * * Liquidity = Total Current Assets / Total Current Liabilities 19

21 EASY ACCESS TO THE CAPITAL MARKETS Cash & Cash Equivalent: US$ 1,390 million Open Credit lines (In Chile): US$ 411 million Open Credit Lines (International markets): US$ 800 million Total availability: US$ 2,601 million All figures as of Sept

22 DEBT MATURITY BY COUNTRY MM US$ EBITDA Sep 08 (LTM) 1S S 2009 Debt 2009 EBITDA/DEBT 09 Chile 1, Enersis (31) Chilectra Endesa 1, Argentina Edesur Costanera Chocon Peru Edelnor Edegel Brazil 1, Coelce Ampla Cien Fortaleza Colombia Codensa Emgesa TOTAL 4, , All figures as of Sept - 08 * EBITDA = Operating Income + Depreciation + Amortization 21

23 PROPER DEBT MATURITY BY COUNTRY MM US$ Balance TOTAL Chile ,319 3,713 Argentina Peru Brazil ,643 Colombia ,197 Consolidated 1, , ,299 7,719 All figures as of Sept

24 THE SOUND AND RESPONSIBLE USE OF OUR FCF Free Cash Flow Debt Dividends Investments has been unanimously recognized by the rating agencies 23

25 APPROPRIATE PROTECTION MEASURES Debt profile Interest Rate Structure Debt by Country Peru 10% Variable; 32% Protected; 3% Fixed; 64% $ COL 15% SOL PER 6% Currency Structure OTHERS 1% US 40% Colombia 15% Brasil 22% Argentina 5% Chile 48% REAL BRAS 21% $ CHI 1% UF 16% All figures as of Sept

26 APPROPRIATE PROTECTION MEASURES COMPANY RISK HEDGED DERIVATIVE INSTRUMENT AMOUNT (MM US$) STARTING DATE (AVERAGE) MATURITY (AVERAGE) ENERSIS RATE COLLAR Dic EXCHANGE SWAP May EDESUR RATE SWAP Dic COELCE EXCHANGE SWAP Jun EDELNOR RATE SWAP Nov ENDESA RATE COLLAR Dic EXCHANGE FORWARD Ago CHOCON RATE SWAP Jul CAM EXCHANGE FORWARD 8 19-Abr FORTALEZA RATE SWAP Jun EXCHANGE SWAP Mar EDEGEL RATE SWAP May SUB TOTAL RATE SWAP SUB TOTAL RATE COLLAR TOTAL RATE Sep SUB TOTAL EXCHANGE FORWARD SUB TOTAL EXCHANGE SWAP TOTAL EXCHANGE Sep TOTAL 1, Jun All figures as of Sept

27 AGENDA 1.- Introduction 2.- Fundamentals 3.- Financial Analysis 4.- Enersis future 26

28 4. ENERSIS FUTURE Coming investments Return to Our Shareholders and Risks Corporate Goals 27

29 FORECASTED INVESTMENTS & CAPEX MM US$ Generation Distribution Total Argentina 158 2% 658 7% 816 8% Brazil 793 8% 1,971 20% 2,764 28% Chile 3,130 31% 695 7% 3,825 38% Colombia % 774 8% 2,036 20% Peru 256 3% 302 3% 558 6% Total 5,600 56% 4,400 44% 10, % 28

30 INVESTMENTS IN GENERATION Plants Commissioned in 2007and 2008 Taltal 120 MW Chile Ojos de Agua 9 MW Chile San Isidro II 353 MW Chile Palmucho 32 MW Chile Canela 18 MW Chile Onwards Canela II 60 MW Chile LNG Plant 9.5 MM m3 Chile (Fast-track) Santa Rosa 188 MW Peru Bocamina II 370 MW Chile El Quimbo 400 MW Colombia Choshuenco 128 MW Chile Quintero 250 MW Chile Los Cóndores 150 MW Chile Neltume 473 MW Chile 29

31 INVESTMENTS IN DISTRIBUTION Addition of 400,000 to 450,000 new clients per year US$ 850 million in maintenance capex per year Demand growing at 5% in average over 6 concession areas Development of new products for our distribution clients Recovering economic scenario pushing up commercial and industrial consumption Replacement of substations, transformers, grids, new solutions Our investments are equivalent to add a new midsize company every year * EBITDA = Operating Income + Depreciation + Amortization 30

32 STRONG RETURN TO OUR SHAREHOLDERS CAGR: 22%** 2007 MM US$ 10, * MM US$ 10, MM US$ 7, MM US$ 10,406 Market Cap 2004 MM US$ 5, MM US$ 4,729 (*) as of Sept 30, 2008 (**) as of Dec 30,

33 DIVIDEND: 70% OF NET PROFITS 2007* Div. Yield: 2.5% Payout: 70% % MM US$ % MM US$ % MM US$ % MM US$ 24 (*) as of Dec 30,

34 OUR CORPORATE GOALS Solid and sustainable growth Enhance shareholders value Responsible financial management Excellence in corporate government 33

35 You are always welcome to ENERSIS, a leader in the electricity market INVESTOR RELATIONS TEAM Ricardo Alvial Investments & Risk Director ram@e.enersis.cl 56 (2) Susana Rey Head of Investor Relations srm@e.enersis.cl 56 (2) Carmen Poblete Investor Relations Representative cpt@e.enersis.cl 56 (2) Denisse Labarca Investor Relations Representative dla@e.enersis.cl 56 (2) Bárbara López Investor Relations Representative bllf@e.enersis.cl 56 (2) Cristián Del Sante Investor Relations Representative cdb@enersis.cl 56 (2) Maria Luz Muñoz Investor Relations Assistant mlmr@e.enersis.cl 56 (2)